An agreement preamble, also known as a recital, is an introductory statement included in a legal document that provides context and background information on why the agreement is being entered into. It sets the tone of the document and helps to clarify the intentions of the parties involved.
In this article, we will provide an example of an agreement preamble and discuss its importance in legal documents.
Example of an Agreement Preamble:
This Agreement (“Agreement”) is made and entered into on [Date], by and between [Party A], a [State] corporation (“Party A”), and [Party B], a [State] corporation (“Party B”). Party A and Party B collectively are referred to as the “Parties.”
WHEREAS, Party A and Party B desire to enter into a business relationship whereby Party A will provide [Product/Service] to Party B; and
WHEREAS, Party A and Party B have negotiated and agreed upon the terms and conditions of the business relationship to be governed by this Agreement; and
WHEREAS, Party A and Party B intend to perform their respective obligations under this Agreement in good faith;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, Party A and Party B agree as follows:
[Insert terms and conditions of the agreement]
Importance of an Agreement Preamble:
An agreement preamble is essential in legal documents as it helps to clarify the intent of the parties involved. It provides context on why the agreement is being entered into and sets the tone for the rest of the document. A well-written preamble can help to avoid misinterpretations and disputes that may arise from misunderstandings of the parties’ intentions.
In the example above, the preamble establishes that Party A will provide a product or service to Party B and that the terms of the agreement have been negotiated and agreed upon by both parties. It also sets the tone for the rest of the agreement by stating that both parties intend to perform their obligations in good faith.
Conclusion:
In conclusion, an agreement preamble is an essential component of legal documents. It provides context and background information on why the agreement is being entered into and helps to clarify the intentions of the parties involved. When drafting an agreement preamble, it is important to ensure that it accurately reflects the intent of the parties and sets the tone for the rest of the document.