Contract Terms
| Term | Definition |
|---|
| Consideration | Something of value exchanged — makes a contract binding. Can be money, services, or even a promise. |
| Indemnification | Promise to cover someone's losses if something goes wrong — "I'll pay if you get sued because of my work" |
| Force Majeure | "Act of God" clause — excuses performance due to unforeseeable events (natural disaster, war, pandemic) |
| Severability | If one part of the contract is invalid, the rest still stands |
Liability & Negligence
| Term | Definition |
|---|
| Negligence | Failure to exercise reasonable care — 4 elements: duty, breach, causation, damages |
| Liability | Legal responsibility for your actions or omissions |
| Strict Liability | Responsibility regardless of fault — common in product liability cases |
Intellectual Property
| Term | Definition |
|---|
| Patent | Exclusive right to an invention — 20 years from filing |
| Trademark | Protects brand identifiers — names, logos, slogans. Can last forever if used and defended. |
| Trade Secret | Confidential business information (Coca-Cola formula, Google algorithm) |
Pro Tip: If a contract has a section titled 'Indemnification,' read it three times. It's often the most dangerous clause — you could be agreeing to pay someone else's legal bills. If you don't understand it, a lawyer's $300 review fee is cheaper than unlimited liability.