Premises: Overview, definition and example
What are premises?
Premises refer to a physical location or property, such as a building, office, factory, or land. In contracts, the term is often used to define the specific location where work or services will take place, or where one party is granting access to another.
Why are premises important?
Premises are important in contracts because they clarify where obligations or responsibilities will be carried out. For example, a lease agreement specifies the premises being rented, while a service agreement might outline which premises the service provider will work on. This ensures both parties understand the scope and location of their commitments.
Understanding premises through an example
Imagine a company enters into a contract with a maintenance service provider to clean its office space. The contract defines the "premises" as the company’s headquarters at a specific address. This makes it clear which location the service provider is responsible for maintaining.
In another case, a manufacturer might lease a warehouse for storing goods. The lease agreement will describe the premises in detail, specifying the boundaries of the property and any restrictions on its use.
An example of a premises clause
“The Service Provider shall perform the agreed Services exclusively at the Client’s premises located at 123 Business Street, and shall not use or access any other locations without prior written consent from the Client.”
Conclusion
Premises refer to the physical location tied to a contract’s activities. Clearly defining premises in a contract helps both parties avoid misunderstandings about where responsibilities apply, ensuring smooth collaboration and compliance.
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.