Agreement Party Of The First Part

To refer to a counterparty in the agreement, use either the functional reference (for example, the seller. B, the licensee, the service provider, the lender) or the abbreviated name of the party (z.B. Weagree, Shell, Philips, Sony). One should return one`s own part by its abbreviated name and the other by a functional reference. Do not alternately define terms that relate to the same party (i.e. not: below the buyer or the weagree). It is useless and does not facilitate reading (it instead hides careless copy and paste from different contractual sources by the author). Define one of the two denominations in the party`s introductory clause immediately after the identification details of each party. Do not insert the term defined in the definition article.

Definitions of the parties. Many contracts are concluded between counterparty groups. It is a good idea to define each party individually (and to think about using the specific term defined only if one refers to that party) and to define each party by grouping the different parties. For example, in an asset purchase agreement, there are often several sellers (and buyers), one for intangible assets (IP), one for each international tax unit, shareholder loan finance companies and often also the parent company for certain operating assets. Another example is joint venture agreements (or shareholder agreements) in which the holding company in charge will often be the main party, while the actual shareholder will be a local entity (or even a shelf company) that is tax efficient. These examples recommend referring, on the one hand, to the seller or ABC and, on the other hand, to buyers or XYZ. If you are a group partner, note that this treatment can also trigger issues of joint and several liability for the performance of an affiliate`s obligations. In many companies, this raises only theoretical questions, but it is nevertheless advisable to deal with global and multiple liability in a separate clause.

In the case of joint and several liability, this may raise questions or termination requirements in (the agreements) of a principal loan or a facility contract of that company.