Now, therefore: Overview, definition, and example
What is "now, therefore"?
"Now, therefore" is a traditional legal phrase used in contracts, agreements, and formal documents to introduce the main obligations or commitments of the parties after outlining the context or background of the agreement. It acts as a transition from the recitals (where the background or intent is explained) to the operative terms of the document.
For example, after stating the purpose of a partnership in the recitals, the phrase "now, therefore" introduces the specific responsibilities and agreements between the parties.
Why is "now, therefore" important?
The phrase "now, therefore" is important because it creates a clear distinction between the context of the agreement and the legally binding terms. It helps structure the document in a logical, organized manner, ensuring that readers understand where the enforceable commitments begin.
For SMBs, the use of "now, therefore" ensures clarity and professionalism in legal documents, making it clear where the obligations are formalized. It is especially useful in agreements where the recitals provide important background information before transitioning to actionable terms.
Understanding "now, therefore" through an example
Imagine a franchise agreement that begins with recitals explaining that the franchisor owns a trademark and the franchisee wishes to operate under the brand. The document then transitions with "Now, therefore, the parties agree as follows," followed by the specific terms of the franchise arrangement.
In another example, a loan agreement might include recitals about the borrower needing funds and the lender agreeing to provide them. "Now, therefore" is used to introduce the detailed terms, such as repayment schedules, interest rates, and obligations of both parties.
An example of a "now, therefore" clause
Here’s how the phrase might appear in a legal document:
“Now, therefore, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:”
Conclusion
"Now, therefore" serves as a formal bridge between the introductory context and the actionable terms of a legal document. It ensures that agreements are well-structured and that the transition from intent to obligation is clear and professional.
For SMBs, including this phrase in contracts adds clarity and helps formalize the arrangement, ensuring the agreement is both well-organized and legally sound.
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.