What’s a Boilerplate Clause, and When Should You Use One?
Table of contents Newsletter
- What is a boilerplate clause?
- Why is it called a boilerplate clause?
- Is a boilerplate clause the same as a boilerplate contract?
- Can you write a contract with only boilerplate clauses?
- Some types of boilerplate clauses
- Why are boilerplate clauses important?
- What’s the downside of boilerplate clauses?
- Easily manage all your boilerplate clauses.
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Can a contract be both standardized and account for variability? Yes, with boilerplate clauses!
Here, we look at the upsides, as well as one downside, of boilerplate clauses and how you can manage them more efficiently.
What is a boilerplate clause?
Boilerplate clauses are standardized sections of legal documents that are largely the same regardless of the contract. You’ll often see several types of these contract clauses at the end of a document to neatly tie up whatever terms came before them. Keep reading to learn more about the different types of boilerplate clauses and why they’re used.
Why is it called a boilerplate clause?
The word boilerplate was first used to describe the large metal plates used in steam boilers. It was later co-opted by newspaper editors as a way to describe the seemingly subpar or “standard” type of work being done by their writers. Today it’s used by legal professionals as a way to denote the most frequently used clauses contained in most contracts.
Is a boilerplate clause the same as a boilerplate contract?
You could say a boilerplate clause is like a bite-sized contract because, similar to a full contract, it’s legally binding. It’s a part of a contract, but it’s not the whole story.
Can you write a contract with only boilerplate clauses?
You can absolutely write a contract with nothing but boilerplate clauses.There are a few issues with boilerplate contracts, however.
They’re less well-rounded.
Boilerplate contracts lack the breadth and depth of a contract that has both standardized clauses and individualized clauses. They contain a lot of general information and not enough specific language.
They’re not personalized enough.
They contain all the guidance for laws and disputes, but they lack the more individualized components like subject matter and how both parties are involved in the agreement.
They can be ineffective.
Boilerplate contracts lack much of the essential information needed to enforce a contract in the event of a dispute. Not because they lack guidance on laws and regulations. They lack the broader storyline of the relationship and reasons for the contract as a whole.
Some types of boilerplate clauses
Indemnification clause
An indemnification clause absolves one party in the legal agreement from any misconduct by the other party. This can be helpful when you are not directly involved with the work being done by the other party, as with a contractor for instance.
Assignment clause
An assignment clause directs all parties in the contract to give or not to give responsibility to anyone outside that contract. The terms of who can be assigned responsibility within the scope of the contract can be updated if all parties agree and sign.
Force majeure clause
A force majeure clause accounts for “acts of God” or circumstances beyond your control that would prevent either party from fulfilling their contractual obligations. For example, a war or natural disaster would each constitute such an event.
Severability clause
A severability clause protects the rest of a contract even if a single or multiple parts of the contract are deemed unenforceable by law. This keeps the majority of the contract in-tact, preventing a total rewrite and re-examination of the contract.
Why are boilerplate clauses important?
There are a number of reasons why boilerplate clauses are important in any contract. Let’s look at a few.
Boilerplate language is universal.
The same verbiage shows up in different contracts regardless of industry. That saves time and money for legal teams.
Boilerplate clauses reduce uncertainty.
The same wording is used across multiple contracts which safeguards against possible ambiguity between offices or departments.
They aid with compliance.
You can be sure all relevant clauses are included in each of your contracts if you’re using the same boilerplate language in all your contracts.
They’re flexible.
Conversely, they also allow for adaptability when circumstances change. An example is the severability clause above which accounts for unforeseen circumstances outside of your control.
They save time.
When a disagreement arises, the terms are spelled out right in the contract. Everyone can be on the same page.
What’s the downside of boilerplate clauses?
As with any legal language, boilerplate language can favor the party that writes the contract more than the party who’s just signing. Boilerplate clauses are standard, but that doesn’t mean they’re always easy to understand. All that fine print can be overwhelming for someone who isn’t a legal professional.
Easily manage all your boilerplate clauses.
Whether you’re a legal expert or not, you may come across a situation that requires you to search for legal language in a contract. Clause library software can help minimize headaches and save time when searching for something specific. Rather than scroll through pages of legal documents, you can search for keywords that you know are pertinent to your question. on top of your extensions as well as other important contract-related procedures. It’s one of the quickest, easiest ways to free up your valuable time and resources.
