The term CONTRACT PARTS can be broken down into two parts: CLAUSES (7 letters). A clause is a part of a contract that contains a subject and a predicate. It is a group of words that expresses a complete thought and forms part of a larger sentence. Clauses are used to provide additional information or to modify the meaning of a sentence. They can be either independent or dependent, depending on their function in the sentence. Independent clauses can stand alone as a sentence, while dependent clauses cannot.