Concession Agreement Meaning

A concession contract is a contract that gives an enterprise the right to carry on a particular activity under the jurisdiction of one government or on the ownership of another enterprise under certain conditions. Concession contracts often involve contracts between the non-state owner of a facility and a concessionaire or concessionaire. The agreement confers on the concessionaire the exclusive rights to operate its activities in the installation for a specified period of time and under certain conditions. Sellers work on a smaller scale under concession agreements granted by local governments, businesses or other property owners. This activity may include restaurants and retail at major airports, vendors at public fairs, or selling food and beverages from booths at State Parks. However, the implementation of the WAB also has several drawbacks. Often, the format and language of WABs are copied without due regard to the specific impact of each project. The structure of the WAB is rigid. Concession contracts are often complex and long-term contracts and it is not possible to anticipate all the risks that may arise during the execution and operation of the implemented project. In such circumstances, the absence of a flexible approach harms the interests of private parties. Concession contracts are sometimes used to exploit other nations.

For example, in the nineteenth and early twentieth centuries, foreign countries and companies forced China to grant various concessions. These concessions have given foreign companies the right to develop and operate railways and ports in China. In addition, citizens of other countries often enjoyed extraterritoriality as part of their concessions. Extraterritoriality meant that foreign laws and courts would settle disputes between Chinese and foreigners in concessions. Of course, the decisions of these courts have tended to oppose Chinese companies and consumers. Both types of concession agreements involve a transfer of the ”operating risk” to the contractor, i.e. the risk that demand or supply will not be sufficient to make the service or plant a profitable enterprise. . .