The Clause Files: Parties

A series breaking down common contract clauses and explaining why they’re included. After all, your contract clarity is out there.

Parties. This Agreement (“Agreement”) is between [NAME] [Legal Capacity of Party (“Client”) and Company Name LLC, a Tennessee Limited Liability Company (“Company”) (collectively “Parties”).

The parties clause is the part of a contract that clearly identifies who is entering into the agreement. However, it is more than just the names of the parties. This clause may include:

• Full legal names of the parties

• Legal capacity of each party (individual, LLC, corporation, etc.)

• Jurisdiction of parties

• Principal business address

• Assumed names

The parties clause is one of the most important parts of any contract. A contract only applies to the people or businesses that are actually named in it. If the name is wrong, you may not be able to enforce the agreement or hold the right person or company responsible. You must ensure that the person signing has the legal authority to legally bind the business they represent. This way, you avoid having a signature from an unauthorized individual who couldn’t have made the deal. Taking the time to accurately identify the parties involved helps prevent confusion, safeguards your rights, and ensures the enforceability of your contract.

The information provided on this site is not legal advice and no attorney-client or confidential relationship is or will be formed by the use of the site.