When drafting an agreement, it is usually preferable to begin the agreement by fully identifying the parties, followed by a shorthand reference for each party to be used in the remainder of the agreement.
This License Agreement is between ABC Company, a Delaware corporation with a principal place of business at 13 Cuckoo Road, Zanytown, Texas (“Licensor”) and DEF Company, a New York corporation with a principal place of business at 14 Coolguy Street, Laidback, New Jersey (“Licensee”).
As seen above, the “shorthand” reference to the parties can be accomplished merely by putting a term in quotes within parentheses. It is also acceptable to use the phrase “hereinafter referred to as”, “hereinafter” or “hereafter”.
Although it is largely a matter of style, it is important to note that it may be better to use a shorthand form of the parties’ names (i.e. “Spencer” for Spencer Foods Inc.) rather than the more generic terms like “Licensor” or “Licensee”. This often makes an agreement clearer and less likely to include mistakes. While terms like “Licensor” and “Licensee” are easily confused and inadvertently switched within agreements, a shorthand form of a party name is much less likely to lead to any errors.