# Contract glossary Source: https://contracko.com/glossary # Contract glossary Clear definitions of the legal terms you meet in everyday contracts, with the Dutch and English equivalents and the law behind them. [Start 7-day free trial](https://app.contracko.com/register) Book demo No credit card required ### Search the glossary [A](#letter-A)[B](#letter-B)[C](#letter-C)[D](#letter-D)[E](#letter-E)[F](#letter-F)[G](#letter-G)[H](#letter-H)[I](#letter-I)[J](#letter-J)[K](#letter-K)[L](#letter-L)[M](#letter-M)[N](#letter-N)[O](#letter-O)[P](#letter-P)[R](#letter-R)[S](#letter-S)[T](#letter-T)[V](#letter-V)[W](#letter-W) ## Key terms ### [Clause](https://contracko.com/glossary/clause) A distinct provision in a contract that sets out a specific right or obligation. ### [Breach of contract](https://contracko.com/glossary/breach-of-contract) A failure to perform any obligation under a contract without a lawful excuse. ### [Liability](https://contracko.com/glossary/liability) Legal responsibility to compensate another party for loss caused by an act or omission. ### [Force majeure](https://contracko.com/glossary/force-majeure) An unforeseeable event beyond a party's control that excuses non-performance of a contract. ### [Termination](https://contracko.com/glossary/termination) Bringing a contract to an end before or at its natural expiry, by right or agreement. ### [Intellectual property](https://contracko.com/glossary/intellectual-property) Legally protected creations of the mind such as patents, trademarks, and copyright. ### [GDPR](https://contracko.com/glossary/gdpr) The EU regulation governing how personal data of individuals must be processed and protected. ### [Good faith](https://contracko.com/glossary/good-faith) The duty to act honestly and reasonably in forming and performing a contract. ### [General terms and conditions](https://contracko.com/glossary/general-terms-and-conditions) Standardised pre-formulated clauses a party uses across many contracts, governed by strict Dutch rules. ### [Framework agreement](https://contracko.com/glossary/framework-agreement) A master contract setting general terms under which future call-off orders are placed. ### [Letter of intent](https://contracko.com/glossary/letter-of-intent) A preliminary document recording parties' intent to negotiate or conclude a future agreement. ### [Payment terms](https://contracko.com/glossary/payment-terms) The contractual rules governing how, when and in what currency a debtor must pay an invoice. ### [Bank guarantee](https://contracko.com/glossary/bank-guarantee) An independent bank undertaking to pay a beneficiary on demand if the debtor fails to perform. ### [Retention of title](https://contracko.com/glossary/retention-of-title) A seller retains ownership of delivered goods until the buyer has paid in full. ### [Liability limitation](https://contracko.com/glossary/liability-limitation) A contract clause that caps or excludes the damages one party can recover from the other. ### [Tort (wrongful act)](https://contracko.com/glossary/tort) A wrongful act causing harm that gives rise to liability outside of any contract. ### [Supply chain liability](https://contracko.com/glossary/supply-chain-liability) A principal's liability for wages and taxes that contractors and subcontractors fail to pay. ### [Bankruptcy](https://contracko.com/glossary/bankruptcy) A court-ordered liquidation procedure that seizes a debtor's assets for the benefit of creditors. ### [Conditions subsequent](https://contracko.com/glossary/conditions-subsequent) A future uncertain event whose occurrence ends an obligation that was already in effect. ### [Change of control clause](https://contracko.com/glossary/change-of-control-clause) A provision giving rights if ownership or control of a contracting party changes hands. ### [Mediation](https://contracko.com/glossary/mediation) A voluntary process where a neutral mediator helps parties reach their own settlement of a dispute. ### [Exclusivity clause](https://contracko.com/glossary/exclusivity-clause) A provision committing a party to deal only with the other for defined goods, services or territory. ### [Obligation of result](https://contracko.com/glossary/obligation-of-result) A duty to deliver a specific, agreed outcome, not merely to make a best effort. ### [Service credits](https://contracko.com/glossary/service-credits) Pre-agreed financial credits a supplier owes the client when service levels are missed. ### [Tendering](https://contracko.com/glossary/tendering) A structured competitive procedure in which suppliers bid for a contract under predefined rules and award criteria. ### [Procure-to-pay](https://contracko.com/glossary/procure-to-pay) The end-to-end process from requisitioning goods to paying the supplier invoice, often automated in one workflow. ### [Due diligence](https://contracko.com/glossary/due-diligence) Investigating a supplier or counterparty's financial, legal and operational standing before contracting. ### [Contract Management](https://contracko.com/glossary/contract-management) Structured oversight of agreements from drafting through execution, monitoring and termination. ### [Contract lifecycle](https://contracko.com/glossary/contract-lifecycle) The full sequence of stages a contract passes through, from request to renewal or expiry. ### [Vendor lock-in](https://contracko.com/glossary/vendor-lock-in) Dependence on a supplier that makes switching prohibitively costly, complex or risky. ### [Digital signature](https://contracko.com/glossary/digital-signature) A cryptographically secured electronic signature that authenticates a signer and a document's integrity. A ### [Absenteeism insurance](https://contracko.com/glossary/absenteeism-insurance) Cover for an employer's wage-continuation costs during employee sickness absence. ### [Acceptance protocol](https://contracko.com/glossary/acceptance-protocol) A formal record by which the client accepts delivered work, often listing snags to be remedied. ### [Acceptance test](https://contracko.com/glossary/acceptance-test) A predefined test that delivered goods or software must pass before the client formally accepts them. ### [Addendum](https://contracko.com/glossary/addendum) A supplementary document that adds to or amends an existing contract without replacing it. ### [Anti-corruption clause](https://contracko.com/glossary/anti-corruption-clause) A provision requiring the parties to comply with anti-bribery and anti-corruption laws. ### [Arbitration](https://contracko.com/glossary/arbitration) Private dispute resolution by one or more arbitrators whose award binds the parties. ### [Assignment](https://contracko.com/glossary/assignment) Transferring contractual rights or obligations from one party to another. ### [Audit right](https://contracko.com/glossary/audit-right) A contractual right to inspect a counterparty's records or processes to verify compliance. ### [Authorised signatory](https://contracko.com/glossary/authorised-signatory) A person with legal authority to bind an organisation by signing a contract on its behalf. ### [Auto-renewal](https://contracko.com/glossary/auto-renewal) A clause extending a contract automatically unless a party opts out in time. B ### [Back-to-back contracting](https://contracko.com/glossary/back-to-back-contracting) Mirroring obligations from a head contract into a subcontract so terms flow through consistently down the chain. ### [Bailiff's writ](https://contracko.com/glossary/bailiffs-writ) An official document served by a bailiff, such as a summons or enforcement notice. ### [Bank guarantee](https://contracko.com/glossary/bank-guarantee) An independent bank undertaking to pay a beneficiary on demand if the debtor fails to perform. ### [Bankruptcy](https://contracko.com/glossary/bankruptcy) A court-ordered liquidation procedure that seizes a debtor's assets for the benefit of creditors. ### [Baseline assessment](https://contracko.com/glossary/baseline-assessment) An initial measurement of performance against which future results and improvements are judged. ### [Benchmarking clause](https://contracko.com/glossary/benchmarking-clause) A clause allowing prices or service levels to be compared to the market and adjusted accordingly. ### [Blanket agreement](https://contracko.com/glossary/blanket-agreement) A long-term purchasing arrangement covering recurring orders at agreed terms over a period. ### [Boilerplate](https://contracko.com/glossary/boilerplate) Standard, reusable contract clauses that appear in most agreements with little change. ### [Bonus-malus arrangement](https://contracko.com/glossary/bonus-malus-arrangement) A mechanism rewarding performance above target and penalising performance below it. ### [Breach of contract](https://contracko.com/glossary/breach-of-contract) A failure to perform any obligation under a contract without a lawful excuse. ### [Buildings insurance](https://contracko.com/glossary/buildings-insurance) Cover for physical damage to a building from risks such as fire, storm and water. C ### [Chain clause (perpetual obligation)](https://contracko.com/glossary/chain-clause) A clause obliging a party to impose the same obligation on any successor, passing it down a chain. ### [Change of control clause](https://contracko.com/glossary/change-of-control-clause) A provision giving rights if ownership or control of a contracting party changes hands. ### [Change orders (variations)](https://contracko.com/glossary/change-orders) Agreed additions to or reductions of contracted work, with corresponding price and time adjustments. ### [Clause](https://contracko.com/glossary/clause) A distinct provision in a contract that sets out a specific right or obligation. ### [Collaboration agreement](https://contracko.com/glossary/collaboration-agreement) A contract setting how two or more parties cooperate on a joint project or objective. ### [Commercial lease](https://contracko.com/glossary/commercial-lease) A lease of business premises, governed in the Netherlands by protective statutory regimes. ### [Compliance clause](https://contracko.com/glossary/compliance-clause) A clause obliging parties to comply with applicable laws, standards and policies during the contract. ### [Condition precedent](https://contracko.com/glossary/condition-precedent) A future uncertain event that must occur before a contractual obligation takes effect. ### [Conditions subsequent](https://contracko.com/glossary/conditions-subsequent) A future uncertain event whose occurrence ends an obligation that was already in effect. ### [Confidential information](https://contracko.com/glossary/confidential-information) Non-public information shared in confidence that the recipient must protect and not disclose. ### [Consequential damages](https://contracko.com/glossary/consequential-damages) Indirect loss flowing on from a breach, such as lost profit, lost production or reputational harm. ### [Consideration](https://contracko.com/glossary/consideration) In common law, the value each party gives that makes a contract binding. ### [Consignment stock](https://contracko.com/glossary/consignment-stock) Inventory held at the buyer's site but owned by the supplier until it is actually consumed or sold. ### [Consumer Price Index (CPI)](https://contracko.com/glossary/consumer-price-index) A statistical measure of average price changes for consumer goods, often used to index contract prices. ### [Contract archiving](https://contracko.com/glossary/contract-archiving) Securely storing expired or signed contracts so they remain retrievable and legally admissible. ### [Contract automation](https://contracko.com/glossary/contract-automation) Using software to generate, route, sign and monitor contracts with minimal manual effort. ### [Contract compliance](https://contracko.com/glossary/contract-compliance) The degree to which parties actually perform the obligations and terms set out in a contract. ### [Contract lifecycle](https://contracko.com/glossary/contract-lifecycle) The full sequence of stages a contract passes through, from request to renewal or expiry. ### [Contract Management](https://contracko.com/glossary/contract-management) Structured oversight of agreements from drafting through execution, monitoring and termination. ### [Contract portfolio management](https://contracko.com/glossary/contract-portfolio-management) Managing all contracts collectively to optimise value, risk and supplier mix across the organisation. ### [Contract register](https://contracko.com/glossary/contract-register) A central, searchable record of all contracts with their key dates, parties and obligations. ### [Contract renewal](https://contracko.com/glossary/contract-renewal) Continuation of an agreement beyond its initial term, by express agreement or automatic extension. ### [Contract risk management](https://contracko.com/glossary/contract-risk-management) Identifying, assessing and mitigating the legal, financial and operational risks within contracts. ### [Contract transfer](https://contracko.com/glossary/contract-transfer) Transferring an entire contractual relationship, with all rights and obligations, to a new party. ### [Contract value](https://contracko.com/glossary/contract-value) The total monetary value of a contract over its term, used for budgeting, thresholds and risk. ### [Cost-plus billing](https://contracko.com/glossary/cost-plus-billing) Billing based on actual costs incurred plus an agreed margin, rather than a fixed price. ### [Counterparty](https://contracko.com/glossary/counterparty) The other party to a contract from the perspective of the party referring to it. ### [Cyber insurance](https://contracko.com/glossary/cyber-insurance) Cover for losses from cyber incidents such as data breaches, hacking and ransomware. D ### [Data portability clause](https://contracko.com/glossary/data-portability-clause) A provision ensuring data can be exported and transferred in a usable, structured format. ### [Data processing agreement (DPA)](https://contracko.com/glossary/data-processing-agreement) A GDPR-required contract governing how a processor handles personal data for a controller. ### [Delivery terms](https://contracko.com/glossary/delivery-terms) The contractual conditions governing how, when and where goods or services are delivered. ### [Deposit agreement](https://contracko.com/glossary/deposit-agreement) A contract under which assets, funds or documents are held by a custodian under agreed conditions. ### [Digital signature](https://contracko.com/glossary/digital-signature) A cryptographically secured electronic signature that authenticates a signer and a document's integrity. ### [Direct damages](https://contracko.com/glossary/direct-damages) Loss that flows immediately and foreseeably from a breach, such as repair or replacement costs. ### [Direct debit discount](https://contracko.com/glossary/direct-debit-discount) A small price reduction offered to customers who authorise payment by automatic direct debit. ### [Dispute resolution clause](https://contracko.com/glossary/dispute-resolution-clause) A provision setting out how, where and by whom contractual disputes will be resolved. ### [Due diligence](https://contracko.com/glossary/due-diligence) Investigating a supplier or counterparty's financial, legal and operational standing before contracting. ### [Duty of care](https://contracko.com/glossary/duty-of-care) The obligation to act with the prudence and diligence that may reasonably be expected. E ### [Early termination](https://contracko.com/glossary/early-termination) Ending a fixed-term contract before its agreed end date, typically only on grounds the contract allows. ### [Effective date](https://contracko.com/glossary/effective-date) The date on which a contract becomes legally operative and the parties' obligations begin. ### [Escape clause](https://contracko.com/glossary/escape-clause) A provision letting a party exit or suspend the contract if specified circumstances arise. ### [Escrow arrangement](https://contracko.com/glossary/escrow-arrangement) A neutral third party holds money, documents or source code, released on agreed conditions. ### [Exclusivity clause](https://contracko.com/glossary/exclusivity-clause) A provision committing a party to deal only with the other for defined goods, services or territory. ### [Exit clause](https://contracko.com/glossary/exit-clause) A provision setting out the rights, duties and process when a contract ends or is wound down. ### [Exit plan](https://contracko.com/glossary/exit-plan) A documented plan describing how services and assets transfer when a contract ends. ### [Exoneration clause](https://contracko.com/glossary/exoneration-clause) A clause that excludes or limits a party's liability for damage. ### [Extrajudicial collection costs](https://contracko.com/glossary/extrajudicial-collection-costs) The reasonable out-of-court costs of recovering an unpaid debt, recoverable from the debtor by law. F ### [Fixed price vs. cost-plus](https://contracko.com/glossary/fixed-price-vs-cost-plus) The choice between a guaranteed fixed contract price and billing of actual costs plus a margin. ### [Force majeure](https://contracko.com/glossary/force-majeure) An unforeseeable event beyond a party's control that excuses non-performance of a contract. ### [Framework agreement](https://contracko.com/glossary/framework-agreement) A master contract setting general terms under which future call-off orders are placed. G ### [GDPR](https://contracko.com/glossary/gdpr) The EU regulation governing how personal data of individuals must be processed and protected. ### [General terms and conditions](https://contracko.com/glossary/general-terms-and-conditions) Standardised pre-formulated clauses a party uses across many contracts, governed by strict Dutch rules. ### [Ghost licences](https://contracko.com/glossary/ghost-licences) Software licences that are paid for but no longer used by anyone in the organisation. ### [Good faith](https://contracko.com/glossary/good-faith) The duty to act honestly and reasonably in forming and performing a contract. ### [Governing law](https://contracko.com/glossary/governing-law) The body of law a contract designates to interpret and enforce its terms. H ### [Hardship clause](https://contracko.com/glossary/hardship-clause) A clause allowing renegotiation when unforeseen events fundamentally upset the contract's balance. I ### [Incoterms](https://contracko.com/glossary/incoterms) Standardised ICC trade terms defining delivery, risk and cost allocation in international sales. ### [Indefinite-term contract](https://contracko.com/glossary/indefinite-term-contract) A contract with no fixed end date, continuing until validly terminated by a party. ### [Indemnity](https://contracko.com/glossary/indemnity) A contractual promise to compensate another party for specified losses or third-party claims. ### [Intellectual property](https://contracko.com/glossary/intellectual-property) Legally protected creations of the mind such as patents, trademarks, and copyright. ### [Intellectual property clause](https://contracko.com/glossary/intellectual-property-clause) A provision allocating ownership and use rights in intellectual property created or used under a contract. ### [ISO 9001](https://contracko.com/glossary/iso-9001) The international standard for quality-management systems, often required of contract suppliers. J ### [Jurisdiction](https://contracko.com/glossary/jurisdiction) The court or location authorised to hear and decide disputes under a contract. K ### [Kickback / Rebate](https://contracko.com/glossary/kickback-fee) A payment returned to a buyer or intermediary, legitimate as a rebate but illegal when concealed. L ### [Letter of intent](https://contracko.com/glossary/letter-of-intent) A preliminary document recording parties' intent to negotiate or conclude a future agreement. ### [Liability](https://contracko.com/glossary/liability) Legal responsibility to compensate another party for loss caused by an act or omission. ### [Liability limitation](https://contracko.com/glossary/liability-limitation) A contract clause that caps or excludes the damages one party can recover from the other. ### [Licence agreement](https://contracko.com/glossary/license-agreement) A contract by which an owner permits another to use intellectual property under defined conditions. ### [License](https://contracko.com/glossary/license) Permission to use intellectual property under defined conditions without transferring ownership. ### [Liquidated damages](https://contracko.com/glossary/liquidated-damages) A pre-agreed sum payable on breach, set in advance instead of proving actual loss. M ### [Maintenance contract](https://contracko.com/glossary/maintenance-contract) An agreement under which a provider maintains equipment, software or premises for a recurring fee. ### [Market conformity](https://contracko.com/glossary/market-conformity) Whether prices and terms align with prevailing market rates for comparable goods or services. ### [Material adverse change (MAC)](https://contracko.com/glossary/material-adverse-change) A significant negative event that lets a party walk away or renegotiate a deal. ### [Maverick buying](https://contracko.com/glossary/maverick-buying) Purchasing outside agreed contracts or procurement processes, undermining negotiated terms and spend control. ### [Mediation](https://contracko.com/glossary/mediation) A voluntary process where a neutral mediator helps parties reach their own settlement of a dispute. ### [Minimum contract duration](https://contracko.com/glossary/minimum-contract-duration) The shortest period a contract must run before either party may terminate it. ### [Motor vehicle insurance](https://contracko.com/glossary/motor-vehicle-insurance) Insurance for vehicles, ranging from compulsory third-party cover to fully comprehensive. ### [Motor vehicle liability insurance](https://contracko.com/glossary/motor-vehicle-liability-insurance) Mandatory insurance covering damage a motor vehicle causes to third parties. N ### [Negotiation strategy](https://contracko.com/glossary/negotiation-strategy) A planned approach to bargaining covering objectives, leverage and tactics, to reach the best sustainable deal. ### [Non-compete](https://contracko.com/glossary/non-compete) A clause restricting a party from competing with the other for a defined time and area. ### [Non-disclosure agreement (NDA)](https://contracko.com/glossary/nda) A contract obliging parties to keep shared information secret and use it only as agreed. ### [Non-solicitation clause](https://contracko.com/glossary/non-solicitation-clause) A provision barring a party from approaching the other's staff or clients for a set period. ### [Notice of default](https://contracko.com/glossary/notice-of-default) A formal demand giving a defaulting party a final period to perform before falling into default. ### [Notice of defect](https://contracko.com/glossary/notice-of-defect) A buyer's timely complaint that delivered goods or services are non-conforming or defective. ### [Notice period](https://contracko.com/glossary/notice-period) The advance warning a party must give before ending or not renewing a contract. ### [Notification of defects clause](https://contracko.com/glossary/notification-of-defects-clause) A clause fixing how and within what period a buyer must report defects in performance. O ### [Obligation of result](https://contracko.com/glossary/obligation-of-result) A duty to deliver a specific, agreed outcome, not merely to make a best effort. ### [Open-book contracting](https://contracko.com/glossary/open-book-contracting) A contract model where the supplier discloses its actual costs and margin, enabling transparent pricing. ### [Order of precedence](https://contracko.com/glossary/order-of-precedence) A clause ranking contract documents so a higher-ranked one prevails in case of conflict. P ### [Parent company guarantee](https://contracko.com/glossary/parent-company-guarantee) A guarantee by a parent company for the contractual obligations of its subsidiary. ### [Payment default](https://contracko.com/glossary/payment-default) The state of being in default for failing to pay a due debt, triggering interest and remedies. ### [Payment terms](https://contracko.com/glossary/payment-terms) The contractual rules governing how, when and in what currency a debtor must pay an invoice. ### [Pledge](https://contracko.com/glossary/pledge) A security right over movable property or claims giving the holder priority on enforcement. ### [Price escalation](https://contracko.com/glossary/price-escalation) A contractual mechanism allowing the price to rise during the term based on defined cost drivers. ### [Price indexation clause](https://contracko.com/glossary/price-indexation-clause) A clause that automatically adjusts the contract price to a published index such as the CPI. ### [Price revision](https://contracko.com/glossary/price-revision) A renegotiation or recalculation of the agreed price during the contract on defined grounds. ### [Pro forma notice](https://contracko.com/glossary/pro-forma-notice) A precautionary notice of termination served only to preserve a deadline, pending a final decision. ### [Procure-to-pay](https://contracko.com/glossary/procure-to-pay) The end-to-end process from requisitioning goods to paying the supplier invoice, often automated in one workflow. ### [Procurement audit](https://contracko.com/glossary/procurement-audit) An independent review of procurement processes, contracts and spend to test compliance, value and control. ### [Procurement policy](https://contracko.com/glossary/procurement-policy) The internal rulebook setting how an organisation buys: authority, thresholds, ethics and supplier requirements. ### [Procurement process optimization](https://contracko.com/glossary/procurement-process-optimization) Streamlining procurement workflows to cut cycle time, errors and cost while strengthening control and value. ### [Procurement strategy](https://contracko.com/glossary/procurement-strategy) The plan setting how procurement will deliver value, manage risk and support business goals across categories. ### [Procurement synergy](https://contracko.com/glossary/procurement-synergy) Combined purchasing power from bundling demand across units or entities to secure better terms and prices. ### [Procurement threshold](https://contracko.com/glossary/procurement-threshold) A spend value above which stricter procurement rules, such as multiple quotes or formal tendering, apply. ### [Professional indemnity insurance](https://contracko.com/glossary/professional-indemnity-insurance) Cover for financial loss caused to clients by professional errors, advice or negligence. ### [Profit leakage](https://contracko.com/glossary/profit-leakage) Erosion of contracted value through missed terms, overpayments, unused services or uncaptured savings. ### [Public/general liability insurance](https://contracko.com/glossary/public-liability-insurance) Cover for damage a business causes to third parties' persons or property during operations. ### [Purchase conditions](https://contracko.com/glossary/purchase-conditions) A buyer standard terms governing its purchases, often competing with the supplier sales terms. ### [Purchase obligation (minimum take)](https://contracko.com/glossary/purchase-obligation) A contractual commitment to buy a minimum quantity or value over a period, regardless of actual need. R ### [Renegotiation](https://contracko.com/glossary/renegotiation) Reopening an existing contract to adjust price or terms in light of changed circumstances or performance. ### [Renewal clause](https://contracko.com/glossary/renewal-clause) A provision setting out how and when a contract is extended after its initial term ends. ### [Representation](https://contracko.com/glossary/representation) A statement of fact made to induce a party to enter into a contract. ### [Rescission](https://contracko.com/glossary/rescission) Unwinding a contract so the parties are restored to their pre-contract position. ### [Retention of title](https://contracko.com/glossary/retention-of-title) A seller retains ownership of delivered goods until the buyer has paid in full. ### [Retroactive effect](https://contracko.com/glossary/retroactive-effect) A contractual provision applying as if it took effect on a date before it was actually agreed. ### [RFP / RFQ](https://contracko.com/glossary/rfp-rfq) Formal documents inviting suppliers to propose solutions (RFP) or quote prices (RFQ) for a defined need. ### [Right of retention](https://contracko.com/glossary/right-of-retention) A creditor right to withhold another property until a related claim is paid. ### [Right of suspension](https://contracko.com/glossary/right-of-suspension) The right to withhold one's own performance until the other party performs its obligation. S ### [Seasonal contract](https://contracko.com/glossary/seasonal-contract) A contract limited to recurring seasonal periods, with obligations active only during the season. ### [Service contract](https://contracko.com/glossary/service-contract) A contract under which one party provides defined services to another for an agreed fee. ### [Service credits](https://contracko.com/glossary/service-credits) Pre-agreed financial credits a supplier owes the client when service levels are missed. ### [Service level agreement (SLA)](https://contracko.com/glossary/sla) A commitment defining measurable service performance levels and remedies for shortfalls. ### [Spend analysis](https://contracko.com/glossary/spend-analysis) Systematic review of procurement spend by category, supplier and unit to find savings and consolidation opportunities. ### [Statutory interest](https://contracko.com/glossary/statutory-interest) The interest rate set by law that a debtor owes on a late payment when no rate is agreed. ### [Subcontractors](https://contracko.com/glossary/subcontractors) Third parties a contractor engages to perform part of the work it owes under the main contract. ### [Supplier evaluation](https://contracko.com/glossary/supplier-evaluation) Assessing supplier performance against quality, delivery, price and compliance criteria to guide sourcing decisions. ### [Supplier non-compete clause](https://contracko.com/glossary/supplier-non-compete-clause) A clause restricting a supplier from competing with or supplying competitors of the customer. ### [Supplier relationship management](https://contracko.com/glossary/supplier-relationship-management) The structured management of key supplier relationships to maximise value, performance and joint innovation. ### [Supplier segmentation](https://contracko.com/glossary/supplier-segmentation) Grouping suppliers by value and risk so management effort and relationship type match their strategic importance. ### [Supply chain liability](https://contracko.com/glossary/supply-chain-liability) A principal's liability for wages and taxes that contractors and subcontractors fail to pay. ### [Surety / Personal guarantee](https://contracko.com/glossary/surety) A guarantor accessory promise to perform a debtor obligation if the debtor fails to do so. ### [Suspension of payments](https://contracko.com/glossary/suspension-of-payments) A temporary court-granted moratorium giving a struggling debtor breathing space to restructure. T ### [Tendering](https://contracko.com/glossary/tendering) A structured competitive procedure in which suppliers bid for a contract under predefined rules and award criteria. ### [Term (duration)](https://contracko.com/glossary/term) The period during which a contract is in force, from start date to expiry. ### [Termination](https://contracko.com/glossary/termination) Bringing a contract to an end before or at its natural expiry, by right or agreement. ### [Three-way matching](https://contracko.com/glossary/three-way-matching) A control that pays an invoice only if it matches the purchase order and the goods-receipt record. ### [Tort (wrongful act)](https://contracko.com/glossary/tort) A wrongful act causing harm that gives rise to liability outside of any contract. ### [Total Cost of Ownership](https://contracko.com/glossary/total-cost-of-ownership) The full lifetime cost of a purchase, including acquisition, operation, maintenance and disposal. V ### [VCA (Safety, Health & Environment Checklist Contractors)](https://contracko.com/glossary/vca) A Dutch certification scheme for managing safety, health and environment in contracting work. ### [Vendor lock-in](https://contracko.com/glossary/vendor-lock-in) Dependence on a supplier that makes switching prohibitively costly, complex or risky. ### [Version control](https://contracko.com/glossary/version-control) Tracking successive drafts of a contract so the authoritative current version is always identifiable. ### [Volume discount](https://contracko.com/glossary/volume-discount) A price reduction granted to a buyer who purchases larger quantities within an agreed period. W ### [Warranty](https://contracko.com/glossary/warranty) A contractual assurance about a fact or quality, breach of which gives a damages claim. ### [Warranty period](https://contracko.com/glossary/warranty-period) The fixed period during which a supplier must remedy defects in delivered goods or work. ### [Explore the clause library](https://contracko.com/clause-library) See these terms in action inside real contract clauses. ## See these terms in your own contracts Upload a contract and Contracko pulls out the key terms, dates and obligations, then reminds you before each one matters. [Start 7-day free trial](https://app.contracko.com/register) Book demo