What is it?
Result is a contractual concept that governs outcomes and consequences. It determines what rights or obligations are triggered when specified conditions are met or events occur.
result
UCC / CommercialLegal glossary term
Quick answer
Result usually means the outcome or consequence of meeting specified conditions. In contracts, it matters because failure to achieve expected results can trigger penalties or forfeits. Before signing, verify conditions and consequences are clearly defined.
Definitions
What is result?
Legal Definition
In legal contexts, result means the outcome or consequence that follows from specific actions or conditions being met. It creates binding obligations or rights that determine what happens next in a contractual or statutory relationship. The key qualifier practitioners care about is that results are typically conditional and must be objectively measurable.
Plain-English Translation
Like when you must clean your room before getting dessert, a legal result is what happens after you fulfill specific conditions in a contract or law.
Contract relevance
Why result matters in contracts
Ignoring result provisions can lead to unexpected termination of rights or imposition of obligations. The party who fails to meet conditions specified for a particular result bears the risk of adverse consequences.
Document context
Where result appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Loan agreement | Financial covenants | Defines conditions for interest rate adjustments |
| Service contract | Service level agreements | Specifies performance metrics and remedies |
| Settlement agreement | Release clause | Determines finality of claims resolution |
| Insurance policy | Conditions precedent | Specifies when coverage applies |
| Employment contract | Performance standards | Links compensation to measurable outcomes |
| Merger agreement | Closing conditions | Determines deal completion requirements |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| Subject to achieving a minimum EBITDA of $5M | Company must earn at least $5M before tax | Verify the calculation method and time period |
| Resulting in termination of the agreement | Failure to perform ends the contract | Check if termination is the only remedy available |
| Results in automatic renewal | Contract continues unless cancelled | Confirm notice period and cancellation method |
Red flags
Red flags to watch for
Wording examples
Clearer wording examples
Vague wording
Results in satisfactory performance
Clearer wording
Results in meeting all performance metrics specified in Exhibit A
Vague wording
Results in termination if any breach occurs
Clearer wording
Results in termination only for material breaches that cannot be cured within 30 days
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Verify all conditions for achieving desired results are clearly defined
2
Confirm timeframes for achieving results are reasonable
3
Check that measurement methods for results are objective and verifiable
4
Ensure penalties for failing to achieve results are proportionate
5
Confirm that achieving results triggers all stated benefits
6
Verify result provisions are consistent with other contract terms
Party impact
How result affects each party
| Party | What this party should check |
|---|---|
| Buyer | Verify that achieving purchase price reductions is based on objectively measurable criteria |
| Service provider | Ensure performance metrics are achievable and within your control |
| Lender | Confirm that default results from failure to meet financial covenants with cure periods |
| Contractor | Check that result standards meet industry norms and account for reasonable delays |
Comparison
result vs similar terms
| Related term | Plain meaning | Main difference from result |
|---|---|---|
| Outcome | The final state after events occur | More general than result, which often implies specific conditions |
| Condition precedent | Event that must occur before obligations arise | A trigger for results rather than the result itself |
| Effect | Consequence of an action | Broader concept; result often implies a specific contractual consequence |
| Performance metric | Measurable standard of achievement | Used to evaluate whether a result has been achieved |
Missing or vague
If result is missing or vague
If result provisions are undefined or vague, parties may disagree on whether conditions have been met.
This can lead to disputes over whether contractual obligations have been triggered or terminated.
Courts may need to interpret parties' intent, creating uncertainty and potential litigation.
The absence of clear definitions can result in one party taking advantage of ambiguous language to avoid obligations or claim unintended benefits.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions | Look for specific definitions of result terms and conditions |
| Performance obligations | Check for standards that determine successful performance |
| Compensation | Examine how results affect payment amounts or timing |
| Termination | Review conditions that result in contract termination |
| Remedies | Inspect provisions specifying remedies for failure to achieve results |
| Exhibits | Check for detailed metrics or standards referenced in result provisions |
Visual model
Understand result fast
An explainer image has not been generated for this term yet.
01
Borrower achieves financial targets set in loan covenants, resulting in reduced interest rates
02
Landlord completes construction on time, resulting in tenant receiving rent abatement
03
Manufacturer meets quality standards, resulting in payment from distributor
Document context
How result shows up in legal documents
Why does it matter?
Ignoring result provisions can lead to unexpected termination of rights or imposition of obligations. The party who fails to meet conditions specified for a particular result bears the risk of adverse consequences.
When does it matter?
Result provisions take effect when specified conditions are met or events occur, often triggering rights or obligations within 30 days of the triggering event.
Where is it usually seen?
Result language appears in contract provisions defining outcomes, in jury instructions specifying verdict elements, and in statutory frameworks establishing consequences for regulatory compliance or violations.
Who is affected?
Contracting parties rely on result provisions to understand their obligations and benefits. Courts apply result standards when determining whether parties have fulfilled their contractual duties or statutory requirements.
How does it work?
First, parties define specific conditions that must be met for a particular result to occur. Then, when those conditions are satisfied or events occur as specified, the resulting rights or obligations are triggered. The process may require documentation or verification within a specified timeframe after the triggering event.
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Wikipedia
External reference for result
Open Wikipedia for broader background on result.
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Where result 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
Performance Review
HR & Recruitment: Performance documents can be the paper trail used to justify termination.
Termination Notice
HR & Recruitment: When you receive a termination notice, every word matters — especially what isn’t in it.
SOW (Statement of Work)
Project Management: Vague scope = cost overruns. BrieflyGo finds the gaps before they find you.
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.
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