What are the most legal terms used in a contract, and what do they mean?
According to published reports, these are the legal terms:
1. Consideration: This is an exchange of something of value between two parties, forming the basis of a contract.
2. Breach of Contract: This refers to a failure to perform a contractual obligation.
3. Indemnification: This clause requires one party to cover any losses suffered by the other party due to a breach of contract.
4. Covenants: These are promises made by one party to another, which are legally binding.
5. Warranties: These are statements of fact, made by one party to another, which are legally binding.
6. Assignment: This is the act of transferring a contractual right or obligation from one party to another.
7. Arbitration: This is a form of alternative dispute resolution where a neutral third party hears and decides a dispute between two parties.
8. Force Majeure: This is a clause that excuses a party from performing its contractual obligations due to circumstances outside of its reasonable control.
9. Liquidated Damages: This clause establishes a pre-determined sum of money that one party must pay to the other in the event of a breach of contract.
10. Waiver: This is an agreement to give up a right or claim.
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