What is a framework agreement (raamovereenkomst) under Dutch law?

Dutch term: Raamovereenkomst | Legal basis: Freedom of contract

A framework agreement (raamovereenkomst) under Dutch law is an overarching contract that sets the general terms for a series of future individual transactions (purchase orders, service requests, call-off orders). The framework agreement is not a specific statutory contract type; it is governed by freedom of contract and the general rules of Book 6 BW.

Typical provisions include pricing mechanisms, ordering procedures, delivery terms, quality standards, minimum and maximum volumes, exclusivity, term, termination and the incorporation of general terms and conditions. Individual orders placed under the framework agreement form separate contracts governed by its terms. The framework agreement itself may or may not create an obligation to place orders.

Why it matters for international businesses

For supply chain relationships in the manufacturing industry, framework agreements are the standard structure for managing ongoing procurement. Getting the balance between flexibility and commitment right is the key drafting challenge.