Glossary
Plain-English definitions for the terms that tend to trip people up in the documents BeforeSigninganalyzes. Each one includes real examples and why it matters when you're making a decision.
Auto-Renewal
An auto-renewal clause automatically extends a contract for another term unless one party gives written notice within a set window.
Force Majeure
A force majeure clause excuses a party from performance when extraordinary events — war, natural disasters, pandemics — make performance impossible or impractical.
Indemnification
An indemnification clause shifts liability — one party agrees to cover losses, damages, or legal fees the other party incurs from specified events.
Liquidated Damages
Liquidated damages are a pre-agreed dollar amount payable if a party breaches — commonly used when actual damages would be hard to calculate.
Master Service Agreement
A master service agreement (MSA) is an overarching contract that sets the general terms for an ongoing relationship, with specific projects defined in separate statements of work.
Merger Clause
A merger clause (or integration clause) states that the written contract is the complete and final agreement, overriding any prior discussions or side promises.
Non-Compete Clause
A non-compete clause restricts you from working for competitors or starting a competing business for a set time and geographic area after leaving.
Non-Disclosure Agreement
A non-disclosure agreement (NDA) is a contract requiring one or both parties to keep specified information confidential.
Service Level Agreement
A service level agreement (SLA) defines the performance standards a vendor must meet — uptime, response times, support hours — along with the remedies (usually service credits) if they fail.
Severability
A severability clause says that if one part of a contract is found unenforceable, the rest of the contract still stands.