Reference
Clause library
Plain-English guides to seven clauses that matter most in UK commercial contracts.
This guide was written by Sneha Ganapavarapu, a qualified lawyer with experience in commercial contracts across technology, IP, and energy sectors. All legal sources are linked. This is general legal information, not legal advice. Always consult a qualified solicitor before signing any contract that matters to your business.
Limitation of Liability
A limitation of liability clause caps how much one party can owe the other if something goes wrong.
Indemnities
An indemnity is a promise by one party to compensate the other for specific losses, costs, or claims — even if those losses weren't caused by a breach of contract.
IP Ownership
The intellectual property ownership clause determines who owns the work product created under the contract.
Data Protection
The data protection clause sets out how personal data is handled under the contract, who is the data controller, who is the data processor, and what obligations each party owes under UK GDPR and the Data Protection Act 2018.
Termination
The termination clause sets out the conditions under which either party can end the contract, how much notice is required, and what happens when the contract ends.
Dispute Resolution
The dispute resolution clause sets out the process parties must follow before and during a formal legal claim — including escalation steps, arbitration or court proceedings, and any time limits on bringing a claim.
Auto-Renewal
An auto-renewal clause rolls the contract over automatically at the end of its term unless one party actively opts out within a specific cancellation window.
Fee Increases
A fee increase clause lets the supplier raise their prices during the contract term, typically linked to an index such as CPI or at the supplier's discretion.
Payment Terms
Payment terms set out when invoices fall due, what happens if payment is late or disputed, and whether the supplier can suspend services over an unpaid bill.
Assignment and Change of Control
These clauses govern who you can end up contracting with if either business is sold or restructured, and whether a funding round or acquisition could trigger the other side's exit rights.
Governing Law
The governing law clause determines which country's laws interpret the contract and which courts have jurisdiction over disputes — which directly affects your cost of enforcement.
Confidentiality
The confidentiality clause (or NDA) sets out what information must be kept secret, how long that obligation lasts, and the limited circumstances in which disclosure is permitted.
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