Business Continuity Agreement

A business continuity agreement is a legal contract between two or more parties that outlines the procedures and responsibilities for maintaining critical business functions in the event of a disaster, disruption, or other emergency. The agreement typically includes a business impact analysis that identifies the critical functions and resources of each party, as well as a plan for how those functions will be maintained or recovered in the event of an interruption. The agreement may also specify the roles and responsibilities of each party, the communication protocols, and the financial and legal obligations. Business continuity agreements are often used by companies that rely on each other for critical services or supplies, or that have interdependent operations. The purpose of the agreement is to minimize the impact of disruptions on the parties’ businesses and to ensure the continuity of critical functions. The agreement should be carefully drafted and reviewed by legal counsel to ensure that it is comprehensive, feasible, and legally enforceable.