Language at the beginning of the contract that provides background of the contract, such as reasons for the parties entering into the contract, is referred to as_________________.

The term that refers to the language at the beginning of a contract, providing background and context regarding why the parties are entering into the agreement, is known as "recitals." Recitals set the stage for the contract by outlining the purpose and intent of the agreement, helping to clarify the motivations behind the contractual relationship. This section typically does not create binding obligations but rather provides context that can aid in interpreting the contract.

Understanding recitals is essential because they help both parties and any third parties reviewing the contract to grasp the fundamental reasons behind the contractual arrangement. By outlining the key considerations, recitals can serve as a guide in the event of disputes or ambiguities later on. This introductory section is crucial in framing the relationship and expectations that the parties hold, thus playing a significant role in the overall understanding of the contract.