![]() ![]() Usually implies a level of trust that the Parties to a contract are acting honestly without any hidden motives.īreach of Contract: failure by a Party to a contract to comply with one or more Conditions of the contract. Such a clause may prevent a Party from starting court proceedings at all or without first following the prescribed process.Īrbitration: a method of dispute resolution where a private tribunal determines the resolution of a dispute between the Parties to a contract.Īssignment / Novation: the Parties to a contract may, under agreed conditions, transfer or assign (novate) any of their liabilities, rights or obligations under the contract to a third party.īankruptcy: the official legal status of a person or organisation that cannot repay the debts owed to creditors.īona Fide: Latin, meaning in good faith. Contracts may contain a clause requiring the Parties to that contract to follow specific processes if a contract-related disagreement occurs. Arbitration, Mediation and negotiation are types of ADR. Below are some of the most important phrases you need to know.Īb Initio (Ab Init): Latin, meaning from the beginning.Īlternative Dispute Resolution (ADR): methods of attempting to resolve a dispute without going to court. You can visit our contract terminology glossary for a comprehensive list of legalese. In the meantime however, if you’ve ever been flummoxed by a legal contract term such as “force majeure” or “mutatis mutandis” then read on. It’s worth pointing out that it’s not exhaustive and you should still consult with a legal professional if you’re looking to create or amend an official document, even if it's edits to common contract terms. ![]() In order to help you overcome any unfamiliarity with clauses in a contract, we’ve created this handy jargon-buster, which outlines the commonly-understood meanings of contract terminology. This legalese can be a impenetrable to the layman and can create an unnecessary barrier to all parties being able to fully understand the content of a contract. There’s a broad range of contractual terms, including various latin phrases, which are used in legal documents and will be understood by those drafting them on behalf of businesses. Assuming you’re not a legal professional, if you’ve ever read through a contract in detail, you’ll likely have come across a number of unfamiliar contract terminology that you’ve probably not seen in any other circumstances. ![]()
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