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How to Understand Legal Jargon (A Pocket Glossary)

Most legalese is recycled vocabulary. Learn 20 terms and 80% of contracts become readable.

Parties

The people or companies signing — usually defined as 'Party' or by short names like 'Client' and 'Contractor.'

Recitals / 'Whereas'

Background context. Not legally binding, but useful for interpretation.

Consideration

What each side gives — money, services, promises. Required to make a contract enforceable.

Material breach

A serious failure that justifies termination — vs. a 'minor' breach you can fix.

Severability

If one clause is void, the rest still apply. Standard boilerplate.

Boilerplate

Standard miscellaneous provisions at the end — assignment, notices, governing law. Read them anyway.

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Not legal advice. For informational purposes only.