Preferred Supplier Contract Template for Germany

The Preferred Supplier Contract is designed for businesses operating in Germany seeking to establish a formalized preferential relationship with key suppliers. This agreement type is particularly relevant when a company wants to secure reliable supply chains, preferential pricing, and dedicated service levels from strategic vendors. The contract, governed by German law, typically includes comprehensive terms covering ordering processes, quality requirements, pricing mechanisms, and service levels. It's especially useful for companies with regular, high-volume purchasing needs who want to streamline their procurement processes and secure favorable terms with trusted suppliers. The document incorporates requirements from German commercial law (HGB) and civil code (BGB), ensuring compliance with local regulatory requirements while establishing a framework for long-term supplier relationships.

1. Parties: Identification of the supplier and the customer, including full legal names, registration details, and addresses

2. Background: Context of the agreement and the intention to establish a preferred supplier relationship

3. Definitions and Interpretation: Key terms used throughout the agreement, including 'Preferred Supplier Status', 'Products', 'Services', and interpretation rules

4. Scope of Preferred Supplier Status: Details of the preferential relationship, including any exclusivity provisions or minimum purchase commitments

5. Ordering Process: Procedures for placing and accepting orders, including response times and order confirmation requirements

6. Pricing and Payment Terms: Price determination, payment terms, invoicing procedures, and any volume-based discounts

7. Delivery and Performance: Delivery terms, timelines, and performance standards for products/services

8. Quality Requirements: Quality standards, specifications, and quality control procedures

9. Warranties and Representations: Standard and specific warranties regarding products/services, capacity to contract, and regulatory compliance

10. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

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

12. Confidentiality: Protection of confidential information exchanged during the business relationship

13. Force Majeure: Circumstances excusing performance and related procedures

14. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

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