Legal jargon in contracts is often related to costly and time-consuming civil litigation. When you know what certain terms mean and use them correctly, you eliminate confusion and might avoid trips to the courthouse. Becoming familiar with the words below that may appear in your leases, financial agreements, or construction contracts can assist you in making wise decisions before signing.

4 Examples of Legal Jargon That Can Lead to Civil Litigation

1. Force Majeure

A force majeure, which means superior force, is an unforeseen event or a natural disaster, such as an act of war or terrorism, a hurricane, or an earthquake. When the event happens, it excuses both parties from performing their obligations under the contract. Sometimes called “an act of God,” this legal term appears in many insurance policies and building contracts.

2. Joint Venture

If your contract is for a joint venture, your independent business agrees to share costs, profits, losses, and legal responsibility with another independent business for both of you to complete a single project. A joint venture differs from a partnership agreement, which creates a continuing relationship involving numerous activities together.

3. Liable or Liability

Being liable or having liability means having legal responsibility for an event. When you are at fault for violating or not fulfilling contract terms, you may be held liable and obligated to pay for related losses.

4. Waive or Waiver

If you sign an agreement containing a waiver, you give up or waive a legal right or an opportunity to do something. Waiver clauses in construction contracts may have signers giving up their right to pursue civil litigation or a right to a jury trial. Parties may be limited to resolving disputes by mediation, binding arbitration, or a trial before a judge without a jury.

The Law Office of W. Randall Holcomb offers contract review and drafting to cut through the jargon and help clients avoid civil litigation. Based in Greensboro, NC, the firm’s experienced contract lawyer serves business owners throughout the Triad area. Whether you need a startup attorney or a small business lawyer for your ongoing enterprise, visit their website to learn more about how they can help you. Call (336) 888-8760 to schedule a confidential appointment.