Introduction: Overview, definition, and example
What is an introduction?
An introduction in a contract or legal document refers to the opening section that sets the context for the agreement. It typically includes the names of the parties, the date of the agreement, and a brief overview of the purpose or scope of the contract. While not legally binding, the introduction provides important background information to help interpret the document.
For example, an introduction in a supply agreement might outline the intention of one party to supply goods and the other party to purchase them, establishing the purpose of the agreement.
Why is an introduction important?
An introduction is important because it helps all parties understand the overall purpose and framework of the agreement. It provides a concise summary of the document’s intent and can serve as a guide for interpreting specific clauses. While not enforceable on its own, the introduction sets the tone and ensures that everyone is aligned on the goals of the contract.
A well-drafted introduction avoids ambiguity, helping to clarify the nature of the relationship and the objectives of the agreement from the outset.
Understanding an introduction through an example
Imagine a software company signs a licensing agreement with a client. The introduction might state that the purpose of the agreement is to provide the client with a license to use the company’s proprietary software for a specified period. This context helps both parties understand the intent behind the detailed terms in the rest of the contract.
An example of an introduction clause
Here’s how an introduction might appear in a contract:
“This Agreement is made and entered into as of [Insert Date], by and between [Party A], a [State] corporation, and [Party B], a [State] limited liability company. The purpose of this Agreement is to outline the terms and conditions under which [Party A] will provide [specific goods or services] to [Party B].”
Conclusion
An introduction is a key component of any contract, providing context and setting the stage for the detailed terms that follow. While not legally binding, it establishes the purpose of the agreement and ensures alignment between the parties. By including a clear and concise introduction, businesses can create a strong foundation for the rest of the 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.