Any understanding or arrangement established between two or more parties is referred to as an agreement. A contract is a particular sort of agreement that is legally binding and enforceable in a court of law due to its terms and components.
Is an agreement considered a contract?
Although “agreement” is frequently connected with contracts, it has a broader definition than “contract,” “bargain,” or “promise.” A contract is a type of agreement that has extra requirements, such as consideration.
A legal contract or an agreement is more than just a piece of paper that two parties sign; it also protects one business entity’s rights and remedies.
An agreement creates conditions, time limits, responsibilities, conditions, monetary issues, etc., to ensure that every aspect of the agreement is properly sealed, resulting in unanticipated losses. A legal contract or agreement must include all sine qua non, i.e. essential limbs, as listed below:
- Definitions
- obligations/do’s and don’ts
- Scope of work/service
- Documentation and invoicing
- Validity
- Termination
- Waiver
- Penal Clause
- IPR protection
- Dispute and settlement
- Force majeure
- Survival cum protection clauses
- Business Secrets and confidentiality
- Observation and applicability of the law
- Non-solicitation
- Non-disclosure
- Non-competitive clauses
- Place of performance/supply
- Severance
- Amendments, etc.
Each agreement must be drafted with extreme caution and stereotype drafting may lead to disastrous. A legal and valid agreement must have the most vital factors. They are:
- Service agreement
- Technical agreement
- Sale and supply agreement
- Supply agreement
- Confidentiality agreement
- Franchise agreement
- Joint Venture agreement
- Procurement agreement
- Marketing agreement
- Tri-parties agreement
- Authorisation agreement
- Job Work agreement
- Non Disclosure agreement
- The licencing agreement, etc.
Hope Legal, a full-service law firm, recommends that every legal agreement must be drafted by taking into account all aspects of the law, including rights, scope, liabilities, and remedies, at the very least, so that an agreement is not created in a stereotyped and loose manner.
It’s also crucial to remember that no company can afford to be involved in unending legal battles, so opting for an arbitration agreement is always a good idea. As a result, it must be assured that every agreement includes an arbitration clause.