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The concept of a contract of intent

Preliminary agreement or agreement of intentIt is not without reason that this name is used. Like other types of contracts, it entails the emergence of legal obligations of the parties that conclude it. However, the object of it is not the transfer of property, performance of work or provision of services, but the conclusion of another contract. Thus, the parties undertake to conclude in the future a certain loan agreement, deliveries and so on, binding their commitment to the preliminary contract. Such a contract is usually written in writing. Prisoners will be considered only if they are notarized or state registration.

Content of the contract

The document provides for special content. In the contract to be made, its essential conditions must be specified. For example, a supply contract must be accompanied by a description of the goods (with its name, quantity, quality, assortment) and the delivery time, purchase and sale of real estate - the description of the property and its price, construction works - their nature and result. Thus, the preliminary contract must show the terms on which the parties will build their relations in the future. It also stipulates the term of the conclusion of the main contract, which usually amounts to one year. Sometimes there is a situation where one of the parties refuses to conclude subsequently a contract on the basis of a contract of intent. In this case, the other party has the right to claim it in court by filing a suit about compulsion to conclude a contract. Also, the preliminary contract may specify the amount of the penalty (penalty, fine) for delay or refusal to sign the final document. Most often, the preliminary contract is concluded for capital construction, leasing, contract, transport, real estate purchase and other situations where it is necessary to carefully plan interaction conditions. Parties must comprehend the terms of the contract and the consequences that arise after signing. That is why the creation of the document is usually preceded by the negotiations of the parties with the answers to various questions stipulated by the conditions. In any case, preliminary agreements help to make informed decisions in the future. It should be remembered that the transfer of a deposit under a preliminary contract to control the performance of obligations is impossible. The document also does not provide for the conclusion of an agreement on compensation, since, according to arbitration practice, this agreement can not be a ground for termination of the obligations of the parties in the future.