Contract Glossary
40 definitions of the contract and e-signature terms that show up in NDAs, MSAs, order forms, and the agreements you sign every week.
A document that adds new terms to a contract without changing what is already there.
A mutual understanding between two or more parties that creates obligations the law will enforce.
A formal change to an existing contract, agreed and signed by the parties.
The thing of value each party gives up, which is what makes a contract legally binding.
The other party on the far side of a contract from you: whoever you are dealing with.
The date a contract's obligations actually begin, which is not always the date it was signed.
The act of signing a contract to make it legally binding.
The two-step handshake at the heart of forming a contract: one party proposes terms, the other agrees to them.
A person or organization that enters into a contract and takes on its rights and obligations.
The length of time a contract stays in force, from its start date to its expiration.
The tamper-evident record of who did what, and when, during the signing of a document.
The 2000 U.S. federal law that makes electronic signatures legally valid nationwide.
A digital way of signing a document that carries the same legal force as a handwritten signature.
The process of having a notary public witness a signature to verify the signer's identity.
A person who signs a contract, binding themselves or the organization they represent.
A model state law that gives electronic signatures and records legal validity, adopted by most U.S. states.
A private way of resolving disputes outside of court, decided by a neutral arbitrator.
A clause governing whether a party can transfer its contract rights and obligations to someone else.
A clause that automatically extends a contract for another term unless someone cancels in time.
A provision requiring the parties to keep certain shared information private.
A clause that excuses a party from its obligations when extraordinary events beyond its control make performance impossible.
The clause naming which jurisdiction's laws will be used to interpret and enforce the contract.
A promise by one party to cover the other's losses or legal costs if certain things go wrong.
A clause that caps how much one party can be required to pay the other if something goes wrong.
A provision restricting one party from competing with the other for a set time and area.
A provision barring one party from poaching the other's employees or customers for a period.
Statements of fact each party makes and stands behind, which the other relies on in signing.
A clause ensuring that if one part of a contract is invalid, the rest still stands.
The ending of a contract before or at the natural close of its term.
A clause letting a party end the contract for any reason, without having to prove fault.
A master contract setting the standing terms of a relationship, with specific work defined separately.
A non-disclosure agreement where both parties share and protect each other's confidential information.
A contract that binds one or more parties to keep shared information confidential.
A short document capturing what a customer is buying, at what price, under an existing agreement.
An attachment that adds specific terms or conditions to a standard contract.
A document defining the specific deliverables, timeline, and price for a project under a master agreement.
A fixed amount the parties agree in advance will be owed if the contract is breached.
A failure to perform that is serious enough to defeat the purpose of the contract.
A payment arrangement giving the buyer a set number of days to pay after invoicing, such as Net 30.
The part of a contract that sets how much is owed, when it is due, and how it must be paid.
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