Material Inducement; Consideration Clause Samples
The 'Material Inducement; Consideration' clause defines that the promises or obligations exchanged between the parties are the essential reasons for entering into the agreement and serve as the legal consideration required to make the contract enforceable. In practice, this clause clarifies that each party's commitment—such as payment, delivery of goods, or provision of services—was a significant factor in the other party's decision to agree. By explicitly stating the importance of these inducements and the existence of consideration, the clause helps ensure the contract is legally binding and reduces the risk of disputes over whether a valid agreement was formed.
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Material Inducement; Consideration. Guarantor acknowledges and agrees that Agent and Lenders are specifically relying upon the representations, warranties, agreements and waivers contained herein and that such representations, warranties, agreements and waivers constitute a material inducement to Agent and Lenders to accept this Guaranty and to enter into the Loan Agreement and the transaction contemplated therein. Guarantor further acknowledges that it expects to benefit from Lenders' extension of financing accommodations to Borrowers because of its relationship to Borrowers, and that it is executing this Guaranty in consideration of that anticipated benefit.
Material Inducement; Consideration. Guarantor acknowledges and agrees that Lender is specifically relying upon the agreements and waivers contained herein and that such agreements and waivers constitute a material inducement to Lender to accept this Guaranty and to make the Loan. Guarantor further acknowledges that it expects to benefit from Lender's extension of financing accommodations to Borrower, and that it is executing this Guaranty in consideration of that anticipated benefit.
Material Inducement; Consideration. Each ---------------------------------- Guarantor acknowledges and agrees that Agent is specifically relying upon the representations, warranties, agreements and waivers contained herein and that such representations, warranties, agreements and waivers constitute a material inducement to Agent to accept this Guaranty and to enter into the Credit Agreement, the other Loan Documents and the transactions contemplated therein. Each Guarantor further acknowledges that it expects to benefit from Agent's extension of financing accommodations to Borrowers because of its relationship to Borrowers, and that it is executing this Guaranty in consideration of that anticipated benefit.
Material Inducement; Consideration. Guarantor acknowledges and agrees ----------------------------------- that Lender is specifically relying upon the representations, warranties, agreements and waivers contained herein and that such representations, warranties, agreements and waivers constitute a material inducement to Lender to accept this Guaranty and to enter into the Loan Agreement and the transaction contemplated therein. Guarantor further acknowledges that it expects to benefit from Lender's extension of financing accommodations to Borrower because of its relationship to Borrower, and that it is executing this Guaranty in consideration of that anticipated benefit.