Like a contract, an agreement is an agreement between two or more parties. However, unlike a contract, an agreement must not contain legally binding commitments. The agreement contains proposals and the adoption and intention of the parties is to attach each other to the terms of the agreement. It is the intention of the parties that if someone violates the terms of the agreement in question, the other will go to court and get it. A statement describing the common responsibilities and action of each party, including the description of cooperation activities, the description of the exchange of resources. Reference to relevant schedules, milestones, communication protocols between the parties. In the recent case of Ashapura Mine-Chem Ltd v. Gujarat Mineral Development Corporation, the Indian Supreme Court considered the separation and survival of a compromise clause contained in a Memorandum of Understanding (Memorandum of Understanding). The Supreme Court found that the arbitration agreement was valid in the protocol because it is a stand-alone agreement independent of its underlying contract. The Supreme Court relied on several cases, including Reva Electric Car Co.
Pvt Ltd. v. Green Mobil 2002 (2) SCC 93 and Today Homes and Infrastructure Pvt. Ltd. v. Ludhiana Improvement Trust 2014 (5) CSC 68 and Enercon/Enercon 2014 (5) CSC 1 concluded that the dispute between the parties, in addition to the fundamental nature of the presumption of dissociation, related to the relationship established by the MoU and would therefore bind the arbitration agreement it contained. Parties. In the context of sharing agreements, an agreement is often used to define the expectations and responsibilities of the various parties. These MOUs generally deal with issues such as: (1) liability for maintenance and repair costs, (2) insurance and liability, (3) staff and communication, and (4) conflict resolution. Whether the terms of these agreements are legally enforceable, as a final contract, depends on the intent of the parties. Therefore, the parties to a sharing agreement should consider in due course the legal status of their agreement as part of the negotiation process.
If it is an international agreement, it would be worth mentioning the currency in which the consideration would be paid to avoid problems, including the conversion date. It can also help the court award damages or related costs. Although it is an enforceable contract, the CEECs rarely contain the level of detail necessary to resolve misunderstandings when they arise. That`s why we advise our clients to enter into contracts that fully document their expectations.