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CS Professional · Drafting, Pleadings and Appearances · General Principles of Drafting

Meera, a company secretary, is drafting a loan agreement for Sundaram Textiles Ltd. She begins with the title, then the date and names of parties, and then a section that explains the background and why the parties are entering into the contract, before the operative terms. What is this background section conventionally called?

The background section placed after the parties and before the operative terms is called the recitals. They explain the circumstances and purpose of the agreement. Schedules, testimonium and attestation come later in the document and serve different functions.

  1. ARecitalsCorrect
  2. BSchedule
  3. CTestimonium
  4. DAttestation

Explanation

Recitals (the 'whereas' clauses) come after the parties and before the operative part, and state the background and purpose. A schedule appears at the end and holds detailed particulars. The testimonium is the concluding clause introducing signatures, and attestation records witnesses.

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