As a general rule and in practice, any reference to the article, clause, section, issue, annex, etc. of the agreement concerns only the article, section, annex, annex, etc. of the agreement. Therefore, when referring to one article, a clause, an appendix, etc., another document, it should be referred to as a term beginning with a small letter and not a capital letter. Defined terms are only highlighted for clarity reasons. If an article or part of a statute, regulation or other contract is referred to, write « article » or « section » (without capital). A circular definition is a term that is defined directly or indirectly by reference to the same term. Circular definitions appear in mixed definitions or when several defined terms are linked. Their definitions should be very clear and allow parties and readers to quickly understand what a defined word means without having to constantly revisit the part of the definition. Defined terms are usually at the beginning of a legal document or at the beginning of a separate section, z.B of a calendar.

The 2006 AIPN-Model-Form gas sales contract states that its interpretive clause applies to « this agreement, including recitals and annexes, unless expressly provided otherwise: . . . In the event of a conflict, the provisions of the main body of this agreement prevail over the provisions of the annexes. » The fact that the recitals of the second half of this provision are not mentioned suggests that the recitals will not prevail over the operational provisions (except, as noted above, in case of ambiguity) and that there is therefore no need to make an explicit statement to that effect. As explained in previous chapters, a contract requires an exchange of promises (or promises of immediate action). The terms of the agreement show the intention of the parties to express their agreement on the promises (and other conditions) contained in the rest of the agreement. Once you have defined a term, you will comply with it throughout the agreement. 3) A defined term should be used in the body of text (or in definitions) by capitalized the term in the definition. This can happen if you remove a precedent and start using it without worrying about whether all the definitions mentioned are necessary. In addition, you should try to define a person/entity/term only once in an agreement. Have multiple definitions for the same person/entity baffling the parties.

It starts with the parties to the agreement themselves. For example, instead of mentioning Mr Muralikrishnan Ramaswamy Balasundaram Mahalingam (I don`t know if there is a gentleman of that name, no crime, only one example) or XYZ Steel Manufacturing Corporation Limited or LMN International Trading Services India LLP, you can only use MRBM, XYZ or LMN. Brevity makes reading, understanding and correlation much easier. 1) Defined terms and definitions must be used to facilitate the interpretation of a contract: they make contractual provisions concise; the use of defined terms should at all times reduce the risk of ambiguity. Terms that are somewhat characteristic of certain types of agreements often receive the same defined term. For example, an asset forr-asset contract is liabilities, receivables, excluded assets, contracts and liabilities. In credit contracts, debt, maturity date, guarantors and majority lenders would be examples. The advantage of using these defined terms is that an experienced reader immediately understands what is being referred to without having to go to the definition article each time. If there is no such term of art, choose a defined term that will help the reader by reporting what it means.