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12Apr/21Off

Recital Of This Agreement Meaning

In order to ensure the inclusion of key definitions in the legally binding contract, a better approach might be to include the text "as defined below" just before the term defined in the recitals and, therefore, to implicitly draw the reader`s attention to the section of the definition contained in the treaty arrangement. However, in practice, it is unlikely that a court will not take into account all references to terms defined in the recitals when interpreting the agreement. Key definitions used throughout the operational part of the contract are better used in the definition section of the treaty than in the recitals, since the recitals may have no legal value. This is not necessarily the approach taken in practice, as is the case with the 2012 International Petroleum Negotiater Association (AIPN) model for the Joint Enterprise Agreement (AIPN JOA). In the AIPN JOA, the term "contract" is defined in the recitals by reference to the contract for the sharing of the underlying production, the concession of the state, the license, the leasing base or any other instrument related to this particular JOA. The "contract" is defined in the "Definitions" section as "the instrument defined in the recitals of this agreement, including any extension, extension and/or amendment." Compliance recitals - in which the parties can indicate certain requirements or conditions that must be met before the contract is signed. An example would be compliance with the required authorization of an external party for the transaction prior to the signing of the contract. Once the authorization has been granted, the consideration clause explaining the measure would be included in the contract. Is it possible to completely exclude the effectiveness of the recitals? Considering step up - when the contract is being developed, the step-up consideration may be considered superfluous, as its advance on the contract is similar to that of the contract itself. The 2006 AIPN-Model-Form gas sales contract states that its interpretive clause applies to "this agreement, including recitals and annexes, unless expressly provided otherwise: .

. . In the event of a conflict, the provisions of the main body of this agreement prevail over the provisions of the annexes." The fact that the recitals of the second half of this provision are not mentioned suggests that the recitals will not prevail over the operational provisions (except, as noted above, in case of ambiguity) and that there is therefore no need to make an explicit statement to that effect. It should also be noted that the intentions of the parties, as expressed in the recitals, may be important for the Tribunal`s consideration of whether or not a clause in the agreement should be considered. This article seeks to reaffirm the importance of the modest recital and to recall that, in certain circumstances, the recitals could be legally binding on the parties and that they could also play an important role in the ability of a third party (including a court or arbitrator) to review relevant background information in order to determine the true intent of the parties.

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