When it comes to legally binding contracts, one of the most important phrases you will come across is “agreement as between the parties.” This phrase essentially means that the terms and conditions outlined in the contract are only applicable to the parties involved, and no one else. Let`s take a closer look at what this phrase means and why it`s important.
What is “Agreement as Between the Parties?”
“Agreement as between the parties” is a legal term that typically appears in the introduction or definitions section of a contract. It simply means that the terms and conditions outlined in the contract only apply to the parties involved in the agreement. In other words, if someone who is not a party to the contract tries to enforce or rely on the terms of the agreement, they would be unsuccessful because the contract only applies to the parties who signed it.
Why is it Important?
The inclusion of “agreement as between the parties” is important because it sets clear boundaries on who the contract applies to. For example, if two companies enter into a contract, the terms and conditions outlined in that contract only apply to those two companies. Any other parties or individuals cannot enforce or rely on those terms. This can be especially important in cases where confidential information or trade secrets are being shared between the parties, as it ensures that the information remains protected and only accessible by those who need it.
Another reason why “agreement as between the parties” is important is because it helps prevent misunderstandings or misinterpretations of the contract. By clearly stating who the contract applies to, it eliminates any confusion or ambiguity about whether or not certain terms or conditions apply to other parties.
In addition, including “agreement as between the parties” can also help protect the parties from any unwanted liability or legal challenges. For example, if a third party tries to sue one of the parties for failing to comply with a term outlined in the contract, the party can use the “agreement as between the parties” clause to argue that the contract only applies to the two parties involved and not to the third party.
Conclusion
“Agreement as between the parties” is a crucial legal term that sets clear boundaries on who a contract applies to. By including this phrase in a contract, it helps prevent confusion, misunderstandings, and legal challenges. As a professional, it`s important to pay attention to this phrase when reviewing contracts and to ensure that it is used correctly and consistently throughout the document.