Encountering contracts for the first time, perhaps the clauses are what catch the eyes of many. In fact, they are also the most distinctive difference between a contract and other documents. Each clause will be tailored to a specific objective of interest to the Contracting Parties. In this article, we will go through some common clauses in civil contracts. That is, they often appear in contracts in the form of typical and mandatory clauses regardless of the type of contract.
A contract clause is a specific provision or item in a contract. Each clause covers a specific aspect related to the content of the agreement, designed to clearly define the responsibilities, powers and privileges each party is entitled to under the contract. The use of the clauseis entirely up to the needs of the parties, some of which are used more often than others. Some clauses are known as “Boilerplate clauses” – these are the clauses that often appear at the end of the contract as standard clauses in some types of business contracts, and often require little or no further negotiation. . The parties may also devise their own specific clauses, as long as applicable laws and regulations are followed, to suit the needs of each contract. This post will cover the most common clauses.