3. CONTRACT
STRUCTURE
▹ When modern lawyers draft a
contract, they are following a
tradition that has developed over
many years.
▹ In the 1st half of a commercial
contract we will find:
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4. CONTRACT
STRUCTURE ▹ The parties: The people or Companies
who are entering into the contract.
▹ The recitals: The background to the
contract or the reasons why the parties
enter into the contract.
▹ The definitions section: How certain
words must be interpreted when they are
used in the contract.
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5. CONTRACT
STRUCTURE ▹Operative provisions: the most
important things that each party agrees
to do.
▹Delivery of goods and services: the
time when the key obligations will be
carried out and where they will be
carried out.
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8. CONTRACT
STRUCTURE YOU CAN DRAFT A CONTRACT IN
DIFFERENT WAYS:
1. Drafting a contract beginning with a
blank page: To Draft “from scratch”
2. Drafting a contract based on a
precedent: an existing contract that is
used as a model for drafting another
similar agreement.
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9. CONTRACT
STRUCTURE
3. “A precedent” acts also as a “checklist”
to make sure that everything necessary is
included.
4. Drafting a contract taking a
PRECEDENT BANK or a PRECEDENT
LIBRARY as part of the processing facility
on the Company computer.
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12. ARCHAIC
TERMS ▹ Words that people don’t use in everyday
speech. However, lawyers sometimes use
these terms in contracts.
▹ Some lawyers believe using these archaic
terms makes a document more serious.
▹ The more modern view is that they only
make a document look old-fashioned.
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13. ARCHAIC
TERMS ▹ An important group of archaic words are
those that begin with “here” and “there”.
Here words in this document
For example: “The persons hereinafter named”
There words something mentioned before
For example: “The sum of money borrowed and the
interest thereon shall be repaid in full on 5 June”.
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14. ARCHAIC
TERMS ▹ Hereby: by means of this document/ with
these words/ with this action.
“I hereby accept you offer”.
▹ Herein: in this document.
“The price named herein is final”.
▹ Hereinafter: starting from this time/later in
this document.
“ATL, Electric hereinafter known as “The Company”.
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15. ARCHAIC
TERMS ▹ Heretofore: earlier in this
document/previously/ before the time of
writing.
“The property heretofore known as Downing House is
renamed Appleby House.”.
▹ Hereunder: in a later part of this document/
under the terms of this agreement.
“The terms and conditions are listed hereunder”.
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16. ARCHAIC
TERMS ▹ Thereby: as a result of this o that action.
“Your client signed the contract and thereby entered into
a binding agreement”.
▹ Therein: in or into a particular place or
thing/ in that/ in there.
“The rented property and the furniture contained
therein”.
▹ Thereon: on it/ on there/ on what I have just
mentioned.
“The amount borrowed and the interest thereon…”
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17. ARCHAIC
TERMS ▹ Thereinafter: later in that place or thing/
later in what I have just mentioned.
“We were defined in that contract as the Company and we
were known as the Company thereinafter.”.
▹ Thereto: to it, to the thing that I have just
mentioned.
“At the meeting we will discuss Mrs Jones’s will and all
matters related thereto.”.
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18. 18
THEREIN HEREUNDER
HEREINAFTER THEREBY
HEREIN
1- Royal Airlines Limited …….…referred to as “RAL”. (later in this
document).
2- Any products referred to ..….. remain the property of the Supplier until
the Costumer pays for them in full. (in this document).
3- In case of dispute between the parties, any arbitration conducted …..…
will be conducted by Arbitrators Direct of London. (under the terms of this
contract).
4- He sold the company and …… became a millionaire. (as a result of)
5- The owner of that land and any person who whishes to claim an
interest ……. should contact this firm of solicitors as soon as possible. (in
the land that I have just mentioned.)
hereinafter
herein
hereunder
thereby
therein
19. Thanks!
Any questions?
Please write to:
daniela.zabala26@gmail.com
adelamperezdelviso@gmail.com
Sources: Mason Catherine. “The Lawyers English Language Coursebook”, Second Edition, Global Legal
English LTD, 2014, England.
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