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This glossary contains seven terms related to legal contracts. It could be useful to anyone in need of drafting or understanding a contract.

breach

noun

Failure to comply with one or more terms or conditions of an agreement. Source: Contracts: A Glossary of Jargon by the Arts Law Centre of Australia.

Example: A breach of the terms will result in the termination of the contract.

fr: violation

conditions

noun

Essential or fundamental terms in a contract. Failure of a condition results in breach of contract. Source: Contract Terminology: Contract terms you need to know by Rod Linsley published on the Gatekeeper website.

Example: You must agree to all conditions for the contract to be effective.

fr: conditions

damages

noun

Amount of money sought or awarded to a party to an agreement to compensate the loss that party has suffered because another party has breached the agreement. Usually the damages awarded will be enough to put the injured party in the position it would have been in if there had been no breach. Source: Contracts: A Glossary of Jargon by the Arts Law Centre of Australia.

Example: Damages will be claimed for any loss suffered due to the breach of the conditions.

fr: dommages et intérêts

force majeur

noun

Circumstances or situations described in a contract that may prevent one or more of the parties to the contract from performing their contractual obligations. The occurrence of such circumstances or situations may excuse the affected party. Source: Contract Terminology: Contract terms you need to know by Rod Linsley published on the Gatekeeper website.

Example: If force majeur is found to be the reason for the breach of the conditions, damages will not be claimed.

fr: force majeur

liability

noun

Someone's legal responsibility, duty, or obligation to compensate another person for the harm the first person has caused by breaching legal duties to the other person. Source: Contracts: A Glossary of Jargon by the Arts Law Centre of Australia.

Example: The investigation concluded he was cleared of liability.

fr: responsabilité

license

noun

A method by which the owner of physical or intellectual property (the licensor) allows someone else (the licensee) to use it in some prescribed manner, typically but not always for a royalty or a fee. Source: Contract Terminology: Contract terms you need to know by Rod Linsley published on the Gatekeeper website.

Example: Sales of licenses were usually for one year, although this could be extended. Source: Cambridge Dictionary.

fr: licence

obligation

noun

Something which must or must not be done by one or more parties to a contract. Source: Contract Terminology: Contract terms you need to know by Rod Linsley published on the Gatekeeper website.

Example: Under bankruptcy law, the company has an obligation to creditors. Source: Cambridge Dictionary

fr: obligation