An executive agreement is one that is signed between the U.S. government’s executive branch and the government of a foreign nation that has not been ratified by the Senate. It is an important official document in the United States of America that has high political significance, owing to the fact that the President of the State or the body conducting presidential rule frames it. The agreement may be framed for claiming certain issues of the State, which may include military, commercial or some other political issues. This type of an agreement obviously includes serious clauses that need to be maintained word by word, and should hence be framed in a very clear and concise pattern, explaining each clause in understandable terms such that no country is trapped into harmful legal consequences due to some faults or complications in the agreement terms.
An executive agreement may also be designed in the corporate sector, though the approach changes when it is perceived from the company point of view. When in a company, this type of an agreement is generally signed between the executives of different departments, to finalize some specific deal or so. It can also be signed between the executives of two entirely different companies to confirm some agreement.
Whatsoever be the purpose of framing an executive agreement, it should include certain important sections that define the nature of this type of a document, some of which include:
- Identification details: This is perhaps the most important detail that defines an executive agreement. The government of the State and that of the partner nation are to be introduced in the specific section of the document. In case it is a corporate executive agreement, the details of the involved companies are to be given.
- Term of agreement: Executive agreement, like most other agreements, has a definite time period of validity, which is to be clearly mentioned in the document. The exact dates of commencement and completion of the deal are to be mentioned here.
- Duties, compensation, and benefits: The executive agreement should extensively discuss the share of responsibilities of both the nations, and companies, and should chalk out the plans in clear terms, such that there arises no confusion regarding the methods of execution of the agreement terms. The nature of the agreement is such that there will be clauses for benefits and compensation in cases of certain incidents, and all such clauses should clearly be mentioned here.
- Termination: The agreement may be ended due to a “breach of contract”, the conditions for which should be cited clearly, such that both parties are made aware of it and no untoward incidents occur or losses are incurred to either of the parties.