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Simple English definitions for legal terms
gold clause
Read a random definition: incapacitated
A quick definition of gold clause:
A gold clause is a rule in a contract that says payment must be made in gold. This used to be common in contracts, bonds, and mortgages, but it is no longer allowed.
Golden handcuffs are a type of payment that is so high that an employee cannot find a job that pays as much elsewhere. This means that the employee stays in the job even if they don't like it.
A more thorough explanation:
Gold Clause: A provision in a contract, bond, or mortgage that requires payment to be made in gold. However, gold clauses are now considered void.
Example: In the past, some contracts included a gold clause that required payment to be made in gold. This meant that if someone owed money, they had to pay it in gold instead of paper money or other forms of payment.
Golden Handcuffs: A type of remuneration that is set at a high level to prevent an employee from leaving the company and receiving a similar salary elsewhere.
Example: A company may offer an executive a large salary, bonuses, and stock options to keep them from leaving for a competitor. This is an example of golden handcuffs because the executive is unlikely to leave the company for a job that pays less.
Both gold clause and golden handcuffs are terms used in business and finance. Understanding these terms can help individuals navigate contracts and compensation packages.