“Now” in Language of Performance

OK, kids, this is my most novel categories-of-contract-language post in a while.

Let’s start with hereby. Here’s what MSCD ¶ 3.35 says:

One helpful element of language of performance is hereby, which signals that the act described is being accomplished by the speech act itself. You could omit hereby, as in [1-1a], but this use of hereby is consistent with standard English. If you omit hereby from Doe hereby purchases the Shares, it would be clear from the context that the intended meaning isn’t that Doe is in the habit of purchasing certain shares. But in purely grammatical terms, one couldn’t exclude that meaning without using hereby. …

This alternative meaning is unlikely to create confusion, but it could distract readers. Eliminate the alternative meaning by using hereby.

That’s still good advice. But a couple of days ago I found myself working on a form of contract between a company and a low-level employee. It was in the form of a consumer contract, with you and we and no shalls. I had to add language of performance, to express an assignment of rights. I thought it might be a pity to inject into the mix the slight tang of archaism that comes with hereby, so here’s what I did instead:

You now assign …

Yep, now. In colloquial English it serves the same function as hereby in a performative utterance, as in I now pronounce you husband and wife.

Furthermore, it’s used in business contracts! Here are two examples from EDGAR, with the verb assign:

To the extent that any Catapult Foreground Intellectual Property is capable of prospective assignment, COLLABORATOR now assigns the Catapult Foreground Intellectual Property to Catapult …

In consideration of the purchase price specified below, WAA now assigns to ZROS all of its right, title and interest in the Patents and the License , including any rights to recover damages or other remedies in respect of all infringements of the Patents or the Licensed Patents , whether committed before or after the date of this Assignment.

And here are two more, with the verb grant:

In accordance with the foregoing, GCAL now grants to the Lender the assignments, charges, mortgages and other security described in the Debenture as being granted, created or made by Companies thereunder …

NOW, THEREFORE, the Grantor , for one dollar ($1.00), and other valuable consideration paid by the Grantee to the Grantor , the receipt of which is acknowledged, and subject to the terms, conditions and covenants contained in this on the part of the Grantee to be observed and performed, now grants to the Grantee a perpetual, non-exclusive easement over, under, through and across: …

I’m not suggesting that we jettison hereby for now in business contracts: the modest benefit wouldn’t be worth the disruption, as instances of hereby far outnumber instances of now. But how about for consumer contracts? What do you think?

About the author

Ken Adams is the leading authority on how to say clearly whatever you want to say in a contract. He’s author of A Manual of Style for Contract Drafting, and he offers online and in-person training around the world. He’s also chief content officer of LegalSifter, Inc., a company that combines artificial intelligence and expertise to assist with review of contracts.