Provision Database

Issue Introduction: Term of Agreement

This issue refers to provisions that define the duration of an agreement, as well as how that term might be extended. Consideration of an appropriate agreement term is important because it determines the period of time over which the parties intend to collaborate on a project and be bound by the terms of an agreement.

Questions to consider when developing a term of agreement provision

  • What is the required term of the agreement? Is it tied to the timeline of the project or license grants?

Example approaches found in the MAPGuide

  • The parameters used to define an agreement term can vary depending on the objective of the agreement. Some examples found in the MAPGuide include:
    • Product supply agreements with terms that end when an order volume is fulfilled by the supplier.
    • Development funding agreements with a duration tied to the completion of a statement of work or research plan. In some cases, these agreements may be extended if a further scope of work is agreed by the parties.
    • Licensing agreements with a term connected to the expiry date of the patent rights under the agreement.
    • Collaboration agreements with a term that continues until all payment obligations between the parties have been fulfilled.