Contract Declaration Example: Everything You Need to Know
A contract declaration example would be listing the contact information of the policy holder in an insurance contract could be a declaration.3 min read
A contract declaration example would be one party providing basic information related to the contract. For instance, listing the contact information of the policy holder in an insurance contract could be a declaration.
What is Declaration?
A declaration occurs when a person provides information that they know to be factual. Generally, declarations take place in writing and are usually made under oath. Many different types of contracts can include declarations. In property insurance contracts, for instance, the address of the insured property would be a declaration.
Declaration allows contracted parties to state facts related to the contract. A common contract writing mistake is failing to properly indicate which party in the contract is making a declaration. In some cases, declarations are improperly used to introduce a provision in the contract.
Declaration and Maintenance Agreements for Property
In some locations, property owners must follow the rules of a maintenance agreement. For instance, property owners or people applying for permits in the Minnehaha Creek Watershed District (MCWD) must complete several maintenance actions:
- Maintaining storm water facilities.
- Preserving wetland buffers.
- Maintaining other listed projects,
The maintenance agreement required of property owners includes a variety of declarations. This agreement, for example, lists the different facilities the property owners must maintain, and also describes how they should be maintained after approval of a permit. While these declarations are specific to this agreement, they are a good contract declaration example.
When drafting a maintenance agreement, it's important to start with a declaration that the property owner or permit holder understands that they are bound to perform certain maintenance tasks. Without this declaration, it is likely that the maintenance agreement would not be valid or enforceable.
In addition to the initial declaration, there should be several subsequent declarations that cover information that the party would need to fulfill their maintenance requirements. Information included in a maintenance agreement could include property lines, structures that exist on the property, and facts about easements. It's also possible to include a declaration describing how to complete the required maintenance tasks.
Declarations in Agreements of Trust
Some companies may find it useful to establish a voting trust. In these circumstances, the company would need to write a Declaration and Agreement of Trust. When writing this document, the company would need to include a variety of declarations to make sure that the agreement is valid.
For example, there might be a declaration that the stockholders of the company agree that it is in their best interest to establish a voting trust. There could also be a declaration that the stockholders have agreed to restrict how the benefits of the common stock will be transferred to the voting trust. Basically, these types of agreements should include declarations that the stockholders understand that the voting trust is being created, the purpose of the voting trust, and any rules that apply to the trust.
Different Contract Templates and Declarations
Although it's possible to write a contract from scratch, using a contract template is much easier in most circumstances. Contract templates include standardized language and will often include declarations that are necessary for the specific type of contract.
For instance, a venue owner would use an entertainment contract template to hire an entertainer, such as a band or a comedian. Entertainment contracts could include a variety of declarations, such as the address of the venue, the date of the performance, and the contact information of the entertainer.
Another good example of a contract template that would include declarations is an escrow agreement template. Escrow agreements are common in real estate transactions, and these contracts require that an escrow agent holds funds until the completion of the terms of the contract.
For an escrow agreement to be valid, it needs to include declarations that cover the important facts of the agreements. For example, there could be a declaration describing the funds that the agent is to hold, and another declaration could indicate that both parties understand that the funds will not be released until the obligations of the contract have been fulfilled. There would also likely be a declaration of the address and name of the escrow agent.
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