Document background
The Master Supplier Agreement serves as the primary contractual framework for establishing and managing long-term supply relationships under German law. It is typically used when a company expects to make multiple purchases from a supplier over time and needs a comprehensive agreement that sets out the fundamental terms governing all future transactions. The document incorporates essential requirements under German commercial and civil law, including specific provisions required by the German Supply Chain Due Diligence Act (LkSG) and EU regulations. It establishes processes for ordering, quality control, and risk allocation, while leaving specific details of individual purchases to be determined through purchase orders. This type of agreement is particularly important for businesses operating in Germany or with German counterparties, as it ensures compliance with local legal requirements while providing a flexible framework for ongoing commercial relationships.
