We support businesses with commercially focused legal solutions that drive growth and protect and preserve your assets and reputations.
Whatever your business, we can help you prosper.
We provide legal support to address the major challenges in life and protect your family and finances.
From relationship breakdowns or personal injuries to property or criminal defence, we can help you achieve the best outcome for you and your family.
Most business owners have seen an “entire agreement” clause near the end of a contract and assumed it is just standard boilerplate. In fact, it is widely misunderstood and can materially affect what protection you have if a deal goes wrong.
Knowing what the clause does (and does not do) helps you manage negotiations, ensure key promises make it into the contract, and avoid relying on statements that have no contractual effect.
By the time a contract is signed, there is often a trail of emails, calls and meetings containing assurances that influenced the deal. Disputes commonly arise when those points are not reflected in the final wording.
An entire agreement clause states that the signed contract is the whole agreement between the parties, replacing what was said or exchanged before signing, so pre-contract statements do not become contractual terms.
The purpose is certainty: it pushes both parties back to the written terms rather than informal exchanges. Courts in England and Wales will generally uphold clear, well-drafted clauses in commercial contracts.
An entire agreement clause is not a catch-all shield. There are important situations where it will not prevent claims or arguments being raised.
Fraud: the clause cannot protect a party who made dishonest pre-contract statements. If you were induced to contract by knowingly false representations, you may still claim; equally, it will not shield your business if your side acted fraudulently.
Misrepresentation: if the clause tries to exclude liability for negligent or innocent misstatements, it must be reasonable under the Unfair Contract Terms Act 1977. Overly broad wording (for example, excluding everything without distinction) can be held ineffective.
Implied terms: these arise at the point of contracting (because the law or the nature of the relationship reads them in). A standard entire agreement clause may not exclude them unless it is drafted to do so.
After signing: the clause does not prevent later informal changes or arguments about variation/waiver. Deal with this separately using a clear “how changes must be agreed” provision.
First, the clause is not a substitute for good drafting. If a promise matters, put it in the contract in clear terms.
Second, take care with what is said in pitches, calls and meetings. Even where a clause limits contractual effect, pre-contract statements can still cause trouble (particularly around fraud, representations or collateral warranty arguments), so ensure your team avoids over-promising.
Third, remember it cuts both ways. If the other side’s contract contains an entire agreement clause, you may be unable to rely on assurances that are not written into the deal—so fix the wording before you sign.
Many businesses rely on clauses copied from old templates. If your clause is drafted too broadly (for example, excluding all representations without careful carve-outs), it may be challenged and fail to deliver the certainty you expected.
Used properly, an entire agreement clause supports certainty—but it will not rescue a poorly documented deal.
If your standard contracts need a review, or you are entering a significant agreement, Coodes’ corporate and commercial team can help you understand what protection you have and ensure key terms are properly recorded.
Paralegal
Call us on 0800 328 3282, or complete the form below and we’ll get back to you as soon as possible.
As of 6th April 2024, paternity leave will be changing to reflect a shifting attitude…
What steps should you take if you suspect someone is committing financial abuse as a…