Atomic Contract Provision

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A Atomic Contract Provision is a written contractual term (within a contract document) that represents a single, distinct, indivisible unit of a contract term.



References

2024

2023

  • Bing chat on: What is a "provision" in a contract agreement? (as opposed to an article or a clause)
    • A provision in a contract agreement is a condition or requirement that must be met by one or more parties to the contract. For example, a provision could state that the seller must deliver the goods by a certain date, or that the buyer must pay a deposit before the contract is effective. A provision can also specify the consequences of breaching the contract, such as penalties, damages, or termination.
    • An article is a larger division of a contract that contains one or more clauses. A clause is a contract section or subsection expressing a specific concept or stipulation. A clause may contain one or more provisions within it. For example, an article could be titled "Payment Terms" and include several clauses that describe how and when the payment will be made, what currency will be used, what interest rate will apply, etc. Each clause may have one or more provisions that detail the conditions or requirements of the payment.
    • Source: Conversation with Bing, 11/7/2023
      1. contract law - What's the difference between a clause, provision .... https://law.stackexchange.com/questions/6324/whats-the-difference-between-a-clause-provision-condition-and-term.
      2. In a contract/an agreement, is there a difference between clause .... https://law.stackexchange.com/questions/73357/in-a-contract-an-agreement-is-there-a-difference-between-clause-article-and-se.
      3. Contract Provision: Meaning, Considerations and FAQs - Investopedia. https://www.investopedia.com/terms/p/provision.asp.

2023

  • (Investopedia, 2023) ⇒ https://www.investopedia.com/terms/p/provision.asp
    • QUOTE: A contract provision is a stipulation within a contract, legal document, or a law. A contract provision often requires action by a specific date or within a specified period of time. Contract provisions are intended to protect the interests of one or both parties in a contract.
    • Key Takeaways
      • A contract provision is a stipulation in a contract, legal document, or a law.
      • A contract provision often requires action by a certain date or within a certain period of time.
      • One of the most familiar uses of a contract provision is a bond’s call provision, which refers to a specific date; after this date, the company may recall and retire the bond.
      • A sunset provision is a provision in a regulation stating that sections of the law, or the whole law, expire on a set date.
    • How a Contract Provision Works
      • Contract provisions can be found in a country's laws, in loan documents, and in contract agreements. They also can be found in the fine print accompanying purchases of some stocks.

        For example, an anti-greenmail provision is a type of contract provision that is contained in some companies' charters that prevents the board of directors from paying a premium to a corporate raider to drop a hostile takeover bid.

        In loan documents, a loan loss provision is a type of contract provision that details an expense set aside to allow for uncollected loans or loan payments. This provision is used to cover a number of factors associated with potential loan losses.