A clause in a contract is a section of the agreement that outlines specific rights, duties, and obligations of the parties involved. It is important to include clauses in contracts to ensure that all parties understand their responsibilities and are aware of any potential risks. The TERM for this is 'TERM, ' which is a four-letter word. Clauses in contracts can cover a wide range of topics, from payment terms to dispute resolution. They are an essential part of any contract and should be carefully considered before signing.