Contract Glossary
De Minimis
Definition
Latin for 'about minimal things', it refers to amounts or matters so small that the law doesn't bother with them. A de minimis clause sets a threshold below which violations or obligations are treated as too minor to act on.
In Practice
Your contract might say 'breaches involving damages of less than $500 are considered de minimis and won't constitute a material breach.' This prevents either party from weaponizing tiny infractions. Tax law uses de minimis rules too, the IRS won't make you report fringe benefits under $75, for example.
Common in these contract types
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