Agreements are temporary compromises between countries or parties, often leading to formal treaties. They are not legally binding, but violating them can damage reputation. Agreements also apply to national contracts, such as debt obligations. The concept of agreement and satisfaction allows for modification of contracts if both parties agree.
An agreement is a type of mutual agreement, often between two countries. Two countries at odds with each other will often allow delegates to reach an informal compromise, agreement, or solution in preparation for a formal treaty or pact. Until the formal agreement is signed or otherwise ratified, a temporary agreement allows for an end to hostilities or other negative actions. The idea is that agreements show a good-faith willingness to reach a formalized and permanent agreement.
From a legal point of view, an agreement is generally not enforceable. The Kyoto Accord, for example, is a voluntary agreement between some of the world’s largest nations. This deal outlines promises that if one country reduces its greenhouse gas emissions, its neighbors agree to do the same. Countries voluntarily agree to participate and abide by the terms of the agreements. If one country violates the terms of the compromise, there is little that neighboring countries can do in the way of legally forcing compliance.
While an agreement is generally not a legally binding agreement, the violation of such a compromise, particularly on sensitive international issues, can seriously damage a country’s reputation and trustworthiness. Therefore, most diplomats will honor an agreement as a binding promise, provided the agreement is reached under ethical circumstances with those authorized to agree to such agreements. While the delicate balance of international relations depends heavily on such promises, it is also understood that not all temporary arrangements result in a permanent or formal agreement.
While the term agreement is generally applied to international agreements, such agreements also apply to national agreements. For example, in the United States, Great Britain, Germany and other countries, national debt obligation laws operate on the concept of agreement and satisfaction. In other words, a contract between two parties can be modified if both parties agree to release the other from certain performance standards outlined in the original contract.
To illustrate the concept of agreement and satisfaction, consider the relationship between a contractor and a customer. Client A hires a professional to build a fence around his property, with fees payable in stages as the work is completed. Final payment is due upon completion of the project. When finished, Customer A complains of substandard materials after his horse hits the fence and breaks several rails. As a result, he refuses to make the final payment.
After reviewing customer A’s complaint, the contractor agrees that the materials used in the fence are of inferior quality. Rather than absorb the expense of a new, higher quality fence around the entire property, the contractor agrees to forego the final payment. Client A agrees that in exchange for the money saved he will accept the lower fence. The modified agreement is an example of the concept of agreement and satisfaction. Both parties agree to a new contract, thus filling a shortfall in the original deal and reaching a mutually beneficial agreement.
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