claims
Definition
A claim is a formal demand that someone owes you something, usually money or a specific action, because they wronged you or broke an agreement. In a contract or lawsuit, claims are the specific complaints one party officially raises against another to seek a remedy. Think of a claim as your official statement saying 'here is what happened, here is why it's your fault, and here is what I want from you.'
Example
If a client refuses to pay you for completed work, you would file a claim against them in small claims court stating that they owe you $3,000 under your service agreement. The claim is your formal accusation and demand packaged together.
Watch Out
Many contracts contain a 'claims' section that sets a deadline for raising disputes, so if you wait too long to speak up about a problem, you may permanently lose your right to seek compensation.
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.