Document background
The Master Agreement And Sub Agreement structure is designed for complex business relationships under German law where parties require a flexible yet consistent framework for ongoing collaboration. This document type is particularly useful when businesses need to establish a foundational agreement that sets out general terms, conditions, and governance structures, while allowing for specific arrangements through sub agreements. It's commonly used in scenarios involving multiple services, projects, or business streams where separate operational details need to be agreed upon but should be governed by consistent overarching terms. The master agreement provides the legal framework compliant with German contract law, including essential provisions from the BGB and HGB, while sub agreements contain specific commercial and operational details for individual arrangements. This structure is particularly valuable for long-term business relationships where new services or projects may be added over time without needing to renegotiate fundamental terms.
