contract clauses

What are Contract Clauses?

Learn about Contract clauses with Ranbir Kapoor
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Rockstar 2011

Case breakdown: Movie Rockstar

The scene that you saw shows Khatana (played by Kumud Mishra) requesting Dhingra (played by Piyush Mishra) to alter the clause in the contract. The contract for the singer says that he has to create five albums with the label and is restricted to singing outside. Meanwhile, Janardan (played by Ranbir Kapoor) tears the contract into pieces and dramatically throws it at Dhingra.

What are contract clauses?

A contract is a legal document that requires specific action by the date mentioned in the agreement. A contract can also be described as an act of promise between two or more parties to offer something of value in exchange for a price.

A Contract has many clauses, some of them include:

Confidentiality:

One of the main clauses of a contract is confidentiality, This should be a strongly worded clause in the contract. Both parties are prohibited from divulging any details of the contract to the public. This especially holds true for contracts of intellectual property rights. A non-disclosure clause is added to such agreements.

Payment Terms and conditions:

Generally, all contracts have payment terms and conditions. This is usually decided before the contract is prepared. Payment terms can include settlement at the end of the service or payment in installments. This is at the discretion of the parties involved and the nature of the work.

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Learn about Contract Clauses with a Video

Duration and Termination:

The length of a contract should be mentioned in the agreement. This should include the starting and the ending date. A termination clause should also be included, indicating the assignment’s expectation to be delivered. Breach of contract would result in termination of the contract.

Indemnity Clause:

Indemnity is a contractual agreement between two parties. In this agreement, one party decides to pay for any losses that another party would cause. Risks are managed between the parties through indemnity clauses.

Indemnity clauses are generally seen when one party seems to be at risk by the actions of the other party. This clause is included to ensure the party who will bear the risk.

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