Clause

A distinct provision or section within a legal document, contract, or policy that addresses a specific topic or establishes particular terms. In privacy contexts, clauses appear in data processing agreements, standard contractual clauses, privacy policies, and terms of service. Each clause typically covers one subject—data retention periods, security obligations, liability limitations, indemnification, audit rights, termination conditions, or dispute resolution. Well-drafted clauses are clear, specific, and internally consistent with other provisions. Privacy professionals often reference specific clauses when discussing contractual obligations—for example, 'the security clause requires encryption' or 'Clause 8.5 addresses sub-processor approval.' Standard Contractual Clauses for international transfers contain specific numbered clauses that must be used without substantive modification. Understanding key clauses in privacy agreements is essential for ensuring contracts properly allocate responsibilities and risks.