Contract & Resume Glossary

A contract provision requiring disputes to be resolved through private arbitration rather than in court. Typically includes a class action waiver and limits your ability to sue. Arbitration is faster but generally more favorable to the repeat player (usually the company).

Another term for a Non-Disclosure Agreement (NDA). A legal contract preventing one or both parties from sharing specified information with third parties. See: NDA.

Monetary compensation awarded to a party for loss or harm caused by another party's breach of contract. Actual damages compensate for real losses; consequential damages cover indirect losses; liquidated damages are pre-specified in the contract; punitive damages punish intentional wrongdoing.

Particularly relevant in debt collection: the date the account first became past due leading to the current delinquency. This date governs how long negative information can legally appear on a credit report (typically 7 years).

Failure to fulfill a contractual obligation. Most contracts define what constitutes a default (missing a payment, violating a clause) and specify the consequences, including the right to terminate the contract or seek damages.

The process defined in a contract for resolving disagreements between parties. Options include negotiation, mediation (non-binding), arbitration (binding private process), or litigation (court). The choice of mechanism significantly affects your legal rights.

A clause excusing one or both parties from their contractual obligations when extraordinary circumstances beyond their control — natural disasters, pandemics, government actions — make performance impossible or impractical. The scope of 'force majeure' varies significantly by contract.

The clause specifying which state's (or country's) laws will govern interpretation and enforcement of the contract. Important because laws vary significantly by jurisdiction — especially for employment contracts, where non-compete enforceability differs dramatically by state.

Another term for an indemnification clause. Requires one party to 'hold harmless' the other party from legal claims, damages, and costs arising from specified events. See: Indemnification.

A contractual obligation to compensate another party for specified losses, damages, or legal costs. Indemnification clauses can require you to pay the other party's attorney fees if they're sued because of your actions — even without any wrongdoing on your part.

A clause transferring ownership of intellectual property — inventions, software, designs, written content — from one party to another. In employment contracts, these often broadly transfer ownership of everything created during employment, including work done on personal time.

A payment owed to a contractor if the client cancels a project after work has begun. Typically 25-50% of the remaining contract value. Protects freelancers and contractors from project cancellations that leave them unpaid for work already completed.

A clause capping the maximum damages one party can be liable for under the contract, usually at the contract's value. Without this clause, a party could theoretically be liable for consequential damages far exceeding the contract amount.

A pre-agreed sum specified in the contract as the remedy for a specific breach. Used when actual damages would be difficult to calculate. Must be a reasonable estimate of harm to be enforceable — penalties disproportionate to actual harm may be unenforceable.

A non-binding dispute resolution process where a neutral third party (mediator) helps the parties negotiate a settlement. Unlike arbitration, the mediator cannot impose a decision. Often required as a first step before arbitration or litigation.

A non-disclosure agreement where both parties agree to keep each other's information confidential. Common in business negotiations where both sides are sharing sensitive information. Contrast with a unilateral NDA, where only one party is bound.

A legal contract preventing one or both parties from sharing specified confidential information. Can be unilateral (one-way) or mutual. Common in employment, business negotiations, and vendor relationships.

A pricing model where users pay per use rather than a fixed subscription. DocuAnalyzer uses a pay-as-you-go model: 3 free analyses monthly, then $1.99 per additional analysis with no credits expiring.

A factual statement made by one party to the other as part of the contract, confirmed as true at the time of signing. Representations and warranties are different from promises — they're assertions of present fact. Breach of a representation can void the contract or create liability.

The section of a contract that defines exactly what services or deliverables will be provided, including timelines, formats, revisions allowed, and what's explicitly excluded. A detailed SOW prevents scope creep — the gradual expansion of the project beyond the original agreement.

The contract provisions governing how and when either party can end the agreement. Look for: required notice periods, reasons that justify termination, penalties for early termination, and what happens to work or payment already provided.

A non-disclosure agreement where only one party (typically the employee or contractor) is restricted from sharing information. The other party has no reciprocal obligation. Most common in employment and contractor contexts.

A legal doctrine under copyright law that assigns ownership of a creative work to the employer or hiring party, not the creator. Most employment contracts include work-for-hire language. Important for freelancers and employees who create IP — what you create at work typically belongs to the company.

A signed statement from a tenant confirming the current terms of their lease — rent amount, lease dates, prepaid rent, and the existence of any disputes. Commonly requested when a landlord is selling or refinancing a property.

A lease structure where the tenant pays a single fixed rent and the landlord covers all operating costs (taxes, insurance, maintenance). More common in residential leases and some office leases.

A legal requirement in most US states that residential landlords maintain rental units in livable condition — functioning plumbing, heat, safe structure. Landlords cannot waive this obligation even if the lease says otherwise.

A commercial lease where the tenant pays base rent plus some operating expenses. 'Single net' adds property taxes; 'double net' adds taxes and insurance; 'triple net' (NNN) adds taxes, insurance, and maintenance costs.

Money held by a landlord to cover potential damages or unpaid rent. Most states cap security deposits at 1-2 months' rent and require return within a specified period after move-out. Beware of 'non-refundable' fees disguised as deposits.

Money provided by a commercial landlord to build out the rental space to the tenant's specifications. Negotiated as part of the lease terms, typically more generous for longer lease terms and larger spaces.

A commercial lease where the tenant pays base rent plus property taxes, building insurance, and maintenance costs. Very common in retail and single-tenant commercial properties. The 'true cost' of an NNN lease can be 30-50% higher than the stated base rent.

The default employment arrangement in most US states, allowing either party to terminate the relationship at any time, for any reason (with legal exceptions for discrimination and retaliation).

A contract clause requiring an employee to return compensation — bonuses, commissions, or equity — under specified circumstances, such as leaving before a vesting date or if the company later discovers financial misstatements.

The formal legal term for a non-compete agreement. A clause restricting an employee from working for competitors or starting a competing business for a defined period after leaving. Enforceability varies significantly by state.

A period after resignation or termination during which the employee continues to receive their full salary but is not required (or permitted) to work. Often used alongside non-compete agreements, with courts more likely to enforce a non-compete if the employer pays during the restricted period.

A contract clause restricting an employee from working for competitors or starting a competing business for a period after leaving. Enforceability varies by state — California effectively bans them; other states enforce reasonable ones.

A clause preventing an employee from recruiting former colleagues or contacting former clients after leaving the company. Generally considered less restrictive than non-competes but still limits post-employment activity.

The amount of advance notice required before terminating an employment relationship — either by the employee (resignation notice) or employer. Standard in many contracts as 2-4 weeks, though senior roles often require more.

An initial written job offer from an employer, typically less formal than a full employment contract. Many offer letters are at-will employment documents. Important to review carefully as they may include non-compete and IP assignment provisions.

A contract signed at termination that typically provides the departing employee with compensation in exchange for releasing legal claims against the employer. Important to review carefully — signing a severance agreement waives your right to sue for wrongful termination or other claims.

A timeline governing when an employee gains ownership of employer-provided equity (stock options, RSUs). Common structures: 4-year vesting with a 1-year cliff (25% vests after year one, the rest monthly). Terminated before the cliff? You receive nothing.

Software used by employers to collect, filter, and rank job applications before human review. ATS systems score resumes based on keyword matches with the job description. Over 98% of Fortune 500 companies use ATS.

A numerical rating assigned by an ATS system to a resume based on keyword alignment with a job description, formatting compatibility, and other factors. A higher score means better alignment and a greater likelihood of reaching a human reviewer.

A one-page document submitted alongside a resume that introduces the candidate and explains why they're a strong fit for the specific role. Unlike a resume, a cover letter can convey personality, motivation, and context for unusual aspects of your career history.

Specific, teachable abilities that can be measured — programming languages, certifications, software proficiency, data analysis. Contrast with soft skills (communication, teamwork). ATS systems prioritize hard skills that match job descriptions.

Specific terms, phrases, skills, and requirements used in a job posting. ATS systems score resumes based on how many of these keywords appear. Tailoring your resume to mirror the job description's language significantly improves your ATS score.

A 2-4 sentence section at the top of a resume summarizing who you are, your key qualifications, and the value you bring. Replaces the outdated 'objective statement.' Should be tailored for each application.

A resume bullet point that includes a specific number, percentage, or metric to demonstrate impact. 'Increased sales by 40%' is a quantified achievement; 'improved sales performance' is not. Quantified achievements significantly strengthen a resume's credibility.

Interpersonal and transferable skills like communication, leadership, collaboration, and problem-solving. Important but difficult to demonstrate on a resume — show soft skills through specific examples and achievements rather than listing them generically.