Common use of Implementing Agreements Clause in Contracts

Implementing Agreements. An im- plementing agreement, if it satisfies the criteria discussed in paragraph (a) of this section, may be an inter- national agreement, depending upon how precisely it is anticipated and identified in the underlying agreement it is designed to implement. If the terms of the implementing agreement are closely anticipated and identified in the underlying agreement, only the underlying agreement is considered and international agreement. For ex- ample, the underlying agreement might call for the sale by the United States of 1000 tractors, and a subse- quent implementing agreement might require a first installment on this obli- gation by the sale of 100 tractors of the brand X variety. In that case, the im- plementing agreement is sufficiently identified in the underlying agreement, and would not itself be considered an international agreement within the meaning of the Act or of 1 U.S.C. 112a. Project annexes and other documents which provide technical content for an umbrella agreement are not normally treated as international agreements. However, if the underlying agreement is general in nature, and the imple- ▇▇▇▇▇▇▇ agreement meets the specified criteria of paragraph (a) of this section, the implementing agreement might well be an international agreement. For example, if the underlying agree- ment calls for the conclusion of ‘‘agreements for agricultural assist- ance,’’ but without further specificity, then a particular agricultural assist- ance agreement subsequently con- cluded in ‘‘implementation’’ of that ob- ligation, provided it meets the criteria discussed in paragraph (a) of this sec- tion, would constitute an international agreement independent of the under- lying agreement.