Agreement to Agree in Future Is Voidable Contract

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Agreement to Agree in Future is Voidable Contract: What it Means and How it Works

Contracts are legal agreements between two parties that outline their rights and responsibilities with respect to a specific set of obligations. However, not all agreements are enforceable, and some contracts can be voided under certain circumstances. One such situation is where a contract contains an “agreement to agree in the future,” which is known as a voidable contract.

What is an Agreement to Agree in Future?

An agreement to agree in the future is a provision in a contract that refers to a possible future agreement between the two parties. It means that the parties have agreed to negotiate and reach an agreement on certain issues at a later point in time. For example, a contract for the sale of a property may contain an agreement stating that the parties will agree on the closing date at a later point in time.

Why is an Agreement to Agree in Future Voidable?

While an agreement to agree in the future may seem harmless, it can create uncertainty and confusion in a contract. It is often challenging to determine whether such an agreement constitutes an actual agreement or merely a preliminary understanding between the parties. As a result, courts have held that an agreement to agree in the future is generally voidable and unenforceable.

The rationale behind this decision is that the parties have failed to agree on the essential terms of the contract. Therefore, there is no genuine agreement, and the contract is not capable of being enforced. It also means that the parties have not fulfilled the necessary requirements for a binding contract.

How Does an Agreement to Agree in Future Work?

As an SEO copy editor, you may wonder how an agreement to agree in the future affects your contract. A contract containing an agreement to agree in the future may still be enforceable if certain conditions are met. For instance, the parties may agree on a mechanism for resolving any disputes that may arise during the negotiation process. This can include mediation or arbitration to facilitate negotiations and reach a final agreement.

Additionally, the parties must ensure that the agreement contains a timeframe for negotiating the terms of the contract. This ensures that there is a specific deadline for finalizing the agreement, which is crucial in avoiding protracted negotiations and uncertainty.

Conclusion

An agreement to agree in the future is a provision in a contract that refers to a possible future agreement between the two parties. However, it is generally voidable and unenforceable because the parties have failed to agree on the essential terms of the contract. As an SEO copy editor, it is essential to understand the implications of such an agreement in a contract and ensure that the necessary conditions are met for it to be enforceable. This ensures that your contract is legally binding, and all parties understand their rights and responsibilities.