The Structure of Business Contracts
In general,a formal business contract includes three main parts,namely, preamble,body and closing,each of whom referring to specific content based on different requirements.
3.1 Preamble
The preamble,just like the preface of a business contract,refers to the general conditions of the contract including the names,the legal personalities,the business scopes and the legal addresses of both parties involved,the date and place for signing the contract,as well as their interest to sign the contract and the scope of authorization of the contract.As the beginning of a business contract the information in the preamble is also important and should be written in complete correctness.
Example 1
Contract Number:
Date of Execution of Contract:
Place of Execution of Contract:
The buyers:
The sellers:
Example 2
This contract is made this 18th of April，2014 by and between Romantz Ltd.（hereinafter referred to as the Buyer)with its registered office at 603 London Street，USA and Arthur Industrial Corporation（hereinafter referred to as the Seller)with its registered office at 58 Silver Road，Wuhan，China.Through friendly negotiation，both parties have hereby agreed on the terms and conditions stipulated hereunder.
3.2 Body of Contract
The body,the most important part of a business contract,consists of all transaction clauses as well as the certain rights and obligations or responsibilities and risks both parties should strictly fulfill.The major clauses involved in the body are the following:clauses about the name of the commodity,the quality and specification,the quantity,packing,unit price,total price,delivery,insurance,terms of payment,inspection,claims,arbitration,force Majeure,etc.Specific examples can be found in following sections.
3.3 Closing
The closing of a business contract,also known as the witness clauses of the contract,includes the commencement of the contract,the signatures of parties,the contract text and supplementary provisions.
For example:
This contract is in 3 copies，effective since being signed by both parties.Representative of the sellers and the buyers.
Sometimes,it reads that the contract shall be written in Chinese and English.Both versions are equally authentic.In the event of any discrepancy between the two versions，the Chinese version shall prevail.