Agreed: Overview, definition, and example
What does "agreed" mean?
"Agreed" refers to a mutual understanding or acceptance between two or more parties regarding a specific term, condition, or action. In legal and contractual contexts, it signifies that all involved parties have consented to a particular arrangement, making it legally binding.
For example, if two businesses negotiate a contract and both sign off on the final terms, they have "agreed" to those terms, meaning they are obligated to follow them.
Why is "agreed" important?
The term "agreed" is crucial in contracts and legal discussions because it confirms that all parties have willingly accepted the terms. This reduces misunderstandings, ensures accountability, and provides a basis for enforcing obligations.
When terms are explicitly "agreed" upon, they create a clear framework for expectations, reducing the risk of disputes. If a disagreement arises, the fact that something was "agreed" can serve as evidence of a party’s commitment to fulfilling its responsibilities.
Understanding "agreed" through an example
A freelancer and a client negotiate payment terms for a project. After some discussion, they agree that payment will be made in two installments—50% upfront and 50% upon completion. Once both parties confirm and document this arrangement in writing, they have officially "agreed" on the payment structure, making it enforceable.
In another example, two companies enter into a supply agreement. The buyer requests changes to the delivery schedule, and the supplier agrees to the new terms. Because both sides have accepted the revised timeline, the change is now binding, and both parties must adhere to it.
An example of an "agreed" clause
Here’s how an "agreed" clause might appear in a contract:
“The parties have agreed that all modifications to this Agreement shall be in writing and signed by authorized representatives of both parties.”
Conclusion
"Agreed" is a fundamental term in legal and business settings, signifying mutual acceptance of terms and conditions. It helps establish clarity, enforceability, and accountability in agreements. Whether in contracts, negotiations, or policy discussions, ensuring that all parties have explicitly "agreed" to terms is essential for smooth business operations and legal certainty.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.