What is a clause in a contract, exactly?

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Contract jargon can be complex — so we’re doing our best to simplify it. Discover the basics behind contract clauses, learn how they work, and gain a stronger understanding of what they look like within contracts.

Legal contracts and agreements — like most written documents — are made up of several unique parts that address all kinds of specifics. One of those functional elements is the contract clause — a crucial written tool present in every contract.

But what is a clause in a contract, exactly, and what does it do? Read on to learn more about contract clauses and how they can be used to create comprehensive legal contracts.

What exactly is a contract clause?

The easiest way to think about a contract clause is to first understand that it’s a written portion that exists to do a legal-specific job. In other words, a clause in a contract is a unique section that addresses a specific need, privilege, right, deadline, or duty.

Basically, a contract clause is a written section that unscrambles any contractual confusion. There are many ways to write clauses, but while each applies to a different aspect, their goal is ultimately the same — to clearly define and outline one specific part of the contract or agreement.

What is a clause in a contract used for?

Almost any section of a contract that’s being used to specifically define the perimeters of the agreement could be considered a clause — but to better illustrate how they work, we’ve provided a few examples of how different clauses can be used.

Common contract clause types in business.

There are a number of different types of clauses within legal agreements that can be used for different scenarios. Contracts in the business world typically include various clauses to define the terms and conditions of the agreement. Here are six common contract clause types.

Do you always need to add a contract clause?

Clauses in contracts are not always mandatory in every agreement. Their inclusion depends on various factors:

Add a clause in contract PDFs with ease.

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