Common Business Contract Boilerplate Clauses | Legal > Labor & Employment Law from AllBusiness.com
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Common Business Contract Boilerplate Clauses

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Business contract boilerplates are basic provisions added to a contract to protect the contracting parties. Included at the end of a contract, boilerplates offer protection against things such as exorbitant lawyer fees, uncontrollable acts of nature, and any agreements that precede the actual contract.

Although almost all contracts have boilerplate provisions, the legal wording of these contract clauses can at times vary. When drawing up or signing a contract, it is vitally important that you pay attention to the wording of these provisions. Each boilerplate clause is intended to provide protection, and as a consequence, must be carefully worded in order to hold up in a court of law.

With legal contracts, it is important to keep the language clear and concise. Because boilerplates are so common in contracts, there are many examples that you can consult for reference. You will find that there is a standard wording that many business contracts use.

Business contracts usually include the following boilerplate clauses:

  • Arbitration Clause: This clause can save you in legal fees if there is ever a dispute with the contract. It provides for an independent arbitrator who will decide disputes and compensation.
  • Entire Agreement Clause: Inserting this clause in a contract means that the provisions of the current contract override any previous agreements. This legally stops contracting parties from using oral or written agreements made before the contract became the primary agreement.
  • Force Majeure Clause: This clause protects both parties against any acts of nature. For example, if you contract for a job but a hurricane prevents you from performing your obligations, then the force majeure clause protects you from being sued by the other contracting parties.
  • Applicable Law: The clause allows for the provisions of the contract to be governed and interpreted by the laws of the state where you have drawn up the contract.
  • Amendments: This clause protects you from having the contract amended without your agreement. It states that the contract can only be amended with your prior written consent.
  • Assignments: Insert this clause so that the terms of the contract cannot be assigned to a third party without your prior written consent.

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