purpose of definitions in a contract

A definitions section in a contract provides consistency.  If you hire a designer to design a company logo, which uses a specific color you like - let’s say “Cerulean Blue 23”, make sure that color is defined in the contract.  This is important for a few reasons 1) that the designer knows using this particular color is material to the contract 2) you can shorten the term “Cerulean Blue 23” to just “Blue” throughout the rest of the contract and the designer will know what you mean 3) terms change over time, you will be able to refer back to the contract and see what exact blue was used for the logo.  The definitions section is helpful for any word that bears repeating and is important to the agreement.

(Source: momcounsel.com)

contracts the legal boutique definitions contract tips

  1. digilaw reblogged this from momcounsel and added:
    When we cover contracts, we will talk about the Definitions section.
  2. momcounsel posted this