A boilerplate provision or clause is situated toward the end of a contract. It is also referred to as miscellaneous provisions. There are typically set boilerplate headings, but the information can differ drastically. The costs can get significant during any type of dispute. It is crucial that everyone involved is aware who will be responsible for these fees should arbitration occur.
Arbitration boilerplate terms refer to removing a dispute from court to a method of privately resolving the problem. It is important to understand that arbitrations can be binding. This means that all involved in the arbitration must abide by the decision of the court. Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Professional Liability Insurance covering any damages caused by an error, omission or any negligent acts.
This wording should be used when a subcontractor will be taking possession of County vehicles or acting as a bailee in some manner relating to County vehicles. Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Garagekeepers' Legal Liability Insurance. Any Contractor using owned or non-owned aircraft for County contracts should carry this specific coverage. Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Aircraft Liability Insurance.
Aircraft used in pesticide or chemical application should carry this coverage, which must also include Pollution Liability Insurance. Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Marine Protection and Indemnity Insurance. Collision and Jones Act coverages shall be included. This is a broad coverage requirement when a subcontractor is involved in any activity which may involve the transport, application, disposal, use, or handling of "Hazardous Material.
This does not mean that the County will not require it. Discretion must be used in the application of this provision. A decision not to require this coverage must be made in consultation with Risk Management. A standard limit should equal or exceed the maximum amount of cash, negotiable securities or valuable property at risk at any time.
Coverage limits shall not be less than the amount s scheduled in the Request for Proposal. This language should be used when the County is a tenant of a building and should be incorporated in the lease agreement.
Neither the lessor nor the lessee shall be liable to the other for loss arising out of damage to or destruction of the leased premises, or the building or improvements of which the leased premises are a part or with which they are connected, or the contents leased any thereof, when such loss is caused by any of the perils which are or could be included within or insured against by a standard form of fire insurance with extended coverage, including sprinkler leakage insurance, if any.
All such claims for any and all loss, however caused, hereby are waived. Such absence of liability shall exist whether or not the damage or destruction is caused by the negligence of either lessor or lessee or by any of their respective agents, servants or employees. It is the intention and agreement of the lessor and the lessee that the rental reserved by this lease have been fixed in contemplation that each party shall fully provide his own insurance protection at his own expense, and that each party shall fully provide his own insurance protection at his own expense, and that each party shall look to his respective insurance carriers for reimbursement of any such loss, and further, that the insurance carriers shall not be entitled to subrogation under any circumstance against any party to this lease.
Neither the lessor nor the lessee shall have any interest or claim in the other's insurance policy of policies, or the proceeds thereof, unless specifically covered therein as a joint assured.
This bond can protect the County if the Contractor makes a mistake in bidding the project. If the Contractor leaves out an important portion of the project in the bid, and the bid is subsequently accepted, the surety would be obligated to pay the difference between what was bid and the actual cost to complete the project.
Should the Bidder refuse to enter into such Contract or fail to furnish such Bonds of Insurance Certificates, the amount of the Bid Security shall be forfeited to the County as liquidated damages, not as a penalty.
The Attorney-in-Fact who executes the Bond on behalf of the Surety shall affix to the Bond a certified and current copy of the Power of Attorney. The County will have the right to retain the Bid Security of Bidders until either a the Contract has been executed and Bonds have been furnished, or b the specified time has elapsed so that bids may be withdrawn, or c all Bids have been rejected.
A Performance Bond is the key bond on a work project when the County not only wants the work completed but wants it done on time and according to specifications. The Payment Bond guarantees that suppliers of labor or materials or subcontractors will be paid. Prior to the execution of the Contract, the successful Bidder shall furnish to the County the required, original, Performance and Payment Bonds, issued by an A-rated surety company, authorized to do business in the state of Oregon.
Premiums for bonds shall be paid by the successful Bidder. Higher limits on both an occurrence and an aggregate basis may be appropriate based on job size and degree of hazard involved. Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Commercial General Liability Insurance covering Bodily Injury and Property Damage on an "occurrence" basis.
Coverage shall be provided for all "xcu" explosion, collapse, and underground hazards. The following limits of insurance will be carried:. All contracts must contain an indemnification clause and workers' compensation language insurance or proof of exemption. The following minimum limits of insurance are on a "per occurrence" basis. Aggregate limits are listed in detail in Section IV. Skip to main content.
A listing of eight common categories of contracts section A and the kind of insurance provisions and insurance limits that should normally be required.
A listing of mandatory section B and additional insurance-related provisions section C. Worker's Compensation Coverage By state law, every employer employing one or more "subject workers" is required to provide workers' compensation coverage for those workers.
Professional Liability Insurance If the Contractor is providing services for which professional malpractice or liability insurance is available, you must consider requiring this coverage.
Commercial General Liability Insurance Commercial General Liability Insurance, also sometimes called "comprehensive" or "general" liability insurance, is the type of insurance most comparable to your homeowner's policy. Automobile Liability Insurance If the Contractor will be providing any sort of transportation to clients under the contract, the Contractor must be required to carry automobile liability insurance. Categories of Contracts The following categories 1 through 8 serve as a guide in determining what mandatory provisions, additional provisions and minimum insurance limits you may need to require in your contract.
Mandatory Provisions: All. A wide variance of risk will also be found in these contracts. Contracts providing Professional Services. Auto MP2 can be waived if contract performance entails no driving by the contractor. These contracts will usually deal with either remodeling or repair. Facilities Use Agreements Discretion must be used in requiring insurance from entities wishing to use County facilities.
Mandatory Provisions All. Exception: MP2 Automobile. Purchase Orders Insurance will be required from vendors supplying the County with services under purchase orders. Example: Mandatory Provisions: All. Equipment Rental or Lease Agreements Often the vendor will require that the vendor's own agreement or contract be signed prior to taking possession of the piece of equipment.
Commercial General Liability Insurance This coverage protects against liability claims for bodily injury and property damage arising out of premises, operations, products and completed operations; and advertising and personal injury liability. The following insurance will be carried: MP 2. Commercial Automobile Insurance To be required when the Contractor is providing any sort of transportation to clients under the contract or delivering goods.
Workers' Compensation Insurance The Contractor, its subcontractors, if any, and all employers providing work, labor or materials under this Contract who are subject employers under the Oregon Workers' Compensation Law shall comply with ORS Insurance Carrier Rating Coverages provided by the Contractor must be underwritten by an insurance company deemed acceptable by the County.
Boilerplates are time and money-savers, but can also favor only one party in the case of contracts. Pros Boilerplates save time and money There is less room for error and more consistency. Cons Boilerplates are not tailored specifically to every individual They often favor only one party in a contract.
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Related Terms Addendum An addendum is an attachment to a contract that modifies the terms of the original contract. Read about insurance, lease, and real estate addendums. Blockchain Explained A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. It is most noteworthy in its use with cryptocurrencies and NFTs. What Is a Uniform Bill of Lading? A uniform bill of lading is an agreement between an exporter and a carrier regarding property to be transported.
Non-Disclosure Agreement NDA An NDA or non-disclosure agreement is a binding contract between two or more parties that prevents sensitive information from being shared with others. What Is a Cease and Desist? A cease and desist is either a legal order or a non-binding letter demanding that the recipient stop illegal or allegedly illegal activity.
What Does Locus Sigilli Mean? Locus Sigilli, Latin for the place of the seal, denotes the area on a contract where the seal is to be affixed. Partner Links. Related Articles. Bitcoin How Bitcoin Works. Investopedia is part of the Dotdash publishing family. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.
At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. The boilerplate clauses above are straightforward examples. These sorts of clauses can get complicated in their own right.
We often find ourselves looking up decided case law to make sure the interpretation of boilerplate clauses like these hasn't changed. There was one relatively recent change to the way Variation Clauses were read in the Supreme Court in Rock Advertising , in So the way these clauses are read isn't static: and then they appear in different contracts with different terms, and they can have a different meaning again.
How they're read depends upon the terms of the particular contract and the background facts of the case. And the longer a contract gets, the more complicated they can become. Different parts of the contract can relate to one another in ways that you can't see clearly. We're expert solicitors: we draft business contracts. If you're after a hand from a specialist contract lawyer, we can help you appreciate the way contracts are interpreted and how it's going to affect the business after it is signed, or what it means now that you have signed a contract and someone is looking to enforce the contract or terminate for breach of contract.
In a variety of types of contracts one party - usually involving a supplier, agent or licensee - may hold records required to properly and accurately calculate amounts to be paid under a contract. Without access to the records, the customer or principal or licensor has no objective or independent method of verifying whether issued invoices have been calculated in consistently with the contractual rights granted to the supplier.
The parties may agree that the customer has the right to inspect the underlying documentation to satisfy itself that the sums charged are correct, and in accordance with the contract terms. The Customer may appoint a certified accountant to inspect and audit all records relating to the sale of goods and grants of licences, calculation of invoices, and the books and accounts of the Supplier at the Customer's expense at all reasonable times and on reasonable notice.
By default, the costs and expenses of a party preparing a contract are payable by the party incurring them. If precontractual statements have been made that a party will pay the costs of the other, and a provision does not appear in the contract - it's more than likely that the precontractual promise to pay will not be enforceable. Especially when a Non-reliance Clause appears in the contract. Where there is pre-existing agreement to pay the costs or expenses leading up to signing a contract, a costs clause puts the situation beyond doubt.
The example below says that neither party will be liable for the costs or expenses of the other. It simply confirms the default position at law. And the normal practice. Each party shall pay the costs and expenses incurred by it or it in connection with the entering into and completion of this agreement. In international trade and commerce, quotes, estimates and payments can be made in any currency.
Fixing a contractual currency and the method for resolving differences when different currencies are used reduces the prospect of disputes. Unless otherwise stated, all quotes and estimates are made in Sterling and all estimates and payments in foreign currencies shall be deemed to be in Sterling at the exchange rate published by Reuters at the close of business on the day that the said quote or estimate was supplied or payment made.
When contracts are made and governed by English law, the language of the contract is usually English. Sometimes a contract may be prepared in a foreign language, in language which is familiar to a native speaker of another language.
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