Contract Structure

Structure of the contract is an important thing in the contract. The following are the parts of the contract structure

  • Preamble
  • Recitals/Introductions
  • Body of the contract
  • Specific provisions
  • Boiler plate
  • Ending and signatures



The Preamble is an introductory statement of facts or assumptions upon which a contract is based. It covers information such as:

  • Title of the agreement
  • Information about the parties
  • Date on which the agreement was entered into

The Preamble usually addresses the key features of the agreement and the parties’ businesses. It further helps the reader understand the background of the contract. The Preamble usually consists of one to five paragraphs.


The recitals give the background information about the parties, the context of the agreement and an introduction to the agreement. The different kinds of recitals are as follows:

  • Party related recitals
  • Context or background recitals
  • Compliance related recitals


Body of the contract:

The body of a contract is the heart of the agreement, because it includes the reason for entering into the contract. The set up of the body of the contract is as follows:

  • Definitions and provisions related to the interpretation of the agreement
  • The conditions of the agreement or the closing of the transaction
  • Purchase price adjustments and payment
  • Warranties, indemnities and limitations of liability
  • Terms and termination conditions of the agreement, confidentiality of the information and miscellaneous provisions


Specific provisions:

These vary from contract to contract, depending on the context. While the list is not exhaustive, some of the terms and conditions normally found in contracts


Boiler plate:

Boiler plate refers to the additional provisions that are added at the end of the agreement. These provisions are the clauses that are compatible with the remainder of the contract. Some of the provisions under the boiler plate are as follows:

  • Integration: As per this, the written contract represents the final agreement of the parties.
  • Attachments: Attachments and exhibits will be included as part of the agreement.
  • Assignment: This affects the ability of the parties to sell or transfer their rights under an agreement to another party.
  • Announcements: This elaborates on the manner in which the parties can make public disclosures about the subject of the contract, such as mergers, termination, etc.


Ending and signatures:

The contract concludes with signature blocks for the parties entering into the agreement.

Sarav Author


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