Paragraph headings: Overview, definition, and example
What is paragraph headings?
Paragraph headings refers to a contract clause that explains how section or paragraph titles should be treated when interpreting the agreement. It typically states that these headings are included for convenience only and do not affect the meaning, scope, or interpretation of the actual contract language.
Why is paragraph headings important?
Headings are useful for organizing a contract and making it easier to read, but they aren’t always accurate summaries of the content that follows. This clause prevents either party from using a heading to argue for a different meaning of the contract’s terms. It ensures that the legally binding part of the agreement is the full paragraph text, not the label above it.
Understanding paragraph headings through an example
Two companies enter into a service agreement. One section is labeled “Service Termination,” but the paragraph underneath also covers renewal terms. Later, one party argues that renewal shouldn’t apply because it wasn’t in the “Termination” section. The paragraph headings clause makes it clear that the heading is just a guide and does not limit what the paragraph actually covers.
Example of a paragraph headings clause
Here’s how a paragraph headings clause may look like in a contract:
The paragraph and section headings used in this agreement are for convenience and reference only and shall not affect the interpretation of the provisions of this agreement.
Conclusion
The paragraph headings clause helps prevent confusion by making sure the content—not the label—controls how a contract is read. It’s a simple but important safeguard that keeps formatting and labels from interfering with the legal meaning of the agreement. Always read the full paragraph, not just the heading, to understand what the contract says.
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.