Boilerplate

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DEFINITION

The standardization of a legal document's structure and language. This leads to quicker and more efficient practices in terms of the filling out and processing of documents.

Most often used in contracts, prospectuses and indentures.

INVESTOPEDIA EXPLAINS

An example would be a bank having a standard contract for everyone who applies for a home loan.

Boilerplates are rarely changed and, due to their standard nature, parties involved in the agreement aren't usually misled.


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