This clause contains directions on how certain words in the agreement are to be interpreted. The purpose is to make the meaning of clauses clearer, and to keep drafting as simple as possible. For example, if a pronoun includes all genders, the use of only one pronoun (e.g. ‘it’) will include all genders, which do not need to be listed, avoiding the clutter of ‘he/she/it etc.’ The same applies to single and plural words, and the use of the word ‘person’ to include both natural and legal persons.