The joinder agreement is a formal document that highlights the joining of one party with another. This could be between companies or one agent with a company. The agreement essentially highlights the nature of the joining as well as the rights and obligation that the newly joined party possesses. The joinder agreement, thus, is entered into with particular intent of a certain kind of agreement whether it is credit agreement or operation agreement etc. This is applicable only after the party joins in. In the United States, the joinder agreement is considered to be an important legal document. Here, the document acts as a joining of causes of action in criminal or civil suits. The parties are then referred to as plaintiffs and defendants.
The purpose of such an agreement is to emphasize on the acceptance of certain terms and conditions after which the party agrees to join the company. The party automatically becomes liable to certain clauses that were mentioned before hand. This document can also serves as a merger between parent companies and its several branches. The kind of agreement gives certain amount of consent within which the newly joined party can invest funds, allocate different plans and strategize accordingly, acting on behalf of the company. The document, hence, requires careful formatting and structuring and needs a professional expert for its construction. There are a few necessary points to be kept in mind while creating the joinder agreement:
- The name of the two parties concerned in this agreement must be mentioned initially in this document.
- The purpose of the joining needs to be clearly stated. This will include the legal rights that the newly joined party can exercise as well as the limitations within which they must remain. This will also include the nature of the agreement into which the two parties are entering upon.
- The time period within which this joinder agreement is valid must also be mentioned. Most of the times, this is a permanent feature but sometimes this document can be used for a limited period of time especially when a particular agent is required for a definite function within the company.
- In case of breach of any of the terms and conditions mentioned in this document, the company can take legal steps against the newly joined party.
- Lastly, this document will serve as future reference and must have simple language free from any legal jargon.