Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
- What Are Boilerplate Clauses And Why Do They Matter?
The Core Boilerplate Clauses Most SMEs Should Use
- Governing Law And Jurisdiction
- Entire Agreement And Non-Reliance
- Limitation Of Liability
- Force Majeure
- Notices
- Assignment And Novation
- Third Party Rights
- Severability
- Variation
- Waiver
- Counterparts And Electronic Signatures
- Interpretation And Order Of Precedence
- Confidentiality
- No Partnership Or Agency
- Set-Off
- Survival
- Costs
- Are Boilerplate Clauses Enforceable Under UK Law?
- Drafting Tips To Avoid Common Pitfalls
- How To Update Your Existing Contracts The Right Way
- Key Takeaways
If you’ve ever scrolled to the end of a contract and skimmed the “standard” clauses, you’ve seen boilerplate. It’s easy to think these are just filler, but they’re often the difference between a smooth resolution and a costly dispute.
In this guide, we break down what boilerplate contract clauses are, which ones UK small businesses should include, how they work under UK law, and how to tailor them to your deals without overcomplicating things. Get your boilerplate right from day one and your agreements will be clearer, stronger and easier to enforce.
What Are Boilerplate Clauses And Why Do They Matter?
Boilerplate clauses are the “house rules” of a contract. They sit near the end, but they govern how the whole agreement operates: which law applies, who can assign rights, how notices are served, what happens if part of the contract is invalid, how changes can be made, and more.
They’re not about the price or scope of services - they’re about control, process and risk if things go wrong. Get them right, and you lower the chance of surprises. Get them wrong (or leave them out), and you invite uncertainty, expense and unnecessary negotiation later.
Remember, a contract is only as strong as its structure. Alongside commercial terms and clear deliverables, make sure your agreement ticks the basics of what makes a contract legally binding - offer, acceptance, consideration and intention - then use boilerplate clauses to set the ground rules for how it will be interpreted and enforced.
The Core Boilerplate Clauses Most SMEs Should Use
Every business is different, but most UK B2B contracts include a familiar set of boilerplate clauses. Here’s what they do and how to tailor them.
Governing Law And Jurisdiction
This clause sets which country’s laws apply and where disputes are heard. For a UK small business, choose the law and courts of your home nation (e.g. England and Wales, Scotland). This helps avoid foreign legal systems and travel costs.
- Governing law: “This agreement and any dispute or claim… shall be governed by and construed in accordance with the law of England and Wales.”
- Jurisdiction: “The parties irrevocably submit to the exclusive jurisdiction of the courts of England and Wales.”
Make sure your contracts consistently reference the same jurisdiction across all templates and schedules.
Entire Agreement And Non-Reliance
An Entire Agreement clause says the written contract is the complete deal. A Non-Reliance statement adds that neither party relied on statements outside the agreement. Together, they reduce the risk of arguments about pre-contract promises.
Use these with care - they do not exclude liability for fraudulent misrepresentation and must be drafted with the Misrepresentation Act 1967 in mind. If you sell to consumers, stricter rules apply.
Limitation Of Liability
While often grouped with boilerplate, this clause goes to the heart of risk allocation. It caps financial exposure and typically excludes certain types of loss. In B2B contracts, your limits must be reasonable under the Unfair Contract Terms Act 1977 (UCTA). In B2C, the Consumer Rights Act 2015 adds further controls.
Think about an overall cap (for example, fees paid in the last 12 months), carve-outs for death or personal injury (which can’t be excluded), and whether to exclude indirect or consequential losses. For drafting ideas and pitfalls, see practical examples of limitation of liability clauses.
Force Majeure
This clause sets out what happens if events outside a party’s control prevent performance (for example, natural disasters or government action). Define what counts as a force majeure event, whether obligations are suspended or extended, and when either party can terminate.
Notices
Notices clauses specify how formal communications should be sent (email, post, courier), when they’re deemed received, and to which address. This saves arguments about whether someone was properly notified about a breach or termination.
Include an obligation to keep contact details up to date and allow email for speed - just set a clear “deemed delivery” rule to avoid uncertainty.
Assignment And Novation
Assignment transfers benefits (rights) under a contract; novation replaces a party and transfers benefits and obligations. If you want control over who you end up contracting with, restrict assignment without consent and make clear that novation requires a formal agreement.
When you do need to shift a contract to a group company or a buyer, a tailored approach to novation or assignment will avoid disputes.
Third Party Rights
Under the Contracts (Rights of Third Parties) Act 1999, a third party may be able to enforce contract terms if the contract allows it or the term purports to benefit them. Your clause should state whether third-party enforcement is permitted or excluded.
Many B2B contracts exclude third-party rights to keep enforcement within the signatories.
Severability
If a clause is invalid or unenforceable, the severability clause allows the rest of the contract to survive, and - where possible - for the invalid part to be narrowed to become valid.
Variation
A Variation clause says changes must be in writing and signed by both parties. This helps you avoid disputes over informal emails being treated as binding changes. If you need flexibility for scope tweaks, set out a simple change control process.
When you need to update live agreements, there’s a practical difference between an addendum and a full amendment - this is where a clear, signed document and process matter. For a quick refresher on options, see addendum vs amendment.
Waiver
A Waiver clause confirms that not enforcing a right immediately doesn’t mean you’ve waived it forever. Add that waivers must be in writing to avoid implied waivers arising from conduct.
Counterparts And Electronic Signatures
Counterparts allow a contract to be signed in multiple copies that together form one agreement. Adding an express acknowledgement of electronic signatures and scans reflects modern signing practices in the UK.
Be mindful of deeds versus simple contracts - deeds have stricter execution rules. If your template sometimes needs to be a deed (e.g. for assignments with no consideration), mirror the correct signature blocks and witness requirements. For the “how” of executing documents, read executing contracts and deeds in England. And if you’ve traded based on a draft, it’s worth checking whether an unsigned contract can still be enforced.
Interpretation And Order Of Precedence
Interpretation clauses define how to read the contract - for example, how to deal with headings, singular/plural, references to laws, or conflicts between schedules and the main terms. If your agreement includes multiple documents (SOWs, schedules, purchase orders), set an order of precedence so everyone knows which document wins in a conflict.
Be careful with “notwithstanding” statements - they can override other sections in ways you don’t intend. If you use them, use them sparingly and clearly. For a plain-English breakdown of how they work, see notwithstanding clauses.
Confidentiality
A short confidentiality clause is often included in the boilerplate (or cross-referenced to a separate NDA). It should define confidential information, permitted disclosures, and the duration of obligations after termination.
No Partnership Or Agency
This clause clarifies that the contract doesn’t create a partnership, joint venture or agency relationship. This helps avoid unexpected liability for each other’s acts.
Set-Off
Decide whether a party can set off amounts it owes against sums owed to it under the contract. Many suppliers prohibit set-off to protect cash flow.
Survival
List the clauses that continue after termination - typically confidentiality, IP ownership, accrued rights, and payment obligations.
Costs
State who pays their own legal and other costs related to the contract, unless you want a different arrangement for specific scenarios.
Are Boilerplate Clauses Enforceable Under UK Law?
Generally, yes - if they’re clear, reasonable and not prohibited by law. Here are key UK law points to keep in mind.
- Unfair Contract Terms Act 1977 (UCTA): In B2B contracts, terms limiting or excluding liability for negligence or breach must pass a “reasonableness” test. Clauses excluding liability for death or personal injury caused by negligence are void.
- Consumer Rights Act 2015 (CRA): If you contract with consumers, additional fairness and transparency requirements apply and certain exclusions are prohibited. If you’re selling to consumers, you’ll need to adapt more than just the boilerplate.
- Misrepresentation Act 1967: Entire Agreement and Non-Reliance clauses need careful wording - you cannot exclude liability for fraud, and any limits on liability for misrepresentation must be reasonable.
- Contracts (Rights of Third Parties) Act 1999: A third party may enforce a term if expressly permitted or if the term purports to confer a benefit on them - unless your contract clearly opts out.
- Limitation Act 1980: Sets time limits (“limitation periods”) for bringing claims - typically six years for simple contracts and 12 years for deeds.
- UK GDPR/Data Protection Act 2018: If your notices clause relies on email, ensure you handle personal data (like contact details) lawfully and securely, and align with your privacy and security commitments.
- Electronic signatures: English law generally recognises e-signatures for simple contracts. Deeds have extra formalities - follow proper signing blocks and witnessing requirements.
The bottom line: boilerplate isn’t just copy-paste. It must be tailored to your deal, sector and counterparties, and comply with UK law that might override the words on the page.
Drafting Tips To Avoid Common Pitfalls
Boilerplate should make your contract clearer - not more confusing. These tips will help you avoid the traps we often see.
- Keep it consistent: The governing law/jurisdiction should match across the main agreement and schedules. Don’t mix England and Wales in one place and Scotland in another.
- Define your terms: If your notices clause uses “Business Day,” define it. If “Confidential Information” appears, define it once, clearly.
- Watch for conflicts: If you have an order of precedence, check that it won’t accidentally elevate a short SOW over your detailed master terms for critical issues like liability or IP.
- Right-size limitation caps: Choose a cap that fits the risk and price of the deal and state clear carve-outs. You can tier caps for different risks if needed.
- Be careful with “notwithstanding”: Use it only where you genuinely want a clause to override all others – and say exactly which parts it overrides.
- Choose practical notice methods: Allow email notices for speed, but set a “deemed delivery” rule and require confirmation for critical notices like termination.
- Plan for change: Include a simple change control process, and insist variations are in writing. It helps avoid scope creep and “we thought you agreed” moments.
- Think about group use: If you trade through multiple group companies, decide whether rights can be assigned within your group without consent.
- International deals need extra care: Add export controls, sanctions compliance, and ensure governing law/jurisdiction are realistic if your customer is abroad.
Using Boilerplate In Different Types Of Business Contracts
Boilerplate needs a slightly different flavour depending on the contract type. Here are some practical examples for UK SMEs.
Supplier Terms And MSAs
Suppliers often include tighter payment terms, “no set-off,” robust limitation of liability, and an order of precedence that puts the Master Services Agreement above any conflicting purchase order. If you’re the supplier, make sure the limitation clause matches your risk profile - our examples of limitation of liability clauses show common approaches.
Customer Contracts
When you’re the customer, you’ll want wider audit/termination rights, flexibility on assignment within your group, and clear service levels. Boilerplate should let you step away cleanly if the other side can’t perform due to force majeure beyond reasonable tolerance.
IP And Software Agreements
Pay attention to confidentiality and survival clauses, ensure notices allow for security-critical matters to be escalated quickly, and consider enhanced caps for data protection breaches. For assignments of IP with no consideration, you may need to use a deed (rather than a simple contract), so be mindful of deed formalities and execution. Where IP needs to move between entities, use a proper assignment instrument, not just an email promise - in some scenarios a deed of assignment is the correct vehicle.
Sale, Transfer Or Restructuring
Where contracts are moving between group companies or to a buyer, build in an assignment/novation pathway from the start. Your boilerplate can state that consent to assignment won’t be unreasonably withheld, and that novation will be executed promptly via a standard form - then use the appropriate novation or assignment route when the time comes.
Statements Of Work (SOWs) And Schedules
If you use SOWs under a master agreement, ensure the order of precedence is clear, and that any SOW-specific variations are expressed as deliberate overrides. You can use headings like “SOW-Specific Variations” so nobody misses them.
How To Update Your Existing Contracts The Right Way
Already trading on older templates? You don’t need to start from scratch to tighten your boilerplate. Here’s a practical way to upgrade without derailing relationships.
- Audit your current templates: Identify gaps (e.g. no third-party rights clause) and risky positions (e.g. unlimited liability).
- Create a new baseline: Refresh your master template with a clear, consistent boilerplate suite that matches your risk profile and sector norms.
- Prioritise renewals and new deals: Introduce the updated template at natural contract cycles, flagging headline changes.
- Use addendums for key customers: If you can’t switch the whole template mid-term, use a short, focused addendum to fix high-risk issues (like liability caps or governing law). For the mechanics here, compare approaches in addendum vs amendment.
- Control versions: Update version numbers and dates, and keep a record of what changed and when.
- Execute correctly: If you’re issuing an amendment or deed of variation, follow the right signature formalities - see our guidance on executing contracts and deeds.
For live negotiations, be ready to explain why changes help both parties - clear notices, reasonable caps and simple variation processes protect the relationship as much as they protect you.
Frequently Asked Questions About Boilerplate
Are Boilerplate Clauses Negotiable?
Yes - and they often should be. If the other side’s governing law, limitation, or assignment terms create real risk for you, propose sensible alternatives. Most counterparties expect some tailoring.
Can I Just Use A Template’s Boilerplate?
Generic boilerplate is a risky shortcut. Clauses like limitation of liability, notices, and third-party rights need tailoring to your deal and UK law. Off-the-shelf wording can leave you exposed or unenforceable. It’s wise to have a lawyer review the clauses most likely to cause problems if challenged.
Do Emails Count As Variations Or Notices?
They can, if your contract says so and the email meets the method and address requirements. This is where a clear notices clause and variation clause prevent arguments about whether an informal email changed the deal. If you’re unsure how a particular exchange sits legally, check your boilerplate and consider whether you need a formal written variation or a fresh agreement.
What About “Unsigned” Contracts?
Even without signatures, a contract can be binding if the behaviour of the parties shows agreement. That said, a signed contract is always better for certainty. If you’ve started work without a signature, it’s worth reading about enforcing unsigned contracts to understand the risks and next steps.
Key Takeaways
- Boilerplate clauses are not “just legal fluff” - they set the rules for how your contract works, from governing law and notices to assignment and third-party rights.
- In the UK, enforcement depends on clarity and compliance with key laws like UCTA 1977, the Consumer Rights Act 2015, the Misrepresentation Act 1967 and the Contracts (Rights of Third Parties) Act 1999.
- Right-size your limitation of liability, define a sensible notices process, and use clear order-of-precedence and interpretation rules to avoid conflicts across schedules and SOWs.
- Be deliberate with “notwithstanding” overrides and ensure variation, waiver and survival clauses reflect how you actually work with customers and suppliers.
- When moving contracts within a group or to a buyer, plan ahead for assignment or novation and use the correct legal mechanism - don’t rely on informal promises.
- If you’re updating existing agreements, use a new baseline template and targeted addendums for high-risk fixes, and execute amendments correctly (especially if a deed is required).
- Avoid generic templates for boilerplate - getting these clauses tailored to your business will reduce disputes and protect your cash flow.
If you’d like help reviewing or refreshing your boilerplate clauses - or building a contract suite that protects your business from day one - you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.


