When you hear the term ”tentative agreement,” it often refers to a type of contract made between two parties, where they have agreed upon some basic terms and conditions but still have some details to iron out. It means that they have the intention to finalize the agreement, but they are waiting for some specific items or conditions before signing on the dotted line.
In legal terms, a tentative agreement is a preliminary agreement made between two or more parties that outlines the essential terms of an agreement. It is not a complete contract, but it indicates that both parties have come to an agreement on the most critical aspects of the deal.
Tentative agreements can be made between individuals, organizations, or even governments. Often, when negotiating complex contracts, the parties involved may reach a tentative agreement before engaging in further negotiations. This process allows them to establish a general framework of the agreement, while still allowing for some flexibility until all details are agreed upon.
The term ”tentative” indicates that the agreement is not yet final, and there is still room for negotiation and modification. The parties involved will continue to discuss and fine-tune the terms until they reach a mutually acceptable and legally-binding contract. During this time, the tentative agreement serves as a starting point and a source of direction for further negotiations.
It is worth noting that even with a tentative agreement in place, both parties remain free to withdraw from the agreement if all terms and conditions are not met. However, once a contract is signed, both parties are legally bound by its terms and conditions.
Finally, it is essential to have any tentative agreement reviewed by legal professionals before proceeding with further negotiations. This step ensures that the agreement is legally sound and that all parties involved have a clear understanding of the terms and conditions.
In short, a tentative agreement is a preliminary agreement made between two or more parties that outlines the essential terms of a contract. It indicates that both parties have agreed on the most critical aspects of the deal but still need to finalize the contract`s finer details. Moreover, it can be a useful tool for negotiating complex contracts and establishing a general framework of the agreement.