Separate agreement: Overview, definition, and example
What is a separate agreement?
A separate agreement is a contract that is distinct and independent from other agreements, even if it involves the same parties or business relationships. It is a standalone document that outlines specific terms and conditions for a particular transaction, arrangement, or obligation. Separate agreements can address different aspects of a business relationship, such as a service contract, purchase agreement, or partnership, and are often used to clearly define the terms without combining them with other existing agreements.
Why is a separate agreement important?
A separate agreement is important because it helps ensure clarity and precision in business dealings. By creating a standalone contract for each specific matter, parties can clearly define their rights, responsibilities, and expectations without the complexity of intermingling multiple agreements. This approach reduces the risk of confusion, conflict, or unintentional breach of terms, making it easier to manage and enforce the terms of each agreement. Separate agreements also allow for flexibility, enabling businesses to enter into specific arrangements without affecting other agreements.
Understanding separate agreement through an example
For example, a company may enter into a partnership with another business to jointly market a product. However, in addition to this partnership agreement, the two companies may also create a separate agreement for the supply of goods, outlining specific terms for pricing, delivery, and quality. Each agreement addresses a distinct aspect of the business relationship, with the supply agreement not relying on or altering the terms of the partnership agreement.
In another example, a freelance graphic designer may sign a separate agreement with a client for a specific project. While the designer may have a general service agreement with the client for ongoing work, the project-specific contract would clearly define the scope, timeline, and payment terms for that particular job.
An example of a separate agreement clause
Here’s how a clause for a separate agreement might appear in a contract:
“This Agreement is separate from any other agreements between the Parties, and shall not affect or be construed as modifying any prior agreements. Each Agreement entered into between the Parties shall be considered independent and enforceable separately, unless otherwise specified.”
Conclusion
A separate agreement is a useful tool in business to ensure that each aspect of a relationship is clearly defined and managed on its own terms. It reduces confusion by addressing specific matters without mixing multiple obligations into a single contract. Whether in partnerships, service arrangements, or individual projects, separate agreements provide a structured way to handle different aspects of a business relationship, ensuring that all parties are on the same page and legal obligations are clearly outlined.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.