As any business person knows, contracts form the backbone of any commercial transaction. Beyond the legal language, an important aspect of contract law is the use of “words of art,” or the special terminology associated with contracts and specific industries. While such terminology may seem confusing or intimidating, understanding the meaning of words of art can help you more easily read and understand contracts and execute business transactions.
Breaking Down Words of Art
At their core, words of art are words that special meanings within a given industry or institution. This term refers to words like “deem,” “shall,” and “must” when used in legal documents or contracts. While these words each have their own respective English language definitions, they have special implications or connotations when used in a legal context.
For example, the word “shall” in a business agreement essentially acts as “will” when used in everyday language. This means that the thing that “shall” be done is a requirement, rather than a suggestion. So, when you come across the word “shall” when reviewing a contract or agreement, know that it isn’t simply giving an opinion, it is obligating the party to take specific action.
The Importance of Words of Art
The importance of understanding and learning the meaning of words of art cannot be overstated in a business context. Every industry has its own set of unique terms and meanings and being able to interpret them correctly can help prevent misunderstandings and disputes from occurring down the line. Additionally, understanding words of art can help you speak confidently and effectively in business settings and make sure that your agreements and contracts are legally sound and air-tight.
Conclusion
The use of words of art in legal contracts is an important facet of contract law and business transactions. Learning and understanding the specific meanings of such words can help you make sure you are reading contracts and agreements correctly and also give you confidence when speaking in business settings. As you continue to deal with contracts in the future, be sure to look out for and remember the use of key words of art.