What is it?
Clearing is a contractual clause type that governs the resolution of contradictory or overlapping provisions within an agreement.
clearing
UCC / CommercialLegal glossary term
Quick answer
Clearing usually means a clause that resolves conflicting contract terms. In contracts, it matters because ambiguous provisions can render obligations unenforceable. Before signing, check that the clearing language explicitly states which clause prevails.
Definitions
What is clearing?
Legal Definition
In a contract, clearing means that the parties have resolved any conflicting provisions so that the agreement can operate without ambiguity. It creates a legally enforceable framework where each obligation is clear and enforceable, preventing later disputes over interpretation. The most critical qualifier is whether the clearing clause survives termination of the contract.
Plain-English Translation
Think of a hall pass that clears your way through any locked doors in school; once you have it, teachers can’t stop you from entering the rooms you’re allowed to use.
Contract relevance
Why clearing matters in contracts
If a clearing provision is missing or poorly drafted, a court may deem the contract ambiguous, leading to a voidable clause and the buyer bears the risk of losing enforceability.
Visual model
Understand clearing fast
An explainer image has not been generated for this term yet.
01
Landlord includes a clearing clause stating the rent escalation provision controls over any later amendment.
02
Borrower signs a loan agreement where the prepayment penalty clause clears any conflicting interest rate adjustments.
Document context
How clearing shows up in legal documents
Why does it matter?
If a clearing provision is missing or poorly drafted, a court may deem the contract ambiguous, leading to a voidable clause and the buyer bears the risk of losing enforceability.
When does it matter?
When a contract contains multiple clauses that conflict, the clearing clause activates upon execution of the agreement.
Where is it usually seen?
Standard in UCC § 2-207 amendment clauses, commercial loan agreements, and ISDA master agreements.
Who is affected?
The lender gains certainty that repayment terms will not be overridden by later provisions, while the borrower risks unexpected obligations if the clause is absent.
How does it work?
First, the parties identify any overlapping clauses during negotiation. Then they insert a clearing provision stating which clause controls in case of conflict. Within ten days of signing, both sides review the final language to confirm it reflects the intended hierarchy.
Share
Send this term to someone else fast
Copy the link, open native sharing, or scan the QR code from another device.
Scan to open this glossary page on another device.
Wikipedia
External reference for clearing
Open Wikipedia for broader background on clearing.
Open on Wikipedia →Knowledge graph
Where clearing connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
Glossary
Use Cases
Review a Business Loan Agreement Before Borrowing
Business & Commercial Contracts: Upload a Business Loan Agreement to spot risky clauses, payment traps, ownership issues, and negotiation pressure points before you sign.
Terms of Service (ToS)
Technology & IT Contracts: You clicked "I agree." Do you know what you agreed to?
Review an SEO Service Agreement Before Signing
Business & Commercial Contracts: Upload a SEO Service Agreement to spot risky clauses, payment traps, ownership issues, and negotiation pressure points before you sign.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
Move from term to document
See the real contract language around this term
A glossary definition helps, but actual risk usually lives in the surrounding clause. Upload the full document and BrieflyGo will map plain-English meaning, red flags, and next steps.