Library

Encyclopedia + clauses + common errors.

Clause library 21

Amendment

Amendments are allowed by written agreement, with a log of versions and changes kept.

Use it when: In any ongoing or multi-stage agreement.

Avoid it when: In one-off agreements completed on execution.

Define the amendment mechanism and who may invoke it to avoid unilateral change.

Amicable termination

Amicable termination with a fair settlement for work done.

Use it when: In ongoing relationships whose circumstances may change.

Avoid it when: In short obligations ending on performance.

Write a clear settlement mechanism upon termination.

Cancellation

Cancellation is available to both parties by written notice of equal length, paying for work actually completed up to the cancellation date. Paid partial deliverables are handed to the Second Party, and no party owes further compensation unless the cancellation is arbitrary and in breach of this agreement.

Use it when: In any service, subscription, or supply agreement.

Avoid it when: In immediate, irreversible agreements.

Clarify notice period and how dues are computed on cancellation.

Confidentiality

Confidentiality is mutual and time-bound, covering any non-public information a party accesses because of this agreement. Excluded is anything already public or that must be disclosed under a legal order, with prior notice to the other party where possible.

Use it when: When exchanging sensitive or commercial information.

Avoid it when: When no confidential information is involved.

Define the confidentiality duration and its exclusions.

Delay

If a party delays its obligation, it is notified in writing and granted a reasonable cure period before any consequence applies. Delay effects are shared fairly according to who caused them, and no party bears a delay caused by the other party or by a force majeure beyond control.

Use it when: In agreements tied to delivery or payment deadlines.

Avoid it when: When there are no binding deadlines.

Make the consequence proportionate to harm, not punitive.

Delivery

Work is delivered per the agreed scope with clear acceptance criteria for each stage, and delivery dates are documented. Any delay by a party is notified to the other early, stating its reason and a reasonable revised timeline.

Use it when: In service and production agreements.

Avoid it when: In purely financial agreements.

Define acceptance criteria, file formats, and revision count.

Dispute

Any dispute is handled first by direct amicable settlement, then mediation, then recourse to the competent court if unresolved. Both parties remain bound by the undisputed parts of the agreement while the dispute is handled, and each bears its own costs unless the competent authority decides otherwise.

Use it when: In any agreement with mutual obligations.

Avoid it when: In non-binding understandings.

Caution: do not deprive the weaker party of the right to litigate, nor impose a distant, hard-to-reach forum. Prefer a tiered path: amicable settlement, then mediation, then the competent forum, with the governing law clearly stated.

Expenses

Clear allocation of shared expenses with receipts.

Use it when: When there are operating, travel, or material costs.

Avoid it when: When there are no expenses.

Document reimbursable expenses in advance.

Force majeure

Obligations are suspended during force majeure and resume after it ends.

Use it when: In long-term agreements or those tied to third parties.

Avoid it when: In simple immediate obligations.

Define force majeure with examples to avoid overreach.

Indemnity

Mutual indemnity limited to proven fault and direct harm.

Use it when: In agreements with third-party claim risk.

Avoid it when: In low-risk agreements.

Caution: open-ended indemnity (''for any claim whatsoever'') is risky because it may make you liable for others'' faults. Tie indemnity to proven fault and direct damage, and set a cap and exceptions.

IP

Ownership of the final deliverables transfers to the Second Party upon full payment, unless agreed otherwise. The provider keeps the right to showcase the work in their portfolio unless confidentiality is required, and their general tools and methods remain theirs.

Use it when: In creative and software work.

Avoid it when: When there is no ownable output.

Specify when ownership transfers and whether it includes source files and commercial use.

Liability

Liability is allocated by fault, with a reasonable cap.

Use it when: In agreements with financial or operational impact.

Avoid it when: In simple, low-impact agreements.

Caution: a zero or very low liability cap may appear unfair and be struck down before the competent authority, especially against a weaker party. Make the cap proportionate to the agreement value and risk, and do not exempt yourself from fraud or gross negligence.

NDA

Mutual non-disclosure, scoped and time-bound.

Use it when: Before exchanging trade or technical secrets.

Avoid it when: When no confidential information exists.

Define what counts as confidential and the duration.

Non-circumvention

Mutual non-circumvention, time- and scope-limited.

Use it when: In brokerage and referral agreements.

Avoid it when: In open, non-exclusive relationships.

Caution: a non-circumvention clause without a clear term or scope is hard to enforce and restricts normal dealing. Limit it to a reasonable period and to contacts actually introduced, not all future dealings.

Non-compete

A non-compete limited in time and geography, with consideration.

Use it when: When secrets or sensitive relationships exist.

Avoid it when: When it harms a person's right to earn a living.

Caution: a broad non-compete (long duration, wide geography, or vague field) may be seen as restricting a person''s right to earn a living and could be voided or narrowed by a court. Keep it limited and justified (reasonable duration, scope, and consideration) and consult an expert.

Notices

Agreed notice channels with proof of receipt.

Use it when: In any agreement requiring formal communication.

Avoid it when: In simple verbal understandings.

Specify the channel and when a notice is deemed effective.

Payment

Payment is split: 50% upfront on start and 50% on delivery and acceptance, unless the parties agree otherwise in writing. Each installment is paid within a reasonable period of becoming due, and work may rightfully pause upon material payment delay after notice.

Use it when: In any agreement with monetary consideration.

Avoid it when: When there is no monetary consideration.

Specify due date, method, and proof of payment to avoid disputes.

Periodic review

Mutual periodic review to keep balance.

Use it when: In long-term agreements.

Avoid it when: In short-term agreements.

Define the review cadence and its consequences.

Renewal

Renewal by both parties' consent with equal prior notice.

Use it when: In subscriptions and recurring services.

Avoid it when: In one-time agreements.

Auto-renewal needs clear notice and a right to cancel.

Term

A clear term with defined start and end, subject to review.

Use it when: In agreements bound by a term or cycle.

Avoid it when: In instantaneous agreements.

Tie the term to the purpose to avoid an open-ended obligation.

Warranty

A balanced warranty covering material defects but not misuse.

Use it when: In work with measurable deliverables.

Avoid it when: In advisory services not amenable to warranty.

Do not promise a warranty you cannot honor.

Encyclopedia

Agreement vs Contract

An agreement is a mutual understanding on obligations, verbal or written. A contract is an agreement that meets the legal elements of enforceability (consent, subject, cause, and capacity), making it binding before the competent authorities. Every contract is an agreement, but not every agreement is a contract. Treaty organizes, clarifies, and audits your agreement — it does not guarantee enforceability; for high-risk agreements consult a legal expert before adopting them.

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What is Scope

Scope is the boundary of what is included and excluded; it is the single most important clause for preventing disputes, because scope creep is a leading cause of conflict: ''I thought that was included'' vs ''No, it was not.'' Example: a designer agrees to ''a logo,'' the client expects unlimited revisions and source files, while the designer means three rounds and the final file only. Write scope explicitly: deliverables, revision count, exclusions. Pair it with Delivery, Acceptance, and Cancellation clauses.

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Memorandum of Understanding

A memorandum of understanding expresses the parties'' intent to cooperate and frames the general understanding before a binding contract, and is usually non-binding except for specific clauses such as confidentiality and exclusivity. It is used to record what was agreed in principle and reduce misunderstanding during negotiation. State its purpose, preliminary scope, validity period, and whether it is fully or partly binding, so its nature is not misread later.

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Acknowledgment

An acknowledgment is a written admission of a fact or right, such as receiving money or goods, without necessarily creating a new obligation. Its value lies in being evidence that settles a dispute over what actually happened. Specify the fact precisely, the date, the amount or item acknowledged, and the acknowledger''s identity, since a vague acknowledgment loses its evidentiary value.

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Undertaking

An undertaking is a one-sided commitment to do or refrain from something, such as undertaking to repay or not to compete. Because it is unilateral it must have clear limits and duration so it does not become an open-ended obligation. Write precisely what is undertaken, when, under what conditions, and the effect of breach, so it is trackable and enforceable.

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Consideration

Consideration is what each party gives in return for the other''s obligation — money, service, or benefit. A clear, proportionate consideration distinguishes a serious agreement from a mere promise and protects both sides in a dispute. Define its value, the conditions for earning it, its timing, and how it is evidenced. Missing or vague consideration is among the top causes of failed personal and financial agreements.

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Delivery

Delivery is handing the output or work to the other party per the agreed specifications and date; it is a sensitive point because disputes often arise over ''was it delivered?'' and ''did it match?''. Define the delivery format, place, date, acceptance criterion, and evidence of delivery (receipt/message). Pair it with the Acceptance clause so delivery is not left hanging without resolution.

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Breach

A breach is the failure to fulfill an agreed obligation, such as late delivery, non-payment, or violating confidentiality. A breach triggers consequences set by the clauses: a cure period, compensation, or a right to terminate. Make the consequence proportionate to the harm rather than punitive, and grant a reasonable cure period before any effect applies; a balanced clause protects the relationship and eases enforcement.

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Confidentiality

Confidentiality is a duty not to disclose the other party''s information or use it outside the agreement''s purpose. It protects trade and technical secrets and sensitive data, and is often mutual. Define what counts as confidential, the duration, and the exceptions (public or legally required information), since absolute confidentiality without a term or exceptions may be unfair and hard to enforce.

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Intellectual Property

Intellectual property is the rights over creative or technical work: who owns it and how it may be used. In design, software, and content work you must define when ownership transfers (often upon full payment), whether it includes source files and commercial use, and whether it is a full assignment or a limited license. Ambiguous ownership turns successful work into a dispute, so make it an explicit clause, not an implicit one.

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Force Majeure

Force majeure is an uncontrollable event that prevents performance (disaster, regulatory ban, major outage); it temporarily excuses the affected party from liability provided it promptly notifies the other. Define it with specific examples to avoid overreach, and set its effect: obligations are suspended during it and resume after it ends, with a right to terminate if it persists. A force-majeure clause fairly allocates the risk of the unforeseeable.

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Jurisdiction

Jurisdiction is the forum and law that govern in a dispute. Setting it in advance saves time and cost when conflict arises, especially when parties are in different cities or countries. State the governing law and the competent forum, and prefer a tiered path: amicable settlement, then mediation, then courts. Leaving jurisdiction open weakens your position and prolongs the dispute.

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E-signature

The evidentiary signature in Zayenha Treaty is an in-house signature that binds your consent to a digital fingerprint (SHA-256) of the agreement text at signing time, with a server attestation and an audit trail (time and device); any later edit to the text is detected immediately and shown as "changed after signing." It is strong proof of what you agreed to and when, with no external provider. It is not a legally certified signature (which requires a licensed certification authority) — and Treaty never claims any signature is always legally sufficient.

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Delivery proof

Delivery proof is what establishes that delivery actually occurred: a receipt, an acknowledgment message, a signature, or a digital record. Its presence settles a dispute over whether and when the work was delivered. Agree in advance on the accepted form of proof and keep it, since relying on memory or scattered messages weakens both parties position in a dispute.

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Common errors

We only agreed verbally

Verbal agreements are hard to prove; document obligations and dates in writing.

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Case studies 10

Designer & client

They verbally agreed on a logo without revision count or ownership. The client demanded endless edits and withheld payment. Gap: revisions & ownership. Risk: unpaid labor. Drafting: define revisions, ownership, payment. Lesson: scope & ownership first. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Two friends & money

He lent a friend money with no repayment terms. Repayment lagged and the friendship cooled. Gap: date & method. Risk: losing money and friendship. Drafting: an amicable repayment plan. Lesson: document even among friends. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Siblings & parent care

Siblings shared caring for their father without defined roles or expenses. Friction grew. Gap: roles & expenses. Risk: family conflict. Drafting: a clarity agreement. Lesson: clarity protects relationships. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Influencer & brand

An influencer ran a campaign without agreeing on usage rights or duration. The brand reused the content for free. Gap: usage rights & term. Risk: content exploitation. Drafting: a scoped, time-bound license. Lesson: define usage rights. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Two project partners

Two partners launched without agreeing on shares or exit. On success they clashed over equity. Gap: shares & exit. Risk: project collapse. Drafting: a team agreement. Lesson: agree before success. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Student team

A student team split a project without task assignment. One carried the load while all got the grade. Gap: tasks & contribution. Risk: unfair grading. Drafting: a task agreement. Lesson: write tasks down. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Freelancer & client

A freelancer delivered work with no acceptance criteria. The client kept rejecting it. Gap: acceptance criteria. Risk: endless rejection. Drafting: criteria & review window. Lesson: define acceptance. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Family & travel

A family planned a trip without splitting costs. They argued at settlement. Gap: cost split. Risk: trip tension. Drafting: a shared-expense agreement. Lesson: clarify money in advance. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Owner & item user

Someone lent a car without agreeing on liability for damage. The car broke down. Gap: damage liability. Risk: cost dispute. Drafting: a usage agreement. Lesson: define liability. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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Volunteer team

A volunteer team ran an event without defined roles or outputs. It stumbled. Gap: roles & outputs. Risk: organizational failure. Drafting: a roles & follow-up agreement. Lesson: volunteering needs structure. — The Treaty solution: start with the Compass to classify the case and its sensitivity, then build the agreement with the right clauses (scope, payment, delivery, acceptance, ownership, cancellation), analyze fairness and gaps before adopting, then track obligations and dates.

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