✓ Free · 29 terms · Plain language

Legal terms, decoded.

The confusing words in your lease, contract, or notice — explained in plain language, with real examples of why each one matters.

Contracts

Indemnification Clause

A promise to cover the other party’s losses or legal costs in defined situations.

Contracts

Severability Clause

Keeps the rest of a contract valid even if one part is struck down.

Contracts

Governing Law

Sets which state’s or country’s law controls the contract.

Contracts

Entire Agreement

States the written contract is the whole deal — prior promises don’t count.

Contracts

Waiver

Giving up a right — and a clause controlling how that can happen.

Contracts

Consideration

The thing of value each side gives that makes a contract binding.

Contracts

Cure Period

A window to fix a breach before the other side can act on it.

Leases & Real Estate

Escalation Clause

A lease term that automatically raises rent or costs over time.

Leases & Real Estate

Quiet Enjoyment

A tenant’s right to use the rented home without wrongful interference.

Leases & Real Estate

Holdover Tenancy

What happens when a tenant stays after the lease ends.

Leases & Real Estate

Joint and Several Liability

Each co-signer can be held responsible for the entire obligation.

Employment

At-Will Employment

Either side can end the job at any time, for almost any reason.

Employment

Vesting

Earning full ownership of equity or benefits over time.

Employment

Clawback

A right to reclaim pay, a bonus, or equity already given to you.

Medical & Insurance

Deductible

What you pay yourself before insurance starts covering costs.

Medical & Insurance

Coinsurance

Your percentage share of a covered cost after the deductible.

Medical & Insurance

Out-of-Pocket Maximum

The yearly cap on what you pay before insurance covers 100%.

Medical & Insurance

Balance Billing

Being charged the gap between a provider’s rate and what insurance allowed.

Medical & Insurance

Prior Authorization

Insurer approval required before certain care is covered.

Medical & Insurance

Explanation of Benefits (EOB)

Your insurer’s statement of what was billed, allowed, and what you owe.

Medical & Insurance

Subrogation

An insurer’s right to recover what it paid from a third party at fault.

Debt & Finance

Lien

A legal claim on property as security for a debt.

Debt & Finance

Charge-Off

When a creditor writes off a debt as a loss — but you may still owe it.

Tax & IRS

Tax Levy

The IRS legally seizing property or funds to collect unpaid tax.

Tax & IRS

Offer in Compromise

An IRS agreement to settle a tax debt for less than the full amount.

Disputes

Arbitration Clause

An agreement to settle disputes privately instead of in court.

Real Estate

Assignment & Subletting

Whether you can transfer your lease to someone else.

Contracts

Auto-Renewal Clause

A term that renews the contract automatically unless you cancel.

Disputes

Class-Action Waiver

A term barring you from joining a group lawsuit.

Contracts

Consequential Damages

Indirect losses that flow from a breach — like lost profits.

Debt

Debt Validation

Your right to make a collector prove a debt is really yours.

Disputes

Demand Letter

A formal written request to do something before a lawsuit.

Real Estate

Estoppel Certificate

A signed statement locking in the facts of your lease.

Real Estate

Eviction Notice

A formal warning that begins the process of removing a tenant.

Contracts

Force Majeure

A clause excusing performance after extraordinary events.

Contracts

Hold Harmless Clause

A promise not to hold the other party responsible for losses.

Real Estate

Implied Warranty of Habitability

A landlord’s legal duty to keep a rental livable.

Contracts

Indemnification

A promise to cover someone else’s losses or legal costs.

Employment

IP Assignment Clause

A term giving your employer ownership of what you create.

Disputes

Jurisdiction / Governing Law

Which state’s law applies and where disputes are heard.

Real Estate

Late Fees

Charges for paying rent or a bill after the due date.

Contracts

Limitation of Liability

A ceiling on how much one party can be made to pay.

Contracts

Liquidated Damages

A preset amount owed if someone breaches — agreed in advance.

Employment

Non-Compete Clause

A term restricting where you can work after you leave a job.

Employment

Non-Disclosure Agreement (NDA)

A contract requiring you to keep certain information secret.

Employment

Non-Solicitation Clause

A term barring you from poaching clients or coworkers.

Contracts

Notice Period

How far in advance you must warn before acting.

Contracts

Personal Guarantee

A promise making you personally liable for a debt or lease.

Debt

Promissory Note

A written, enforceable promise to repay money.

Real Estate

Security Deposit

Money held by a landlord to cover damage or unpaid rent.

Employment

Severance Agreement

Pay or benefits offered when you leave, in exchange for rights.

Debt

Statute of Limitations

The time limit for suing on a claim or debt.

Contracts

Termination Clause

The rules for how and when the contract can end.

Debt

Wage Garnishment

A court order directing your employer to withhold pay for a debt.

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