The Master Development And Supply Agreement is a sophisticated commercial contract used when one party engages another for both product development services and subsequent supply of the developed products. This agreement type is particularly relevant under German law, where it must comply with both the Civil Code (BGB) and Commercial Code (HGB). It's typically employed in manufacturing, technology, and industrial sectors where companies need to formalize long-term development and supply relationships. The agreement covers the entire product lifecycle, from initial concept through development to serial production and supply, including crucial elements such as IP rights, quality requirements, pricing structures, and risk allocation. It's especially suitable for complex industrial relationships where development work needs to seamlessly transition into regular supply arrangements.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement, including the parties' business relationship and objectives
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Overall scope of development and supply relationship
5. Development Phase: Terms governing the development process, including milestones, acceptance criteria, and modification procedures
6. Supply Phase: Terms governing the supply of products post-development, including ordering process, forecasting, and delivery terms
7. Prices and Payment: Pricing structure for both development and supply phases, payment terms, and invoice procedures
8. Quality Requirements: Quality standards, testing procedures, and acceptance criteria for both development and supply phases
9. Intellectual Property Rights: Ownership and licensing of IP, including background IP, foreground IP, and improvements
10. Confidentiality: Protection of confidential information and trade secrets
11. Warranties and Liability: Warranties, indemnifications, and limitation of liability provisions
12. Term and Termination: Duration of agreement, renewal provisions, and termination rights
13. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement clause
1. Exclusivity: Terms regarding exclusive development and/or supply relationship, used when parties agree to exclusive arrangements
2. Compliance with Laws: Specific compliance obligations, particularly relevant for regulated industries or international trade
3. Insurance: Insurance requirements, typically included for high-value or high-risk development/supply relationships
4. Environmental Requirements: Environmental compliance and sustainability requirements, relevant for manufacturing or chemical products
5. Data Protection: GDPR compliance provisions, required when personal data processing is involved
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term supply relationships
7. Change Control: Formal process for managing changes to specifications or requirements, useful for complex development projects
1. Product Specifications: Detailed technical specifications for products to be developed and supplied
2. Development Timeline: Detailed timeline of development phase including milestones and deliverables
3. Pricing Schedule: Detailed pricing information including development costs and product prices
4. Quality Requirements: Detailed quality standards, testing procedures, and acceptance criteria
5. Service Levels: Performance metrics and service level requirements for both development and supply phases
6. Technical Documentation: Requirements for technical documentation to be provided with products
7. Forecast and Order Procedures: Detailed procedures for forecasting and ordering during supply phase
8. Acceptance Test Procedures: Detailed procedures for testing and accepting developed products
9. List of Background IP: Inventory of pre-existing intellectual property rights of each party
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