Special Clauses of Contract

Introduction

Contracts are the backbone of the business world, and they provide a valuable framework for transactions between two parties. However, standard contract clauses may not always be applicable to every situation. This is why special clauses are added to contracts to address unique circumstances that cannot be dealt with using standard clauses. In this article, we will discuss the importance of special clauses in contracts and their essential features.

Types of Special Clauses

Special clauses can be used in a variety of situations to facilitate smoother transactions between parties. Some of the most common types of special clauses are:

Force Majeure

A force majeure clause is used to address unforeseen circumstances that may prevent one or both parties from fulfilling their obligations under the contract. These circumstances may include war, natural disasters, or government actions. This clause ensures that the parties are not held liable for failing to meet their obligations under the contract.

Confidentiality

A confidentiality clause is used to protect sensitive information shared between the parties during the course of the contract. This clause ensures that the parties keep the information confidential and that they do not share it with third parties without the other party's consent. This clause is particularly important in contracts involving intellectual property.

Limitation of Liability

A limitation of liability clause is used to limit the amount of damages that one party may be liable for in case of a breach of contract. This clause ensures that the parties are aware of the extent of their liability in case of a breach.

Conclusion

Special clauses are an essential component of contracts, and they offer protection for both parties. They allow parties to address unique situations that standard contract clauses cannot cover, and they ensure that both parties have a clear understanding of their obligations and liabilities. When drafting a contract, it is crucial to consider the unique circumstances of the transaction and include any special clauses that may be necessary.