Further action: Overview, definition, and example
What is further action?
Further action refers to any additional steps, measures, or activities that may be required or taken after an initial action or decision. It is commonly used in contracts and agreements to indicate that certain tasks or obligations are contingent upon the completion of previous actions or that additional efforts are needed to finalize, implement, or enforce terms of an agreement. Further action can involve a variety of activities, such as follow-up negotiations, additional approvals, compliance checks, or enforcement measures.
For example, after signing a contract, one party may be required to take further action to submit documents, complete a payment, or fulfill additional conditions before the contract can be fully executed.
Why is further action important?
Further action is important because it ensures that the terms of an agreement or plan are fully realized and implemented. It clarifies the ongoing obligations of the parties involved and provides a roadmap for completing tasks that may extend beyond the initial stage of a contract or project. By specifying further actions, businesses can avoid confusion about responsibilities and ensure that all necessary steps are taken to fulfill contractual obligations or achieve desired outcomes.
For businesses, understanding when further action is required is crucial for compliance, timely project completion, and avoiding any breaches or delays.
Understanding further action through an example
Imagine a company signs a contract to purchase equipment. The agreement states that after the initial payment is made, the supplier must take further action to deliver the equipment and provide necessary installation services. Without this additional step, the contract is not fully fulfilled, even if the initial payment was made.
In another example, a business may negotiate a licensing agreement with a third party. The agreement might require that once the terms are signed, further action be taken to submit specific documentation for government approval before the deal can officially proceed.
An example of a further action clause
Here’s how a further action clause might look in a contract:
“The Parties agree that upon execution of this Agreement, further action will be required, including the submission of necessary documents to [Insert Agency] and completion of all compliance requirements as outlined in Exhibit A, prior to the final execution of the transaction.”
Conclusion
Further action ensures that all necessary steps beyond an initial agreement or action are properly carried out to fulfill contractual obligations. It helps provide clarity and sets expectations for what must be done to finalize or complete a process, ensuring the contract’s full execution.
For businesses, defining what constitutes further action and when it must be taken is vital for successful contract management and for ensuring that all parties meet their obligations in a timely and complete manner.
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.