Generally, agreements to agree are unenforceable because of the absolute discretion of parties to agree or disagree.
Agreements to agree may prove practical to guide parties in their negotiations of a main agreement, however it is an accepted principle that an agreement to agree is unenforceable for reasons of vagueness and uncertainty unless a deadlock mechanism is included.
“Agreements to agree” are not binding in California. Nor are preliminary negotiations the same as a valid agreement.
Understanding what makes a contract unenforceable is crucial for anyone entering an agreement. Among other things, A contract can become unenforceable when it lacks mutual consent, involves illegal activities, or when a party lacks the capacity to understand the terms.
A fully enforceable agreement containing terms that are sufficiently definite as well as adequate consideration, but leaving some details to be worked out by the parties.
The Coordinated Operations Agreement is an agreement between the State of California and the US Government that defines sharing of water supply benefits and the regulatory obligations of Central Valley Project and the State Water Project. It was signed in 1986 and amended in 2019.