What Does “Undertakes” Mean in a Contract?
A formal commitment to do something, similar to "agrees" or "covenants" but often implying acceptance of responsibility.
Detailed Explanation
"Undertakes" signifies a formal acceptance of an obligation or responsibility. It's slightly more formal than "agrees" and often implies taking on a burden or duty. "Party undertakes to indemnify" suggests accepting responsibility for potential liabilities.
This term is common in British and international contracts. It carries the same binding force as "shall" or "covenants" but emphasizes the party's conscious acceptance of the obligation.
Example in a Contract
“The Service Provider undertakes to maintain the confidentiality of all Client Data and to implement industry-standard security measures throughout the term of this Agreement.”
Why It Matters
When you "undertake" something, you're formally accepting responsibility. It's a binding commitment that you can be held to, with potential liability if you fail to perform.
Related Terms
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