contract clause

Definition

Provision included in a written agreement or contract. A contract clause will address an aspect of the contract between parties, detailing the agreement to ensure all parties understand what is expected of the other.

Use contract clause in a sentence

  • Some employers have come under fire for banning their employees from using Facebook; they can legally do this with a contract clause.

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  • The last part of the contract clause indicated that both parties were subject to litigation if any aspect of the contract was violated and that these violations could be subject to a penalty which could be in excess of $5,000.

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  • Alicia wanted to quit her job and take a new job with a competitor of her company, but due to a contract clause, she was not permitted to take the new job offer.

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