Commercial Agreement Case Law

Subsequently, PC and KKG entered into a licensing agreement in which KKG argued that the licensing agreement was not relevant and that the initial sales agreement with which it purchased its two businesses had transferred to it all the intellectual property rights it needed to operate those two divisions. In any event, it did not need a PC licence to use this ipR. To support its argument, KKG argued that while individuals, and especially small businesses, might be attracted to the idea of an informal agreement (possibly based on a handshake or gentleman`s agreement), such an informal agreement could be dangerous. This is especially true when the agreement was reached in an environment that is not suitable for normal trade negotiations. It is essential for parties wishing to conclude a binding preferential law contract that they open an appropriate call for tenders in order to avoid any difference of opinion on the intention of the parties. However, it is equally clear that we do not expect our national agreements to be legally binding, with the prospect of a judicial procedure if they fail. I don`t expect my kids to sue me if I pay their pocket money too late, if a friend doesn`t show up and take me to a place for a party in their car, I`ll think in turn that I`m not entitled to damages. In these situations, the law assumes that there is no intention to create legal relationships. The license agreement contains a confidentiality clause. This provision has been supplemented by another clause stating that a breach of the confidentiality clause constitutes a non-reigning and substantial breach of contract that would allow the other party to immediately terminate the license agreement in writing. . .

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