General Contract Provision
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A General Contract Provision is a contract provision that appears in a variety of contract agreement types.
- Context:
- It can help set out the rights and obligations of each party.
- It can help to avoid disputes.
- It can help to ensure that the contract is enforceable in court.
- It can range from being a Boilerplate Contract Provision to being a Custom Contract Provision.
- …
- Example(s):
- Payment Method Provision - Allowable payment methods; Allows payment by check, ACH transfer or wire transfer.
- Liability Cap Provision - Limits total liability amount.
- Product Support Provision - Product maintenance service requirements.
- …
- Payment Method Provision, which specifies the accepted methods of payment (e.g., check, wire transfer, credit card) and any terms related to payment schedules or late payment penalties.
- Liability Cap Provision, that limits the amount one party may be liable to the other in the event of a breach of contract or other liabilities, often expressed as a fixed amount or a percentage of the contract value.
- Product Support Provision details the support services the seller provides, such as installation, maintenance, and troubleshooting, including the duration and terms of the support.
- Confidentiality Provision outlines the obligations of one or both parties to keep certain information confidential. This provision specifies the types of information considered confidential, the duration of the confidentiality obligation, and the consequences of breaching this confidentiality.
- Force Majeure Provision, that relieves the parties from fulfilling their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. The events typically covered include natural disasters, war, strikes, and governmental actions.
- Entire Agreement Clause: This clause states that the written contract represents the entire agreement between the parties, and that no other representations or agreements, whether written or oral, will be binding.
- Governing Law Clause: This clause specifies the jurisdiction that will govern the contract, and the laws that will be applied in the event of a dispute.
- Severability Clause: This clause states that if any provision of the contract is held to be invalid or unenforceable, the remaining provisions of the contract will remain in full force and effect.
- Waiver Clause: This clause states that no waiver of any provision of the contract will be effective unless in writing and signed by both parties.
- Force Majeure Clause: This clause excuses either party from performing its obligations under the contract if an event beyond its control prevents it from doing so.
- …
- Terms of Payment.
- Terms of Delivery.
- Measure Against Contract Violation.
- (a) Each party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Iowa. The captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.
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- Counter-Example(s):
See: Contracting, Contract Law, Terms of Payment, Terms of Delivery.
References
2023
- https://www.upcounsel.com/general-contract-provisions
- QUOTE: General contract provisions are requirements including conditions in contracts like terms of payment, delivery, recommended measures against contract violation.
- General contract provisions are requirements including standard conditions in contracts like terms of payment, terms of delivery, and recommended measures against contract violation. Parties usually add boilerplate conditions to their contracts for the following reasons: For increased efficiency. Reducing money and time spent on drafting documents. To ensure that agreements are consistent with generally acceptable, contractual standards. To piggyback on the past experiences of others. Misapplication of Boilerplate Provisions and Their Remedies. In some cases, companies or contracting parties add boilerplate clauses and other routinely used clauses to their contracts without thorough deliberations over their legal effects. Such an oversight is capable of leading to unforeseen disputes. In a bid to resolve such problems, courts might interpret unclear provisions in disfavor of the drafting party or completely remove such provisions. To avoid unnecessary, time-wasting, and expensive disputes that can lead to the loss of rights, parties should do their due diligence, communicate, and negotiate enough to effectively draft clear contracts.