Contracts 101: common types of clauses.

Learn more about standard clauses within a contract, what they mean, and when you might come across them in business.

A business contract is a legally binding agreement that defines the working relationship between two or more parties, including their roles, responsibilities, compensation, benefits, and other aspects of the relationship. Whether you’re an employee entering into an employment contract or a business owner building partnerships with other business owners — to take just a few examples — it’s helpful to understand some of the standard legal clauses to help prevent misunderstandings down the road.

Types of clauses within a contract.

Here are some common clauses that may be applicable within your business:

Clauses are just one element of standard contracts. There are additional essential elements you should always include when writing a contract. These include basic information (legal names/business names), rights and responsibilities, dates, and signatures of all parties.

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