Legal English: Vocabulary Used In Contacts 1

Explanation
The phrase "hereinafter referred to" is used to indicate that the entity mentioned (KFC, Inc) will be referred to by a specific name or term in the future. It is a legal term commonly used in contracts to provide clarity and avoid repetition when referring to a party throughout the document.

Explanation
The word "hereby" is the correct answer because it is used to indicate that the Buyer is purchasing the assets mentioned in the agreement. It is commonly used in legal and formal documents to establish a connection or obligation between parties. In this context, "hereby" signifies that the Buyer is making the purchase in accordance with the terms and conditions stated in the agreement.

Explanation
The phrase "as of" is used to indicate a specific point in time. In this context, it means that all accounts receivable owned by the Seller are being referred to as of July 5, 2008. The phrase is commonly used in financial statements and contracts to specify the date at which a particular information or transaction is valid.

Explanation
The phrase "in and to" is used to convey ownership or possession. In this context, it means that Robert J. Rosa has full ownership and control over the title and interest related to his name. The phrase "in and to" is commonly used in legal documents to specify the extent of someone's rights or ownership.

Explanation
The correct answer is "hereof". In this context, "hereof" is used to refer back to the document itself, indicating that the inventory listed on "Schedule B" is a part of the document being referred to. The sentence further explains that the inventory is necessary to fulfill the orders listed on "Schedule C" within the same document.

Explanation
The correct answer is "said". In this sentence, the word "said" is used as a verb to indicate that something has been mentioned or stated previously. It is used to refer to the separation of liabilities and creditors into different categories.

Explanation
The word "on" is the correct answer because it is commonly used to indicate the time or date when something will happen. In this context, it suggests that the liens on the machinery and equipment will be satisfied at the time of the closing, using the proceeds from the sale.

Explanation
The purchase price for all assets purchased hereunder is the sum of Six Hundred Fifty Thousand Dollars ($650,000). This means that the total amount being paid for all the assets being purchased is $650,000.

Explanation
The correct answer is "upon". This means that the payment of the commissions will be made immediately after each quarter-annual period, based on the net monies received from sales to the customers during that period.

Explanation
The correct answer is "stating". In the given sentence, the word "stating" fits logically as it suggests that the quarterly reports provided by the Seller to the Buyer should clearly mention or indicate how the amount of commissions was calculated and also list all the sales for which the commissions were applied. This ensures transparency and allows the Buyer to verify the accuracy of the commissions. The other options ("deducting", "observing", and "eliminating") do not convey the same meaning and are not appropriate in this context.