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Journal : Justice Law Review

The Relevance of Recitals and Definitions in Preventing Ambiguity in International Contracts Rangga Aditya Putra Jaya Wiratma; Wafda Vivid Izziyana
Justice Law Review Vol. 1 No. 2 (2025): Justice Law Review
Publisher : PT Justitia Legal Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.64317/jlr.v1i2.22

Abstract

International contracts are essential legal instruments in facilitating global business transactions, yet they often create interpretive ambiguities that may lead to costly disputes between parties from different jurisdictions. This study examines the relevance of Recitals and Definitions as contractual components designed to prevent ambiguity in international agreements. Using a normative-juridical methodology that incorporates literature review, comparative analysis, and case analysis of international arbitral decisions, the research investigates how these elements contribute to legal certainty and consistent interpretation. Recitals provide background, objectives, and the underlying intention of the contracting parties, serving as a crucial interpretative tool when disputes arise. Meanwhile, Definitions establish precise meanings of technical terms, thereby reducing multiple interpretations of contractual language. The findings reveal that both Recitals and Definitions significantly reinforce the principles of good faith, fair dealing, and pacta sunt servanda during contract implementation. Furthermore, despite interpretive differences between common law and civil law systems, their practical application remains highly relevant in drafting effective international contracts. Decisions from international arbitration bodies, such as the ICC and ICSID, demonstrate that Recitals and Definitions are frequently employed to determine the true intention of the parties in cases of interpretive conflict. Therefore, these components are not merely formal or supplementary content but foundational mechanisms for mitigating legal uncertainty and preventing disputes. The study recommends that legal practitioners improve the precision and consistency of contractual drafting, particularly in Recitals and Definitions, to enhance the enforceability and stability of international commercial relationships.
Co-Authors Abib, Agus Saiful Absori Absori Alfalachu Indiantoro alma juliana Alsyanda, Feyza Adha Amri Panahatan Sihotang Andhika Yuli Rimbawan Andhika Yuli Rimbawan Andika Yuli Rimbawan Andika Yuli Rimbawan Andika Yuli Rimbawan angga subianto Arief Budiono Aunuh, Nu'man Budiwati, Septrina Daniel Happy Putra Dewi Rosaria, Stefani Dhian Indah Astanti, Dhian Indah Dhian Indah Astanti, Dhian Indah Astanti Dian Kristiana Efi Yulistyowati Eka Destriyanto Ayuningtyas Endah Puji Astuti Endah Pujiastuti Eva Dwi Fajrin, Yaris Adhial hanif salmanudin Hardian Hardian Hartanu, Devira Aprillia Harun Harun Herman Novry Kristiansen Paninggiran Heru Santoso Wahito Nugroho Hono Sejati, Hono Ida Yeni Rahmawati Inayah Inayah Irfan Rizky Hutomo Kelik Wardiono Khaidar Alifika El Ula Khudzaifah Dimyati lailatul fitri Lestari, Inesa Rahma Moh. Indra Bangsawan Muhammad Iftar Aryaputra, Muhammad Iftar Naili Azizah Naylil Mawadda R Ngestiningrum, Ayesha Hendriana Nurwati Nuswanto, A Heru Nuswardani Nuswardani Nuswardhani Nuswardhani Osgar Sahim Matompo Pebriana, Lila Afrida Prasetyatama, Ari Rahayu, Sudi Rangga Aditya Putra Jaya Wiratma Ratri Novita Erdianti Retnowati, Indra Riana, Rati rifqi fatkhul arifin Rika Maya Rika Maya Sari Rika Maya Sari Rimbawan, Andhika Yuli Rizka Rizka Said Noor Prasetyo Santosa, Agung Septarina Budiawati Septarina Budiwati Septiandani, Dian Siti Syahida Nurani Sri Andayani Subaidah Ratna Juita Sukimin Sukmadewi, Yudhitya Dyah Sulardi Sulardi Supriyadi Supriyadi surayda, helen intania Surisman Surisman Suwandi, Dedy Syaifuddin Zuhdi Tamba, Tumanda Tongat Tongat Wahyuni Safitri Wahyuni Safitri