Pursuant to section: Overview, definition, and example
What is "pursuant to section"?
"Pursuant to section" is a phrase commonly used in legal documents, contracts, and statutes to indicate that a particular action, obligation, or requirement is being carried out according to the rules or provisions outlined in a specific section of a legal agreement, law, or regulation. The phrase links the action directly to the relevant section of the governing document, ensuring clarity about which provision or requirement is being followed.
For example, a contract may state that a party must provide a certain notice "pursuant to section 5 of this Agreement," meaning that the action is required according to the rules outlined in section 5.
Why is "pursuant to section" important?
The phrase "pursuant to section" is important because it ensures that all parties involved in a legal agreement or situation are clear on the specific provisions being referenced and followed. It helps avoid ambiguity and ensures that actions taken are in compliance with the terms and conditions laid out in the relevant section of the document or law.
For businesses, using this phrase helps ensure that their actions are legally sound and are aligned with contractual or regulatory requirements.
Understanding "pursuant to section" through an example
Imagine a business contract that includes a clause about dispute resolution. The contract may state that, "The parties agree to arbitrate disputes pursuant to section 8 of this Agreement," meaning that any disputes will be handled according to the rules specified in section 8. This clarifies where the arbitration process is outlined and that the parties must follow those procedures.
In another example, a tax regulation may state that a company must file certain forms "pursuant to section 102 of the Internal Revenue Code." This means the company is required to comply with the specific filing rules outlined in section 102 of the tax code.
An example of a "pursuant to section" clause
Here’s how a "pursuant to section" clause might appear in a contract:
“The Borrower shall make payment to the Lender pursuant to section 4.2 of this Agreement, which outlines the payment schedule and terms.”
Conclusion
The phrase "pursuant to section" is used to reference specific provisions, rules, or actions outlined in a contract, law, or regulation. It ensures that parties understand which section governs a particular action or requirement, helping maintain clarity and compliance with the agreed-upon terms. By using this phrase, legal and business documents become more precise and easier to follow, reducing the potential for confusion or disputes.
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.