Words Used in Contracts

It is important to note that redlining has a completely different meaning and historical context in some countries. To learn more about redlining in the context of discriminatory practices, click here. But for our purposes, we are talking about contracts. Consumer – a person who buys goods or services, but not as part of his business. A business may be a consumer for contracts unrelated to its business, especially for goods or services it purchases for its employees. Charities are also treated as consumers. Intellectual Property Rights (IPR): rights relating to the property of intellectual, industrial or artistic works, including, but not limited to, patents (inventions), designs (graphics), trademarks (names or trademarks used to identify products) and copyrights (copyrights). Governing Law: the union, state or state/provincial laws applicable to a contract. Applicable law is used by the courts to interpret and rule on the contract in the event of a contractual dispute if the parties do not reside in the same Union, country or state/province.

This clause is normally accompanied by a jurisdiction clause. Plaintext contracts are contracts written without legalese to make them more accessible to non-legal teams. Framework agreements Also known as permanent contracts, standing agreements, firm call contracts and firm call contracts. This is a form of “implementation” of the agreement with a supplier, which includes the terms (including price) for purchases under the agreement, which are usually arranged by a central agency and under which buyers “recover” to meet their needs. Unless a certain quantity of delivery is bound over a certain period of time, the agreement only becomes legally binding at the time of the call. So there you have it: the vocabulary of business English that puts you on the path to a successful contract. Remember that practice makes perfect, so keep working on these words until you speak fluently. Good luck! Subject matter of the contract – words used on documents exchanged by the parties during contract negotiations. They mean that the document is not an offer or acceptance and that negotiations are ongoing. Often, the expression is used without prejudice when the subject matter of the contract is covered. Capitalized terms: A word or group of words can be defined as having a specific meaning in a contract to avoid misinterpretations of that word or phrase. According to the Convention, these definitions are indicated by capital letters of the first letter of each word of the term, for example “building” or “high-end property”.

Definitions can be predefined and contained in a specific definition clause in which each defined term is followed by the desired meaning of that term. Definitions can also or rather be redefined by appearing in the body of a particular clause after a group of words, such as “Service begins between 6 a.m. and 8 a.m. (start time”). Here are twenty terms commonly used in contracts and agreements. In the context of contracts, redlining refers to the process by which the parties make their proposals for amendments and revisions to the document as part of the negotiation process before signing it. This is called redlining because changes were previously proposed in red ink, which would help people working on the contract follow the new “red lines” between each iteration of the document. Just as there is English for information technology and many other fields of activity, there is also English for law. You shouldn`t sign what you can`t understand! So be prepared to learn important legal vocabulary for dealing with contracts. Ordinary termination: A contract may allow one or more contracting parties to terminate the contract unilaterally without giving any reason to the other contracting parties. Such termination may only be permitted at certain times, such as on the anniversary date of the Agreement or after the end of an initial term, may require a minimum notice period and may require the payment of an early termination fee by the “purchasing” party or the refund of the unused portion of the prepaid fee by the “selling” party.

Letter of Intent A method by which the buyer informs a potential supplier of their future intention to place an order. These letters (which can also be sent by fax or email) usually have an expiration date and often indicate the conditions that must be met before an order is placed. They should be used with caution to avoid making commitments prematurely or unintentionally. Government contracting out is used to test the effectiveness of internal services against external tenders. Subcontracting means entering into a contract for such services with an external supplier. Negotiation is the process by which contracting parties discuss – perhaps discuss – the final terms of the contract to which they are bound. In the past, contract negotiations were conducted via a mix of phone calls, tracked changes, and emails – nowadays, you can negotiate contracts in the browser with modern tools. It can even be used to electronically sign contracts in Salesforce and other CRMs. Commitment The result of the formalization of an agreement by an act of acceptance.

Can also be used to describe the financial value of an agreement – the amount committed. Well, you probably didn`t sign it with a pen while you were sitting in front of a lawyer. But I`m pretty sure you clicked the “OK” button and accepted a screen full of words in small letters, that`s how signing a contract works in the online world. Injunction – a remedy sometimes granted by the court that prevents action from being taken. It can be used to prevent another party from doing anything against the terms of the contract. The injunction is at the discretion of the court and a judge may refuse to grant it and award damages instead – see terms of the funding agreement below. Whether for personal or professional purposes, it is important that you learn contractual English. Not only will they be able to read and understand contracts, but they will also be able to negotiate them. I`m sure you`ve noticed that many mobile phone, hotel, and car rental contracts look the same, and that`s because they use standard contracts.

Rejection of goods/services If the goods are rejected, the buyer`s possible solutions must be sought – substitute goods or services conforming to the product specifications, and – damages when the non-delivery of acceptable goods or services has caused problems that cannot be solved by replacement. As you learn these common words and phrases, strengthen your studies by seeing the words in action on FluentU. Now let`s move on to the contractual vocabulary you need for a successful contract negotiation. To better understand how to manage your contracts, you can download our free “Contract Management Guide”. This 38-page eBook covers all stages of the contract lifecycle and gives you useful checklists for each stage. Employment contract – a contract between an employer and an employee. This differs from other contracts in that it is subject to labour law – which takes precedence over normal contract law. Power of Attorney – a person acting on behalf of another person for a specific purpose, or the form used for such an appointment. In a corporation, a shareholder may appoint a proxy to attend a meeting and vote on the shareholder`s behalf.