Sets out the background facts and the parties' intention that led to the agreement, so the rest of the document can be read in context.
The recitals are the *"Whereas..."* paragraphs at the top that explain who the parties are and why they are entering the deal. They aren't usually the operative promises, but if a clause later reads two ways, a court can look at this background to work out what the parties actually meant. Keep them short and *true* to what happened, because a false or careless recital can be used against you later.