Monthly Archives: July 2022

Light Touch Agreement

When it comes to legal agreements, the term “light touch agreement” may not be one that you are familiar with. However, it is a term that is increasingly being used in the legal world, particularly in relation to technology contracts. So, what exactly is a light touch agreement and why is it becoming more popular?

In simple terms, a light touch agreement is an agreement that is less formal and less prescriptive than a traditional contract. The idea is to provide a framework for the parties involved to work together, without getting bogged down in legal jargon and strict clauses. Instead of being a document that is written in stone, a light touch agreement is designed to be flexible and adaptable.

One of the key benefits of a light touch agreement is that it can be created quickly and easily. Traditional contracts can take weeks or even months to negotiate and finalize, which can be a real barrier to doing business. With a light touch agreement, the parties can agree on the key terms and get started on their project without delay.

Another advantage of a light touch agreement is that it can help to build trust and collaboration between the parties. By working together to create a framework that is mutually beneficial, the parties can build a stronger relationship and ensure that everyone is on the same page.

Of course, there are some potential downsides to a light touch agreement. Because it is less formal than a traditional contract, there is a risk that key terms may be overlooked or misunderstood. It is important to ensure that the key elements of the agreement are clearly defined, to avoid any confusion or misunderstandings down the line.

Another potential issue with light touch agreements is that they may not provide the same level of protection as a traditional contract. If one party breaches the agreement, the other party may have limited legal recourse. This is something that should be considered carefully before entering into a light touch agreement.

In conclusion, a light touch agreement can be a useful tool for parties who want to work together in a flexible, collaborative way. However, it is important to ensure that the key terms are clearly defined and that both parties fully understand the implications of the agreement. With the right approach, a light touch agreement can help to streamline the contracting process and foster a more productive working relationship.

General Agreement on Traffics and Trade Came into Effect

On July 1st, 2020, the General Agreement on Traffics and Trade (GATT) came into effect. This agreement, which has been in negotiation for years, is aimed at reducing barriers to trade between countries and boosting economic growth.

The GATT is a multilateral agreement that was first signed in 1947, and it is now considered one of the most important trade agreements in modern history. The agreement has been revised several times over the years, and this latest version includes a number of new provisions that are aimed at improving international trade.

One of the main features of the GATT is the reduction of tariffs, or taxes on imports and exports. Tariffs can be a significant barrier to trade, as they increase the cost of goods and make them less competitive in foreign markets. With the GATT in place, tariffs are gradually being reduced or eliminated, making it easier for businesses to sell their products and services abroad.

Another key feature of the GATT is the creation of a dispute resolution mechanism. This mechanism is designed to help countries resolve trade disputes in a fair and impartial manner. With this mechanism in place, countries are less likely to resort to trade wars or other retaliatory measures when disputes arise.

The GATT also includes provisions aimed at promoting the development of developing countries. These provisions include measures to help these countries build their infrastructure and improve their access to foreign markets. By doing so, the GATT hopes to reduce poverty and encourage sustainable economic development in countries around the world.

Overall, the General Agreement on Traffics and Trade is an important step forward in the development of global trade. By reducing barriers to trade and promoting fair and open competition, the GATT is helping to create a more prosperous and interconnected world. While there are still challenges to be overcome, the GATT is a strong foundation upon which to build a more equitable and sustainable global economy.