Preliminary Agreements in General

Preliminary agreements are, as a general rule, binding. Preliminary agreement is an agreement, in which the parties commit to conclude an agreement at a later stage. Preliminary agreements are, per se, proper contracts, and have the same effects as any other agreements. Preliminary agreements should be drafted with care, as they are subject to the same contractual principles as the final contract. For further information, see [The Main Principles of Contract Law]. For example, preliminary agreements regarding sale of real estate must comply with the same formalities as the final contract of sale.