Contract Terms Glossary - Complete Legal Dictionary

"Instead of going to court over a $50,000 contract dispute, the parties agreed to arbitration, which resolved the issue in three months for $8,000 in total costs versus $80,000+ for litigation."

"A contractor assigned their rights to receive payment under a construction contract to a financing company, but needed the client's permission first due to an anti-assignment clause."

"A software company failing to deliver a working program by the agreed deadline constitutes a breach of contract, entitling the client to seek damages or specific performance."

"The boilerplate section included a clause requiring all disputes to be resolved in New York courts, which would have been expensive for the New Jersey business owner."

"In a consulting agreement, the consultant's expertise is consideration for the client's payment of $5,000 per month."

"Before discussing their proprietary manufacturing process, the company required all potential partners to sign a confidentiality agreement."

"When offered $100,000 for a business asset, the seller countered with $120,000, creating a new offer for the buyer to consider."

"The court awarded $75,000 in compensatory damages to cover the client's actual losses from the contractor's breach of contract."

"Before acquiring the company, the buyer conducted due diligence on all existing contracts, discovering several unfavorable terms that needed renegotiation."

"The buyer deposited $500,000 in escrow, which would be released to the seller only after all contract conditions were satisfied."

"The sales representative signed an exclusive agreement to sell only the manufacturer's products in New Jersey for three years."

"The supplier couldn't deliver materials due to a hurricane, which triggered the force majeure clause and excused the delay without penalty."

"The franchise agreement required the franchisee to pay $50,000 upfront plus 8% of monthly revenue in exchange for using the restaurant's brand and recipes."

"The landlord acted in bad faith by deliberately delaying repairs to force the tenant to break their lease early."

"The bank required the business owner to provide a personal guaranty for the $250,000 business loan, making them personally liable if the company defaulted."

"The contractor included a hold harmless clause protecting the property owner from any injuries to the contractor's employees during the project."

"The software company agreed to indemnify the client against any copyright infringement claims arising from the software's use."

"The web development contract specified that all intellectual property created for the website would belong to the client upon final payment."

"The consultant's liability was limited to the total fees paid in the previous 12 months, protecting them from catastrophic claims."

"The construction contract included liquidated damages of $1,000 per day for late completion, representing the owner's actual daily losses."

"Delivering 100 units instead of the contracted 1,000 units was a material breach that allowed the buyer to cancel the entire order."

"The parties agreed to mediation before litigation, and with the mediator's help, reached a settlement in one day that saved both sides over $50,000 in legal fees."

"The executive's non-compete prohibited him from working for competing companies within 50 miles for one year after leaving the company."

"Before discussing the potential merger, both companies signed NDAs to protect their confidential business information."

"The partnership agreement specified that major decisions required unanimous consent and provided a buy-out formula if one partner wanted to leave."

"Because of privity of contract, the subcontractor couldn't sue the property owner directly, only the general contractor who hired them."

"The seller represented and warranted that the equipment had never been used in production, which later proved to be false."

"The employment agreement included restrictive covenants preventing the employee from soliciting clients for two years after leaving."

"When the court found the non-compete clause too broad, the severability provision allowed the rest of the employment agreement to remain valid."

"The court ordered specific performance, requiring the seller to transfer the unique piece of art as promised in the contract."

"After paying the claim, the insurance company used subrogation to recover the costs from the at-fault driver's insurance."

"The termination clause allowed either party to end the agreement with 30 days' written notice, but required payment for all work completed before termination."

"The life insurance policy made the children third-party beneficiaries, giving them the right to enforce the contract even though they didn't sign it."

"By accepting late payments without objection for six months, the landlord waived their right to enforce the strict payment deadline."

"The graphic design contract specified that all logos created were 'work for hire,' giving the company full ownership of the designs."