Legal Agreement Whereas: Understanding the Basics

Legal agreements are an essential part of any business transaction or relationship. They ensure that all parties involved are aware of their rights and responsibilities, and that there is a clear understanding of what is expected of each party. One of the most important components of a legal agreement is the “whereas” clause. In this article, we will be discussing what a legal agreement whereas is and the basics of drafting it.

What is a Legal Agreement Whereas?

The legal agreement whereas is a clause that is included at the beginning of a legal contract. It is a statement of fact or a series of statements that provide context or background information about the reasons for entering into the agreement. The whereas clause is not legally binding, but it sets the foundation for the entire agreement.

The Purpose of a Legal Agreement Whereas

The purpose of the whereas clause is to establish the context or background of the agreement. It is used to:

– Identify the parties involved in the agreement

– Explain why the parties are entering into the agreement

– State the key terms and conditions of the agreement

– Clarify the intent of the parties

– Provide a basis for interpreting the agreement in the future

The whereas clause sets the tone for the entire agreement. It is a statement of intent that is used to ensure all parties are on the same page before the actual contract terms are agreed upon.

Drafting a Legal Agreement Whereas

Drafting a legal agreement whereas requires a clear understanding of the intent and purpose of the agreement. The following are steps to draft a legal agreement whereas:

1. Identify the Parties Involved

The first step is to clearly identify the parties involved in the agreement. This includes the names, addresses, and other relevant details about the parties.

2. Provide Background Information

Next, provide background information about the agreement. This should include why the parties have come together to execute the agreement. It should also include any relevant information that sets the context for the transaction.

3. State the Key Terms and Conditions

The whereas clause should state the key terms and conditions that will be included in the agreement. This can include items such as the length of the agreement, payment terms, and other important details that will be outlined in the actual contract.

4. Clarify the Intent of the Parties

The whereas clause should clarify the intent of the parties. This includes any goals, objectives, or expectations that the parties have for the agreement.

5. Provide a Basis for Interpreting the Agreement

Finally, the whereas clause should provide a basis for interpreting the agreement in the future. This includes any specific expectations or assumptions that the parties have about the agreement.

Conclusion

The legal agreement whereas is an important clause that sets the context and foundation for the entire agreement. It provides background information and establishes the intent of the parties. When drafting a legal agreement whereas, it is important to clearly identify the parties involved, provide background information, state the key terms and conditions, clarify the intent of the parties, and provide a basis for interpreting the agreement in the future. A well-drafted whereas clause can ensure that all parties are on the same page before the actual contract terms are agreed upon.