Also known as: parties of the first part · first party
Written by attorneys · grounded in primary & secondary sources — see below
A traditional label in a contract or conveyance identifying the first-named party, usually the grantor or seller.
Paula Pierce conveyed her warehouse to Pedro Pacheco by deed that identified Paula as the party of the first part. The deed contained a reservation clause whose meaning was disputed. The court treated the label as identifying Paula as grantor for purposes of construing the reservation.
Pearl Porter conveyed land to Paul Peterson in a deed naming Pearl the party of the first part. Pearl's meaning of a reservation clause matched an industry usage that Paul had reason to know. The court therefore treated Paul as having known the meaning Pearl attached.
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Paige Porter sold equipment to Piper Patel under a contract that labeled Paige the party of the first part. Paige did not know of Piper's different reading of a payment term, yet Piper knew the meaning Paige attached. The agreement is interpreted according to Paige's meaning.
Premier Manufacturing contracted with Pacific Bank using language that called Premier the party of the first part. Premier's meaning of a financing term accorded with a relevant usage that Pacific Bank had reason to know. The court therefore treated Pacific Bank as having known the meaning Premier attached.
Peak Performance sold goods to Pulse Media under an agreement naming Peak the party of the first part. Peak's meaning of a delivery term matched a relevant usage that Pulse Media knew. The court therefore treated Pulse Media as having known the meaning Peak attached.
Pulse Media filed a complaint against Peak Performance and Pacific Bank. The caption listed only Pulse Media as plaintiff and used the phrase party of the first part instead of naming both defendants. The court required Pulse Media to amend the caption because the title of a complaint must name all parties.
The meaning attached by the party of the first part controls when that party does not know of any different meaning attached by the other party and the other party knows the meaning attached by the first party.
The title of the complaint must name all the parties. Later pleadings may refer generally to other parties after naming the first party on each side.
The agreement is interpreted in accordance with the meaning attached by the party that had no reason to know of any different meaning and the other party had reason to know the meaning attached by the first party.
Course of performance accepted without objection is relevant to determine the meaning of the agreement and may show that the parties treated a term as flexible rather than strict.
…empowered to sell. Upon the death of the grantor, he was to “convey the said premises (if not sold) to the heirs at law of the party of the first part.” In case of a sale, he was to pay to the heirs at law “the balance of the avails of sale remaining unexpended.” He was authorized at any time, if he so desired, to reconvey the premises to…