Function

• The function of an agreement in principle is to establish the primary elements of a contract between the parties.
  
  

Effects

• The effects of an agreement in principle is to outline the parameters of the final agreement.
  
  

Time Frame

• There is no standard time frame between the development of an agreement in principle and the signing of a final contract.
  
  

Considerations

• A wise course is to put the basic elements of the agreement in principle into written form.
  
  

Warning

• Because of the complex nature of contract negotiations, obtaining legal representation is a wise course of action.