Finally, and in a more commercial note, if a carefully crafted pre-contract document does not create legally binding obligations, there is always a practical risk that, after signing, it may be difficult to renegotiate any condition if, in the final negotiations of the contract, a problem that may not have been considered in advance may arise. Read the pre-agreement statement and offer carefully and make sure you can answer these questions: You have been approved for loans! The next step is to read the documents that carefully describe your agreement. 2A deal, etc.) to enter into a contract in advance. Even without opposition: to enter into a contract beforehand; agree, organize or buy in advance. The risk of not contractually complying with this or that authorization is that the suspensive condition is not considered fulfilled. If, after such an authorization in principle, the purchaser does not pursue the financing of the bank or extinguish the obtaining of such financing by not making available to the bank the necessary documents as it had wished, the suspensive condition will not be met and the agreement will expire. We propose to include the following clause in your sale agreement to ensure the safety of the parties and fill this gap: before signing a credit contract, you must understand what you accept. If you don`t, you may be in financial difficulty. Ask the credit provider to explain the offer if you don`t understand. Before starting a business relationship, many transactions begin with a letter of intent, contract managers, appointment sheets or conceptual agreements (“pre-contract document”).
These documents are generally used to outline the general conditions or essential principles of a proposed agreement or project and can often be negotiated or drafted regardless of the legal effect and/or mutual legal assistance. But in the event of a dispute, to what extent are these documents legally binding on the parties? The offer shows the total cost of your credit contract. In a pre-agreement statement, the terms and conditions are explained. So how can a company ensure that its pre-contract document does not unintentionally create a legal relationship? To understand the agreement and ensure that the credit provider also complies with the National Credit Act, you should ask yourself the following questions when reading the document: The credit agreement defines, among other things, your liability to the lender. The following information must be included in the credit agreement and explained to you: Remember that at that time you will not have to accept, sign or pay a fee. Use the 5 business days allowed to make sure you fully understand the agreement and check the impact of the total cost on your portfolio before making a decision. Read the documents describing your agreement carefully. These documents give you information about the financial impact of the agreement. In the case of a pre-agreement, the terms of your credit agreement may be attached or the terms may be separated.