Definitions In Agreement

All disputes related to this agreement or other agreements arising from this agreement will be settled definitively in accordance with the arbitration rules of the Dutch Arbitration Institute. Define a term only if you use it more than once in the agreement. If the term is not used over and over again, there is no point in defining it. The reader will observe and understand the term only in the corresponding clause, and he is not required to remember the term defined elsewhere in the agreement. The parties can only be defined by name (or abbreviations) if they wear multiple hats in an agreement, as in the case of the example above. That is how you make an agreement; U.K. and U.S. negotiators on the verge of reaching an agreement; he agreed. If several transactional documents are linked together and must be read together, the terms of all these documents could have the same meaning. In such a scenario, you don`t need to define these terms separately in each agreement. It is disconcerting that a word or concept is defined (for example. B products sold under the agreement are “all products listed in the appendix”) and that the agreement refers to similar terms or terms.

For example, it is disconcerting that the agreement relates interchangeably to “goods,” “products listed in the schedule” and “products under this agreement.” Confusion leads to questions of ambiguity and interpretation. The licensing agreement refers to the license agreement that is attached to Calendar 3. Define the terms in an important agreement, and the other agreement may have an explanation that the defined terms have the same meaning as in the great agreement mentioned above. As a general rule and in practice, any reference to the article, clause, section, issue, annex, etc. of the agreement concerns only the article, section, annex, annex, etc. of the agreement. Therefore, when referring to one article, a clause, an appendix, etc., another document, it should be referred to as a term beginning with a small letter and not a capital letter. Their definitions should be very clear and allow parties and readers to quickly understand what a defined word means without having to constantly revisit the part of the definition.

In addition, you should try to define a person/entity/term only once in an agreement. Have multiple definitions for the same person/entity baffling the parties. Terms that are somewhat characteristic of certain types of agreements often receive the same defined term. For example, an asset forr-asset contract is liabilities, receivables, excluded assets, contracts and liabilities. In credit contracts, debt, maturity date, guarantors and majority lenders would be examples. The advantage of using these defined terms is that an experienced reader immediately understands what is being referred to without having to go to the definition article each time. If there is no such term of art, choose a defined term that will help the reader by reporting what it means. Once you have defined a term, you will comply with it throughout the agreement. Do not define terms that are generally understood. Otherwise, you have to define every word in the agreement! A defined term should preferably not be used before its definition, as far as possible.

Instead of saying “the company within the meaning of article” , a definition of the company should first be included in the agreement. This gives the reader an idea of the defined term before reaching the operational clauses in which the defined term was used. Net Lawman`s example is “know-how.” We sometimes insert that word into the definitions of our IP agreements. We declare that intellectual property (under a long list) includes know-how. But what do you mean by know-how? Here too, you and I can interpret it differently. We therefore also define know-how, even if we only refer to it in the definition of intellectual property.

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