Long Term Supplier Agreement Template for Germany

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Key Requirements PROMPT example:

Long Term Supplier Agreement

"I need a Long Term Supplier Agreement for the supply of automotive components from a German manufacturer to our assembly plants across Europe, including quality control standards for the automotive industry and provisions for just-in-time delivery starting March 2025."

Document background

The Long Term Supplier Agreement is designed for businesses seeking to establish stable, ongoing supply relationships under German law. It is particularly suitable for situations requiring regular, repeated supply of goods or services over an extended period, typically one year or more. The document addresses critical aspects such as supply obligations, pricing mechanisms, quality standards, and risk allocation, while ensuring compliance with German legal requirements, including the Civil Code (BGB), Commercial Code (HGB), and relevant EU regulations. This agreement type is essential for businesses wanting to secure their supply chain with reliable, long-term partnerships while maintaining flexibility for volume adjustments and price revisions. It includes comprehensive provisions for quality management, delivery terms, warranty obligations, and dispute resolution procedures, making it suitable for both domestic and international supply relationships within the German legal framework.

Suggested Sections

1. Parties: Identification and details of the supplier and buyer, including registration numbers and addresses

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Supply: Detailed description of products/services to be supplied and basic supply obligations

5. Term and Duration: Initial term, renewal provisions, and termination mechanisms

6. Ordering Process: Procedures for placing and accepting orders, lead times, and order modifications

7. Delivery Terms: Delivery conditions, Incoterms, timing, and logistics requirements

8. Price and Payment: Pricing structure, payment terms, invoicing, and price adjustment mechanisms

9. Quality Requirements: Quality standards, specifications, and quality assurance processes

10. Warranties: Product/service warranties, quality guarantees, and remedy procedures

11. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

12. Intellectual Property Rights: IP ownership, licenses, and protection measures

13. Confidentiality: Protection of confidential information and trade secrets

14. Force Majeure: Events excusing performance and related procedures

15. Governing Law and Jurisdiction: Application of German law and jurisdiction for disputes

16. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Exclusive Supply: Used when supplier is designated as exclusive supplier for certain products/territories

2. Minimum Purchase Obligations: Include when buyer commits to minimum purchase volumes

3. Consignment Stock: Required when operating under consignment stock arrangements

4. Tooling Provisions: Necessary when supplier uses buyer-specific tools or equipment

5. Research and Development: Include for collaborative product development arrangements

6. Environmental Compliance: Required for environmentally sensitive industries or products

7. Supply Chain Security: Important for international trade or sensitive industries

8. Business Continuity: Critical for essential supplies or single-source arrangements

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

10. Corporate Social Responsibility: Include when CSR compliance is important to the buyer

11. Change Control: Necessary for industries with strict change management requirements

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products to be supplied

2. Pricing Schedule: Detailed pricing, including volume discounts and price adjustment formulas

3. Service Levels: Specific performance metrics and service level requirements

4. Quality Agreement: Detailed quality requirements and procedures

5. Logistics Requirements: Specific delivery, packaging, and handling requirements

6. Key Performance Indicators: Performance metrics and measurement methodology

7. Contact Details: Key contact persons and escalation procedures

8. Form of Purchase Order: Standard form for placing orders

9. Technical Requirements: Detailed technical standards and requirements

10. Approved Production Sites: List of authorized manufacturing locations

11. Business Continuity Plan: Detailed procedures for ensuring continuous supply

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Automotive

Electronics

Chemical

Pharmaceutical

Consumer Goods

Industrial Equipment

Aerospace

Food and Beverage

Telecommunications

Energy

Raw Materials

Medical Devices

Construction Materials

Retail

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Quality Assurance

Commercial

Risk Management

Compliance

Finance

Logistics

Business Development

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Commercial Director

Operations Manager

Quality Assurance Manager

Contract Manager

Chief Procurement Officer

Sourcing Manager

Supply Chain Analyst

Business Development Manager

Risk Manager

Compliance Officer

Category Manager

Vendor Manager

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Authors

Alex Denne

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