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Agreements are the mechanism that will enable organizations to enforce a subjective set of rules, which cannot be encoded into smart contracts, to govern actions performed in the organization. It will act as the bridge between an Aragon organization and Aragon Court, adding into organizations the substantial new capability of exceptionally challenging members' actions and raising disputes to Aragon Court.
Our initial vision for Agreements has been refined over time. You may be interested in our previous blog post explaining our initial thoughts behind Agreements and how they could produce a more "optimistic" organization. Those mechanisms are still possible in our current design.