Legal Contract Common Clause Business People Establishes Years

Legal contracts contain many common "clauses" (sections of a legal contract dealing with one particular part of the law) that are seen "over and over again" (many times). Often these clauses are just copied and pasted from one contract to the next, and only a small "portion" (part) of the contract is actually written "from scratch" (without using a model).

For example, an "arbitration clause" "stipulates" (states) how "conflicts" and "disputes" (disagreements) should be "resolved" (ended by reaching a solution). They often establish how the "parties" (the people or organizations that sign a contract) should communicate their dispute and when a "mediator" (a person who helps the parties resolve their conflict) should be brought into the situation. The clause also indicates whether the arbitration will occur within a specific "jurisdiction" (the area where a particular person or entity can make legal decisions).

Another common contract clause is the "statute of limitations." This clause establishes the maximum amount of time after a particular event that something may happen. For example, a statute of limitations might state that people can be "prosecuted" (charged in court) for certain crimes for only five years after the crime occurred. If more than five years have "elapsed" (passed by), they cannot be taken to court for the crime.

An "attorney fees clause" establishes that if there is "litigation" (legal action) between the two parties, the party that does not win must pay all the "reasonable" (fair and just) "legal fees" (amounts of money paid to a lawyer) "incurred by" (needing to be paid by) the winning party.