Define: Hereinafter referred to as

In a contract, hereinafter referred to as is a drafting phrase used to attach a short, defined label to something the moment it is first fully described. After a party, document, or item is set out in full, the phrase introduces the shorthand that the rest of the agreement will use, for example naming a company and then adding that it is "hereinafter referred to as the Supplier." From that point on, the label carries the full meaning.

What the phrase means in a contract

The phrase is a signpost that creates a defined term. "Hereinafter" simply means "from this point onward in this document," so the words tell the reader that the label being introduced applies for the remainder of the agreement. Its job is precision and economy: rather than repeating a long legal name or a detailed description every time, the drafter establishes a term once and then uses it consistently. This reduces length, removes ambiguity about who or what is meant, and makes cross-referencing reliable.

Where the phrase appears

You will most often find it in the opening recitals or the parties clause, where each side is identified and labeled. It also appears when key documents or concepts are first named, for instance in a formation document that introduces the company, its officers, and its constitution, or in an investment agreement term sheet where the investor, the company, and the instrument each receive a defined label used throughout.

How the convention is applied

Modern drafting often shortens the phrase to "referred to as" or simply places the label in quotation marks or parentheses, such as (the "Company"). Whatever form is used, the mechanics are the same: a full description followed by the chosen shorthand.

• Introduce once: give the full name or description a single time, then attach the label.
• Use consistently: apply the exact defined term thereafter, without switching between variants.
• Keep labels distinct: choose terms that cannot be confused with one another, especially where several parties are involved.

Why the exact wording matters

A defined label is only as reliable as its consistent use. If the agreement introduces "the Company" but later drifts into "the Firm" or "the Business," a reader cannot be sure the same entity is meant, and that gap can be argued over. Attaching the label to the wrong description, or defining two things with nearly identical labels, creates the same risk. Because the phrase governs how every later clause is read, an error here propagates through the whole document. The law governing the contract will interpret the labels as the parties defined them, so a careless or inconsistent definition can change who owes what.

Drafting considerations

Introduce each defined term at its first substantive use, keep the label short and unambiguous, and then use it exactly the same way every time. Avoid defining terms that are never used again, and avoid using a capitalized label that was never actually defined, since both create confusion. Check that each label maps to one, and only one, description, and that plurals and related forms are handled clearly. It is also worth deciding on a house style, such as bold or quotation marks for defined terms, and applying it uniformly so readers can spot a defined label at a glance. Where a schedule or annex introduces its own terms, confirm they do not clash with labels used in the main body. A quick consistency pass at the end, confirming every defined term is introduced once and used uniformly, is one of the cheapest ways to remove ambiguity from an agreement.