Agreement To Negotiate In Good Faith Clause

In the 2016 edition of the PICC, the numbering of the official commentaries on art. 2.1.15 has been amended and now Official Comment 3 is entitled „Good Faith Agreement“. The application of the PICC presupposes the existence of a contract and there are different types of contracts that could apply to Article 2.1.15, but in this case, the contract falls when the parties have entered into a preliminary agreement to settle their negotiations. In this case, the contract should include both a legal choice clause that designates the PICC as the applicable law and an arbitration clause, as this combination allows for an effective application of the PICC to settle a dispute. The clause in this case required the parties to act in good faith with respect to their respective obligations under the treaty. This meant that the duty of good faith could not be used to compel the parties to perform acts that were not provided for or defined in the convention itself. For example, binding preliminary agreements are „lockout agreements“ (provided they are supported by a counterparty and the „lockout“ is carried out for a defined or indefinable period of time) and those that govern the cost of pre-contractual work or costs incurred in the event of failure of negotiations (even in the event of consideration). . . .