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- A person offers to give another person something (for example: to deliver an item in return for a certain price); to provide a service (to work for a certain salary); or to refrain from doing something (not to compete for a period of time in return for compensation).
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Jun 11, 2018 · A handy list of commonly used legal terms found in contracts, and their meanings. If you're not a legal professional then the chances are you can benefit from this contract glossary, which will demystify the legalese that you find in most contracts.
- AB Initio
- Addenda/Addendum
- Agreement
- Alternative Dispute Resolution
- Amendments
- Appendix/Appendices
- Approval Workflow
- Arbitration
- Assignment
- Authorised Signatory
A Latin term which means “from the beginning”. You might see a contract referred to as “void ab initio”. This means it was invalid from the start, for example if the person who signed it didn’t have the legal right to do so. A contract that’s declared void ab initiocan’t be amended to correct whatever’s wrong with it – it’s treated as if it never e...
A contract addendumadds new terms to an existing contract, while still keeping all the original terms in place.
Any type of understanding or arrangement reached between two or more parties, whether in writing or not. An agreement isn’t legally binding though – a contract is a type of agreement that is legally binding and is enforceable in court. Find out more about agreement vs contract.
A way to resolve a contractual disputewithout going to court e.g. by mediation or arbitration. Some contracts contain a clause saying that if there’s a problem, then the parties should follow specific ADR processes to fix it.
Changes to a contractthat are made after it’s signed. These are almost always done in writing, and must be agreed and signed by all parties.
Appendices usually appear at the end of a contract. They don’t change or affect the contract’s terms in any way – they just add extra information about it that you need to know (e.g. share options or employee benefits).
An approval workflow is a process that allows legal teams to let business users work on their own contracts, usually from a template, but with safeguards in place so that before the contract goes to the counterparty, it must be reviewed by legal.
A form of alternative dispute resolution (ADR) to resolve contract disputes without going to court, using an independent tribunal. Some contracts include arbitration clauses which say who an arbitrator will be in advance.
Also called “novation”, this is when a party to a contract transfers their rights, obligations, or liabilities to someone else who wasn’t involved in the original contract. You can use a novation agreement templateto set this up.
The authorised signatory is the individual or individuals empowered to sign legally binding contracts on the company's behalf. In early-stage businesses this is usually the CEO, but as time goes on it will likely be a broader group including key decision-makers in finance, operations and so on. Find out more about signatory authority.
Feb 6, 2012 · A contract is a legally binding agreement between two or more persons for a particular purpose. It is an instrument for the economic exchange of goods and services. In Canada, contract law is administered both in common law and, in Quebec, civil law.
Mar 13, 2018 · There are broad principles of contract interpretation (rather than strict rules) that will be applied by the court if a dispute arises as to what a contract means. The key point is to get your contract right and clear at the outset, before you sign.
Jul 25, 2023 · Contracts are full of legal jargon and complicated language that can make them difficult to understand. But we’ve put together a glossary of key contract terms to help you out. In this article, we will help you to cut through the noise so you can figure out how to write a legally binding contract.
Dec 10, 2019 · For a contract to be legally binding, there are six essential elements to constitute a valid contract: offer, acceptance, consideration, intention to create legal relations, legality and capacity, and certainty. Agreements may not give rise to a binding contract if they are incomplete or not sufficiently certain (i.e. an agreement to agree).
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1. : to take care of beforehand. provide against a possible scarcity. 2. : to state a condition or stipulation. the contract provided for 10 paid holidays. 3. : to supply what is needed for support. provides for a large family.
