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Contract clauses explained in plain English
Every entry covers what the clause actually does, the red-flag wording to look for, a risk rating, and a fair counter-clause you can paste into your reply. Written for renters, employees and freelancers — not lawyers.
Rental & Lease
- Money trapSecurity deposit forfeitureA forfeiture clause lets the landlord keep all or part of your deposit automatically — usually without itemised proof. Blanket forfeiture is generally unenforceable because a deposit is security against actual loss, not a penalty.Read the breakdown
- CautionPainting & repainting deductionRepainting is normal wear and tear after about twelve months of tenancy. A clause that charges the full painting cost to the tenant regardless of how long they stayed shifts a landlord maintenance cost onto you.Read the breakdown
- Money trapLock-in period penaltyA lock-in clause charges you for leaving early. It is fair only when the lock-in is mutual and the exit cost is a defined, capped amount — not the whole deposit plus the remaining rent.Read the breakdown
- CautionRent escalationAn escalation clause sets how much your rent rises each year. It is fair when the percentage and the frequency are both fixed in writing; it is a trap when the landlord can revise rent 'as mutually decided' or at will.Read the breakdown
Employment
- Money trapNotice period shortfall recoveryThis clause lets your employer recover pay for notice days you do not serve. It is fair when the buyout is calculated on basic pay for unserved days only, symmetric between both sides, and payable at your option.Read the breakdown
- Money trapTraining bond / service agreementA training bond makes you repay a sum if you leave before a minimum service period. It is enforceable only to the extent of the employer's actual, documented training spend — not as a flat penalty.Read the breakdown
- CautionNon-compete restrictionA post-employment non-compete stops you working for competitors after you leave. In India, post-termination non-competes are largely unenforceable as a restraint of trade; a non-solicit of clients and staff is the enforceable version.Read the breakdown
- Money trapOne-sided termination rightsA termination clause is unfair when the employer can exit faster, or without cause, while you are bound to a longer notice or a buyout. Symmetry is the single most negotiable term in most offer letters.Read the breakdown
Freelance & Services
- Money trapUnlimited revisions / scope creepAn unlimited revisions clause lets the client keep requesting changes at no extra cost until they are 'satisfied'. It converts a fixed-fee project into open-ended work and is the leading cause of freelance losses.Read the breakdown
- Money trapPayment on client approvalThis clause ties your payment to the client's subjective approval, with no deadline. Fair contracts pay on delivery of defined milestones, with a deemed-acceptance window and interest on late payment.Read the breakdown
- CautionOverbroad IP assignmentThe client should own the deliverables they paid for. The clause becomes overreach when it also captures your pre-existing tools, your general know-how, or work you create outside the engagement.Read the breakdown
NDA & Confidentiality
Loans & Finance
- CautionPrepayment / foreclosure penaltyA prepayment clause charges you for repaying your loan early. For floating-rate loans to individuals, RBI rules bar foreclosure charges — so this clause deserves a close read before you sign.Read the breakdown
- CautionAutomatic renewalAn auto-renewal clause extends the contract unless you cancel inside a narrow window. It is fair only when you get advance written notice before renewal and can cancel without penalty.Read the breakdown
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