What does back to back mean in contracts?
Asked by: Elisa Smitham IV | Last update: October 31, 2025Score: 5/5 (70 votes)
What does payment terms back to back mean?
Most of the main contractors include a back-to-back clause in their subcontract agreements with their subcontractors. These back-to back-clauses ensure that the main contractor will not be liable to pay the subcontractor payments, unless the main contractor receives the equivalent payment from the employer.
What is a back-to-back policy?
These products are often colloquially referred to as 'back-to-back' policies, and they are not a recent innovation. The basic structure of the product is that the client pays a lump sum, and in return, the insurer provides an income for life with a guarantee of the initial capital paid back on death.
What is the back to back requirement?
In its strictest form, back-to-back refers not just to the replication of contractual rights and obligations in different levels of contract, but to a requirement that the terms of agreement at one level are included in agreements at lower levels.
What does back to back mean in construction contracts?
At its core, a Back-to-Back clause establishes a direct link between the payment of the subcontractor and the payment received by the main contractor.
Contract Law- What is a legally binding agreement?
What does back to back mean in a contract?
With a back-to-back agreement you are essentially flowing down terms from one contract into another contract to enhance your ability to comply with the contract with your customer.
What does back to back agreement mean?
In this usage, the terms of a back-to-back contract may also be known as terms which are “incorporated by reference” (as opposed to newly drafted terms). In general usage, “back-to-back” means that any document contains all the same terms and characteristics as the following contract.
How does a back to back work?
The way that back to back agreements work is to pass down the same rights and obligations from one party to another so that the people carrying out the work or providing services carry the responsibility and are liable for any breach of the obligations that are passed down, rather than the 'middle' tier or tiers (in ...
What is the back to back criteria?
i Criteria description:
Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.
What is the meaning of back to back document?
Back to Back Documents means documents that form the end of one set of a transaction chain and the beginning of the next transaction chain, where the transaction chains form a series of transactions that needs to be viewed in total in order to understand the full value of a revenue generated on the basis of production ...
What is the meaning of back to back business?
Back-to-Back is a trading scenario where a company sells a quantity of a commodity that it does not yet own or hold in inventory. This quantity may be at a vendor's site or may already be in transit to the company.
What is a back to back plan?
What is a Back to Back Plan? A Back-to-back Plan is an estate planning tool ideal for people who continue to need income from their capital, but want to reduce their IHT liability.
What is a back to back commitment?
A back-to-back commitment is a commitment to make a second take-out loan on top of a first loan. A back-to-back loan mitigates risk for the lender by using terms of the first loan as collateral for the second one. Back-to-back commitment loans are common in the construction industry.
What is the term of payment back to back?
Back-to-back payment
Back-to-back payments are used to arrange that the subcontractor is only paid directly after the client has paid the main contractor. With these back-to-back payments the subcontractor does not only feel responsible for his task, but also for the project as a whole.
What is a back to back transaction?
What does Back to back transaction mean? A transaction that has a mirror opposite transaction to it which replicates its obligations, liabilities and rights.
What is back to back NDAs?
A Back-to-Back NDA refers to a set of Non-Disclosure Agreements (NDAs) used in situations where confidential information needs to be shared among multiple parties - and each party needs assurance that their information will be protected during the working relationship.
What is a back to back closing?
A double closing, also known as a simultaneous closing or back-to-back closing, is a strategic maneuver employed by real estate investors to quickly purchase and resell a property for a steep profit. In essence, a double closing involves two separate but synchronized real estate transactions.
What is a back to back finance?
A back-to-back loan is an agreement by two companies in different countries to borrow money in each other's currency. The effect is a currency exchange. The back-to-back loan is a hedge against currency risk. Each company gets the currency it needs while avoiding untimely currency rate fluctuations in the open market.
What is back to back model?
A Back to Back LC means that two Letters of Credit will be raised to finance a single transaction. It is usually opted in cases where there is a broker, agent or intermediary involved in the process between the importer and exporter.
What is a back to back contract?
The main contractor usually passes relevant obligations and liabilities to the subcontractor. This practice, called a “back-to-back contract,” is becoming more common when a project needs several contractors to complete it.
What is the legal term for back to back?
Back-to-back agreement. by Practical Law Commercial. A simple back-to-back subcontract for use in commercial situations when the main contractor wishes to subcontract all or part of its obligations under a main contract on a back-to-back basis. The agreement incorporates the terms of the main contract by reference.
What are examples with back to back?
They lost three games back to back. I sat in the cinema and watched three films back to back. You do five-minute interviews back to back all day in a hotel bedroom.
What is a back-to-back indemnity?
By stipulating in the agreement that, should a claim arise out of a breach by the subcontractor, they shall have to reimburse the main contractor. We call this payment an indemnity, and it is one of the key points of the Back to Back Agreement.
What is back to back procurement?
Procurement Role in Back-to-Back
The Purchase Request Web Service accepts the request to create an externally managed requisition for the item. A PO is generated from the requisition, either automatically or manually. The PO is communicated to the supplier using the communication method set up for the supplier site.
What does back to back sales mean?
A “Back to Back Sale” is a term used to describe the sale of a property immediately or soon after completing the purchase for a profit.