Defining Terms In An Agreement

» September 16, 2021 · · Uncategorized » no responses

Efficiency – by defining the terms used repeatedly in a contract saves the author from having to define the terms over and over again (and the reader from having to read them again and again). It`s defined once, and that`s it. Legal contracts are already quite long. Let us no longer do them by repeating the definitions throughout the agreement. Not only that, but also when a word is defined multiple times and the definitions are different, it creates confusion. Which brings us back to precision. Defined terms are usually found at the beginning of a legal document or at the beginning of a separate section such as a calendar. Similarly, the definition of the terms “parties”, this “contract” (or “contract”) is generally unnecessary. However, it must be recognized that, in the particular case of parties and agreements, this principle of best practices is often ignored. All disputes relating to this Agreement or other agreements arising from this Agreement shall be finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute. A term should be defined in its entirety.

It is sometimes inevitable or more practical to work with a definition defined in the current text. In several jurisdictions, it is customary to define terms as much as possible in the current text and not in the definition article. What I think should be confidential will not be exactly the same as what you believe to be confidential. Suppose you promised me not to divulge my confidential information to anyone. What would you like to tell others about me? The difficulty for you is that whenever you want someone else to have something important about me, you have to guess if that information is confidential as part of our agreement. Over time, we probably won`t agree on whether something you disclosed was actually confidential. For contracts of more than nine or ten pages approximately, it is recommended that the terms defined in the text of the treaty be referenced in the definition article. The citing text should refer to the section number in which the definition appears (and the referenced text must be consistent): 13) A term defined in the text should (a) be placed immediately according to the concept defined by it, (b) be placed with one article in parentheses, (c) be clearly distinguished from the other text, and (d) be indicated in accordance with the terms defined in the definition article. . . .

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