Exhibit: Overview, definition and example
What is an exhibit?
An exhibit in a contract refers to a document or attachment that is referenced within the contract itself. Exhibits provide additional details, specifications, or supporting information relevant to the agreement, but they are considered separate from the main text of the contract. Exhibits might include things like diagrams, schedules, terms and conditions, or financial statements.
Why is an exhibit important?
Exhibits are important because they offer a clear and organized way to include necessary information without cluttering the main body of the contract. They help ensure that all parties involved are on the same page regarding the specifics of what is being agreed upon. Exhibits can clarify complex details and ensure that the contract is complete and precise.
Understanding exhibit through an example
Imagine a business, TechCo, enters into a software licensing agreement with another company. The main contract outlines the general terms, such as the duration of the license and the payment terms, but there’s a specific exhibit attached that details the software features, user limits, and installation process. The exhibit serves as a supplementary document that helps both parties understand exactly what’s included in the agreement.
In another case, a construction company might include an exhibit with blueprints and specifications that explain the exact scope of the work to be performed. The exhibit is referred to within the contract but provides detailed technical information that is too lengthy or complex to include in the main text.
Example of an exhibit clause
Here’s how an exhibit clause might look in a contract:
“The parties agree that Exhibit A, which outlines the payment schedule, is hereby incorporated by reference and shall be considered an integral part of this Agreement.”
Conclusion
An exhibit is an attachment to a contract that provides additional information or details relevant to the agreement. Exhibits help to keep contracts clean and organized while ensuring that all necessary specifics are clearly defined and accessible. Including exhibits in contracts is a practical way to manage complex information without overwhelming the main document.
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.