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Contract & Commercial Law vocabulary · Forming & Drafting Contracts

Party

Meaning in contract & commercial law, with examples

/ˈpɑːti/nounCore term

In contract & commercial law, party means: A person or organisation that has signed a contract or is directly involved in a legal agreement or dispute.

In Turkish: taraf, sözleşme tarafı

How it is used

Contracts name the parties at the start and then refer to them as 'a Party' or 'the Parties'. A 'third party' is someone outside the contract. Phrases such as 'the defaulting party' and 'the other party' appear in almost every clause.

Example sentences

  1. Each party shall bear its own legal costs.

  2. The contract cannot be transferred to a third party without written consent.

Common collocations

  • the parties
  • third party
  • contracting party
  • defaulting party
  • party to the contract
  • contractA legally binding agreement between two or more parties in which each side promises to do, or not to do, certain things.
  • agreementAn arrangement between parties about what each of them will do; it becomes a contract when the law treats it as binding.
  • obligationA duty that a party must perform under a contract or the law, such as paying the price, delivering goods or keeping information confidential.
  • assignmentThe transfer of a party's rights under a contract, such as the right to receive payment, to another person or company.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Forming & Drafting Contracts

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This page explains English vocabulary for learners. It is not legal advice.