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THE BINDING NATURE OF COURT AGREEMENTS IN COURT DISPUTES

By: ANTONIS GEORGIOU Jan. 17, 2025

Introduction

In legal disputes, particularly in the realm of construction, agreements made before a court carry significant weight. These agreements, often crafted to streamline dispute resolution, are legally binding and enforceable. Understanding this principle is critical for any party involved in litigation, as the commitments made before the court can shape the outcome of the case and have long-lasting consequences.

Legal Framework

Under the law, agreements reached between disputing parties during court proceedings are recognized as binding contracts. These agreements are not merely procedural formalities but carry substantive legal force. Courts uphold these agreements as they reflect the parties' intentions to resolve their differences without the need for extended litigation. Importantly, once such an agreement is recorded, a party cannot unilaterally alter its terms without court approval or mutual consent.

Case Example: Binding Agreements in Practice

A recent case involving a construction dispute highlighted the importance of pre-court agreements. The parties had initially agreed to appoint an independent expert to resolve issues of defective work and compliance with contractual obligations. This agreement, recorded in the court proceedings, was later contested by one party.  First instance court did not take into account the parties’ agreement and tried the case ignoring it. However, the appellate court reaffirmed the binding nature of the agreement, emphasizing that such commitments, once made, must be honored unless there is evidence of duress or fraud. First instance court decision was overturned.

Key Takeaways for Clients

  1. Precision Matters: Ensure that any agreement presented to the court accurately reflects your intentions and understanding.
  2. Seek Legal Advice: Always consult with your lawyer before entering into any agreement during court proceedings to fully understand its implications.
  3. Irrevocability: Recognize that once an agreement is recorded, it becomes binding and enforceable.

Why Choose Phoebus, Christos Clerides & Associates LLC 

Phoebus, Christos Clerides & Associates LLC bring extensive legal expertise in construction disputes and a deep understanding of court procedures. They are committed to guiding clients through every step of the legal process, ensuring that their rights and interests are protected. For personalized legal advice and a free consultation, contact our office today.