The Supplier Relationship Agreement serves as the primary contractual framework for managing supplier relationships under German law. It is typically used when establishing long-term or significant supply arrangements where detailed terms and conditions are necessary to govern the ongoing business relationship. The agreement incorporates essential elements required by German commercial law, including provisions from the BGB and HGB, while addressing practical commercial needs such as ordering processes, quality requirements, and risk allocation. This document is particularly important for compliance with German regulatory requirements, including the Supply Chain Due Diligence Act (LkSG) for larger organizations, and typically includes comprehensive provisions for quality control, delivery terms, pricing mechanisms, and dispute resolution procedures.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and business relationship
3. Definitions: Defined terms used throughout the agreement
4. Scope of Supply: Details of products/services to be supplied and delivery terms
5. Ordering Process: Procedures for placing and accepting orders
6. Quality Requirements: Quality standards, specifications, and quality control procedures
7. Prices and Payment: Pricing structure, payment terms, invoicing, and payment methods
8. Delivery and Acceptance: Delivery terms, timelines, and acceptance procedures
9. Warranties: Supplier warranties regarding products/services and legal compliance
10. Liability and Indemnification: Allocation of risks and responsibilities between parties
11. Term and Termination: Duration of agreement and termination provisions
12. Confidentiality: Protection of confidential information exchanged
13. Force Majeure: Handling of events beyond parties' reasonable control
14. Governing Law and Jurisdiction: Applicable law and dispute resolution procedures
1. Intellectual Property Rights: IP ownership and licensing terms - include when supplier develops custom products or software
2. Data Protection: GDPR compliance provisions - include when personal data is processed
3. Compliance with Supply Chain Act: LkSG compliance measures - include for large companies or high-risk supply chains
4. Insurance Requirements: Specific insurance obligations - include for high-value or high-risk supplies
5. Business Continuity: Disaster recovery and business continuity requirements - include for critical suppliers
6. Environmental Compliance: Environmental standards and certifications - include for environmentally sensitive supplies
7. Audit Rights: Right to audit supplier's facilities and records - include for quality-critical supplies
8. Subcontracting: Rules for engaging subcontractors - include when subcontracting is likely
1. Schedule 1 - Products/Services Specification: Detailed technical specifications of products/services
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Quality Standards: Detailed quality requirements and testing procedures
5. Schedule 5 - Key Contacts: Contact details for key personnel on both sides
6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors if applicable
7. Schedule 7 - Compliance Requirements: Detailed compliance obligations and certifications
8. Appendix A - Order Form Template: Standard form for placing orders under the agreement
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