The Product Supply Contract is a fundamental commercial agreement used when establishing a ongoing supply relationship between a supplier and buyer under German law. It is particularly crucial when regular or continuous supply of products is needed, requiring detailed terms for ordering, delivery, quality control, and payment. The document incorporates requirements from the German Civil Code (BGB) and Commercial Code (HGB), while also considering EU regulations and international trade laws where applicable. This type of contract is essential for businesses seeking to establish reliable supply chains, ensuring consistent product quality and delivery while managing commercial risks and legal compliance. The agreement typically includes comprehensive provisions for product specifications, pricing mechanisms, quality standards, warranty terms, and dispute resolution procedures, all aligned with German legal requirements.
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1. Parties: Identification of the supplier and buyer with full legal entity details
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter of Contract: Clear description of products to be supplied and basic supply obligations
5. Order Process: Procedures for placing and accepting orders, including minimum order quantities if applicable
6. Prices and Payment Terms: Product pricing, payment terms, invoicing procedures, and any price adjustment mechanisms
7. Delivery and Transfer of Risk: Delivery terms, Incoterms if applicable, transfer of risk provisions
8. Quality Requirements: Product specifications, quality standards, and quality control procedures
9. Warranty and Liability: Warranty terms, defect claims process, and limitation of liability
10. Term and Termination: Contract duration, renewal terms, and termination provisions
11. Force Majeure: Circumstances excusing performance and related procedures
12. Confidentiality: Protection of confidential information exchanged during the business relationship
13. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes
14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments
1. Exclusive Supply Arrangement: Include when the supplier is granted exclusivity or when there are territorial restrictions
2. Minimum Purchase Requirements: Include when there are minimum purchase obligations
3. Product Development: Include when parties collaborate on product development or customization
4. Compliance with Specific Regulations: Include when products are subject to special regulatory requirements (e.g., food, pharmaceuticals)
5. Insurance Requirements: Include when specific insurance coverage is required
6. Storage and Warehousing: Include for consignment stock arrangements or specific storage requirements
7. Intellectual Property Rights: Include when IP rights are relevant to the products or branding
8. Exit Management: Include for complex supply arrangements requiring detailed termination procedures
9. Data Protection: Include when personal data processing is involved in the supply arrangement
1. Product Specifications: Detailed technical specifications of all products covered by the agreement
2. Price List: Detailed pricing for all products, including any volume discounts or special pricing arrangements
3. Quality Control Procedures: Detailed procedures for quality testing, acceptance criteria, and handling of non-conforming products
4. Service Level Agreement: Specific performance metrics, response times, and related penalties/bonuses
5. Order Form Template: Standard form for placing orders under the agreement
6. Delivery Locations: List of approved delivery locations and any location-specific requirements
7. Contact Details: Key contact persons and escalation procedures for both parties
8. Compliance Certificates: Required certifications, permits, or regulatory compliance documents
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