Global Versus Local Agreements
When an organization is contemplating a large commercial agreement or outsourcing arrangement covering global operations across multiple service locations, subsidiaries, or affiliates, it should consider the advantages and potential pitfalls of using a single global agreement versus local (or “site-specific”) agreements to govern the transaction, writes Emily R. Lowe in an article published in a Morgan Lewis blog.
She outlines the benefits of global agreements and of site-specific agreements and discusses some potential pitfalls.
Lowe also describes effective general approach that can benefit from the advantages of using a global agreement while avoiding its potential pitfalls: entering into a single global agreement applicable to all services from a single service provider that either requires or permits (as appropriate) the divisions, subsidiaries, or affiliates of the parties to enter into separate local agreements.
