If you are interested in using a master agreement for your business, you should consult a lawyer before signing a final draft, or investigate standard master agreements available online for little to no cost.
Function
Master agreements, or master contracts, are a type of contract used to consolidate multiple contracts between the same two parties.
Benefits
Because master agreements cover many aspects of an agreement that are unchanging, individuals and businesses save time and money that might have been spent renegotiating individual contracts.
Standards
Many government and private organizations have developed standard master agreements, including the widely used International Swaps and Derivatives Association Master Agreement.
Common Types
Master agreements are most commonly used by companies purchasing goods or services on a recurring basis. They can also be used for student loans, which are commonly distributed once per year for several years.
Considerations
Though master agreements cover the unchanging elements of recurring business relationships, individual contracts may be necessary to cover the specifics of an individual project.
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