What is it?
Result functions as a legal remedy, governing the ultimate state of affairs after dispute resolution or contract performance failure. It controls whether damages are awarded or obligations are discharged.
result
Contract LawLegal 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
A legal result describes the final outcome or consequence stemming from a specific action, ruling, or contractual term. This outcome dictates rights granted, obligations imposed, or liabilities incurred among the involved parties. The qualifier often hinges on whether the result is deemed 'final and conclusive' within litigation proceedings.
Plain-English Translation
It’s like when you finish your homework; the resulting grade tells you if you passed or failed that assignment. That final mark determines what happens next for you.
Contract relevance
Why result matters in contracts
Ignoring the result means one party risks default judgment or forfeiting their right to compensation under UCC § 2-714. The breaching party bears this immediate risk.
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 fails to repay; the resulting default allows the Lender to seize collateral.
02
Franchisor violates marketing terms; the resulting breach permits the Franchisee to terminate the agreement.
03
Court rules on patent infringement; the resulting injunction forces the Defendant to cease all manufacturing activities.
Document context
How result shows up in legal documents
Why does it matter?
Ignoring the result means one party risks default judgment or forfeiting their right to compensation under UCC § 2-714. The breaching party bears this immediate risk.
When does it matter?
The result crystallizes when a judge enters a final order, or within 30 days of a material breach if stipulated in the contract. This timing triggers enforcement actions.
Where is it usually seen?
You frequently see the concept codified in standard indemnification clauses and is central to findings issued by a District Court judge. It appears prominently in arbitration awards.
Who is affected?
The creditor gains the right to payment when the result confirms breach; conversely, the debtor risks personal liability if the court finds them at fault for the resulting harm. The tenant receives possession upon the favorable result of an eviction suit.
How does it work?
First, a legal action must occur—say, a breach happens under a Sales Agreement. Then, the court assesses the evidence to determine the appropriate consequence. Finally, the judgment dictates the tangible result, such as awarding $50,000 in damages.
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
Result
A result (also called upshot) is the outcome or consequence of a sequence of actions or events. Possible results include gain, injury, value, and victory. Some types of results include the outcome of an action, the final value of a calculation, and the...
Open on Wikipedia →Knowledge graph
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.
9nodes
Glossarydispute resolutiondispute resolution often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the claus...Glossarydistrict courtdistrict court often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause ar...Glossaryliabilityliability often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around...
BGRisk context hubGlossary meaning, document paths, and adjacent risk pages connected around this clause.
Use caseCheck Freelancer Agreement RisksFreelance & Gig Contracts: Check a Freelance / Contractor Agreement for common risks and hidden one-sided clauses.Use caseFreelance Contract CheckerFreelance & Gig Contracts: Check a Freelance / Contractor Agreement for common risks and hidden one-sided clauses.Use caseCheck Contractor AgreementFreelance & Gig Contracts: Check a Freelance / Contractor Agreement for common risks and hidden one-sided clauses.RiskLate payment penalties contractPlain-English risk guide for late payment penalties contract.RiskDispute resolution clause riskPlain-English risk guide for dispute resolution clause risk.RiskArbitration vs court clausePlain-English risk guide for arbitration vs court clause.
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.