What Does “Now Therefore” Mean in a Contract?
A transitional phrase marking the shift from background recitals to the binding terms of the contract.
Detailed Explanation
"Now, therefore" is the bridge between the "whereas" clauses (background) and the actual agreement terms. It signals that based on the context just described, the parties are now ready to make binding commitments.
This phrase often appears with consideration language: "Now, therefore, in consideration of the mutual promises herein..." This combination establishes both the transition and the legal basis (consideration) for the contract.
Example in a Contract
“NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:”
Why It Matters
Everything after "now, therefore" is typically binding. The recitals before it provide context; the terms after it create obligations. Know where this line is in any contract you sign.
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