What Does “Hereby” Mean in a Contract?
A formal word meaning "by this document" or "by means of this agreement," used to indicate that an action is being taken through the contract itself.
Detailed Explanation
"Hereby" is legal language indicating that something is happening at the moment the contract is signed. When you see "Party A hereby grants," it means the grant is occurring right now, through this document, not at some future date.
This term creates immediate legal effect. It's different from "agrees to" which might suggest a future action. "Hereby assigns" means the assignment happens upon signing, while "agrees to assign" means there's a promise to do it later.
Example in a Contract
“Contractor hereby assigns to Company all right, title, and interest in and to any inventions, discoveries, or improvements made during the term of this Agreement.”
Why It Matters
The word "hereby" creates immediate transfer or action. If you sign a contract that says you "hereby assign" your intellectual property, you've already given it away - there's no taking it back without the other party's consent.
Related Terms
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