Any Further Agreement: What Does it Mean and When is it Used?
When engaging in business or legal transactions, you may have heard the term “any further agreement”. It is often included in contracts, agreements, and other legal documents, but what exactly does it mean and when is it used?
“Any further agreement” refers to the possibility of future negotiations between parties involved in a contract or agreement. It is a provision that outlines the possibility of additional terms being added to the existing agreement at a later time, should the need arise.
This provision is often included to provide flexibility to both parties. It acknowledges that the existing agreement may not cover all aspects of the business or transaction and that additional terms may need to be added in the future. This clause also allows parties to enter into agreements without having to create a new contract each time something needs to be added or amended.
For example, a contract between a company and a supplier may include the provision “any further agreement”. This would allow the parties to renegotiate terms if the supplier is unable to deliver products on time, or if the company needs to change the order quantity. Instead of starting a new agreement, they can use the existing one and add the new terms.
However, it is important to note that “any further agreement” does not give parties a blank check to add any terms they wish. The new terms must be mutually agreed upon and must not violate other terms in the existing agreement or any laws or regulations.
In some cases, “any further agreement” may also refer to a type of agreement commonly known as a “master agreement”. A master agreement is a framework for future transactions between parties that sets out the underlying terms and conditions that will apply to each transaction. Specific terms for each transaction are then negotiated and added to the master agreement as needed.
In conclusion, “any further agreement” is a provision that allows parties involved in a contract or agreement to add new terms in the future. It provides flexibility and simplifies the negotiation process by allowing parties to modify existing agreements instead of creating new ones. However, it is important to ensure that any new terms are mutually agreed upon and do not violate other terms or laws.