The Frame Agreement is designed for businesses seeking to establish a long-term contractual relationship under Austrian law, where multiple transactions or services are anticipated over time. This document type is particularly valuable when parties expect to engage in repeated business interactions and wish to avoid negotiating complete contracts for each transaction. The Frame Agreement sets out the overarching terms and conditions, including general obligations, pricing principles, liability frameworks, and operational procedures, while leaving specific details to be determined in subsequent Individual Contracts. It ensures compliance with Austrian legal requirements, including the ABGB and UGB, while incorporating relevant EU regulations. This approach provides legal certainty and operational efficiency, making it especially suitable for ongoing business relationships in various sectors such as supply chain, services, or manufacturing.
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1. Parties: Identification and details of the contracting parties, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the parties' intention to enter into a frame agreement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Individual Contracts', 'Services/Products', and other relevant terms
4. Subject Matter of the Agreement: Overview of the frame agreement's purpose and scope, including the general nature of future Individual Contracts
5. Process for Individual Contracts: Procedures and requirements for forming Individual Contracts under the frame agreement
6. Duration and Termination: Term of the frame agreement, renewal provisions, and termination rights
7. Prices and Payment Terms: General pricing principles, payment terms, and invoicing procedures
8. General Obligations of the Parties: Core responsibilities and commitments of each party
9. Confidentiality: Provisions protecting confidential information exchanged under the agreement
10. Liability and Indemnification: Allocation of risks and responsibilities between the parties
11. Force Majeure: Provisions addressing unforeseeable circumstances preventing contract performance
12. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Intellectual Property Rights: Required when the frame agreement involves licensing, creation, or use of intellectual property
2. Data Protection: Necessary when personal data processing is involved, ensuring GDPR compliance
3. Quality Assurance: Important for agreements involving product supply or standardized services
4. Compliance with Laws: Detailed compliance obligations when operating in regulated industries
5. Insurance: Insurance requirements when services or products involve significant risks
6. Non-Competition: Restrictions on competitive activities, if relevant to the business relationship
7. Service Levels: When specific performance standards need to be maintained
8. Audit Rights: When one party requires rights to audit the other's compliance or performance
9. Subcontracting: Rules regarding the use of subcontractors in performing obligations
1. Schedule 1 - Pricing Schedule: Detailed pricing structure, including any volume discounts or pricing mechanisms
2. Schedule 2 - Service/Product Specifications: Detailed description of services or products covered by the agreement
3. Schedule 3 - Individual Contract Template: Standard form for Individual Contracts to be concluded under the frame agreement
4. Schedule 4 - Key Performance Indicators: Specific performance metrics and measurement methods
5. Schedule 5 - Contact Persons: List of authorized representatives and contact details for both parties
6. Schedule 6 - Technical Requirements: Technical specifications or requirements for products/services
7. Appendix A - Data Processing Agreement: Required GDPR compliance documentation if personal data is processed
8. Appendix B - Security Requirements: IT security or physical security requirements if applicable
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Information Technology
Professional Services
Logistics and Supply Chain
Telecommunications
Construction
Healthcare
Financial Services
Energy and Utilities
Retail and Distribution
Automotive
Consulting Services
Industrial Services
Software and Technology
Relevant Teams
Legal
Procurement
Commercial
Business Development
Operations
Supply Chain
Compliance
Risk Management
Sales
Finance
Contract Management
Relevant Roles
Chief Executive Officer
Chief Legal Officer
Legal Counsel
Contract Manager
Procurement Manager
Commercial Director
Business Development Manager
Supply Chain Manager
Operations Director
Project Manager
Account Manager
Compliance Officer
Risk Manager
Sales Director
General Counsel
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