Among the contract terms that too many people skip over are the “contract recitals.” These are more commonly known as the preamble or maybe introductory clauses. They generally aren't legally binding. However, they typically address the intent of the agreement.
"During the Term, he shall devote substantially all of his business time to the performance of his duties under this Agreement, and shall perform such duties diligently, in good faith and in a manner consistent with the best interests of the Company."
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.
Write the name of the contract at the top of the page. Follow with the names or company names of all parties, in this format: This agreement is between ____ and ____. Contracts involving a business should include the business' full legal name, including descriptions such as “Ltd.” or “Inc.”
Almost always, recitals occur at the beginning of a written contract and can be considered like a preamble or an explanation. The recitals generally identify the parties to the contract in their specific and correct legal form. For example, corporations — like people — have a specific legal name.
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.
Recitals are typically found after the parties' section and contain a series of sentences that when clearly drafted can provide: context to the contract; explanation of intent; and. guidance on interpretation.
Draft the Recitals: Clearly and concisely write the introductory statements that explain the context and purpose of the agreement. Use Clear Language: Ensure that the language used in the recitals is clear, unambiguous, and accurately reflects the parties' intentions.
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).
The common standard term for a management contract is typically between one and five years, but this can vary depending on the specific needs and goals of the parties involved.