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Contract & Commercial Law vocabulary · Forming & Drafting Contracts

Agreement

Meaning in contract & commercial law, with examples

/əˈɡriːmənt/nounCore term

In contract & commercial law, agreement means: An arrangement between parties about what each of them will do; it becomes a contract when the law treats it as binding.

In Turkish: anlaşma, sözleşme, mutabakat

How it is used

Very often used as a synonym for contract, especially in document titles such as 'Share Purchase Agreement' or 'Distribution Agreement'. 'Reach an agreement' describes the successful end of negotiations; 'in agreement' means sharing the same opinion.

Example sentences

  1. The parties reached an agreement after three weeks of negotiation.

  2. This Agreement is governed by the laws of England and Wales.

  3. A verbal agreement can be binding, but it is much harder to prove.

Common collocations

  • reach an agreement
  • sign an agreement
  • written agreement
  • oral agreement
  • breach of the agreement
  • contractA legally binding agreement between two or more parties in which each side promises to do, or not to do, certain things.
  • bindingHaving legal force, so that the parties must do what they have agreed and can be held responsible if they do not.
  • memorandum of understandingA document that records the main points the parties have agreed on and their plan to cooperate, usually without creating full legal obligations.
  • partyA person or organisation that has signed a contract or is directly involved in a legal agreement or dispute.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Forming & Drafting Contracts

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This page explains English vocabulary for learners. It is not legal advice.