A derogation clause is a provision of a contract that limits the liability of a party. It applies in the event of a breach of contract or a delay. Not all exception clauses are the same. There are three main types: prescription clauses, exclusion clauses and compensation clauses. Implementation clauses on how a party must fulfill its part of the agreement. The enforcement clauses are examples: many trade agreements contain one or more confidentiality clauses. It is standard that you want to keep confidential information between the parties without disclosing it to third parties. For example, suppose Part A and Part B entered into Contract 1 for vehicle maintenance. Subsequently, Part A and Part B entered into Contract 2 for the maintenance of the buildings. A misrepresenced in Contract 2 could inadvertently destroy Contract 1 if the parties were to pursue Contract 1. If the arbitration clause stipulates that the arbitration will be binding, it means that both parties must comply with the award and cannot be challenged in court.