Written contracts

The execution of a written contract shall proceed in the following events:

• In case the Negotiation involves a Substantial or Large Amount (>400,000 USD);
• When in the opinion of the Negotiator or User, subscribing a Contract to mitigate the risks of a Negotiation, once the Legal Direction has been consulted, is deemed advisable; and;
• In case that the Supplier requests to do so.

Mandatory written Contract: Regardless of the Amount of the negotiation, in the following cases the execution of a written Contract shall always be required:

• Negotiations where the law requires a written Contract;
• Negotiations with Argos competitors;
• Negotiations for the purchase, sale or lease of real property;
• Security services negotiations.

Validity and Renewal: Contracts shall not be open-ended, nor shall automatic renewal clauses be agreed on. As a general rule, they shall not have a period of duration greater than 3 years. In the case of Negotiations classified in the Strategic Quadrant, the maximum period of duration shall be 5 years.