Joinder agreements are used to include a person or organization in a contract, as if that new person were one of the original parties. Joinder agreements are legally binding as soon as they are implemented by each contracting party. A Joinder contract is signed only by the new shareholder and legally leads to the inclusion of a new party in the original shareholding contract. If you want to use the Joinder process to add future contract partners, you must include a clause in your contract that will allow you to do so. … and the representative of the First Link informed the collateral agent that this agreement or instrument constitutes the credit agreement (or part of it) and executed and delivered to the collateral agent a Joiner to the collateral agency and the intercreditor agreement … When a partnership envisions the movement in its membership base, a Joinder will facilitate the process of integrating new partners into the partnership. A De Joinder agreement is a kind of legal contract that is used when the parties create a trust fund. Individual funders and businesses use Joinder`s agreements, linked to other contracts and fiduciary contracts, to ensure that account funds are properly placed and distributed. A Joinder contract should only be signed by the new member or contracting party.
Another example is subcontracts. A person who signs a Joinder contract is a person who declares himself bound by the terms of an existing contract. The Joinder will allow them to take shares in new shareholders and let these individuals become parties to their shareholders` pact. You should use Joinder agreements in cases where your contract is likely to have new parties in the future and the identity of those parties is unknown at the time the contract is signed. If the subcontractor signs a Joinder, it becomes responsible for the same business conditions as the main contractor vis-à-vis the customer. Joinder`s agreements are often used in mergers and acquisitions for the union of individual shareholders on the terms of a merger agreement or a shareholders` pact and in fiduciary practice for the union of a donor under the terms of the trust. Of course, this use of Joinder has nothing to do with Joinder`s dictionary definitions. The definition proposed in the Black`s Law Dictionary is “the association of parties or claims into a single lawsuit.” By signing a Joinder, the new party agrees to be bound to all the same conditions as the original contract and becomes a new signatory.