What is the importance of development agreement

A development agreement is a document which outlines the agreement between two companies or establishments, or even individuals, regarding the development of a certain institution, an area, an industry and the like. It is a legally sanctioned document which is governed by a set of terms and conditions. Thus, it must be written well and it is an important document overall. It has many importance and some of the more conspicuous ones are as follows:

  • A development agreement is a legally ratified document. Hence the terms and conditions contained therein are binding. In case of any misunderstanding or contentious issue, or malpractice, the development document will be referred to in order to resolve the problem. Offenders shall also be penalized by the law in case of a breach of contract.
  • A development agreement also contains the plans of the development project. It includes vital details about the project including budget, cost sharing, date of completion, contribution of each party and so on. It thus has enormous utilitarian value because of its informational content.
  • A development agreement also puts a more professional and transparent spin on things. If there were no legal contract binding the participants of the development agreement, chaos and miscommunication would inevitably be the result. Thus, a development agreement is important as it ensures clarity, legality and zero ambiguity.
  • A development agreement is also useful as it provides a framework or template which can be followed later for creating more such documents. A development agreement which is well written and carefully constructed can become the template for later development agreements of a similar kind.

Thus, a development agreement is a document which has a number of significant uses and these make it a vital document. It must be well researched and watertight, as well as worth the effort that goes into its making.

Category: Sample Agreements

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