Skip to content

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

While drafting a shareholders' agreement for Narmada Infra Pvt Ltd, Tanvi uses 'Promoter' in clause 2, 'Founder' in clause 7 and 'Principal Shareholder' in clause 11, all meaning the same person. What is the best correction?

The best correction is to define a single term in the definitions clause and use it consistently throughout the agreement. Using different labels for the same person suggests different meanings, creating ambiguity; consistent terminology keeps the document precise and certain.

  1. ADefine one term in the definitions clause and use it consistently throughoutCorrect
  2. BKeep all three to avoid monotony
  3. CReplace each with pronouns such as 'he' or 'it'
  4. DDelete the definitions clause entirely

Explanation

Using different words for the same thing invites an argument that different meanings were intended. The remedy is to define the term once and use it uniformly. Variety for style, pronouns that may be unclear, or removing definitions all increase ambiguity.

Did you get it right without looking?

One question tells you little. A timed set on General Principles of Drafting shows your real accuracy, how long you take and where you lose marks.

Practise General Principles of DraftingFree diagnostic mock

More General Principles of Drafting questions