What is an onerous term?

An onerous contract is an accounting term that refers to a contract that will cost a company more to fulfill than what the company will receive in return. The term is used in many countries worldwide, where international regulators have determined that such contracts must be accounted for on balance sheets.

What are onerous conditions?

Onerous Condition means for these purposes, an action that requires a difficult or significant expenditure, in comparison to the size, resources and school budget; or changes in the structure of the institution not allowed by law or construction policies, in particular, those applicable to buildings of a historical …

What are onerous terms in a contract?

Onerous contract A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

What is meant by contract terms and conditions?

Terms and conditions refer to the contractual rights and obligations of a party to any contract. They refer to the broader concept of guidelines that parties must follow in an agreement. Your business can create them for any formalized business agreement.

What is the legal definition of an onerous contract?

Convenient, Affordable Legal Help – Because We Care! Onerous Contracts Law and Legal Definition. Onerous contracts are those contracts in which the costs involved with fulfilling the terms and conditions of the contract are higher when compared to the amount of economic benefit received.

When do you need to avoid onerous terms and conditions?

As a Specialist Contractor you need to ensure that you steer clear of as many onerous terms and conditions as you can. Onerous terms usually occur in the Client or Contractor’s own “non-standard” documents but can also arise as amendments or “addenda” to Standard Form contracts.

Which is an example of an unusual or onerous term?

Given that this was a construction law case, the onerous term in question related to a condition which had to be fulfilled before an extension of time for carrying out building works was granted to a sub-contractor under a building contract. However, this case is relevant to other types of commercial terms and conditions.

How to avoid being caught by onerous conditions?

In order not to be caught by onerous provision you must make it perfectly clear that you are rejecting their onerous terms. Notice I said rejecting their terms, not rejecting their order. When negotiating about onerous and non-standard conditions, the following points may be useful to you: 1.