When negotiating a deal or contract, it`s common to hear the phrase “agreement in principle” thrown around. But what does it actually mean and how should it be properly expressed in writing?

Agreement in principle is essentially a non-binding agreement that outlines the basic terms and conditions of a deal. It`s often used when parties want to establish a general framework before delving into the specifics and finer details. This can be helpful in avoiding wasted time and resources negotiating intricate details that may ultimately be unworkable.

When it comes to expressing agreement in principle in writing, it`s important to use clear and concise language that highlights the non-binding nature of the agreement. One way to do this is to use the phrase “subject to contract” or “subject to further negotiation” in any written communication regarding the agreement.

It`s also critical to avoid any language that could be interpreted as a binding agreement. For example, using words like “will” or “shall” can imply a level of commitment that may be premature in an agreement in principle scenario. Instead, expressions like “intends to” or “contemplates” can be more appropriate as they convey a sense of intention without creating legal obligations.

Another important aspect to consider in expressing agreement in principle is to ensure that all parties are on the same page about what has been agreed upon. This can be done by summarizing the key points of the agreement in writing and having all parties acknowledge their understanding and agreement to those points. This ensures that everyone is starting from a shared understanding of the fundamentals of the deal.

In summary, agreement in principle is a valuable tool in negotiations that can help avoid unnecessary time and resources. When expressing an agreement in principle in writing, it`s important to use clear and concise language, avoid any language that implies a binding commitment, and summarize the key points of the agreement to ensure all parties are on the same page. By following these guidelines, you can ensure that your agreement in principle is properly expressed and understood by all parties involved.