Now it is hereby agreed as follows: Overview, definition, and example
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TL;DR
Defines the phrase "Now it is hereby agreed as follows," commonly used in contracts to indicate the start of binding obligations. It explains its significance in marking the transition from introductory sections to enforceable terms, making it relevant for legal professionals drafting formal agreements.
What is “Now it is hereby agreed as follows”?
“Now it is hereby agreed as follows” is a traditional legal phrase used at the beginning of the operative provisions section of a contract. It marks the formal transition from the introductory parts of the agreement—such as the title, recitals, and definitions—into the legally binding obligations of the parties. Everything that comes after this phrase typically constitutes the actionable terms of the contract.
Why is “Now it is hereby agreed as follows” important?
While largely ceremonial in modern usage, this phrase still serves a practical purpose: it signals that the contractual obligations are about to begin. In older legal drafting traditions, such phrases were standard to establish intent, formality, and legal enforceability. Today, many contracts simplify or skip the phrase, but it can still be found in formal or traditional agreements, especially in real estate, commercial, or international contracts.
Understanding “Now it is hereby agreed as follows” through an example
In a share purchase agreement, after the introductory sections describe the background and purpose of the deal, the document might state:
“Now it is hereby agreed as follows:”
Immediately after, the contract will begin listing key terms such as:
- "1. Purchase and Sale of Shares"
- "2. Purchase Price and Payment Terms"
- "3. Warranties and Representations"
These clauses contain the enforceable promises between the buyer and the seller.
Example of how “Now it is hereby agreed as follows” may appear in a contract
Here’s how this phrase typically appears in context:
"NOW IT IS HEREBY AGREED as follows:"
(1) The Seller agrees to sell and the Buyer agrees to purchase the Shares on the terms set out in this Agreement...
Conclusion
“Now it is hereby agreed as follows” is a formal signal that the binding part of the agreement is beginning. While it may seem archaic, it serves as a traditional and clear marker for the start of the operative provisions. Whether used for formality or style, it helps separate the legal obligations from the background information and adds structure to the agreement.
Frequently asked questions (FAQs)
Defines key terms and phrases in a contract to ensure clarity, eliminate ambiguity, and establish a shared understanding for all parties involved.
Defines key terms used throughout a contract, ensuring clarity and consistent interpretation to reduce disputes and enhance enforceability.
Defines the contract's scope, purpose, parties, and key terms to establish a clear foundation for the agreement and ensure consistent interpretation.
Defines the term agreed in legal contexts, explaining its role in mutual acceptance, enforceability, and examples of binding contractual commitments.
Defines additional terms and concepts in a contract to clarify language, specify obligations, and reduce ambiguity for all parties involved.