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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Meera Traders and Kavya Industries sign a supply agreement. The draft opens with a title, the date and the names of the parties, followed by the words 'WHEREAS Meera Traders is engaged in trading steel and Kavya Industries requires steel for its plant'. In the structure of an agreement, what is the function of this 'WHEREAS' portion?

The WHEREAS portion is the recital. It sets out the background facts and the intention of the parties for making the agreement. It is distinct from the operative part that creates the obligations, the attestation clause, and the schedules, which appear later in the document.

  1. AIt states the background and the intention of the parties and forms the recitalsCorrect
  2. BIt lists the operative covenants that bind the parties
  3. CIt records the attestation by witnesses
  4. DIt lists the schedules of goods supplied

Explanation

The 'WHEREAS' paragraphs are the recitals. They explain the background and the purpose of the parties in entering into the agreement. Operative covenants come later in the operative part, attestation comes at the end, and schedules are annexed after the body.

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