The draft status quo agreement was drawn up on 3 June 1947 by the political department of the British-Indian government. The agreement provided that all administrative agreements of “common interest” between the British Crown and a particular signatory state would be kept unchanged between the signatory regime (India or Pakistan) and the State until new agreements are concluded. A separate timetable set out issues of common interest. During the discussion, Jawaharlal Nehru, India`s future prime minister, expressed doubts about whether the agreement should cover only “administrative” issues. Mohammad Ali Jinnah, the future Governor General of Pakistan, spoke in his favour.  The status quo agreement was separate from the accession instrument formulated at about the same time by the United States Department, which was a legal document including a transfer of sovereignty to the extent defined in the instrument.  On August 12, 1947, J-K sought a status quo agreement with India and Pakistan: “Jammu and the Government of Kashmir would welcome a status quo agreement with the Indian Union/Pakistan on all matters relating to agreements with the outgoing government of India.” 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. Both draft treaties were submitted to the House on 25 July.
A state negotiating committee was formed, which reviewed the two agreements, consisting of ten leaders and twelve ministers. After discussion, the Committee finalized the two draft agreements on 31 July.  The Kalat Khanate, on the western outskirts of Pakistan, also decided to remain independent. It has signed a status quo agreement with Pakistan. The new delegation obtained only trivial changes to the previous draft agreement.  It established that all subsequent agreements and administrative arrangements between the British Crown and Nizam would be maintained with the Indian government. These include defence, foreign affairs and communication (the three themes that are normally addressed in the accession instrument). The agents would be exchanged between Hyderabad and India. The Indian government has agreed to relinquish the functions of the supreme government. The status quo agreement is expected to remain in effect for a one-year period.  The agreement was signed by Nizam on November 29, 1947.
 A status quo agreement was an agreement between the new independent lords of India and Pakistan and the princely states of the British-Indian Empire before they were integrated 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.  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.  Junagadh was the only state to declare membership in Pakistan until 15 August.  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 choose Pakistan.