When dealing with business negotiations, contracts, and other legal matters, it is important to understand the meaning of words, even if the meaning is not clear. Precatory words are one of many examples of legal terms that are often unfamiliar to non-legal professionals. Put simply, precatory words are strong requests or wishes expressed in the form of a warm appeal, and they should be taken seriously by business owners for their potential legal implications.
In the legal realm, precatory words refer to wishful and advisory statements made in writing. Precatory words can be used in a variety of legal documents, such as written contracts, wills, and deeds, and can be used to make requests or impact the tone of the overall document. While a precatory statement is not binding on the party making the request under the law, it would still be considered a breach of fiduciary duty for any party that voluntarily breaks the promise.
Precatory language is important for business owners to recognize and understand for a variety of reasons. For example, having precatory language in a written contract can expand the obligations of both sides to make “best efforts” or “good faith” that the contract terms are fulfilled. Furthermore, it’s important to recognize precatory language for the potential damages that could be imposed for failure to comply, meaning a breach of contract could arise.
Take Precatory Language Seriously
It is important for business owners and legal professionals alike to heed consideration to precatory words when presented in a legal document or agreement, as failure to do so could open up one party to potential legal action for breach of contract. When precatory language is present, both parties should take active steps to fulfill the requests and adhere to the terms expressed in the document.
For business owners, it is important to recognize the power of precatory words as a legal requirement and ensure that any agreement or contract they enter into that contains precatory language is followed diligently. By doing so, business owners can limit the potential for costly legal disputes and ensure compliance with the contractual provisions to minimize any legal risks.