It is important to note that the Virginia Court has not established that all compilation agreements are, by their nature, unenforceable agreements. The Court merely found that this particular cooperation agreement was not enforceable. His judgment was instructive in identifying problems with terms often found in team agreements, paving the way for the compilation of agreements that can be formulated in such a way as to make them enforceable. It is therefore advisable to review the terms of your existing team agreements. If the old team agreement contains a language like the one in question in this case, contractors can get a negative result if they try to impose the team agreement, especially in Virginia. In the awarding of government contracts, there is a subtle difference between a team agreement and subcontractors. As one of your best practices in team organization, you should also be aware of the pitfalls you should avoid when deciding whether your particular agreement is an enforceable contract in court. A service agreement for contractors is a step in the right direction. The subcontractor filed a breach of contract complaint against the principal contractor in order to enforce the terms of the association agreement between the parties. The court found that the equipment agreement was an unenforceable “agreement to be entered into” and ruled in favour of the principal contractor. The Tribunal`s argument was that the team agreement was reached with the end of a contracting agreement being negotiated and executed in the future. As this cannot be the case, this means, according to the Court, that the parties never foreseen that the team agreement would function as a genuine binding agreement. It is strongly recommended that any party wishing to enter into an equipment agreement, whether as a first or subcontractor, should consult with competent legal advisors in government contracts.
It is essential that your team agreement is drafted in a way that maximizes its applicability and protects your business interests. ______