Contract Recitals Format: A Guide to Proper Execution

When it comes to legal documents, contracts stand out as some of the most important. They establish the terms and conditions of agreements between parties, and their enforcement can be crucial to the success of a business deal. However, before diving into the meat of a contract, it’s essential to pay attention to the recitals section. Recitals lay the groundwork for what follows in the body of a contract and ensure that all parties are on the same page. In this article, we’ll explore the contract recitals format and provide tips for proper execution.

What Are Contract Recitals?

Contract recitals are the introductory statements at the beginning of a contract that outline the purpose and intentions of the agreement. They often provide background information, define key terms, and establish the context for the rest of the document. Recitals can be especially important when the parties involved have different backgrounds, languages, or cultures, as they can help to ensure that everyone has a shared understanding of the terms.

Recitals typically begin with the words “whereas” and are numbered with Roman numerals (I, II, III, etc.). They should be concise and clearly state the facts, without including any unnecessary or irrelevant information. When drafting recitals, it’s important to keep in mind that they are not legally binding, but rather serve as a preamble to the rest of the document.

Contract Recitals Format

When it comes to the format of contract recitals, there are a few key elements to keep in mind. These include:

1. Title

The title of the contract should be at the top of the page and clearly state what the agreement is about. For example, “Employment Agreement” or “Service Contract.”

2. Parties

The parties involved in the agreement should be listed, along with their names and addresses. This helps to establish who is entering into the contract and their roles in the agreement.

3. “Whereas” Statements

The recitals section should begin with “whereas” statements that establish the context of the agreement. These statements should be numbered with Roman numerals and provide a brief overview of the purpose of the contract. For example, “WHEREAS, the Company desires to retain the services of the Contractor to provide consulting services related to marketing.”

4. Definitions

It’s crucial to define any key terms or phrases used in the contract. This helps to avoid misunderstandings and ensures that all parties have a shared understanding of what is being agreed to. Definitions should be listed in alphabetical order and can be included either within the recitals section or in a separate section at the beginning of the document.

5. Consideration

Consideration refers to what each party is receiving in exchange for entering into the agreement. This could be money, goods or services, or anything else of value. The recitals section should briefly outline what each party is offering and receiving in the contract.

Examples of Contract Recitals Format

Here’s an example of what a contract recitals section might look like for an employment agreement:

EMPLOYMENT AGREEMENT

Between John Doe

123 Main St., Anytown USA

And ABC Corporation

456 Broadway, Anytown USA

WHEREAS, the Company desires to employ the Employee as its Marketing Director; and

WHEREAS, the Employee is willing to accept such employment on the terms set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

And here’s an example of what a recitals section might look like for a service contract:

SERVICE CONTRACT

Between Jane Smith

789 Park Ave., Anytown USA

And XYZ Consulting, Inc.

1010 Grant St., Anytown USA

WHEREAS, the Company desires to retain the services of the Consultant to provide consulting services related to financial planning; and

WHEREAS, the Consultant possesses the necessary skills and expertise to provide such services;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

Conclusion

Proper execution of contract recitals is essential to ensuring that all parties have a shared understanding of the terms and conditions of an agreement. By following the guidelines outlined in this article, you can be sure to create a recitals section that is clear, concise, and effective in setting the stage for the rest of the document. Remember, the recitals section may not be legally binding, but it is still an essential component of any contract.