To make clear all the points that may need to be covered so that each party has a better understanding of the potential transaction or merger. To make a declaration that two or more parties are in current negotiations such as in joint venture or even a merger.
4 _ A time line is an important ingredient in the agreement for finalization purposes. This is a significant point. Once you sign the document and issue a press release, all will be watching you. For the sake of efficiency, it's to everyone's advantage that the agreement is completed as soon as practical. 5 _ A confidentiality accord is something which is an inherent component of any business contract. By signing a confidentiality accord, all those included agree that the details hashed out will remain confidential.