Recitals in a contract should be limited to intentions and statements of facts, and exclude any obligations, conditions, or warranties. Contract recitals are not legally binding on their own; however, they can be used to interpret the contracts' intentions in case of a dispute in the operative clauses.
Typically, recitals are not legally binding. They are interpretative tools rather than enforceable parts of the contract. However, their content can influence the understanding and application of the operative clauses.
A recital is a statement of facts or reasons that explain why a law or contract exists. Sometimes called a 'whereas' or 'preamble' clause, it provides context information.
Understanding the different types of recitals and their specific roles is critical for both drafting and interpreting contracts. The four common types of contract recitals are contextual, purpose, reference, and definition recitals.
In law, a recital (from Latin: recitare, "to read out") consists of an account or repetition of the details of some act, proceeding or fact. Particularly, in law, that part of a legal document—such as a lease, which contains a statement of certain facts—contains the purpose for which the deed is made.
Writing Strong Recitals Clear Purpose. Write specific goals. Connect directly to main contract sections. Keep terminology consistent throughout. Essential Background. Focus on what matters legally. Present events in order. Reference critical documents. Party Details. Use exact legal names. Clarify each party's role.
Contract recitals, often found at the beginning of legal agreements, set the stage for the document's purpose and context. They provide background information, outline the parties' intentions, and establish the framework within which the contract operates.
Contract recitals are statements that provide background information about the intent of a contract. They are located in the introductory part of a contract and immediately follow any preambles listed (though some in the legal profession consider preambles and recitals to be one and the same).
A business management agreement formalizes the working relationship between a business and its manager. The contract will include information such as budgeting, the percentage of business revenue owed to the manager, and confidentiality requirements.
The recitals set forth in this Amendment are incorporated herein by reference and made a part hereof as if fully set forth as paragraphs in this Agreement. Capitalized terms used in this Amendment not otherwise defined herein shall have the meanings when used herein ascribed to such terms in the Agreement.