A boilerplate clause is a
legal English term that is used in conjunction with
contract law. When forming contracts, parties to the
contract often use templates or forms with boilerplate clauses (
boilerplate language, used as standard language). Such clauses refers to the standardized clauses in contracts, and they are to be found towards the end of the agreement. Including boilerplate clauses is the process by which parties to the contract may better define their relationship and the will to provide certainty if terms in the contract are ever
disputed
Controversy is a state of prolonged public dispute or debate, usually concerning a matter of conflicting opinion or point of view. The word was coined from the Latin ''controversia'', as a composite of ''controversus'' – "turned in an opposite d ...
. Boilerplate clauses are standard
contractual terms that are routinely included in many contracts. Some of the most common clause types are listed below:
Assignment clause
The
common law
In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omniprese ...
does not permit assignment of the burden of a contract (i.e.
contractual obligations) without the consent of other contracting parties. The benefit of a contract (i.e. contractual rights) may be assigned without the consent of the other contracting parties.
An assignment clause either expressly prohibits or permits transfers of rights or obligations under the contract to a third party to the contract.
An example:
A transfer may be prohibited or permitted entirely or in part. Where a contract contains separate and
severable obligations, only part of the contract may be transferred. Classes of contract which cannot be assigned which include contracts for personal services, such as contracts of employment.
The example of permitting assignment under specified circumstances is:
An example:
The hulls and freight clauses contain a similar "assignment clause" which states that no assignment is binding unless a dated notice of assignment, signed by the assured is endorsed on the policy and the policy is produced before payment of claim or return of premium.
''Force majeure'' clause
A ''
force majeure
In contract law, (from Law French: 'overwhelming force', ) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such ...
'' clause is designed to protect against failures to perform contractual obligations caused by unavoidable events beyond a party’s control, such as natural disasters. ''Force majeure'' clauses are primarily used to identify circumstances in which performance of contract may be forgiven
[International Commercial Agreements: A Primer on Drafting, Negotiating, and Resolving Disputes, William F. Fox
Kluwer Law International, 2009 - p. 420]
An example:
GUMBER & PARTNERS SOLICITORS shall in no event be responsible for any delay or failure in performance resulting from circumstances beyond its reasonable control.
Arbitration clause
A specific boilerplate clause which is stated to forgo taking any dispute that may arise to
court. Parties to the contract are to refer the dispute to an arbitrator to reach out-of-court
settlement.
An example:
In the event a dispute shall arise between the parties hereto, it is hereby agreed that the dispute shall be referred to International Chamber of Commerce and settled by three arbitrators. The arbitrator’s decision shall be final and binding.
Severability clause
Severability clause provides that in the event of one or more provisions of the contract are determined to be
unenforceable, the rest of the contract remains in force.
An example:
This Agreement will be enforced to the fullest extent permitted by applicable law. If for any reason any term or provision of this Agreement is held to be invalid or unenforceable to any extent, then (a) such term or provision will be interpreted, construed, or reformed to the extent reasonably required to render the same valid, enforceable, and consistent with the original intent underlying such provision; (b) such term or provision will remain in effect to the extent that it is not invalid or unenforceable; and (c) such invalidity or unenforceability will not affect any other term or provision of this Agreement.”
References
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English law
Informal legal terminology
Practice of law