Accession agreement

by Practical Law Commercial

A standard document in the form of an accession agreement that provides a framework for adding a new party to an existing bilateral agreement. This accession agreement is designed for situations where a new entity, often an affiliate, seeks to join an existing contract, such as a supply of goods or services agreement, with the same rights and obligations as either the original supplier or customer. This standard document establishes a direct contractual relationship between the new party and the other original party. A key feature is the provision for several liability, which clarifies that the new party and the existing party it mirrors are only responsible for their own respective breaches. This accession agreement also contains optional clauses for managing the contract as a multi-party agreement, including appointing an agent and making other necessary amendments.