Professional Documents
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Commercial Contract With Back
Commercial Contract With Back
Commercial Contract With Back
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[between/among]
First Party
and
Second Party
Parties
(1) [FULL NAME OF MAIN CONTRACTOR] incorporated and registered in England and
Wales with company number [NUMBER] whose registered office is at [REGISTERED
OFFICE ADDRESS] (Main Contractor).
BACKGROUND
(A) The Main Contractor [expects to enter OR has entered] into an agreement (the Main
Contract, as defined in clause 1.1) under which the Main Contractor agrees to [supply
goods and services to OR [INCLUDE REFERENCE TO NATURE OF WHAT IS TO
BE SUPPLIED]] [FULL NAME OF CUSTOMER] (Customer).
(B) The Main Contractor [will enter OR has entered] into the Main Contract on the basis that
it will be the Subcontractor that supplies all the goods and services specified in the [Main
Contract OR Subcontract Scope of Work (as defined in clause 1.1)], on a "back-to-back"
basis with the Main Contractor [but for the benefit of the Customer], and in accordance
with the provisions set out below.
Agreed terms
1. Interpretation
1.1. Definitions:
Control shall have the meaning as defined in section 1124 of the Corporation Tax Act 2010, and
the expression change of control shall be construed accordingly.
Day means a period of 24 consecutive hours [ending at 12.00 midnight OR starting at [TIME]].
[Mandatory Policies means the Main Contractor's mandatory policies and procedures [listed in
Schedule 5], as amended by notification to the Subcontractor from time to time.]
[Subcontract Scope of Work means the specification set out in Schedule 2.]
Headings in this agreement shall not affect the interpretation of this agreement.
1.3. Definitions
Except as expressly defined in [this clause 1 and] Schedule 3 of this agreement, terms as
defined in the Main Contract shall have the same meaning when used in this agreement.
1.4. Interpretation
Except as expressly provided herein, the rules of interpretation in the Main Contract
shall apply to this agreement.
1.5. Incorporation
For the purposes of this agreement, references in the Main Contract to "this agreement"
shall be to the Main Contract as amended by this agreement, with the alterations made
for the purposes of this agreement.
Unless the context otherwise requires, words in the singular shall include the plural and
in the plural shall include the singular.
Unless the context otherwise requires, a reference to one gender shall include a
reference to all genders.
A reference to any party shall include the party's personal representatives, successors
and permitted assigns.
[Any reference to an English legal term for any action, remedy, method of judicial
proceeding, legal document, legal status, court, official or any legal concept or thing
shall be deemed to include a reference to that which most nearly approximates to the
English term in that jurisdiction.]
This agreement and any reference to this agreement or any other agreement or
document referred to herein is a reference to this agreement as varied or novated (in
each case, other than in breach of the provisions of this agreement) from time to time.
Any words following the terms including, include, in particular, for example or any
similar expression shall be construed as illustrative and not limit the sense of the words,
description, definition, phrase or term preceding those terms.
2. Effective Date
2.1. Effectiveness
Subject to clause 2.2 to [clause 2.3 OR clause 2.4] below, this agreement shall have
legal effect from the date on which it is signed on behalf of both parties (Effective
Date).
The Main Contractor shall notify the Subcontractor in writing as soon as the Main
Contract becomes effective.
[If the Main Contractor has not received written notice from the Subcontractor that the
Main Contract has become legally effective by close of business [in London] on or
before [DATE] (or such later date agreed in writing by the parties), this agreement shall
cease to have effect, except for clauses [ANCILLARY CLAUSES THAT WOULD
REMAIN IN EFFECT].]
3. [Bid process
The Main Contractor shall offer to supply the goods and services specified in the Main
Contract to the Customer.
Whether or not the Main Contractor decides to enter into the Main Contract with the
Customer shall be wholly at the option of the Main Contractor.
4. Back-to-back agreement
4.1. Subcontractor to perform duties of Main Contractor
[As soon as this clause becomes effective under clause 2 above, the Subcontractor shall
discharge in full all the duties imposed upon the Main Contractor in the Main Contract
and have in full all the rights, privileges, options and protections that the Main
Contractor has in the Main Contract except as further provided herein.]
OR
As soon as this clause becomes effective under clause 2 above, the Subcontractor shall
be bound to the Main Contractor in respect of the Subcontract Scope of Work as the
Main Contractor shall be bound to the Customer under the Main Contract except as
further provided in this agreement.]
Except as further provided in this agreement, the Main Contract shall be used to
determine the respective rights and duties of the Main Contractor and the Subcontractor
under this agreement except that:
5.1. Indemnification
The Subcontractor shall indemnify the Main Contractor against all losses, claims,
demands, costs and expenses incurred or suffered by the Main Contractor (including all
claims for liquidated damages by the Customer against the Main Contractor [as a result
of entering into this agreement and the Main Contract OR arising out of the Subcontract
Scope of Work]. Notwithstanding clause 8, liability under this clause 5.1 shall be
unlimited.)
[The Main Contractor shall give to the Subcontractor notice in writing as soon as
possible after it becomes aware of any dispute between the Main Contractor and the
Customer arising out of the [Main Contract OR Subcontract Scope of Work],]
The Subcontractor shall deal with any disputes that arise between the Main Contractor
and the Customer arising out of the [Main Contract OR Subcontract Scope of Work]
and shall control and pay in full for any litigation, arbitration, mediation, adjudication,
expert determination or other dispute settlement procedure in which the Main
Contractor might be involved as a result of entering into this agreement. Provided that
the Main Contractor gives to the Subcontractor written notice as required by clause 5.2
above, whereupon The Subcontractor shall be deemed to have sole authority to manage
and settle such dispute.
on demand, pay to the Main Contractor the amount of all costs and expenses
(including legal and out-of-pocket expenses) incurred by the Main Contractor
in connection with enforcing or preserving any rights under, or monitoring the
provisions of this agreement[, and any other document referred to in it; and
The Main Contractor shall indemnify the Company against any cost, loss or
liability incurred by the Company in relation to all stamp, documentary,
registration and other similar duties and taxes payable in respect of this
agreement and any other document referred to herein.
[The Subcontractor shall pay the Main Contractor any amounts due to the Main
Contractor within 30 days of receipt of invoice, unless otherwise stated in this
agreement.]
The Main Contractor shall pay to the Subcontractor, as full consideration for the
performance by the Subcontractor of its duties under this agreement, all amounts that
the Main Contractor actually receives under the Main Contracts [after deducting
commission to the Main Contractor at the rates set out in Schedule 4].
OR
The Main Contractor shall pay to the Subcontractor as full consideration for the
performance by the Subcontractor of its duties under this agreement the amounts set out
in Schedule 4 at the times specified in Schedule 4.]
The Main Contractor agrees to promptly and in full transfer all sums received from the
Customer to the Subcontractor except for deductions referred to in clause 6.1.
6.3. Set-off
The Main Contractor may at any time and at its option[, without notice to the
Subcontractor,] set off any liability of the Subcontractor to the Main Contractor
(including any amounts due under clause 5 above) against any liability of the Main
Contractor to the Subcontractor, whether either liability is present or future, liquidated
or unliquidated, and whether or not either liability arises under this agreement. If a debt
owed by one party is set off against a debt owed by another party in this manner, each
party's obligation with regard to that debt remains unchanged. The Main Contractor may
exercise its rights under this clause only insofar as they do not limit or affect other rights
it has available under this agreement.
Each party shall at its own expense comply with all applicable laws and regulations
relating to its activities under this agreement, as they may change from time to time, and
with any conditions binding on it in any applicable licences, registrations, permits or
approvals.
Mandatory policies. The Subcontractor shall comply with the Mandatory policies [and
[INSERT RELEVANT INDUSTRY CODE IF ANY]], [in each case] as the Main
Contractor [or the relevant industry body] may update them from time to time;
8. Limitation of liability
Nothing in this agreement shall limit or exclude the liability of either party for:
(a) Negligence
(c) Liability
(a) Liability
Neither party shall under any circumstances whatever be liable to the other,
whether in contract, tort (including negligence), equity (including restitution),
breach of statutory duty, or otherwise, for:
the total liability of either party for damage to property caused by the
negligence of its employees in connection with this agreement shall be limited
to £[AMOUNT LINKED TO RELEVANT INSURANCE POLICY] for any
one event or series of connected events; and
The total liability of either party to the other for all other loss or damage arising
under or in connection with this agreement, whether in contract, tort (including
negligence), equity (including restitution), breach of statutory duty, or
otherwise, shall not exceed £[AMOUNT] for the entire term of this agreement.
[The Main Contractor shall not be responsible to the Subcontractor for any failure to
perform its obligations under this agreement where there is a corresponding failure by
the Customer to perform its obligations under the Main Contract, provided that] [the
Main Contractor takes all reasonable steps to pursue its rights under the Main Contract.]
This agreement shall be effective from the Effective Date and shall continue in force
until the parties have discharged all their obligations under it unless:
the Main Contract is terminated for any reason, in which case this agreement
shall terminate immediately and automatically, without further action being
necessary by the parties, and subject to all the rights of the parties accrued up
to the date of termination; or
10. Termination
the other party fails to pay any amount due under this agreement on the due
date for payment and remains in default not less than [NUMBER] days after
being notified [in writing] to make such payment;
the other party commits a [material] breach of any [material] term of this
agreement [(other than failure to pay any amounts due under this agreement)]
and (if such breach is remediable) fails to remedy that breach within a period of
[NUMBER] days after being notified [in writing] to do so;
If the other party repeatedly breaches any of the terms of this agreement, it
shall be reasonable for you to have the opinion that its conduct is inconsistent
with it having the intention or ability to give effect to the terms of this
agreement.
the other party commences negotiations with all or any class of its creditors
with a view to rescheduling any of its debts, or makes a proposal for or enters
into any compromise or arrangement with its creditors [other than (being a
company) for the sole purpose of a scheme for a solvent amalgamation of that
other party with one or more other companies or the solvent reconstruction of
that other party];
(f) Insolvency
the other party applies to court for, or obtains, a moratorium under Part A1 of
the Insolvency Act 1986; or
(g) Winding up
(h) Administration
the holder of a qualifying floating charge over the assets of that other party
(being a company) has become entitled to appoint or has appointed an
administrative receiver;
a person becomes entitled to appoint a receiver over the assets of the other
party or a receiver is appointed over the assets of the other party;
any event occurs, or proceeding is taken, with respect to the other party in any
jurisdiction to which it is subject that has an effect equivalent or similar to any
of the events mentioned in clause 10.1(d) to clause 10.1(k) (inclusive);
[There is a change of control of the other party (within the meaning of section
1124 of the Corporation Tax Act 2010)].
over [the term of this agreement OR any [NUMBER]-month period during the term of
this agreement]. In deciding whether any breach is material no regard shall be had to
whether it occurs by some accident, mishap, mistake or misunderstanding.]
The Main Contractor may terminate this agreement immediately by notice in writing if
the Subcontractor is in breach of its compliance obligations under clause 7.
[Each OR Each] party shall use all reasonable endeavours to procure that any necessary
third party shall [promptly] execute and deliver such documents and perform such acts
as may [reasonably] be required for the purpose of giving full effect to this agreement.
12. Counterparts
12.1. This agreement may be executed in any number of counterparts, each of which shall
constitute a duplicate original, but all the counterparts together shall constitute the one
agreement.
[Transmission of [an executed counterpart of this agreement (but for the avoidance of
doubt not just a signature page) OR the executed signature page of a counterpart of this
agreement by [(a) fax or (b)] email (in PDF, JPEG or other agreed format) shall take
effect as the transmission of an executed "wet-ink" counterpart to this agreement. [If
[this OR either] method is adopted, without prejudice to the validity of the agreement
thus made, each party shall on request provide the other[s] with their "wet ink" hard
copy original[s].]]
12.3. Effectiveness
[No counterpart shall be effective until each party has [provided OR delivered] to the
other[s] at least one executed counterpart.]
No one other than the party to this agreement, [their successors and permitted
assignees], shall have any right to enforce any of its terms.
Nothing in this agreement shall be construed to, or be intended to, establish any
partnership or joint venture between any of the parties, constitute any party the agent of
another party, or authorise any party to make or enter into any commitments for or on
behalf of any other party except as expressly provided herein.
14.2. Each party confirms it is acting on its own behalf and not for the benefit of any
other person.
Each party confirms that it is acting on its own behalf and not for the benefit of any
other person.
15. Conflict
If there is any conflict between this schedule and the other clauses of this agreement, the
other clauses of this agreement shall take precedence.
15.2. Schedule 4 takes precedence.
If there is any conflict between this schedule and any other clauses or schedules of this
agreement, this schedule shall take precedence.
This agreement and any dispute or claim arising out of or in connection with it, its
subject matter or formation (including non-contractual disputes or claims) shall be
governed by and construed in accordance with the law of England and Wales.
17. Jurisdiction
[Each party irrevocably agrees that the courts of England and Wales shall have
[exclusive OR non-exclusive] jurisdiction to settle any dispute or claim arising out of or
in connection with this agreement or its subject matter or formation (including non-
contractual disputes or claims).
OR
Each party irrevocably agrees, for the sole benefit of [PARTY 1] that, subject as
provided below, the courts of England and Wales shall have exclusive jurisdiction over
any dispute or claim arising out of or in connection with this agreement or its subject
matter or formation (including non-contractual disputes or claims). Nothing in this
clause shall limit the right of [PARTY 1] to take proceedings against [PARTY 2] in any
other court of competent jurisdiction, nor shall the taking of proceedings in any one or
more jurisdictions preclude the taking of proceedings in any other jurisdictions, whether
concurrently or not, to the extent permitted by the law of such other jurisdiction.
OR
17.3. Option 3: Reciprocal: defendant's home country clause
Each party irrevocably agrees that any proceedings relating to any dispute or claim,
arising out of or in connection with this agreement or its subject matter or formation
(including non-contractual disputes or claims) instituted against [PARTY 1] by
[PARTY 2] shall be brought in the courts of [PARTY 1'S COUNTRY OF DOMICILE]
and any such proceedings against [PARTY 2] by [PARTY 1] shall be brought in the
courts of [PARTY 2'S COUNTRY OF DOMICILE]. [Each party agrees that the
specified courts shall have exclusive jurisdiction over such disputes or claims save that
any counterclaim may be brought in any proceedings already commenced.]]
This agreement has been entered into on the date stated at the beginning of it.
SCHEDULES:
3. 4. 5.
6. 7. 8.
9. 10.11.
S
[EITHER
The alterations are indicated in the [following OR attached] version of the Main Contract, which
has been marked up to show deletions, additions and amendments made for the purposes of this
agreement.
OR
The alterations to the Main Contract for the purpose of this agreement are as follows:
a)
b)
c)
12.1.
SIGNATORIES:
Director
....................
Director