Module 2 · Chapter 4

Definitions in Contracts: Defined Terms That Drift

A defined word gives a contract one fixed meaning to use again and again. This chapter shows how to define a word, and how to stop its meaning drifting as the deal changes.

≈ 7 min read 8-question test

In this chapter

  • How a defined word works in every clause that uses it
  • How one defined word nearly lost the bakery a year of repairs
  • When to write “means” or “includes”, and where duties belong

4.1Definitions in one paragraph

A defined term is a word the contract gives one fixed meaning. It starts with a capital letter, so the reader knows to look it up in clause 1.1. Wherever the word appears, you read its definition in place of the word. So a change to one definition changes every clause that uses the word.

Key point

A definition works in every clause that uses the word. Before you change one, find and read each of those clauses.

Also in this chapter

  1. The “Term” that changed meaning
  2. When to define a word, and “means” against “includes”
  3. Keep duties out of definitions
  4. Your job

Preview

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