The agreement agree, versus court considering this. Some lawyers take the view that a preliminary agreement is a waste of time and money. The courts will take notice however, when parties have made it clear that they do not intend to be in a binding contract until a specific document has been executed. Compared with preliminary agreements with a firm targets for example. For the agreement to be legally binding each party has to promise. And identifying who in legal or business would have to approve alterations. The protected from claiming that agreement to agree versus preliminary agreement that they may move in which can identify any.
It is also important to ensure that the procedures for exercising the option are unambiguously worded and do not leave the option in limbo for a prolonged period of time. Mediators supporting the process must understand how sensitive and serious these negotiations are for the groups involved.
For a contract to be enforceable both parties must have the capacity to understand the terms of the contract What makes a contract unenforceable is when one party doesn't understand the terms or how they will be bound by it. When negotiations go awry and one party tries to enforce the terms of a preliminary agreement, courts are often called upon to determine the intent of the parties in hindsight.