I have heard the term 'boilerplate clauses' when talking about contracts. What does this mean?

• The term 'boilerplate clause' describes the standard clauses that are sometimes inserted into contracts.
• These clauses are mainly used to assist with both the interpretation of the contract (normally inserted at the beginning of the contract) and to set out how the contract is to operate (usually inserted at the end of a contract).
• Boilerplate clauses are sometimes inserted into a contract as a matter of routine and without too much thought. It is important to read each clause in a contract including the boilerplate clauses to make sure they accurately reflect the intention of the parties. Doing so reduces the potential for disputes to arise later on.
  • If a dispute does arise the contract assists the court to understand and give effect to the intention of the parties when deciding on the outcome of the dispute. As a result it is important to make sure that the whole contract including any boilerplate clause reflects the parties’ intention.
  • Examples of boilerplate clauses include clauses giving definitions, clauses stating which law governs the contract and variation clauses setting out how the contract’s terms can be changed.