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Recitals refer to the "whereas" clauses that precede the main text of a contract. They provide a general idea about the contract to its reader such as, what the contract is about, who the parties are, why they are signing a contract. The first paragraph in the body of the contract can incorporate the recitals by reference and state that they are true and correct in order to avoid any later argument relating to the legality of the contract. The recitals are like the preamble and are situated at the beginning of the contract. The recitals are also known as the ‘whereas clauses.’ The recitals do not contain rights or obligations of the parties, but it merely explains or introduces the nature of or background to the contractual relationship.