Which of the following best explains 'a framework agreement'?
A) An agreement to establish contractual terms such as price.
B) A formal contract.
C) Purchaser rights.
D) Supplier obligations.

Question

Which of the following best explains 'a framework agreement'? 
A) An agreement to establish contractual terms such as price. 
B) A formal contract. 
C) Purchaser rights. 
D) Supplier obligations.

Quizplus · Accepted Answer

A framework agreement is an agreement between a purchaser and a supplier which establishes the terms and conditions under which contracts will be awarded throughout a period of time, usually several years. These may include things such as pricing, delivery schedules, and terms of payment. However, it is not a formal contract in itself, but rather a foundation upon which specific contracts can be built. It does not necessarily guarantee purchaser rights or supplier obligations, but rather sets the general framework for future dealings between the parties.

Which of the Following Best Explains 'A Framework Agreement