A status quo agreement is a contract that contains provisions governing how a bidder in a company can buy, sell or vote shares of the target company. A status quo agreement can effectively paralyze or stop the hostile takeover process if the parties are unable to negotiate a friendly agreement. The Kalat khanat, on the western outskirts of Pakistan, also decided to remain independent. It has signed a status quo agreement with Pakistan. In banking, a status quo agreement between a lender and a borrower terminates the contractual repayment plan of a struggling borrower and imposes certain steps that the borrower must take. At the international level, it may be an agreement between countries to maintain the current situation, in which a responsibility owed to one to the other is suspended for a specified period of time. A status quo agreement between a lender and a borrower may also exist when the lender stops requiring a planned interest or capital payment for a loan to give the borrower time to restructure its debts. 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.  A status quo agreement between a bank and a borrower operates on lines similar to those shown above. It suspends the contractual repayment plan of a stressed borrower and imposes certain conditions on the borrower.
Prior to their accession to the new territories, a status quo agreement was negotiated between India and Densern and the princely states of the British Indian Empire. It was a bilateral form of the agreement. During the status quo period, a new agreement is negotiated, which generally changes the original loan repayment plan. This option is used as an alternative to bankruptcy or enforced execution if the borrower cannot repay the loan. The status quo agreement allows the lender to save some value from the loan. In the event of forced execution, the lender must receive nothing. By working with the borrower, the lender can improve its chances of repaying some of the outstanding debt. On 15 August, the State of Junagadh implemented the accession instrument and the status quo agreement with Pakistan. It was adopted by Pakistan on 13 September.  Junagadh was the only state to declare membership in Pakistan until 15 August.
 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.