What Are Recitals In A Settlement Agreement

Whether or not the recitals may have a legal effect depends on the design of the contract as a whole. The main effect associated with recitals is the potential of a court or arbitrator to pay attention to their content when a dispute over the interpretation of the contract arises due to ambiguities in the main part of the contract. Given their ability to influence a court, the parties should carefully consider their reasons for including specific information in the recitals, the desired purpose of any statement or representation and, ultimately, whether it will have legal benefits for one or both parties. To the extent that it is intended, recitals must be considered legislation, contrary to preliminary prose, and are therefore drafted with the same level of thought and precision as the operational provisions of the treaty. Make sure the agreement covers the appropriate parties to the dispute and identifies all specific parties. The parties may understand the following: recitals may present the fundamental objectives of the treaty in a sufficiently meritorious manner to enable the parties to ensure that they are taken into account in all circumstances, even if it can be shown that the operational provisions are clear. If this is the case, the parties should include the recitals in the contract by inserting an explicit provision in the operational provisions (usually in the interpretive clauses) that the recitals must be part of the contract. They are therefore considered to have a legal effect.8 A word of caution should be adopted: the parties should ensure that the recitals are in line with the operational provisions of the treaty, in order to avoid issues related to inconsistent interpretation, particularly where there are obligations within the framework of the operational provisions referred to or grouped in the recitals. So where do the considerations stop and the operational arrangements begin? The 2006 AIPN gas sales contract states that its interpretive clause applies to “this agreement, including recitals and annexes, unless expressly specified otherwise: .