Exhibit B: Overview, definition, and example
What is Exhibit B?
Exhibit B refers to a specific attachment or addendum included in a contract or legal document, typically used to provide additional details or supporting information that supplements the main content of the agreement. Exhibits, including Exhibit B, are often referenced within the contract itself and are intended to clarify, expand upon, or provide examples related to certain provisions of the agreement. The use of exhibits helps keep the main contract document streamlined and concise while still providing the necessary details that are important to the parties involved.
Why is Exhibit B important?
Exhibit B is important because it allows parties to include detailed or technical information without overcrowding the primary document. It provides a way to include complex charts, financial statements, legal descriptions, or specific clauses that may be relevant to a particular section of the agreement. By referencing Exhibit B, the contract ensures that all parties have access to the supporting material without the need to include it directly within the main body of the contract, making the agreement more readable and easier to navigate.
Understanding Exhibit B through an example
For example, in a real estate purchase agreement, Exhibit B might include a detailed list of the property’s physical assets, such as appliances, fixtures, and any other property-specific items that are part of the sale. While the main agreement may reference the transfer of property, Exhibit B would provide a clear and itemized list for reference.
In another example, a software licensing agreement might include Exhibit B as a detailed schedule of licensing fees, payment terms, or a list of the specific software features covered under the contract. This helps ensure that both parties are clear on the scope and costs associated with the software licensing arrangement.
An example of an Exhibit B clause
Here’s how an Exhibit B clause might appear in a contract:
“The terms and conditions of the services to be provided are outlined in Exhibit B, which is incorporated by reference into this Agreement. Exhibit B contains the detailed service specifications, pricing, and delivery schedule, and any deviations from the terms stated in Exhibit B shall require prior written approval from both Parties.”
Conclusion
Exhibit B is a useful tool for including supplementary or detailed information in a contract without overloading the main agreement. By providing a clear reference to additional materials, such as lists, schedules, or descriptions, Exhibit B helps ensure that both parties are fully informed and have access to the relevant details. Its use maintains the clarity of the primary contract while still addressing complex or specialized information necessary for the agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.