In the context of
negotiation
Negotiation is a dialogue between two or more people or parties to reach the desired outcome regarding one or more issues of conflict. It is an interaction between entities who aspire to agree on matters of mutual interest. The agreement c ...
s, a framework agreement is an agreement between two parties that recognizes that the parties have not come to a final agreement on all matters relevant to the relationship between them, but have come to agreement on enough matters to
move forward with the relationship, with further details to be agreed to in the future.
In the context of
procurement
Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or ser ...
, a framework agreement is an agreement between one or more businesses or organisations, "the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged".
International framework agreements
In
international law
International law (also known as public international law and the law of nations) is the set of rules, norms, and standards generally recognized as binding between states. It establishes normative guidelines and a common conceptual framework for ...
, such an agreement between countries or groups can acknowledge that they cannot reach full agreement on all issues, but are willing to memorialize a structure by which some disagreements can be resolved.
[Shabtai Rosenne, “The Framework Agreement as the Basis for the Jurisdiction of the International Court of Justice and Some Problems of Language”, in S. Rosenne, Essays on International Law and Practice (2007), pp. 161–170.]
In describing the effort to reach an agreement between
Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
and
Palestine, Senator
George J. Mitchell explained:
Entering into a framework agreement can shift the lawmaking power from the states to a plenary body, and can shift the basis for forming consent to new norms and standards reached through their negotiations. The practice of entering into framework agreements originated in the 1950s with an agreement regarding asylum between
Colombia and
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
.
A number of international accords are characterized as framework agreements:
*
Agreed Framework
The Agreed Framework between the United States of America and the Democratic People's Republic of Korea (북미제네바기본합의서) was signed on 21 October 1994, between North Korea (DPRK) and the United States. The objective of the agreeme ...
, between North Korea and the United States
*
Baker Plan
The Baker Plan (formally, Peace Plan for Self-Determination of the People of Western Sahara) is a United Nations initiative to grant self-determination to Western Sahara. It was intended to replace the Settlement Plan of 1991, which was furthe ...
, a United Nations initiative to grant self-determination to Western Sahara
*
Banana Framework Agreement
The Banana Framework Agreement (BFA) outlines regulations on the treatment, sharing, and production of bananas and other various banana related activities. It was concluded in 1993 between the European Union and Costa Rica, Colombia, Nicaragua and ...
, between the European Union and banana-producing countries
*
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation#BIMSTEC Free Trade Area Framework Agreement, involving the Bay of Bengal
*
Economic Cooperation Framework Agreement, between mainland China and Taiwan
*
General Framework Agreement for Peace in Bosnia and Herzegovina or Dayton Agreement
*
Iran nuclear deal framework
*
Strategic Framework Agreement
Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art ...
(SFA), between the United States and Iraq (2008)
*
Trade and Investment Framework Agreement, an international trade pact
Domestic framework agreements
Non-international framework agreements include:
*
Framework Agreement on the Bangsamoro, a preliminary peace agreement between the Moro Islamic Liberation Front and the government of the Philippines calling for the creation of an autonomous area, Bangsamoro
*
Social Union Framework Agreement, in Canada
Procurement
Businesses, especially public contracting authorities, may enter into framework agreements with one or more suppliers, which prescribe the terms and conditions which would apply to any subsequent contract and make provision for selection and appointment of a contractor by reference directly to the agreed terms and conditions or by holding a competition inviting only the partners to the framework agreement to submit specific commercial proposals.
In the public sector, a number of Central Purchasing Bodies exist whose purposes include the creation and management of framework agreements which are compliant with EU Procurement Directives and available for use by designated public bodies. In the United Kingdom, examples include
Crown Commercial Service
The Crown Commercial Service (CCS) is an executive agency and trading fund of the Cabinet Office of the UK Government. The CCS is responsible for managing the procurement of common goods and services, increasing savings for the taxpayer by centr ...
,
local authority
Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
consortia such as the
Eastern Shires Purchasing Organisation (ESPO) and
Yorkshire Purchasing Organisation (YPO), and consortia operating in the
higher and
further education sectors: APUC (in Scotland), Crescent Purchasing Consortium (CPC), London Universities Purchasing Consortium (LUPC), North Eastern Universities Purchasing Consortium (NEUPC), North Western Universities Purchasing Consortium (NWUPC), and Southern Universities Purchasing Consortium (SUPC). For a more complete list, see
List of central purchasing bodies in the United Kingdom
The
Chartered Institute of Procurement & Supply makes a distinction between a "framework contract" and a "framework agreement". Under a framework contract, some form of
consideration is paid "up front" to secure the commitment of the supplier to the agreed terms and conditions. The value of the consideration may be for a nominal amount only. A framework agreement, or an "umbrella agreement", lacks consideration and therefore lacks obligation: a "pricing formula" may apply for a period of time (e.g. a price list) or prices and further details may be determined via a "mini-competition".
[Chartered Institute of Procurement & Supply]
Framework Arrangements
Knowledge Summary, n.d., accessed 29 January 2021
References
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International law