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December 7th, 2020

Drafting An Agreement Definition

15) The defined term should be correlated with that of the definition. 21) Where a definition must also include a future version, value or change, it must describe the term in question with the words “from time to time.” For reasons of clarity, this rule of good practice does not apply to the inclusion of the term unfunded in the definition. For a correct example, the date from which such a version, such value or change will come into effect should be clear from the definition or context of the body of text. The addition from time to time specifies that the version, value or change in effect at a delivery or delivery date and not on the effective date of the agreement should apply. For example: 23) The definition of a person, corporation or organization should be consistent with the information provided to the parties. If the definition in the body of the text is replaced by the defined term, the meaning of the sentence should be the same and there should be no grammatical errors. For example, the defined term “bike” would not be appropriate to include “cars, buses, trains and motorcycles” as part of its definition (in this case, you use “transportation” instead). Such a definition will be problematic if the contract continues to write: Another example: a deposit agreement could relate to the terms defined in the underlying credit contract. This would ensure that the definitions contained in both agreements are exactly the same. If the scope of the collateral is to “follow” the changes, additions and additions to the credit contract, the reference to the contract should not prevent this.

Insertion from time to time avoids ambiguities. This phenomenon is called nesting or embedded definition. Because the definitions in the definition section are alphabetically arranged, they do not specify (for example. B “as defined below) ” that a term as defined is later defined in this section. 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. English Vocabulary Tips – Definition with Gymglish. Improve your English and try our free online English courses.

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