An Agreement To Agree Is Unenforceable
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If you are tempted to sign a contract qualified by a language that indicates that the parties will later mutually agree on certain conditions essential to the agreement or important to your part of the agreement, you`d better negotiate those terms now than invest in time and cost, to find a solution later. This decision is an example of the extent that, where a key issue is to be agreed by the parties in a contract in the future, the contract may be considered unenforceable in the event of a dispute. It should be noted that, in this case, the Tribunal found that the parties intended to enforce the contract and that it should aim to maintain their agreement, but that it could not do so. An important commercial notion of transaction is probably essential, such as for example. B price or delivery dates in this case. The parties to the Delgardo case were involved in a complaint. 13.) The applicant, an oil tanker operator, concluded an option agreement with the defendant, a shipyard. The agreement granted the applicant three options, each concerning an order for four oil tankers. It provided that, in exercising an option, delivery dates between the parties would be “mutually agreed,” but the defendant “will do its best to have a delivery” in 2016 for option one tankers and in 2017 for option two and three tankers.
