Resources
Glossary
Contract terms explained in plain words, each linked to a guide, a tool or a template.
- 35 articles
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- AmendmentAn amendment is a signed written change to an existing contract. Learn how amendments alter effective terms and why they need tracking.
- Assignment clauseAn assignment clause restricts or permits one party transferring its contract rights and duties to another company.
- Auto-renewalAuto-renewal is a clause that extends a contract for another term unless a party gives notice in time. How it works and why it leads to missed deadlines.
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- Cap and floorA cap and floor limit how far an indexed price can rise or fall in a period, protecting both sides from extreme index movements.
- Certificate of insurance (COI)A certificate of insurance is a document that proves a party holds insurance coverage, with limits, dates and insurer details.
- Change of controlA change of control clause gives a party rights, such as consent or termination, if the other side is sold or its ownership shifts.
- Consumer Price Index (CPI)CPI measures changes in prices paid by consumers and is the most common index used in US contract escalation clauses.
- Contract repositoryA contract repository is a central, searchable store for contracts and their metadata, from which deadlines and obligations can be managed.
- Contractual obligationA contractual obligation is a duty a party must perform under a contract, such as delivering, paying, reporting or renewing insurance.
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- Effective dateThe effective date is when a contract's rights and obligations begin. It can differ from the signature date and drives every later deadline.
- Effective termsEffective terms are the current, combined position of a contract after all amendments, renewals and order forms are applied.
- Evergreen clauseAn evergreen clause keeps a contract running indefinitely until a party terminates it. Learn how it differs from a fixed-term auto-renewal.
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- IndexationIndexation links a contract price to a published index, such as CPI or HICP, so the price moves with inflation. How it works and what to watch for.
- Initial termThe initial term is the first fixed period of a contract, from its start date until the first renewal or expiry. How it sets the notice deadline.
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- Late payment interestLate payment interest is the charge on overdue invoices, set by contract or by statute. Learn how it is calculated, with the EU rule.
- Limitation of liabilityA limitation of liability clause caps or excludes the damages one party can owe the other under a contract. What it usually covers and excludes.
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- Service creditA service credit is a fee reduction or credit a customer receives when a supplier misses an SLA target, often after a claim.
- Service level agreement (SLA)A service level agreement sets measurable service standards, such as uptime and response times, and the remedies if they are missed.
- Statement of work (SOW)A statement of work defines the scope, deliverables, schedule and acceptance criteria for a specific project under a broader agreement.
- SubprocessorA subprocessor is a third party that a data processor engages to handle personal data on the controller's behalf.
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- Termination for causeTermination for cause lets a party end a contract because of a breach or defined event, often after a cure period.
- Termination for convenienceTermination for convenience lets a party end a contract without cause, usually on notice. Learn how it differs from termination for cause.
Keep learning
- GuidesPractical guides to renewals, notices, price escalations and obligations, with sources.
- TemplatesNotices, letters, checklists and trackers to use with or without Pactinel.
- ComparisonsHow Pactinel compares with spreadsheets, shared drives and other tools, with sources and dates.
- Free contract calculatorsWork out notice deadlines, automatic renewals, index-linked increases, late-payment interest, bank-guarantee costs, the cost of missed renewals and contract commitments. Each answer comes with its figures and assumptions, and every calculator can be embedded on your own site.
- Frequently asked questionsStraight answers about what Pactinel does, what it costs, how the AI works and where your contracts are kept.
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