Negotiating Umbrella Agreements

Experienced negotiators know that it is often impossible to define all terms of a complex agreement. By negotiating umbrella agreements, the negotiating parties try to balance the need for certainty and calculability of give-and-take processes with the need to remain sufficiently flexible to embrace new or emerging business opportunities. Umbrella agreements describe a joint consent that explicitly articulates a framework of rules and principles that guides future agreements. It is argued that negotiators are better able to maximize their joint gains if they differentiate between agreements and the framework in which agreements are made.