What Does “Preamble” Mean in a Contract?
The introductory section of a contract that identifies the parties, the date, and often the general purpose of the agreement.
Detailed Explanation
The preamble is the opening section of a contract before any numbered provisions. It typically includes the agreement's title, effective date, party names and addresses, and sometimes a brief statement of purpose.
While not containing binding obligations, the preamble establishes crucial information like who exactly is bound by the contract (the legal entity names) and when it takes effect. Errors here can create enforcement problems.
Example in a Contract
“This Services Agreement ("Agreement") is entered into as of January 1, 2024 ("Effective Date") by and between ABC Technologies, Inc., a Delaware corporation ("Company"), and Jane Doe, an individual residing in California ("Consultant").”
Why It Matters
The preamble determines who is legally bound. If a contract names the wrong entity (e.g., a subsidiary instead of the parent company), you might not be able to enforce it against the party you thought you were contracting with.
Related Terms
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