Standstill Agreement In History
But in the 12 days following the signing of the status quo agreement with Jammu and Kashmir, Pakistan wrote a warning to The Maharaja on 24 August: "For Maharaja of Kashmir, it is time for him to make his choice and vote for Pakistan. If Kashmir does not arrive in Pakistan, the greatest difficulties will inevitably arise. Status quo agreements are also used to suspend the usual limitation period to make a claim in court.  Hyderabad`s Nizam, which had previously obtained a three-month extension to conclude new agreements with the Dominion of India, wrote to the Indian government on 18 September that it was ready to enter into an association agreement with India. But he said membership would cause unrest and bloodshed in the state.  On 11 October, Hyderabad sent a delegation to Delhi with a draft status quo agreement, described as "complex" by V. P. Menon, Secretary of the Ministry of Foreign Affairs. Minister of State Vallabhbhai Patel rejected any agreement that would not fully cede defence and foreign affairs matters to the Indian government. On the advice of Governor General Louis Mountbatten, Menon prepared a new draft treaty that was referred with the Hyderabad delegation. The Nizam Executive Council reviewed the agreement and approved it by six votes to three. Nizam agreed, but delayed the signing of the agreement.  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.  Another type of status quo agreement occurs when two or more parties agree not to deal with other parties for a specified 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. Hyderabad violated all the terms of the agreement: in foreign affairs, by carrying out intrigues with Pakistan, to which it had secretly lent 15 million pounds; in defence, by building a large semi-military army; communication, through interventions in border traffic and transit traffic of Indian railways.  India has also been accused of violating the agreement by imposing an economic blockade.