Inclusion clause: Overview, definition and example
What is an inclusion clause?
An inclusion clause in a contract is a provision that explicitly states certain items, actions, or conditions are included as part of the agreement. It helps ensure that both parties understand what is covered by the contract and prevents disputes over what should or shouldn’t be included. Inclusion clauses are commonly used to clarify specific terms, services, or goods that are part of the agreement.
Why is an inclusion clause important?
An inclusion clause is important because it provides clear guidelines on what is included in the contract, helping to avoid misunderstandings between the parties involved. By defining specific items or services as included, it reduces the risk of disputes or disagreements later on about what was agreed upon. It ensures both sides have a mutual understanding of the terms and responsibilities outlined in the contract.
Understanding an inclusion clause through an example
For example, a construction contract might include an inclusion clause stating that the builder is responsible for providing all materials, including drywall, paint, and fixtures. This prevents confusion later on about whether the client is expected to provide certain items or whether they are included in the builder's responsibility.
In another case, a software licensing agreement may contain an inclusion clause specifying that certain updates or support services are included in the initial fee, ensuring that the client is aware of what services they can expect without additional charges.
Example of an inclusion clause
Here’s how an inclusion clause might be written in a contract:
“The agreement includes all necessary equipment, tools, and materials required for the completion of the project as specified in the attached list. Any additional items required outside the scope of this list will be billed separately.”
Conclusion
An inclusion clause clearly defines what is included in a contract, helping to avoid misunderstandings and providing transparency between the parties. By outlining exactly what is covered, it ensures that both parties are on the same page about the terms of the agreement.
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.