Therefore: Overview, definition and example

What is "therefore"?

"Therefore" is a term commonly used in contracts, legal documents, and formal writing to indicate a conclusion or result based on prior statements or facts. It serves as a transition word that connects a cause or reasoning to its logical consequence. In contracts, "therefore" often appears in preambles, recitals, or explanatory clauses to signal the purpose or conclusion of the preceding context.

For example, in a contract preamble, the word "therefore" may link the background information to the execution of the agreement, such as: "The parties have agreed to the following terms and conditions. Therefore, they enter into this Agreement."

Why is "therefore" important in contracts?

"Therefore" is important in contracts because it establishes logical connections and flow between clauses, making the agreement more coherent and readable. Its use clarifies the reasoning behind certain terms or actions, reducing ambiguity and ensuring that all parties understand the context and purpose of specific provisions.

By properly using "therefore," contracts achieve a formal tone and logical progression, which are essential for legal documents.

Understanding "therefore" through an example

In a partnership agreement, the recitals might read:

  • “WHEREAS, the Parties wish to form a joint venture to develop and market renewable energy technologies; and
  • WHEREAS, the Parties have agreed on the terms of such collaboration;
  • NOW, THEREFORE, the Parties agree as follows...”

This usage links the background facts to the decision to enter into the agreement, creating a logical bridge between the recitals and the binding provisions.

An example of "therefore" in a contract clause

Here’s how "therefore" might appear in a contract:

“The Supplier has demonstrated its ability to meet the Buyer’s specifications. Therefore, the Buyer agrees to purchase the specified quantity of goods under the terms outlined in this Agreement.”

Conclusion

"Therefore" is a pivotal term in contracts and formal documents that signals logical conclusions or transitions. By using "therefore" appropriately, agreements achieve clarity, coherence, and a professional tone. A well-placed "therefore" ensures that contractual intent and reasoning are clearly communicated, contributing to a strong and effective document.


This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.