A concession contract is an agreement between a company and a government that allows the company to operate their business in a certain location. The contract contains details about who each party is and what the goal of the concession contract is. It also mentions the proposed geographical location where business is to be conducted and what the nature of the business is. Another important aspect of the document includes terms and conditions surrounding protocols that can be used to modify, terminate, or extend the agreement.
The purpose of a concession contract is to ensure that all involved parties are mutually benefitted by the terms of the agreement. It also ensures that they understand the scope of their roles and responsibilties under the contract.
Below is a list of common sections included in Concession Contracts. These sections are linked to the below sample agreement for you to explore.
BORDER’S PARKING S.R.L. , represented herein by Mr. Norberto Jasin and Israel Sutton Dabbah, acting in their capacity as manager partners, with offices at Tierras ganadas al Río de la Plata [Land reclaimed from Río de la Plata], in front of the intersection of Avenida Rafael Obligado and Jerónimo Salguero sin número , City of Buenos Aires, ( “THE GRANTOR”) and MercadoLibre S.A., represented herein by Mr. Marcos Galperín, acting in his capacity as Legal Representative, as evidenced by Minutes No. 14 of the Shareholder’s Meetings and Minutes No. 57 of the Board of Directors Meeting, setting his address for the purposes herein at Tronador 4890, piso 8, City of Buenos Aires ( “THE CONCESSIONAIRE” and jointly “THE PARTIES”) hereby agree on the following terms and conditions:
1.1. THE GRANTOR hereby states and guarantees that it has been granted a concession for the operation of the parking lots, retail units, warehouses and offices located in different sectors of the plot of land located in the lands reclaimed from the Río de la Plata in front of the intersection of Avenida Costanera Rafael Obligado and Jerónimo Salguero, to the West end of the Buenos Aires Harbor Dock “F” (“ COSTA SALGUERO” or “THE LOT”) . GRANTOR’S right over THE LOT was granted by the concession contract executed between GRANTOR and TELEMETRIX S.A. ( “CONCESSION HOLDER”) , company holding the Concession for Use and Occupancy granted by the Argentine state-owned company entrusted with the Administration of Argentine Harbors (“ AGP”) over THE LOT on August 25, 1998, for a term expiring on April 2021 ( “THE ORIGINAL CONTRACT”) , concession which was subsequently ratified by Law No. 25346.
1.2. COSTA SALGUERO is composed of real and personal property, tangible and intangible, used to optimize the sports and business activities performed there, complying with all the rules governing the concession duly granted to the CONCESSION HOLDER, authorizing the use of the LOT, the provisions of THE ORIGINAL CONTRACT and the applicable federal, local and regulatory rules. The purpose of COSTA SALGUERO is to concentrate in one single place as much sport and business activities as possible by gathering and organizing different endeavors so that the general public may choose and acquire goods and services offered, with the expected customer service and service quality standards, at competitive prices and with the efficiency necessary to guarantee COSTA SALGUERO’s success.
1.3. THE CONCESSIONAIRE hereby acknowledges and accepts THE ORIGINAL CONTRACT’s terms and conditions, and therefore, agrees to comply with them with respect to the business operation it will conduct under the provisions set forth in Section 3.4. and Sections 4, 10 and 17 of the ORIGINAL CONTRACT and its annexes, documents whose copies after being signed by the PARTIES are attached hereto as Annex 1.
1.4. THE CONCESSIONAIRE hereby especially acknowledges and accepts annexes A and C of the ORIGINAL CONTRACT, that is: Annex A: Use Permit, dated December 29, 1988, executed by THE CONCESSION HOLDER, in its capacity as concessionaire, and AGP, in its capacity as grantor; and AGP Resolution No. 025/92; and Annex C: COSTA SALGUERO Internal Rules, with all the legal effects arising therefrom. Further, THE CONCESSIONAIRE shall comply not only with the basic conditions of any concession contract, but with some operating rules as well, which is essential for THE CONCESSION HOLDER, THE CONCESSIONAIRE, THE GRANTOR and COSTA SALGUERO.
1.5. In view of the project’s purposes and the number of offices, parking lots, retail units and warehouses operated by THE GRANTOR within COSTA SALGUERO, THE CONCESSIONAIRE hereby acknowledges that in furtherance of such purposes it is essential that the provisions set forth herein be complied with, and further expressly agrees to the CONCESSION HOLDER’s directions and management of COSTA SALGUERO from the date on which it enters the premises, including any changes to the blueprints, updates in business activities’ distribution and future projects for the expansion and growth of COSTA SALGUERO.
1.6. THE CONCESSIONAIRE hereby acknowledges to be aware of the global and specific purposes and the operation of a center such as COSTA SALGUERO. Therefore, and notwithstanding any document that may be executed in relation to this concession and the obligations and duties arising therefrom, in furtherance of the purpose set forth above, THE CONCESSIONAIRE hereby agrees to adapt the activities to be conducted in the area within which it shall be authorized to operate its offices. THE CONCESSIONAIRE shall be held liable for its own conduct and the actions of its employees, staff and suppliers. Likewise, CONCESSIONAIRE agrees to comply with the rules now in force or which shall become effective in the future, and whose aim is to meet the purposes of COSTA SALGUERO and the sector, where the offices are located (“SALGUERO PARK”), whose operation has been authorized through a sub-concession granted to THE GRANTOR.
1.7. THE GRANTOR further states and guarantees that, pursuant to the provisions set forth in Section 1.1. hereof and the express authorization granted by the THE CONCESSION HOLDER under the ORIGINAL CONTRACT (Section 3.3), authorizing THE GRANTOR to execute such agreements with third parties as may be necessary for the operation of the above business activities, it has decided to enter into this agreement with THE CONCESSIONARIE, subject to the following terms and conditions.
II. GRANTOR’s Reserve of rights and Representations: