Parties and Recitals

Parties

A contract will always name the parties to the agreement. It is necessary to identify the parties so that everyone concerned is sure who the agreement is between. The addresses of the parties are usually included. This is important in case you want to serve a notice on the other party. With a company it is usual to give the address of its registered office, which is often not the same as the business address.

Recitals

Most contracts include a recitals section, although many lawyers say it is not absolutely necessary. The recitals give the background information to the contract. It is useful because it usually says why the parties are entering into the contract. The recitals often start with the word WHEREAS and in some contracts every sentence in the recitals will begin with the word WHEREAS. It is a very old-fashioned word meaning something like ‘Taking the following facts into consideration’ or ‘The situation is as follows’

Read the following extract from a contract. Complete each gap with the correct word from the box below.

This AGREEMENT is made on this third day of April 20XX

Between

CLADDAGH FURNITURE & DÉCOR Ltd a company incorporated in Ireland under number 1000576 having its registered office at 30 King Charles Crescent, Galway City, Republic of Ireland hereinafter

(a) to as ‘the supplier’, (b) .
ALL THINGS IRISH ltd a company incorporated in England under number 2297103 having its registered office at 1 Montgomery Square, Birmingham, England hereinafter referred to as ‘the

(c) ’
RECITALS
WHEREAS the Supplier is (d) in the manufacture and distribution of handmade furniture and various other household goods for sale and distribution to retailers
WHEREAS the buyer is a (e) who operates a chain of retail outlets around the UK and wishes to purchase a selection of furniture and other goods from the Supplier for sale to the public via said outlets
WHEREAS the Supplier agrees to supply specified furniture and other goods to the Buyer
(f) to the terms and conditions set out in this Agreement.

referred	subject	retailer
engaged	and	Buyer

Answers

1. referred
2. and
3. Buyer
4. engaged
5. retailer
6. subject