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What Does Mutual Agreement Mean

Reciprocity agreements have a number of different legal terms. They are sometimes called mutual contracts or mutual agreements. A mutual agreement is neither legal nor binding on the parties unless all of these factors are present. Mary could agree to drive, but it wouldn`t be a binding mutual agreement if she didn`t have a driver`s license. Termination of an employment contract by mutual termination agreement is not a condition that triggers the right to unemployment insurance under Law No. 4447 on Unemployment Insurance. Finally, before executing mutual termination agreements, employees must be expressly informed and the mutual and common intentions of employees must be demonstrated in order to reduce the risk of a subsequent challenge to the nullity of the legal effects of the agreement. Reciprocal termination agreements must be concluded in writing and the principle of „reasonable advantage“ must be taken into account in the rights to be granted to the employee. In particular, the granting of certain material advantages in addition to ordinary statutory compensation is crucial to the existence of the principle of „reasonable performance“. In the law, the concept is somewhat vague.

Mutual agreement forms the basis of a contract, and contracts can be breached and enforced – sometimes even if they are only sealed by a handshake. In the 1500s, courts began to require federal reciprocity for agreements, meaning that promises could only be fulfilled if they were given in exchange for what was eventually called „consideration.“ Soon, the concept also became known as „quid pro quo,“ the exchange of one promise or action for another. The early 20th century brought changes that protected both parties to a mutual agreement or contract. The details needed to enforce mutual agreements were determined by state legislatures and Congress, and then enforced by state and federal courts. From the mid-1960s on, better consumer protection was achieved, which ensured a real mutual agreement between consumers and large companies. Mutual agreement procedures If difficulties or doubts arise between the Parties as to the implementation or interpretation of this Agreement, the Parties shall do their best to resolve the matter amicably. Legal compensation related to the termination of an employment contract (i.e., severance and severance pay) generally does not apply to valid mutual termination agreements. However, the parties may agree on another arrangement for the payment of such compensation.

In addition, in considering the „reasonable performance“ criteria, the Supreme Court pays particular attention to the realization of additional compensation and payments as a factor that affects the validity of the mutual termination agreement. A specific provision on reciprocal termination agreements is missing from the Labour Code. However, Supreme Court decisions have repeatedly emphasized that reciprocal termination agreements, since they are legally „termination agreements“, are subject to the general provisions of the Code of Obligations […].

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