The status quo agreement was separate from the accession instrument formulated at about the same time by the Department of States, which was a legal document including a transfer of sovereignty to the extent defined in the instrument. [1] In banking, a status quo agreement between a lender and a borrower suspends the contractual repayment plan of a struggling borrower and imposes certain measures that the borrower must take. Status quo agreements are also used to suspend the usual limitation period to make a claim in court. [1] A recent example of two companies that have signed such an agreement is Glencore plc, a Swiss-based commodity trader, and Bunge Ltd, a U.S. agricultural commodities trader. In May 2017, Glencore took an informal step to buy Bunge. Shortly thereafter, the parties agreed to a status quo agreement that prevents Glencore from accumulating shares or making a formal offer for Bunge until a later date. The Kalat khanat, on the western outskirts of Pakistan, also decided to remain independent. It has signed a status quo agreement with Pakistan. Ordinary shareholders tend not to like status quo agreements because they limit the potential returns of a buyout.

Another type of status quo agreement occurs when two or more parties agree not to deal with other parties on a particular issue for a period of time. For example, in merger or acquisition negotiations, the intended buyer and potential purchaser may agree not to seek acquisitions with other parties. The agreement strengthens the incentives of the parties to invest in negotiation and diligence, while preserving their own potential agreement. A status quo agreement was an agreement signed between the new independent lords of India and Pakistan and the princely states of the Anglo-Indian Empire before their integration into the new reigns. The form of the agreement was bilateral between a government and a spring state. It provided that all administrative agreements between the British crown and the State would remain unchanged between the signatory regime (India or Pakistan) and the spring state until new agreements were concluded. [1] The State of Junagadh executed the accession instrument and the status quo agreement with Pakistan on 15 August. It was adopted by Pakistan on 13 September. [5] Junagadh was the only state to declare membership in Pakistan until 15 August. [6] A company that is pressured by an aggressive bidder or activist investor believes that a status quo agreement is useful in weakening the unsolicited approach. The agreement gives the target entity greater control over the deal process by requiring the bidder or investor to buy or sell the company`s shares or launch proxy contests. The state of Jammu and Kashmir, bordering India and Pakistan, has decided to remain independent.

She offered to sign status quo agreements with both gentlemen. Pakistan immediately agreed, but India called for further talks. On October 22, 1947, Pakistani tribes from the western districts of the state and the Pushtoon tribes from Pakistan`s northwestern border province invaded the state, with the support of Pakistan. The Maharajahs initially resisted, but asked India for help, which agreed on the condition that the sovereign join India. Maharaja Hari Singh signed the accession instrument on 26 October 1947 in return for military aid and assistance accepted by the Governor General the following day. A status quo agreement can be used as a form of defence of a hostile takeover when a target company receives a commitment from a hostile bidder to limit the amount of shares it buys or holds in the target company.