Common use of Parties' Assurances Clause in Contracts

Parties' Assurances. (1) Each Party assures the other Party that: (a) it possesses the power to enter this Agreement; (b) it possesses the power to perform all of its obligations under the Agreement; (c) all necessary authorizing action has been taken to enable it to enter the Agreement and to perform its obligations (for example, the passage of any necessary resolutions); and (d) entering the Agreement and performing its agreed obligations does not contravene any law. (2) Each Party acknowledges that the other Party enters the Agreement in reliance upon those assurances.