If two parties A & B both agreed to sign off on a development program document on x date, where the development program document states the agreement will take effect on Y date, however A changes their mind and sends notification in writing to other party B stating they reject the program on date C, prior to/ before agreement takes effect on Y date
Does A have to continue to accept agreement or does it become null and void?
If the agreement is a contract (What is a contract and what is required for them to be valid?), then it’s binding and failing to fulfil the obligations in it is a breach that can lead to a lawsuit. The innocent party is entitled to be put in the position they would have been in but for the breach. So if B expected a $5 million profit (or whatever) then A must make B whole by paying them $5 million (or whatever).
If the agreement is just an agreement then either party can cancel unless they are estopped. Estoppel is a complex area of equity law which in this instance says if A made a promise and B relied on that promise to take or not take some action and A knows B is doing that and B will suffer loss if A breaks that promise then A can’t break their promise. More or less, as I said, estoppel is complicated.
