Legal & Contracts Vocabulary
Legal & Contracts Vocabulary
You do not need a law degree to protect yourself. You need to read what you sign.
The NDA (Non-Disclosure Agreement) Trap
Most people sign NDAs (Non-Disclosure Agreements) without reading them. Key things to check:
- Scope: what information is actually confidential?
- Duration: 1 year? Forever?
- Mutual vs. one-sided: does it bind both parties equally?
A mutual NDA is standard in most business negotiations.
IP Ownership: Who Actually Owns It?
If you hire a freelancer to build your website, the default in most jurisdictions is they own the code — unless the contract says otherwise with a work-for-hire or IP (Intellectual Property) assignment clause.
Always get IP (Intellectual Property) assignment in writing before work begins.
Trademark vs. Copyright vs. Patent
| Type | Protects | Duration |
|---|---|---|
| Trademark | Brand identifiers | Indefinite (if renewed) |
| Copyright | Creative expression | Life + 70 years |
| Patent | Inventions | 20 years |
Liability Structures
A sole trader is personally liable for business debts. An LLC or Ltd separates personal and business liability — creditors can only reach business assets.
Reading Indemnity Clauses
"Party A shall indemnify Party B from and against all claims, losses, damages arising from Party A's breach..."
Translation: if A screws up, A pays. Read who holds the indemnity in every contract you sign.