Alphabets for Contracts

A

- Amendment
Any change in the contract introduced by way of an amendment agreement duly executed by all the parties concerned.

- Acceptance
This refers to the affirmation by the parties to the contract of agreeing to comply with the terms, conditions and obligations contained therein.

- ADR
Alternate Dispute Resolution refers to the methods of dispute resolution other than the traditional method of approaching the court of law for deciding a dispute between the parties. This popularly includes arbitration, mediation, conciliation, and negotiation.

B

- Breach
When a party fails to comply with or abide by the terms, conditions, requirements or obligations of a contract, which the party was obligated to do, such a party is said to have committed a breach.

- Bankruptcy
It is a legal process whereby an entity is declared unable to clear its debts and/or honour its financial obligations.

- Buyout
Buyout refers to the acquisition of controlling shares in a company.

C

- Counterparts
Copy of the contract identical to the original contract, but not the original itself.

- Cancellation
Termination of contract due to some reason.

D

- Damages
It is the compensation for the loss and/or damage caused to the other party for one party’s failure to fully perform their commitment.

- Data
This refers to the data collected as part of or as a byproduct of performing the contract.

- Deposit
Deposit refers to a reservation fee or amount given in order to ensure the performance or omission of an act.

- Dispute Resolution
This provision provides the method with which the parties may address any issue or dispute related to any matter under the contract.

- Due Diligence
To perform the contract in a complete and wholesome giving full consideration to the purpose of the contract while performing such activities whether specifically laid down in the contract or not.

E

- Estoppel
Estoppel refers to a principle of law which prevents an entity from contradicting any past statement or action during the performance of a contract. Most commonly found estoppel in contracts in promissory estoppel to protect any entity which acted on a promise of another party (written or otherwise), but the other party did not fulfils that promise.

- Entire Agreement
The provision aims to ensure that a contract includes all its references, annexures, and related documents and previous documents and agreements (if any) are no longer required for this contract.

F

- Failure to Comply
This refers to the action or omission of a party to a contract whereby the party has fulfilled its obligation under the contract as it was required to do.

G

- Good Faith
Good faith refers to the intention of the parties to act with honest intentions and purpose while performing their obligations under the contract giving due regard to the purpose of the contract, the other party and reasonable commercial standards in their actions.

- Governing Law
The provision provides which land’s law shall be read as part and parcel of the contract in order to fully understand the provisions contained therein.

H

- Headings
The provision generally provides that the headings contained in the contract are only present to facilitate easy understanding and navigation of the contract and do not influence the interpretation of the contract itself.

- Health and Safety Responsibilities
In contracts that involve any kind of safety or security issue or threat, it is crucial for the parties to the contract that there is sufficient health and safety ensuring measurements in place.

- Hazardous Materials
In contracts where there is use of or discharge of any material considered unsafe or even of harmful nature to health, safety and security, this provision provides exactly how such materials shall be handled, used and/or disposed of.

I

- Indemnity
The provision provides protection from one party to the other party in case any loss caused by the party providing protection or any other third party for matters related to the contract.

- Insurance
This refers to obtaining some form of security in the form of insurance with respect to elements in a contract, the damage to or loss of which can be detrimental for the parties and/or to the purpose of the contract.

- Investment
This refers to the contribution by an entity towards the purpose of the contract.

J

- Joint and Several Liability
Where there are more than one individual or entity on one side (party) of the contract, this provision makes each of them liable for any damages that may occur.

- Joint Undertakings
This refers to the nature of an element of the contract which can also be the purpose of the contract, falling under the responsibility of the entities providing the joint undertaking.

- Jurisdiction
This provision illustrates in the event of any dispute which requires to be brought before the authority of law, shall be brought before which court of law.

K

- Know-How
This refers to the methods and ideas of carrying out performance of obligations and other related tasks that the parties either bring to the performance of the contract or gain during the performance of the contract.

L

- Loan
This refers to any money that has been borrowed for the purpose of the contract, from an entity not party to the contract, which needs to be returned within a specified period of time upon the conditions laid down at the time of such borrowing.

- Licence
This provision enumerates the rights of a party to a contract with respect to property which are the sole property of another party to the contract.

- Limitation
This refers to putting a ceiling on certain element(s) of a contract.

M

- Mortgage
In the event that a loan has been secured for the purpose of the contract, the element provided to the entity that extended the loan as security to repayment of such loan, is a mortgage.

- Mutual Agreement
All elements in a contract that have been arrived at and included in the contract by both the parties having arrived at the element together is considered to be mutual agreement.

- Modification
This refers to any variation or change in the particulars of the contract by the parties duly executed.

N

- Notices
This refers to the manner and method of providing essential communication to the other party that relates to those elements in the contract that may result in breach, termination or any type of penalty.

- Negligence
This refers to any act of a party to the contract unable to perform their responsibilities and/or obligations under the contract as per the established standards and/or as required per the nature of the contract, leading to some loss to the other party.

- Non-Compete
This provision provides the duration for which a party to a contract shall not engage in any agreement or contract with any entity and/or for any other purpose which is similar to the present contract.

O

- Obligations
The responsibilities of the parties pursuant to a contract.

- Offer
It is the invitation to a contract regarding the elements included in the offer made upon the terms and conditions as decided by the parties.

P

- Privity
The provision provides that only the parties to the contract may raise any claim related to the contract and that any other entity not a party to the contract does not have the right to any claim.

- Payments
The manner of any amount that needs to be given out, any variation to the amount and/or the figure of amount to be given out are covered by this provision.

Q

- Quality (Assurance and Control)
The process of ensuring that all progress in the performance of the contract meets the established, required and necessary standards.

R

- Remedy
This refers to any possible methods and manners that can be employed by a party in case of any loss pursuant to the contract.

- Renewal
This refers to extending the life of the contract beyond the previously prescribed time limit.

- Recovery
Any rehabilitation of loss suffered previously.

- Risk
The probability of facing loss as part of or due to the performance of the contract.

S

- Service
This relates to all associates labour, material, equipment etc. that are required for the performance of the contract.

- Scope
The reasonable applicability and expectation of the parties from the execution and performance of the parties.

T

- Term
The life of a contract.

- Termination
The grounds, manner and method of bringing the contract to an end.

- Trade Secret
Intellectual property of a party that is crucial to the party sustaining itself in the industry.

- Third-Party Rights
The rights that any entity not party to the contract may have with respect to the contract.

U

- Unlawful
Any element of a contract that may be or may later become opposed to the law applicable to the contract.

- Unauthorised
Any act or omission which was not conducted pursuant to obtaining the required consent and/or permission from the applicable authority.

V

- Value
This refers to the monetary worth of the contract during its lifetime.

- Variation
This refers to any action of the parties pursuant to the contract different from what they had originally agreed upon at the time of entering into the contract.

- Verification
This refers to the process of the parties to ensure that no element of the contract, important or otherwise, is left loose or otherwise in any condition not as desired or required for the purpose of the contract.

W

- Waiver
Extinguishing of any obligation owed to a party by that party itself.

- Withdrawal
Where a party has ended the contract resulting in stopping the execution and performance of the contract.

X

- (E)xclusive
This provision usually provides whether the parties to the contract can enter into a contract with similar provision and/or purpose.

Y

- Yearly Review
The provision provides the manner and method of tracking, reporting, discussing and drawing conclusions from the performance of the contract made in the past 12 months (year).

Z

- Zero Hour
In contracts where tracking the time consumed as part of performance of the contract is essential, zero hour is the time when such tracking of time begins.
With reference to employment, this refers to the contracts whereby the employer is not obliged to provide set hours of work.

- Zero Tolerance
Any action or omission, regardless of the quantity and/or duration of such act or omission, by any of the parties to a contract which shall be deemed to be crucially detrimental and/or a material breach to a contract. This is usually in reference to alcohol, drugs or any other psychotropic substance.