An apportionment clause is a legal term that is frequently used in contracts and agreements. It is a provision that specifies how costs, expenses, or profits will be divided among the parties involved in a particular transaction. This clause is essential in ensuring that all parties receive a fair share of the benefits and burdens of the agreement.
Definitions
An apportionment clause is a provision in a contract that divides the costs, expenses, or profits between the parties involved in a transaction. It is a legal term that specifies how the benefits and burdens of an agreement will be distributed among the parties.
Origin
The origin of the apportionment clause can be traced back to the common law of contracts. It was developed as a means of ensuring that all parties involved in a transaction received a fair share of the benefits and burdens of the agreement.
Meaning in different dictionaries
According to Black’s Law Dictionary, an apportionment clause is “a provision in a contract that divides the costs, expenses, or profits between the parties involved in a transaction.” The Oxford English Dictionary defines it as “a clause in a contract that specifies how costs, expenses, or profits will be divided among the parties involved in a particular transaction.”
Associations
The apportionment clause is commonly associated with contracts and agreements in various industries, including real estate, construction, and finance. It is often used in joint venture agreements, partnership agreements, and other business transactions.
Synonyms
Some synonyms of apportionment clause include allocation clause, distribution clause, and sharing clause.
Antonyms
There are no direct antonyms of the apportionment clause, but some related terms include non-apportionment clause and indivisible clause.
The same root words
The root words of the apportionment clause are “apportion” and “clause.” Apportion means to divide or allocate, while clause refers to a provision or section of a legal document.
Example Sentences
- The apportionment clause in the partnership agreement specifies that profits will be divided equally among the partners.
- The construction contract includes an apportionment clause that divides the costs of materials and labor between the contractor and the client.
- The joint venture agreement contains an apportionment clause that outlines how the parties will share the risks and rewards of the project.
In conclusion, an apportionment clause is a vital provision in contracts and agreements that ensures that all parties involved in a transaction receive a fair share of the benefits and burdens of the agreement. It is essential to understand the meaning and implications of this clause before entering into any legal agreement.