What’s a Clause?

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Clauses in legal documents specify conditions and actions to be taken or avoided. They can be restrictions or qualifications, and exceptions are noted. Breaching a condition is a breach of contract, and illegal clauses render a contract void. Parties can request reservations and consult a solicitor if necessary.

A clause is a statement in a legal document used to discuss specific conditions and actions that may need to be taken or avoided. Such clauses often begin “provided” or “subject to provision,” marking the clause as a condition so that people reading the contract understand its importance. Clauses are structured into a variety of contract types and should be scrutinized so people understand where, when and how they will act on the terms of the document.

The condition can be a restriction, such as a warning that employment at a company is conditional on non-disclosure of company secrets. It can also be a condition or qualification of some kind on the terms of the document. A similar concept is the exception, a clause which notes the circumstances and individuals excluded from the terms, except that a clause explicitly states otherwise, ensuring that the terms are in effect in specific situations. The rejection of the reservation requires the rejection of the entire document.

If people find that a condition impairs their willingness to accept the terms of a document, they can request that it be rewritten. There may be a problem with the wording that makes the document confusing or unclear, or a document may contain a clause with clauses that weren’t discussed during the negotiations. Discussing your concerns before signing the document gives people an opportunity to file objections and resolve the issue.

Breaching a condition by doing or not doing something is a breach of contract as a whole. The other parties to the document can take legal action, including actions discussed in the contract such as terminating a relationship, as well as go to court to collect damages, if the action or inaction resulted in damages. In situations like this it is advisable to consult a solicitor who is familiar with contract law to ensure that adequate representation is provided.

People entering into contracts can also request reservations if they feel this is necessary when negotiating with the other party. The parties can discuss the terms they wish to apply to the contract and can work with a lawyer to develop appropriate wording. It is important to be aware that people cannot put illegal clauses into a contract, as this could render the contract void and unenforceable. The old fairytale condition of agreeing to hand over your firstborn in exchange for a service, for example, wouldn’t hold up in court.




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