Do you know what “specification” means in a legal context? It’s a term you’ll likely see if you’re working on contracts, or trying to understand legal jargon related to products, services, or other elements of business. We’ll take a closer look at what specification means in legal language, and how an understanding of the term could be useful in your business.
What Exactly Is Specification?
At its core, specification is a guide or a description of how something should be done or how something should look. It’s most often used in the context of products and services, and goes beyond just a generic description of what is expected. Specification provides details such as physical dimensions, tolerances, technical requirements, or performance criteria.
For example, if a company is manufacturing a new product, a specification is a guide for how that product should be produced. It provides details on the correct materials to be used, the exact dimensions of the product, the tolerances and quality standards, and the overall performance that the finished product should display.
How Can This Help My Business?
In a contractual agreement, the use of a specification can act as a way to clarify the terms of an agreement. It ensures that everyone knows exactly what is expected from the other party and eliminates room for interpretation. It can reduce potential disputes, streamline operations, and potentially reduce costs as well.
Additionally, specifications can be used to ensure that suppliers or service providers are able to deliver what was requested or agreed upon in the contract, and that all necessary quality criteria are met. In fact, when it comes to contractual agreements, specifications can iron out many details that would otherwise be left open to debate.
In short, understanding specifications and using them to draw up contracts can make your business operations more efficient, cost-effective, and transparent.