Settlement Agreement Recitals

in the event of an objection, the provisions of the main part of this Agreement shall prevail over the provisions of the Appendices. The fact that the recitals are not mentioned in the second half of that provision indicates that the recitals do not take precedence over the operational provisions (except, as has already been said in the event of ambiguity), and that there is therefore little need to make an explicit statement to that effect. Title of the preamble. The preamble is usually written with the title Recitals, Where or Background, probably in capital letters or bold. They discuss some key features of the agreement, associated transaction, or transactions of the parties and help the reader understand the background before looking at the definition section. On the other hand, the recital is fundamentally explicit and should therefore be one of the few (relatively) neutral parties to contain the clearest and most frank statements made by the parties during their negotiations. Recitals can play a valuable role in helping third parties to conclude or revise the treaty at a later stage in order to understand the intention of the original parties. The reality is that the economic intent behind a written contract is not always evident in the substantive provisions. The parties may be surprised to find that their carefully crafted provisions, which may have seemed clear at the time of drafting, are in fact not able to resolve unforeseen issues that arise after the entry into force of the treaty. This is because the treaty was probably the subject of lengthy negotiations (as is often the case with complex trade agreements), with the final text constituting a compromise between opposing trade positions. For this reason, the importance of careful drafting of the recitals should not be dismissed.

A well-worded recital could encourage a court or arbitrator to favour one party`s argument over that of others. For example, the consideration of whether or not to include a provision in a contract may be influenced by evidence in the recitals about the intentions of the parties. . . .