The contractual provision must be interpreted in the sense that it replaces the definition of the defined concept. If the draughtsman deliberately avoids the definition, capitalization must also be avoided (but too often mistakes are made); Given this sensitivity to errors, the author may prefer to use a synonym to avoid the defined term. Here is an example of the correct use of a term defined in combination with an indefinite (similar) word: all disputes related to that agreement or other agreements arising from this agreement will be definitively settled in accordance with the arbitration regulation of the Dutch Arbitration Institute. For example, anti-greenmail regulations are a kind of contractual provision contained in the charters of certain companies, which prevents the board of directors from paying a premium to a business thief to bring down a hostile opacity. The provisions of the treaty refer to the requirements of a contract. It is the terms and clauses that constitute a contract. For example, a sales contract may include provisions for delivery, payment and corrective action in the event of a breach of contract.3 min. Conversely, if you use a commonly defined term that has a commonly accepted meaning (for example. B, net sales or taxes), but who can „redefine“ it in a somewhat unorthodox way, you should change the term defined accordingly (for example. B in terms of net sales or adjusted taxes).
Another example: a deposit agreement could relate to the terms set out in the underlying credit contract. This would ensure that the definitions contained in both agreements are exactly the same. If the scope of the collateral is to „follow“ the changes, additions and additions to the credit contract, the reference to the contract should not prevent this. Insertion from time to time avoids ambiguities. It is important to define the parties, as it provides all parties concerned with the information necessary to carry out due diligence against each other. This rule of good practice overlaps with the rule of best practices 6. Don`t set, for example. B, a contractor like 4) Do not create a defined term if its meaning is clear and clear.