Legal Glossary

Contract and agreement terms explained in plain language.

A

Arbitration— A private dispute resolution method where an impartial arbitrator makes a binding decision.Assignment— The transfer of contractual rights or obligations from one party to a third party.

B

Boilerplate Clauses— Standard provisions found in most contracts that address general legal matters.Breach of Contract— A violation of a contractual obligation when a party fails to perform their duties as agreed.

C

Confidentiality— The obligation to protect sensitive information from unauthorized disclosure.Consideration— Something of value exchanged between parties that makes a contract legally binding.

D

Damages— Monetary compensation awarded to a party who has suffered loss or injury due to another party's breach.

E

Escrow— An arrangement where a neutral third party holds funds or assets until specified conditions are met.

F

Fiduciary Duty— The highest legal duty of care, requiring one party to act in the best interest of another.Force Majeure— A clause that frees parties from obligations when extraordinary events beyond their control occur.

G

Governing Law— The jurisdiction's laws that will be used to interpret and enforce a contract.

H

Hold Harmless— An agreement where one party assumes liability and agrees not to hold the other party responsible for damages.

I

Indemnification— A contractual obligation where one party agrees to compensate another for losses or damages.Injunctive Relief— A court order requiring a party to do or refrain from doing a specific act.Intellectual Property (IP)— Creations of the mind protected by law, including inventions, designs, brand names, and artistic works.

L

Liability— Legal responsibility for one's actions or omissions that cause harm or loss to another party.Liquidated Damages— A predetermined amount of damages agreed upon at contract formation, payable upon breach.

N

Non-Compete Clause— A contractual provision restricting one party from competing with the other for a specified period and area.Non-Solicitation Clause— A provision preventing one party from recruiting or doing business with the other party's employees or clients.Novation— The substitution of a new contract or party for an existing one, extinguishing the original obligation.

S

Severability— A clause stating that if one provision of a contract is found invalid, the remaining provisions continue in effect.Specific Performance— A court order requiring a party to fulfill their contractual obligations rather than pay damages.Statute of Limitations— The maximum time period within which legal proceedings must be initiated after an alleged breach.

T

Termination— The ending of a contract before its natural expiration, either by agreement or due to specified conditions.Trade Secret— Confidential business information that provides a competitive advantage and is subject to reasonable protection efforts.

W

Waiver— The voluntary relinquishment of a known right or the failure to enforce a contractual provision.
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