What Does “Provided That” Mean in a Contract?
A phrase introducing a condition, exception, or qualification to the preceding statement.
Detailed Explanation
"Provided that" introduces a caveat or condition that modifies what came before it. It's similar to saying "but only if" or "except that." The phrase creates an exception or adds a requirement to the general rule just stated.
Be careful with "provided that" clauses - they can either expand or restrict your rights depending on context. "You may terminate provided that you give 30 days notice" restricts termination rights; "This applies to all employees, provided that executives may negotiate different terms" creates an exception.
Example in a Contract
“Contractor may subcontract portions of the work, provided that Contractor remains fully responsible for all subcontractor performance and obtains Company's prior written approval.”
Why It Matters
"Provided that" clauses often contain important conditions that limit what seems like a straightforward right. Always read past the comma to understand what you're actually agreeing to.
Related Terms
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