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Contract recitals precede the main text of a contract and are referred to as the "whereas" clauses. A recital provides the reader with a general idea about the purpose of the contract, the parties involved, and why they are signing it. Recitals can be considered as the preamble to the contract.
Remember that language in Whereas Clauses is not generally binding. No matter what anyone tells you, language in whereas clauses or similar introductory paragraphs is not binding. Don't accept words in such clauses as proof that you received what you bargained for.
The first word, of the whereas clause sets the "tone" for the statement, the stronger the conviction about an issue, the stronger the first word. Each clause in the whereas should be followed by a comma (,) and the word "and." The last clause in this section of the resolution should be followed by a colon (:).
In a contract a whereas clause is an introductory statement that means "considering that" or "that being the case." The clause explains the reasons for the execution of the contract and, in some cases, describes its purpose. The whereas clause may properly be used in interpreting the contract.
When whereas is placed at the beginning of a legislative bill, it means "because" and is followed by an explanation for the enactment of the legislation. Finally, whereas is often used in official proclamations to project the solemnity of the occasion.