Definition of Terms and Construction Clause Samples

The "Definition of Terms and Construction" clause establishes the specific meanings of key words and phrases used throughout the contract and sets out rules for interpreting the agreement. Typically, this clause lists important terms and provides their definitions, ensuring that all parties have a shared understanding of the language used. It may also include guidelines for resolving ambiguities or interpreting plural and singular forms. By clarifying terminology and interpretation methods, this clause helps prevent misunderstandings and disputes over the contract’s meaning.