Function: Overview, definition, and example
What is function?
In a legal or business context, “function” refers to the specific role, purpose, or duty of something or someone within a contract, organization, or system. It defines how an entity operates, what responsibilities it holds, and the scope of its authority.
In contracts, function can refer to the role of a party, the purpose of a product or service, or the intended operation of a system. Clearly defining function helps avoid confusion and ensures all parties understand their roles and expectations.
Why is function important?
Defining function is crucial because it sets clear expectations and reduces ambiguity. If a contract doesn’t specify the function of a party or a service, disagreements may arise about what was promised or expected.
For businesses, understanding function helps ensure that roles, processes, and systems operate as intended. Whether it’s a job function in an employment contract or the function of a piece of technology in a service agreement, clarity prevents misinterpretation and disputes.
Understanding function through an example
Imagine a company hires a marketing consultant under a contract that states: “The consultant’s function is to develop and execute a digital marketing strategy to increase online sales.” This clearly defines what the consultant is responsible for.
However, if the contract simply states, “The consultant will provide marketing services,” it leaves room for confusion. Does this include social media? Email marketing? Paid ads? Without a clear function, disagreements over scope can occur.
An example of a function clause
Here’s an example of how function might be defined in a contract:
“The function of the Service Provider under this Agreement is to develop, implement, and manage the Client’s IT infrastructure, ensuring continuous system performance and security. The Service Provider shall not be responsible for services outside this defined function unless otherwise agreed in writing.”
Conclusion
Clearly defining function in contracts and business agreements helps prevent misunderstandings and ensures everyone knows their roles and responsibilities. Whether it’s a job role, a service agreement, or a system’s purpose, specifying function creates clarity, improves accountability, and reduces the risk of disputes.
Before entering into an agreement, always check that the function of each party, service, or system is well-defined—because a clear purpose leads to smoother operations and better outcomes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.