Framework Agreement
A framework agreement is an arrangement that sets out the basic terms and conditions for future deliveries or services over a defined period without fully specifying every individual order in advance. It typically covers prices, discounts, volume ranges, duration, delivery and payment terms, as well as pricing for later call-offs. This creates planning certainty and legal clarity for both parties while reducing administrative effort, because subsequent individual orders only need to refer to the agreed conditions. In day-to-day use, a framework agreement is concluded with a business partner so that call-off orders during the quarter are created automatically at the agreed prices and conditions.