Agreement Parties Definition

Definitions of the parties. Many contracts are concluded between counterparty groups. It is a good idea to define each party individually (and to think about using the specific term defined only if one refers to that party) and to define each party by grouping the different parties. For example, in an asset purchase agreement, there are often several sellers (and buyers), one for intangible assets (IP), one for each international tax unit, shareholder loan finance companies and often also the parent company for certain operating assets. Another example is joint venture agreements (or shareholder agreements) in which the holding company in charge will often be the main party, while the actual shareholder will be a local entity (or even a shelf company) that is tax efficient. These examples recommend referring, on the one hand, to the seller or ABC and, on the other hand, to buyers or XYZ. If you are a group partner, note that this treatment can also trigger issues of joint and several liability for the performance of an affiliate`s obligations. In many companies, this raises only theoretical questions, but it is nevertheless advisable to deal with global and multiple liability in a separate clause. In the case of joint and several liability, this may raise questions or termination requirements in (the agreements) of a principal loan or a facility contract of that company. When developing a contract, it is best to avoid the use of the term „parties“ throughout the agreement. For example, consider the clause: „This agreement does not confer recourse or rights on any person other than the parties.“ This language is generally used to exclude non-parties from the application of remedies or rights under the agreement, but a court might insist that the term „parties“ includes individuals or companies that are not those that have signed the agreement.

According to legal dictionaries, the „signatory“ refers to any party who signs a document, either personally or through an agent, and thus becomes a party to a contract or agreement. If more than two parties participate in a contract, it makes more sense to refer to the parties as „signatories“ rather than permanently listing all parties in the document as a whole. Some arbitration clauses are unenforceable and, in other cases, arbitration may not be sufficient to resolve a dispute. For example, disputes over the validity of registered intellectual property rights may be settled by a public body within the national registration system. [123] In the case of matters of significant public interest that go beyond the narrow interests of the parties to the agreement, such as allegations that a party breached a contract by committing unlawful anti-competitive conduct or committing civil rights violations, a court may find that the parties may assert one or all of their rights before contracting out. [124] The termination is the cancellation or termination of a contract.