Lexipedia

Contractual clause

A contractual clause is an individual provision of a contract that defines rights, duties, conditions, risks, or remedies between the parties.

A contractual clause forms part of the parties’ agreement and may regulate performance, payment, liability, termination, confidentiality, dispute resolution, or other matters. In Swiss law, clauses are interpreted according to the parties’ actual common intention where ascertainable, otherwise according to objective meaning in good faith. A clause may be ineffective if it violates mandatory law, required form, public policy, or specific controls such as those applicable to standard terms or consumer contexts. Its effect depends on the contract as a whole.