Agreement For Supply Of Goods On Credit for Germany

Agreement For Supply Of Goods On Credit Template for Germany

A comprehensive commercial agreement governed by German law that establishes the terms and conditions for the supply of goods with credit arrangements. The document combines elements of a traditional supply agreement with credit provisions, incorporating requirements from the German Civil Code (BGB) and Commercial Code (HGB). It details the supply obligations, credit terms, payment conditions, security arrangements, and risk allocation between parties. The agreement ensures compliance with German commercial law requirements, including specific provisions for payment terms and credit arrangements, while addressing quality standards, delivery terms, and warranty obligations.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is essential for businesses engaged in ongoing commercial relationships where the supplier provides goods on credit terms to the buyer. This document is particularly relevant in the German market and must comply with German commercial law, including the BGB (Civil Code) and HGB (Commercial Code). It is typically used when establishing medium to long-term supply relationships where immediate payment upon delivery is not required. The agreement covers crucial aspects such as credit limits, payment terms, interest rates, and security arrangements, while also addressing standard supply terms including quality requirements, delivery conditions, and warranties. This type of agreement is particularly important in scenarios where the buyer requires flexible payment terms to manage cash flow while maintaining a stable supply chain.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identification of the supplier and buyer, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and general commercial relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Details of the goods to be supplied, including quality standards and specifications

5. Ordering Process: Procedures for placing and accepting orders

6. Delivery Terms: Delivery timeframes, locations, and Incoterms

7. Credit Terms: Credit limit, payment terms, interest rates, and credit period

8. Price and Payment: Pricing structure, invoicing procedures, and payment methods

9. Quality and Inspection: Quality standards, inspection rights, and acceptance procedures

10. Title and Risk: Transfer of ownership and risk in the goods

11. Warranties: Warranties regarding the goods and credit status

12. Default and Remedies: Consequences of payment default and available remedies

13. Term and Termination: Duration of agreement and termination rights

14. Confidentiality: Protection of confidential information

15. General Provisions: Standard legal provisions including governing law, jurisdiction, and notices

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Security Arrangements: Used when additional security for credit is required, such as guarantees or charges

2. Insurance: Required when specific insurance arrangements need to be detailed

3. Intellectual Property: Included when supplied goods involve IP rights

4. Export/Import Controls: Required for international supply arrangements

5. Force Majeure: Detailed force majeure provisions if standard provisions are insufficient

6. Change Control: Used when formal procedures for changes to specifications or terms are needed

7. Compliance with Laws: Detailed compliance provisions for regulated industries

8. Data Protection: Required when personal data processing is involved

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1 - Goods Specification: Detailed technical specifications of the goods to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing information including any volume discounts

3. Schedule 3 - Credit Terms: Detailed credit limits, interest calculations, and payment schedules

4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific requirements

5. Schedule 5 - Quality Standards: Detailed quality requirements and testing procedures

6. Appendix A - Order Form Template: Standard form for placing orders under the agreement

7. Appendix B - Acceptance Certificate: Template for confirming acceptance of delivered goods

8. Appendix C - Security Documentation: Forms and details of any security arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale

Distribution

Automotive

Electronics

Construction Materials

Industrial Equipment

Consumer Goods

Food and Beverage

Chemical Industry

Textile Industry

Medical Supplies

Agricultural Products

Relevant Teams

Legal

Finance

Procurement

Supply Chain

Treasury

Credit Control

Risk Management

Operations

Commercial

Compliance

Relevant Roles

Procurement Manager

Supply Chain Director

Chief Financial Officer

Credit Controller

Commercial Director

Legal Counsel

Contract Manager

Finance Manager

Operations Director

Risk Manager

Treasury Manager

Purchasing Officer

Supply Chain Analyst

Credit Risk Analyst

Commercial Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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