Boilerplate Provisions in Contracts

In this litigious world, it is essential that you protect yourself from any potential lawsuits regarding business contracts. Boilerplate provisions in contracts protect both parties from potential lawsuits, specifically the service provider in a service contract.

Although boilerplate provisions are not required for any contract, they are certainly advisable for anyone who wants to protect themselves against lawsuits.

Here are some of the more common boilerplate provisions in contracts:

Boilerplate Provision #1: Attorney’s Fees & Court Costs

Your contract should state that, in the event of a lawsuit, the prevailing party will be allowed to collect any attorney’s fees and court costs that they incurred for the purpose of the lawsuit. This is essential because, if even if it is a small lawsuit, the attorney’s fees and court costs will not leave the party in the red.

Boilerplate Provision #2: All-Inclusive Agreement

At the end of your contract, before the place for your signatures, it should state that the contract is the final and complete agreement concerning the business, and that no other agreements are to be held valid. This prevents one party from claiming that there were other, extraneous agreements that nullify any part of the contract.

Boilerplate Provision #3: Consent to Jurisdiction

In many cases, a contract will be formed between two parties who live in different cities or even different states. With the consent to jurisdiction clause, the place of litigation will be determined. For example, if you are a web designer who lives in Miami, and you do business with a client who lives in Boise, you’ll want the contract to specify that any litigation be resolved in Miami.

Boilerplate Provision #4: Modification of Agreement

Some contracts are changed after they have been signed, but the modification of agreement clause states that any change to the contract must be in writing and signed by both parties. Either the change must be added to the contract itself, or can be provided as an addendum, whichever is more convenient.

Boilerplate Provision #5: Arbitration

If you want to protect yourself against litigation entirely, an arbitration clause can do just that. This states that, in the event of a dispute, the problem must be resolved in arbitration. The contract must specify the arbitrator as well as the place at which the arbitration will take place.

Boilerplate Provision #6: Ambiguities

If you are the drafter of your contract and not a lawyer, there is a chance that part of the contract will be considered ambiguous. Typically, an ambiguity will be ruled against the drafter of the contract, so an ambiguity clause will state that any ambiguous contact should be interpreted as fair meaning, and not in favor of either party.