What is a Contract Provision?

A contract ordinarily contains many provisions.

Every contract, written or oral, contains one or more contract provisions. Such provisions are clauses in the contract language that make clear what agreements are the subject(s) of the contract. It also includes whom and what the provisions address.

Legal Definition of Provision

A contract is an "agreement between two or more persons, which creates an obligation to do or not to do a particular thing," according to Black's Law Dictionary. "Provision" comes from old English law, meaning "having foresight to take into account that no matters what happens, the parties to the contract agreed to its risks and responsibilities."

Eample of Contract Provisions

If a store owner agrees to sell a desk to a customer, the contract would likely contain basic provisions that state the seller, the buyer, the price and a description of the desk. This contract may also contain provisions concerning what happens if the desk is not delivered on time, if there are defects in the desk, and what the seller's rights are if the buyer's payment is defective.

Severable Contracts

Contracts may contain agreements about severability of provisions. A contract for homeowner's insurance may contain provisions stating that if one or another agreement in the contract is void or illegal, the rest of the contract still exists. The contract would then be understood as if the severed provisions never existed.

References

• "Black's Law Dictionary," 5th ed.; West; 1979

Resources

• Nolo: Common Boilerplate Provisions in Contracts