Introductory: Overview, definition, and example
What is introductory?
"Introductory" refers to the opening section or initial component of a document, agreement, or presentation, designed to provide an overview or set the stage for the content that follows. In a contractual context, the introductory section typically outlines the purpose of the agreement, identifies the parties involved, and establishes the foundational terms or definitions.
For example, the introductory section of a service agreement might define the parties to the contract, the date of the agreement, and the purpose of the services being provided.
Why is introductory important?
The introductory section is important because it provides context, clarifies the intent of the document, and establishes a framework for understanding the terms that follow. For SMBs, a well-crafted introductory section ensures all parties are aligned from the outset, reduces ambiguity, and sets the tone for the rest of the agreement.
By clearly stating the parties, purpose, and scope at the beginning, the introductory section minimizes the risk of disputes and creates a shared understanding of the document's intent.
Understanding introductory through an example
Imagine an SMB enters into a vendor agreement with a supplier. The introductory section of the agreement might state:
- The names of the parties (e.g., “ABC Tech LLC” and “XYZ Supplies Inc.”).
- The effective date of the agreement.
- A brief description of the agreement's purpose, such as "to supply office equipment and furniture for ABC Tech LLC's operations."
In another scenario, a partnership agreement includes an introductory section that outlines the intent of the partnership, identifies the partners, and briefly describes the shared goals, such as "to jointly operate a café business under the name Cozy Coffee Partners."
An example of an introductory clause
Here’s how an introductory clause might appear in an agreement:
“This Agreement is entered into on [Insert Date], by and between [Party A], a [State] corporation, and [Party B], a [State] limited liability company, collectively referred to as the ‘Parties.’ The purpose of this Agreement is to establish the terms and conditions under which [specific purpose or activity] will be undertaken.”
Conclusion
The introductory section of a document is essential for providing clarity and context at the outset of an agreement. For SMBs, it ensures all parties understand the purpose, scope, and participants in the contract or arrangement. A well-drafted introductory section establishes a strong foundation for the rest of the document, fostering transparency and alignment between the parties involved.
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.