Contract terms in plain language.
41 terms from the agreements people actually sign — what each one means, why it matters before you sign, and what it looks like in a real contract sentence.
Contract basics
Consideration
The value each side gives — what makes a promise a contract.
Read the definitionBreach of Contract
Failing to do what the contract requires, without a legal excuse.
Read the definitionWarranty
A promise that something is true or will perform as stated.
Read the definitionAmendment
A written, signed change to an existing contract.
Read the definitionWaiver
Voluntarily giving up a right the contract or law gives you.
Read the definitionNotice
The formal way official communications must be sent under a contract.
Read the definitionEntire Agreement Clause
The written contract is the whole deal — outside promises don't count.
Read the definitionCounterparts
Signing separate copies that together form one contract.
Read the definitionSeverability
If one clause fails, the rest of the contract survives.
Read the definitionAssignment
Transferring your contract rights or duties to someone else.
Read the definitionElectronic Signature
A legally recognized way to sign documents electronically.
Read the definitionAuto-Renewal (Evergreen Clause)
The contract renews itself unless you cancel within a set window.
Read the definition
Risk & responsibility
Indemnification
A promise to cover another party's losses or legal claims.
Read the definitionLimitation of Liability
A cap on how much a party can owe if things go wrong.
Read the definitionForce Majeure
Extraordinary events beyond anyone's control excuse performance.
Read the definitionConfidentiality (NDA)
A duty to keep shared information secret and use it only as agreed.
Read the definitionNon-Compete
A restriction on working for or starting a competing business.
Read the definitionNon-Solicitation
A promise not to poach the other party's clients or employees.
Read the definitionTermination for Convenience
Ending the contract without cause, usually on written notice.
Read the definitionTime Is of the Essence
Deadlines are strict terms — missing one can be a serious breach.
Read the definition
Disputes & governing law
Dispute Resolution
The agreed path for handling disagreements under the contract.
Read the definitionArbitration
A private decision-maker resolves the dispute instead of a court.
Read the definitionMediation
A neutral facilitator helps the parties settle — nobody is forced.
Read the definitionGoverning Law
Which state's law is used to interpret the contract.
Read the definitionJurisdiction & Venue
Which courts, in which place, hear any dispute.
Read the definition
Construction
Retainage
A slice of each payment held back until the work is accepted.
Read the definitionChange Order
A signed, written change to a project's scope, price, or schedule.
Read the definitionScope of Work
The detailed description of what work is included — and what isn't.
Read the definitionNotice to Owner
A preliminary notice that preserves a sub's or supplier's lien rights.
Read the definitionLien Waiver
A signed release of lien rights, usually exchanged for payment.
Read the definitionMechanics Lien
A legal claim against property for unpaid construction work or materials.
Read the definitionPay Application
A formal, itemized request for a construction progress payment.
Read the definitionPunch List
The final list of small items to finish or fix before closeout.
Read the definitionSubstantial Completion
The point when the project is usable for its intended purpose.
Read the definitionSchedule of Values
The contract price broken into line items used for progress billing.
Read the definitionSubcontractor
A trade contractor hired by the GC, not by the owner.
Read the definitionGeneral Contractor
The contractor who holds the prime contract and runs the project.
Read the definitionProgress Payment
Periodic payments made as the work advances, not all at the end.
Read the definition
These definitions are general, educational explanations — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
See any term explained in your own document.
Upload an agreement and XOsign walks you through every clause in plain language — before you sign, not after.