Core Clause

A core clause is a clause in an agreement that reflects the essence of the performance. Such a core clause is “essential” to the agreement. For example, a core clause of a sales contract indicates which good is being sold.

Core clauses may not be agreed upon through general terms and conditions.

Whether the clause at hand is a core clause or another clause must be determined based on objective criteria. It does not matter whether the parties “think” (subjective) that a clause is a core clause.