merger clause
Definition
A merger clause is a sentence in a contract that says the written contract is the complete and final agreement between the parties, and that any previous conversations, emails, promises, or handshake deals no longer count. Once you sign a contract with a merger clause, the only thing that matters legally is what appears on that paper. Judges will typically refuse to consider anything said or written before the contract was signed.
Example
You negotiate a deal where the seller verbally promises to include equipment in the sale, but the final written contract has a merger clause and does not mention the equipment, so you cannot sue to enforce that verbal promise.
Watch Out
Always read the final written contract carefully before signing because a merger clause means any side promises your vendor or partner made during negotiations will disappear the moment you put pen to paper.
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.