carve-outs
Definition
A carve-out is a specific exception written into a contract that says a particular situation, item, or activity is excluded from the main rule of that contract. Think of it like a general law with a special exemption built right in for certain cases. The carve-out names exactly what does not follow the usual agreement terms.
Example
You sign a non-compete agreement promising not to work for competitors, but a carve-out lets you keep doing freelance graphic design for your existing three clients. Those three clients are carved out from the restriction.
Watch Out
Carve-outs can quietly shrink your rights or protections in ways that are easy to miss, so always read them carefully and ask exactly what they are removing from the deal.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.