The most important thing to remember is that the isda framework contract is a clearing agreement and all transactions depend on each other. Therefore, a defect below a transaction is considered a defect among all transactions. Section 1(c) describes the concept of the single agreement and is essential, as it is the basis of close-out netting. The intention is that when a failure event occurs, all transactions will be completed without exception. The concept of “netting out” prevents a liquidator from “pecking raisins”, i.e. making payments for profitable transactions for his bankrupt client, and refusing to do so for unprofitable transactions. Defense describes a situation in which a party pays for lawyers to defend the guilty party, exemption means that a party is not sued for damages, and compensation refers to the payment of damages to the third party. The best way to proceed is to hire a lawyer and use a proposal for a framework contract to avoid mistakes or simply sign a bad contract. I hope that this can help, even if there are no complete answers to the understanding, to clarify its importance. In the article below, the word “framework contract – (economy / business)” comes from different sources, languages and websites that you can see in the source menu. To learn more, you can buy a glossary book in the bookstore or online bookstore site.