e.g. The surplus is to be paid for by the Buyers, whereas shortweight is to be refunded by the Sellers.

One more compound word with the adverb where is whereby, which means by which and refers to the present contract.

e.g. We have concluded the present contract whereby it is agreed as follows…

The usage of compound words with adverbs here / there and prepositions is also typical of written formal style of English. Their meaning is made up from meaning of their components. There is no principal difference, though, between meanings of here- / there- compounds.

e.g. If shipment of the whole or part is thereby rendered impossible… (thereby = by it; by that means; in that connection)

We are sending you herewith statement of your account. (herewith = with it / that)

All expenses connected therewith being born by… (therewith = with it)

The examination of the goods and objection thereto… (thereto = to it)

Subject to General Conditions on Sale endorsed hereon… (hereon = on this document)

The goods to be shipped as soon thereafter as suitable tonnage obtainable. (thereafter = from that time)

The Sellers shall not be responsible for any damage resulting to the Buyers therefrom. (therefrom = from it / them)

Hereinafter is a very useful word, doing the job of the six, referred to later in a document. Hereinafter frequently sets up abbreviated names for the contracting parties.

e.g. Knightsbridge International Drapes, Ltd. hereinafter the Buyer.

The wood goods hereinafter specified subject to a variation in Sellers’ option of 20 per cent.

The aforesaid is a cliché which is more preferable in texts of contracts instead of its less formal equivalents: the above-mentioned, the above-written, as was written / said before, and the like.

e.g. The aforesaid documents should contain references…

The aforesaid guarantee shall end for the following vehicles…

It is understood and agreed. On one hand it usually adds nothing, because every clause in the contract is figurally understood and agreed. On the other hand, it adds an implication that the other clauses are not backed up by this phrase. By including one you exclude the other.

e.g. The prices in this contract are understood and agreed upon.

The delivery date is understood and agreed to be the date…

Including without limitation. Usually people want to specify things underscored in contracts, and this phrase indulges the prediction.

e.g. You may assign any and all your rights including without limitation your exclusive British and Commonwealth Rights.

Assignees and licensees. These are important words on which acceptability depends from one’s point of view.

e.g. Knightsbridge, its assignees and licensees…

This beginning suggests that Knightsbridge may hand you over to somebody else after contracts are signed. If you happen to be Knightsbridge, you will want those particular rights and should use the phrase.

Without prejudice. The British use this phrase all by itself, leaving the reader intrigued: without prejudice – to what exactly? Americans use it more elaborately. Legal rights, for example, are not the same thing as remedies in the offers to enforce them. Thus it’s the American right to write:

e.g. Without prejudice to any of my existing or future rights or remedies.

We have carefully examined the samples from this consignment and offer you, without prejudice, an allowance of 50 USA cents per 50 kilos.

As between us – it is a useful phrase because people are always forgetting or neglecting to mention that a great many interests may be involved in what appears to be a simple dialogue. A is controlled by investors, and B – by a foreign parent company. That’s why it will be useful to say in such a situation as between us…

e.g. We confirm the exchange of telexes as between us follows…

Solely on condition that – it’s one of a few phrases that can be considered better than its short counterparts. One might ask: “Why not use just if instead of the phrase?” If by itself opens a possibility of open contingencies.

e.g. If Baker delivers 1000 barrels I will buy them.

But it is unclear if you will buy them only from Baker. Therefore, we can use only if as a synonym. Sometimes it works out, but not always. In this case more than an elaborated phrase is justified.

e.g. I will buy 1000 barrels solely on condition that Baker delivers them.

The phrase makes the conditions of the deal clear.

e.g. We can accept the goods solely on condition that you grant us allowance of…per…

In contracts there are other prepositional phrases made up from words. They are complex, and one must be attentive using them. The prepositions also provided are the following: on conditions that; on the understanding, etc.

e.g. We agree to this only on the understanding that the rate of freight does not exceed.

Claims against the quality of vehicles may be submitted on conditions that the defects are found within 40 days.

Such prepositional phrases are practically equal in meaning.

Subject to – a few contracts do without this phrase. Many promises can be made good only if certain things occur. The right procedure is to spell out these plausible impediments to the degree that you can reasonably foresee them.

e.g. Our agreement is subject to the laws of Connecticut.

The wood goods hereinafter specified subject to a variation in Sellers’ option of 20 per cent…

But there is another meaning of the prepositional phrase. It may express some condition.

e.g. We offer you, subject to your acceptance by cable, 1000 tons of ore.

The Sellers have sold and the Buyers have bought on the terms and conditions set forth and subject to General Conditions on Sale endorsed…

Exclusive – it’s important in contracts. English is vast and its usage creates difficulties in many cases. Exclusivity as a term means that somebody is bored from dealing with another one in a specified area.

In the lexicon of contracts there are many foreign words, first of all, Latin ones, such as pro rata and pari passu. Pro rata proves helpful when payments are to be in proportion refuting prior formulas in a contract.

e.g. Demurrage is to be paid per day and pro rata for any part of the running day.

Pari passu is used when several people are paid at the same level or time out of a common fund.

e.g. Fractions to be considered pari passu.

Still there are such words as inferior / superior, they are often used to describe the quality of goods.

e.g. Should the natural weight be superior or the contents of foreign admixture inferior…

We had specially selected the goods which were superior to the samples in every respect.

Complaints and claims may arise in connection with inferior quality of the goods, late delivery or non-delivery of goods.

Ad hac is also a Latin word, not often used in contracts nowadays. It means now an arbitrary court for a concrete trial. Such Latin words as ultima, proxima are now archaic and rarely used.