Core contract language · Working
Operative provision
Also called: substantive clause
ELI5
A clause that creates rights, duties or legal effects.
Used in conversation
“Can we state who receives the right created by operative provision, and when it applies?”
Pitch context
You will see “Operative provision” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches core contract language.
Why it matters: In core contract language, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Acquisition.gov — Federal Acquisition Regulation Part 15 — Contracting by NegotiationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16