We translated the most common legal vocabulary into the language people actually speak. If a term shows up in your document and you're not sure what it means, you'll find it here — with a clear, accurate, jargon-free explanation.
27 terms · alphabetised · sticky A–Z navigation
A private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments. It is faster and more private than going to court — but the decision is usually final and hard to appeal.
Transferring rights or obligations under a contract from one party to another. Many contracts limit assignment unless the other side consents in writing.
Failing to perform any term of a contract, written or oral, without a legitimate legal excuse. The non-breaching party may be entitled to damages or other remedies.
Something of value (like money, goods, services, or a promise) exchanged between parties to a contract. A contract is generally not valid without consideration on both sides.
The other party to a contract. If you sign a lease, your landlord is your counterparty.
A formal agreement or promise inside a contract to do — or not do — a particular act. A "non-compete covenant" promises not to compete with a former employer.
Failing to meet a legal obligation under a contract — most commonly, missing a payment or breaching a key term.
The date a contract becomes legally binding. It may be the day the contract is signed — or a different date the parties agree to.
A clause that excuses a party from performing the contract when an extraordinary event (war, pandemic, natural disaster) makes performance impossible or impractical.
The state (or country) whose laws apply to interpreting and enforcing the contract. Important when parties are in different jurisdictions.
A clause saying who is financially responsible if one party causes loss, damage, or legal trouble for the other. It is one of the most-negotiated clauses in commercial contracts.
The specific geographical area — state, county, or city — whose laws and courts have authority over a document, dispute, or person.
Legal responsibility for one's acts or omissions. Failure to meet that responsibility may expose the party to a lawsuit or financial damages.
A pre-agreed amount of money to be paid if one party breaches the contract. Used when actual damages would be hard to calculate.
A breach so significant that it defeats the purpose of the contract — entitling the other party to terminate and seek damages.
A non-binding process where a neutral third party helps disputing parties reach an agreement. If they cannot agree, they may still pursue arbitration or court.
A legally binding contract that establishes a confidential relationship. Parties agree that sensitive information they receive will not be shared with anyone else.
A state-commissioned official who verifies the identity of a signer and witnesses the signing of a document. Some documents (deeds, wills in some states) require notarization.
Each person or entity bound by the contract. Most contracts have at least two parties — buyer and seller, landlord and tenant, employer and contractor.
A document that gives one person legal authority to act on another's behalf in defined matters — financial, medical, or otherwise.
The "WHEREAS" statements at the top of a contract that describe background facts and the reasons the parties are entering the agreement.
A provision saying that if parts of the contract are held to be illegal or unenforceable, the remainder of the contract still applies.
The legal deadline for filing a lawsuit. It varies by state and by type of claim — once expired, the right to sue is generally lost.
The length of time a contract or agreement remains in effect — for example, a one-year lease has a term of 12 months.
Ending a contract before it would have naturally expired. Contracts usually specify who can terminate, when, and under what conditions.
The voluntary giving-up of a known right or privilege. Often used as a clause: "No failure to enforce this term will be deemed a waiver of it."
A neutral person who watches a contract being signed and signs the document themselves to confirm the signature is genuine. Some documents (wills in many states) require multiple witnesses.
Every term in this glossary appears in real documents on LegalDocumentsHub.com — translated into plain English at intake, applied to your state, and previewable on screen before you pay.