Preamble

The preamble of a contract is an introductory section that outlines the purpose and intent of the agreement, often providing context and background information relevant to the parties involved. It serves to set the stage for the contractual terms that follow, ensuring that all parties have a mutual understanding of the underlying reasons for the contract.

7 Preamble examples

  • Description
    “Amended and Restated CROP OP Agreement” shall have the meaning given in the preamble to this Agreement.
    Document
    Cottonwood Communities, Inc.
  • Description
    “Common Stock” shall have the meaning given in the preamble to this Agreement.
    Document
    Cottonwood Communities, Inc.
  • Description
    Other Definitions. Unless otherwise defined or the context otherwise requires, terms used herein (including in the preamble and recitals hereto) have the meanings provided for in the Existing Credit Agreement.
    Document
    SOUTHWEST IOWA RENEWABLE ENERGY, LLC
  • Description
    “Party” or “Parties” shall have the meaning given in the preamble to this Agreement. “REIT I” shall have the meaning given in the preamble to this Agreement. “REIT II” shall have the meaning given in the preamble to this Agreement. “Shares” shall have the meaning given in the preamble to this Agreement. “Stockholder” shall have the meaning given in the preamble to this Agreement.
    Document
    Resource Real Estate Opportunity REIT, Inc.
  • Description
    “Target Shares” Preamble “Offshore Target Shares” Preamble “Domestic Target Equities” Preamble “Offshore Shares Transfer” Preamble “Domestic Equity Transfer” Preamble “Transaction” Preamble “Previous Share Purchase Agreements” Preamble
    Document
    Phoenix New Media Ltd (FENG)
  • Description
    Preamble” means the preamble of this Agreement;
    Document
    Almacenes Exito S.A. (EXTO)
  • Description
    EXCLUSIVE LICENSE AGREEMENT PREAMBLE   This Agreement is made and entered into, effective as of November 11, 2013 (“Effective Date”), by and between: Washington University, a corporation established by special act of the Missouri General Assembly approved February 22, 1853 and acts amendatory thereto, having its principal offices at One Brookings Drive, St. Louis, Missouri 63130 (hereinafter referred to as “WU”); and SAGE Therapeutics, Inc., a corporation organized and existing under the laws of the State of Delaware having its principal offices at 215 First Street, 2nd Floor, Cambridge, MA 02142 (hereinafter referred to as “Licensee”) and the following correspondence addresses;
    Document
    Sage Therapeutics, Inc. (SAGE)

What is a Preamble?

A preamble is an introductory statement in a document that typically states the reasons for and intent of what follows. It serves as a precursor to the detailed content, providing background information and context to the reader. Preambles are often used to clarify the philosophy and purpose of the document, setting the stage for its contents.

When should I use a Preamble?

A preamble should be used when you want to convey the underlying intent or framework of a document or legal instrument. It helps in:

  • Providing Context: Offering readers a clear understanding of why the document was created.
  • Setting Expectations: Outlining the goals and purposes behind the document’s creation.
  • Framing Legal Documents: Clarifying the principles and policies that guide a legal text.
  • Enhancing Comprehension: Aiding readers’ comprehension by summarizing complex concepts.

Use a preamble in documents such as constitutional texts, statutes, legal contracts, and corporate bylaws where establishing the intent is crucial.

How do I write a Preamble?

Writing a preamble involves summarizing the core intent and objectives of the document succinctly. Here’s a step-by-step guide:

  1. Identify Key Objectives: Determine the primary purposes and themes of the document.
  2. Draft a Clear Introduction: Begin with a direct statement that highlights the document’s intent.
  3. Provide Context: Include relevant background information that aids understanding.
  4. Use Formal Language: Opt for a tone and vocabulary that matches the document’s purpose.
  5. Keep it Concise: Ensure the preamble is brief and to the point, capturing essential details without unnecessary elaboration.

Example Preamble:

“We, the people of the United States, in order to form a more perfect union, establish justice, ensure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.”

Which contracts typically contain a Preamble?

Preambles are commonly found in a variety of contracts and legal documents, particularly those that require a clear statement of purpose and intent. Some examples include:

  • Constitutional Documents: Such as national constitutions which often open with a preamble.
  • International Treaties: Where participating countries state their reasons for entering into an agreement.
  • Corporate Bylaws: Establishing the foundational principles of a corporation.
  • Partnership Agreements: Articulating the goals and intentions of parties entering into a business relationship.
  • Employment Contracts: Highlighting the mutual aims and objectives of the employer and employee.

Including a preamble in these documents helps all parties involved understand the broader context and purpose behind the specific terms and conditions that follow.

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Prevailing market rate

The "prevailing market rate" clause refers to a contractual agreement where the payment or pricing is determined based on the current average rate for similar goods or services in the relevant market at the time of the transaction or service. This clause ensures that the pricing remains fair and competitive by aligning with existing market conditions, accommodating fluctuations over the duration of the contract.

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Prevailing parties

The "prevailing parties" clause stipulates that the party who wins a legal dispute or arbitration is entitled to recover certain costs, such as attorney fees and court expenses, from the losing party. This clause incentivizes parties to consider the potential financial implications before pursuing litigation or arbitration.

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