Recital in a contract plays the role of introducing the nature of contractual relation and also mentions respective parties

contribution to a contract. It basically creates the basic foundation of a contract and introduces the background information.

Commonly used or industry specific words, user defined words, or common abbreviations. Some may include the definition clause at the outset. Some prefer to define the words as they appear in an agreement draft for the first time. Some include it at the end of the draft. And some may even take the abundant caution to create an appendix for the definitions. Care should be taken while drafting this,- especially for popular industry terms. For example: One may argue- Why I should include an abbreviated name of a statutory body- already popular by its short name in a particular jurisdiction-? It is possible that the same abbreviated name is being used for two different agencies- one popular and another not so popular- in the same jurisdiction. Or, may be parties to the contract are from two different jurisdiction and both have agencies in their respectively jurisdictions using the same, similar or confusingly similar abbreviated name. So, it is always better to write the complete and unabbreviated name against the short abbreviated name, using it as definition throughout the contract. It is necessary to include in such definitions, the object that such agencies may fulfill in relation to the transaction contemplated under the contract.

A simple draft of Indemnity clause in a contract will look like: A agrees to indemnify, defend and hold harmless B, its directors, employees, affiliates, etc., from all third party claims arising out of or relating to: a. b. The above clause can be modified to include various events for which A will indemnify B. The basic premise behind an indemnity clause is to protect B from all third party claims. Most of the indemnity clauses that you will see in contracts that you will come across will only protect Bs interest when a third party makes a claim against B for act or omissions of A. The law in India categorically gives B the option to claim indemnity from acts and omissions of a third party as well. One of the prominent example of such type of contract will be a contract of insurance. By the way contract of insurance works on different footing all together and is regulated in India by many Is is important to remember here that in any contract both parties agree to a give and take relation, a commercial arrangement, having serious ramifications for both. Parties to a contract can foresee most of the provisions that they should put in black and white in an agreement. But, there will be a time when their obligations under a contract are dependent on third party goods or services that they may be using.

A notice clause states how the parties to a contract will communicate with each other in written form. It may seem too simple and obvious to include in your contract, but if you don't lay it out, you may leave yourself open to problems. It is important that the notice is "effective upon delivery," and that delivery must be evidenced in some provable manner. When communications are sent between parties, you don't want the other party to be able to claim that it was not received. This clause avoids that situation. Increasingly, notices may also be valid through e-mail communication.

A typical confidentiality clause contains the definition of confidential information , states that you agree not to disclose confidential information to anyone or use it an any way other than for the purpose of performing your duties to the client, and provides an exclusion so that you may disclose confidential information if you are ordered to do so by a Court.