Explanation Clause
/ˌɛkspləˈneɪʃən klɔːz/
Definitions
- (n.) A contractual provision that requires a party to provide reasons or justification for certain actions or decisions within the agreement.
The explanation clause compelled the tenant to disclose reasons for early termination of the lease.
Forms
- explanation clauses
See also
Commentary
Explanation clauses clarify obligations for providing reasons, helpful to limit disputes over ambiguous decisions in contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.