Group Contracts 

Definition

A group contract is a special type of commission contract with specific characteristics. It represents the legal basis for a partnership and it is a prerequisite for participation agreements in particular.

Group contracts are required for partnerships for the following additional reasons:

·        The partnership has the same address for the purposes of correspondence

·        The partnership participates in a commission case in the framework of target agreements In this case, the partnership as a whole may receive remuneration, and not just its members.

Structure

A partnership and a group contract have a strict assignment. After a group contract is assigned to a partnership, the assignment remains unchanged. It is not possible to end the partnership and to use the group contract again at a later stage.

A group contract is based on a standard contract that, in turn, is based on a specific contract type (for group contracts). At least one participation agreement must be defined in the standard commission contract. Additionally, any number of standard agreements can be defined.

A group contract is remunerated in the system as a commission contract in the normal way; however the valuation is not only distributed among the members of the partnership, it is also assigned to the group contract. Depending on the conditions in the group contract, the group contract itself may receive remuneration from the valuation, such as bonus points. Note, in this case, that this is additional remuneration over and above the agreed remuneration that the individual partnership members are entitled to.