Before diving into the details of the clause library directly, let's understand what a clause is. A clause is a provision included in a written agreement or contract to address a specific aspect of the overall agreement's subject matter.
For example, Force Majeure is a clause that frees the parties from their liabilities or obligations at times of extraordinary events or circumstances beyond the control of the parties such as war and pandemic.
In Zoho Contracts, each clause contains a standard language, and can also have alternative languages. When you associate clauses with a contract type template, they will display in the document editor at the time of contract authoring. The contract owner can pick the clauses that are needed for the contract.
A clause library contains all the clauses managed by the organization. You can create new reusable clauses, associate them with clause types, and manage them from within the clause library. The ability to associate a clause with various contract type templates eliminates duplication. Clauses created on the fly while creating a contract type template will also be stored in the clause library.
A well-organized clause library ensures language consistency across all contracts. It provides better visibility into the list of clauses managed by the organization and its associations with the contract types.
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