Agreement in principle

{{Short description|In law, term used in a negotiation}}

In law, an agreement in principle is a stepping stone to a contract. Such agreements with regard to the principle are usually considered fair and equitable. Even if not all details are known, an agreement in principle may, for example, outline a schedule of royalties.{{cite web|title=Agreement in Principle |url=http://www.negotiationdynamics.com/NDir11.asp |last=Schatzki |first=Michael |publisher=Negotiation Dynamics |accessdate=2012-03-13 |url-status=dead |archiveurl=https://web.archive.org/web/20120504212704/http://www.negotiationdynamics.com/NDir11.asp |archivedate=2012-05-04 }}

In real property transactions, a binder is a document that sets the sales price for the property.