Clay doesn't drain. Water either runs off (taking topsoil) or ponds (drowning roots). Sod roots can't penetrate clay. Result: dead sod in weeks.
Sod gives instant cover on slope (less erosion risk). Seed cheaper but needs erosion blanket (straw net) and daily watering. Both work if soil is right.
Consider shade garden with mulch and groundcovers instead of grass. Grass will never thrive on unamended clay with surface roots.
400 sq ft is small—do it right once. Amend clay deeply, manage water, then plant. Shortcut = repeat failure.
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