Saturday 7 April 2012

legal effect of recital in any deed

  • “Contract language is ambiguous if it is ‘reasonably susceptible to more than one interpretation.’”
  • “Recitals are not a part of the contract and are not legally binding.”
  • Although recitals standing alone are not legally binding, they may be used “to resolve ambiguity in the operative provisions of the contract because they indicate the parties’ intent.”
  • Recitals in a contract cannot create conditions precedent in  a contract. “Because conditions precedent are binding obligations, it logically follows that they cannot be created in recital language.”
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