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Where do you put definitions in a contract?
Normally, definitions would be listed in the article 1 of a contract. It aligns with best practice rule 8, that defined terms must not be used in the body text before they are defined. The lead-in of the definitions article could be: In this Agreement:
Why are definitions important in a contract?
1) Defined terms and definitions must be used to make the interpretation of a contract easier: they make contract provisions concise. Whereas the use of defined terms should at all times reduce any risks of ambiguity.
What is a defined term in a contract?
A contractual term is “any provision forming part of a contract”. Each term gives rise to a contractual obligation, breach of which can give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract.
What is the purpose of definition of terms?
1. Avoid unnecessary definitions. The main purpose of a definition is to achieve clarity without needless repetition. For this reason, “it is unnecessary” to define ordinary words that are used in their usual dictionary meaning.
What happens if a term is not defined in a contract?
A contract is considered to be ambiguous if the contract is reasonably subject to more than one interpretation. Sometimes, this can mean that it's unclear as to what the parties intended overall. But usually, an ambiguous contract means that a specific term, word, phrase, or definition is vague or unclear.
What is the purpose of a legal document?
1. Legal document — (law) a document that states some contractual relationship or grants some right. Legal instrument, official document, instrument. Document, papers, written document — writing that provides information (especially information of an official nature)
How should terms be defined?
Defining a term gives that word or phrase a particular, special meaning within the context of the legal document, and not the meaning that would be used in everyday language. This happens mostly to general words when we want to narrow the range of its meaning.
How should terms be defined in research?
Definition of terms is usually an annex to a work (book, research paper, pamphlet, etc.) either at the beginning or more likely near the end with a list of acronyms, jargon, credits, etc. This is an important part of Research paper or report is that in which the key or important terms in the study are clearly defined.
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