Two-Element Provision

A Two-Element Provision is a atomic contract provision that contains two distinct but interrelated contractual stipulations or contractual conditions.

• Context:
  • It can range from being a Two-Element Obligation Provision to being a Two-Element Permission Provision to being a Two-Element Declerative Provision.
  • It can enhance contract clarity by directly linking two related conditions or requirements.
  • ...
• Example(s):
  • Two-Element Obligation Provisions:
    • Two-Element Payment Upon Completion Provision:
      • “[Contractor shall receive payment]¹ [upon satisfactory completion of the work]²."
    • Two-Element Rent Payment Method Provision:
      • “[Tenant must pay rent by ACH transfer]¹ [on the 1st of each month]²."
    • Two-Element Tenant Maintenance Duty Provision:
      • “[Tenant must maintain]¹ [HVAC and appliances in working order]²."
    • Two-Element Insurance Requirement Provision:
      • “[The contractor must provide liability insurance]¹ [with a minimum coverage of $1 million during the term of the contract]²."
  • Two-Element Permission Provisions:
    • Two-Element Confidentiality Agreement Provision:
      • “[Employee is permitted to use proprietary information]¹ [only in a manner that furthers the employer's business objectives]²."
  • Two-Element Declarative Provisions:
    • Two-Element Ownership Transfer Provision:
      • “[Buyer assumes ownership of the product]¹ [upon full payment]²."
    • Two-Element Late Fee Provision:
      • “[A late fee of $50 will be applied]¹ [if payment is not received within 10 days of the due date]²."
  • ...
• Counter-Example(s):
  • a Single Element Provision, Three-Element Provision, Four-Element Provision.
  • a Multiple Sentence Contractual Provision that contains more than two stipulations.
• See: Contractual Synthesis, Legal Drafting Technique, Provision Complexity, Risk Mitigation in Contracts.

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