Home Debt Recovery “Agreement in Principle” – is it mandatory? Mr Leahy then applied to the Court for the “agreement in principle” to be valid and enforceable. Legally, an agreement in principle is a stepping stone to a contract. These agreements are generally considered fair and equitable with regard to the principle. Although not all the details are known, an agreement in principle may, for example, follow a royalty schedule. A legally enforceable but unspecified agreement between the parties, which identifies the basic terms that will be or will be agreed. The parties attempted to resolve their dispute and participated in mediation. As they could not reach an agreement during the mediation, the lawyers continued negotiations the next day. Although not all the details are known, an agreement in principle may, for example, follow a royalty schedule. Or another example could be tax reform, said senior Republican Party advisers in the United States, lawmakers have reached an agreement in principle on the final package.