provision
Definition
A provision is a specific clause or section within a contract that sets out a particular rule, requirement, or condition that the parties have agreed to follow. Think of it as one piece of a larger puzzle, where each provision handles a distinct topic like payment terms, cancellation rights, or confidentiality. Together, all the provisions in a contract spell out exactly what each side has promised to do.
Example
Your lease might include a provision stating that you must give 60 days written notice before moving out, which means breaking that rule could cost you your security deposit.
Watch Out
Never assume a provision is just standard boilerplate because even a single clause can have major financial or legal consequences for your business if you overlook it.
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.
