The Ancillary Agreements

As businesses grow and expand their operations, they often need to enter into ancillary agreements to support their main business agreements. Ancillary agreements are often overlooked but are critical in defining the terms of the main agreement and ensuring that all parties involved are on the same page. In this article, we will explore what ancillary agreements are and why they matter.

What are ancillary agreements?

Ancillary agreements are secondary agreements that support and supplement the main agreement between two or more parties. These agreements are usually in writing and include provisions that address specific issues related to the main agreement. Ancillary agreements may be standalone agreements or incorporated into the main agreement.

Examples of ancillary agreements include non-compete agreements, intellectual property agreements, confidentiality agreements, indemnification agreements, and employment agreements. These agreements are critical in protecting the interests of all parties involved in the main agreement.

Why are ancillary agreements important?

Ancillary agreements are essential for a variety of reasons. First, they help to clarify the terms of the main agreement and add additional provisions that are not included in the main agreement. Second, ancillary agreements help to protect the interests of all parties involved in the main agreement. For example, a non-compete agreement can prevent one party from competing with the other party after the main agreement has ended. Third, ancillary agreements help to reduce the risk of misunderstandings and disputes between the parties.

In addition, ancillary agreements can also help to limit potential liability. For example, an indemnification agreement can limit liability for one party if the other party suffers damages as a result of the main agreement. This can provide additional protection and certainty for all parties involved.

Conclusion

In conclusion, ancillary agreements are often overlooked but are critical in supporting and supplementing the main agreement between two or more parties. These agreements help to clarify the terms of the main agreement, protect the interests of all parties, reduce the risk of misunderstandings and disputes, and limit potential liability. As such, it is essential to include ancillary agreements when entering into any kind of business agreement to ensure that all parties involved are protected and the agreement is as clear and concise as possible.