gl-schach-blog

10. September 2021

Agreement Of The Parties

Filed under: Allgemein — @ 03:11

To refer to a part in the agreement, use either the functional reference (for example. B seller, licensee, service provider, lender), i.e. the short name of the party (e.g. B Weagree, Shell, Philips, Sony). It is worth referring to one`s own party with its short name and to the other by a functional reference. Do not set up terms that are defined in turn and relate to the same party (i.e. not the buyer or the Weagree). It serves no purpose and does not facilitate reading (on the contrary, it hides a reckless copy-paste work from different contractual sources by the author). Define one of the two terms of the party`s introduction clause immediately after the details identifying each party. Do not use the term defined in the definition article. Oral agreements are based on the good faith of all parties and can be difficult to prove. That`s the name.

Whenever possible, use a defined term that matches the entity`s trade name or a term that consists of words from the entity`s name. This is preferred to an unusual shortcut or acronym. Nevertheless, an acronym is appropriate if it knows the part, if its name contains this acronym or if the parties are related companies (with similar names). Grouped party definitions. Many contracts are concluded between groups of counterparties. It is useful to define each part individually (and to think about using the specific term defined if you are only referring to this part) and define each page by grouping the different parties. For example, in a purchase asset agreement, there are often multiple sellers (and buyers), one for intangible assets (IP), the other for each international tax unit, finance companies for shareholder loans and often also the parent company for certain operational assets. Another example is joint venture agreements (or shareholder agreements) in which the ultimate holding company is often the main party, while the actual shareholder is a tax-efficient local entity (or even a storage company). In these examples, reference should be made to the seller or ABC and to the buyer or XYZ.

If you are a group partner, please note that such processing may also raise issues relating to joint and several liability for the performance of the obligations of an affiliated company. In many companies, this only raises theoretical questions, but it is advisable to treat joint and several liability in a separate clause. Where there is joint and several liability, this may raise issues or termination obligations under (covenants) of a framework loan or facility agreement of that company. In order for a treaty to be concluded, the parties must reach a mutual agreement (also known as a meeting of minds). This is usually achieved through an offer and acceptance that does not change the terms of the offer, the so-called „reflection rule“. An offer is a clear statement about the supplier`s willingness to be bound if certain conditions are met. [9] When an alleged acceptance changes the terms of an offer, it is not an acceptance, but a counter-offer and, therefore, a refusal of the original offer. The Commercial Code uniform has the rule of reflection of Article 2-207, although the UZK only regulates transactions of goods in the United States. Since a court cannot read thoughts, the intention of the parties is objectively interpreted from the point of view of a reasonable person,[10] as in the first English case Smith v Hughes [1871]. . . .

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