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Drafting Definitions

This document provides guidance on how to draft definitions in contracts, highlighting the importance of clarity and precision. It includes examples of both incorrect and correct clauses for defining terms, specifically the 'closing date.' The correct clause emphasizes the need for written confirmation from one party regarding the obligations of another party.

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charlene
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8 views

Drafting Definitions

This document provides guidance on how to draft definitions in contracts, highlighting the importance of clarity and precision. It includes examples of both incorrect and correct clauses for defining terms, specifically the 'closing date.' The correct clause emphasizes the need for written confirmation from one party regarding the obligations of another party.

Uploaded by

charlene
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Drafting definitions

[Drafting note: This is a precedent clause on drafting definitions and may be


amended and inserted in any contract.]

The clauses contained in this document provide guidance on how to draft a


definition.

[Drafting note: The below clause should be avoided when drafting a definition.]

1. The closing date means the date on which Party A does [insert description
of what should have been done] and is thereafter obligated to do [insert
description of what is to be done].

[Drafting note: The below clause is the correct clause to be used when drafting
a definition.]

2. The closing date means the date when Party B confirms in writing that it is
satisfied that Party A has attended to the obligations set out in clause [insert
clause number].”

[Drafting note: Separate clauses in the body of the agreement can deal with
what happens after the closing date, as mentioned above.]

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