An agreement may arise if an agreement contains commitments to conclude a subsequent agreement in the future, the terms of which are not certain at the time of the initial agreement. As a result, such agreements often lack sufficient security to constitute a legally enforceable contract, but this is a sufficient guarantee that may be difficult to establish. It`s a very simple situation. If the form of the documents to be executed is agreed, it is a simple contractual undertaking like any other. The parties agreed not to agree on anything in the future, but only to execute documents in an agreed form. Parties should strive for clarity on the conditions during the design phase. However, if flexibility is required or if it is not possible to enter into a significant contractual clause at the time of the contract, the parties may observe that the use of the word « option », i.e. a right contrary to a benefit obligation, did not help the applicant, who was still too uncertain to apply. The Court of Appeal also found that the word « reasonable » had been used to dictate how the parties should reach an agreement and not to compel them to a reasonable period of time.
In addition, the factors identified by the applicant to assist the Tribunal in assessing the period were all economic factors that the parties, not the Tribunal, had to consider in their hearings. Therefore, even if the deadline had required the parties to agree on an appropriate extension, this would not have been applicable in the absence of an objective reference criterion in the GSO (or in the completion of the initial period) until the extension period would be set. The conclusion of a binding contract is determined by an objective consideration, which is whether: an agreement is an agreement that you conclude before the final contract. It is a great way to understand and formalize the negotiations. This decision is an example of the view that where an essential purpose of a contract is considered unenforceable by the parties who are to be the subject of a future agreement, the contract may be deemed unenforceable in the event of a dispute. It should be noted that in this case, the Tribunal found that the parties intended to execute the contract and was intended to terminate their negotiations, but that it was still unable to do so.