preliminary agreement

A **preliminary agreement** is a document outlining the initial terms and conditions agreed upon by parties before finalizing a formal contract. It serves as a foundation for negotiation, ensuring all parties are on the same page regarding the main points of the deal. This type of agreement helps prevent misunderstandings and provides a framework for moving forward with detailed contract drafting. Preliminary agreements are commonly used in business transactions, real estate deals, joint ventures, and other scenarios where a binding contract is yet to be completed.