Agreement Recitals Sample

The considerations are formulated as traditional paragraphs with complete grammatical sentences and not as several clauses that emerge from the original preamble. It is therefore not necessary to limit the recitals to a single sentence. It is a good practice to end each recital by a complete stop and not by a semicolon. This is also preferable with respect to contract editing software, in which paragraphs are automatically inserted or omitted. For example, don`t write: recitals in contracts. Most contracts contain, under the title and the bloc of parties, but before the text of the agreement, a group of paragraphs, also called “preamble,” “considerants” or “considerants.” An example of the traditional format was used in recitals in an agreement between Microsoft Corporation and Expedia, Inc. Here`s what the format looked like: the contracting parties entered into an agreement (type of agreement and date); Context or substantive considerations – this type of clause describes the fact or event that led to the transaction. This may include items such as sales, trademark or patent licenses. Recitals relating to related transactions – in the preamble to the treaty, it is possible to add more than one recital if several agreements are concluded simultaneously. Party-related recitals – one or more recitals/considering that clauses can be inserted to reflect the relevant business activities for each party.

Considerations of transaction structure – these are atypical and complex transactions that have experienced the implementation of the contract. An example would be a succession of events. Types of clauses of consideration. The recitals provide general information on the parties, the context of the agreement and the introduction into the agreement itself. There are several types of clauses: the reasons for the contract precede the main text of a contract and are called “whereas” clauses. A recital gives the reader a general idea of the purpose of the contract, the parties involved and why they sign it.3 min read the preamble title. The preamble is usually given the title considerations, during or background, probably written in all-caps or bold. They address some of the key features of the agreement, the associated transaction or the parties` transactions and help the reader understand the background before looking at the Definitions section. Compliance recitals – in which the parties can indicate certain requirements or conditions that must be met before the contract is signed. An example would be compliance with the required authorization of an external party for the transaction prior to the signing of the contract.

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