Subject of the Agreement & Definitions (Articles 1–2)
ARTICLE 1 — SUBJECT OF THE AGREEMENT
ARTICLE 1
SUBJECT OF THE AGREEMENT
This Agreement sets out the rights and obligations and terms and conditions applicable to the grant awarded [OPTION for SGAs: under Framework Partnership Agreement No [insert number] — [insert acronym]] for the implementation of the action set out in Chapter 2.
1. Subject of the Grant Agreement The Grant Agreement sets out the rights and obligations of each party and the terms and conditions of the grant that beneficiaries must comply with when implementing the action (i.e. the project).
Grants are public funding in form of donation (i.e. a free, non-reimbursable contribution). The EU donates to actions because it is a way to incentivise activities that are in the public policy interest. It is a positive way to support and involve citizens and encourage broad cooperation across borders without taking ownership in the action. The granting authority is NOT procuring your work, goods or services, nor is your project ‘done for the European Commission’ or any other EU granting authority.
General > Article 2 — Definitions
ARTICLE 2 — DEFINITIONS
ARTICLE 2
DEFINITIONS
For the purpose of this Agreement, the following definitions apply: Action — The project which is being funded in the context of this Agreement. Grant — The grant awarded in the context of this Agreement. EU grants — Grants awarded by EU institutions, bodies, offices or agencies (including EU executive agencies, EU regulatory agencies, EDA, joint undertakings, etc) Participants — Entities participating in the action as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties. Beneficiaries (BEN) — The signatories of this Agreement (either directly or through an accession form). Affiliated entities (AE) — Entities affiliated to a beneficiary within the meaning of Article 190 of EU Financial Regulation 2024/2509 which participate in the action with similar rights and obligations as the beneficiaries (obligation to implement action tasks and right to charge costs and claim contributions). Associated partners (AP) — Entities which participate in the action, but without the right to charge costs or claim contributions. Purchases — Contracts for goods, works or services needed to carry out the action (e.g. equipment, consumables and supplies) but which are not part of the action tasks (see Annex 1). Subcontracting — Contracts for goods, works or services that are part of the action tasks (see Annex 1). In-kind contributions — In-kind contributions within the meaning of Article 2(38) of EU Financial Regulation 2024/2509, i.e. non-financial resources made available free of charge by third parties. Fraud — Fraud within the meaning of Article 3 of EU Directive 2017/137113 and Article 1 of the Convention on the protection of the European Communities’ financial interests, drawn up by the Council Act of 26 July 199514, as well as any other wrongful or criminal deception intended to result in financial or personal gain. Irregularities — Any type of breach (regulatory or contractual) which could impact the EU financial interests, including irregularities within the meaning of Article 1(2) of EU Regulation 2988/9515. Grave professional misconduct — Any type of unacceptable or improper behaviour in exercising one’s profession, especially by employees, including grave professional misconduct within the meaning of Article 138(1)(c) of EU Financial Regulation 2024/250916. Applicable EU, international and national law — Any legal acts or other (binding or non-binding) rules and guidance in the area concerned. Portal — EU Funding & Tenders Portal; electronic portal and exchange system managed by the European Commission and used by itself and other EU institutions, bodies, offices or agencies for the management of their funding programmes (grants, procurements, prizes, etc.).
For the definition, see Article 190 Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast) (‘EU Financial Regulation’) (OJ L, 2024/2509, 26.9.2024): “affiliated entities [are]: (a) entities that form a sole beneficiary [(i.e. where an entity is formed of several entities that satisfy the criteria for being awarded a grant, including where the entity is specifically established for the purpose of implementing an action to be financed by a grant)]; (b) entities that satisfy the eligibility criteria and that do not fall within one of the situations referred to in Article 138(1) and 143(1) and that have a link with the beneficiary, in particular a legal or capital link, which is neither limited to the action nor established for the sole purpose of its implementation”. Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29). 14. OJ C 316, 27.11.1995, p. 48. Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1). ‘Professional misconduct’ includes in particular, the following: violation of ethical standards of the profession; wrongful conduct with impact on professional credibility; breach of generally accepted professional ethical standards; false declarations/misrepresentation of information; participation in a cartel or other agreement distorting competition; violation of IPR; attempting to influence decision-making processes by taking advantage, through misrepresentation, of a conflict of interests, or to obtain confidential information from public authorities to gain an advantage; incitement to discrimination, hatred or violence or similar activities contrary to the EU values where negatively affecting or risking to affect the performance of a legal commitment.
1. Definitions The definitions in Article 2 show important terms which are mentioned repeatedly throughout the different provisions of the Grant Agreement.
They refer to:
− types of participants (e.g. ‘beneficiaries’; ‘affiliated entities’)
− budget cost categories (e.g. ‘subcontracting’)
or
− other important legal concepts (e.g. ‘grave professional misconduct’).
Other terms that are not widely used are defined directly in the relevant articles (e.g. Articles 16, 35, etc) and Annex 5 (if applicable).
CHAPTER 2 ACTION