Raw Material Supply Agreement Template for Germany

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Key Requirements PROMPT example:

Raw Material Supply Agreement

"I need a Raw Material Supply Agreement under German law for supplying industrial-grade titanium dioxide to multiple manufacturing facilities across Germany, with specific focus on quality control requirements and minimum purchase commitments starting March 2025."

Document background
The Raw Material Supply Agreement is essential for businesses engaged in the procurement and supply of raw materials in Germany and international markets operating under German law. This document is typically used when establishing long-term supply relationships for industrial raw materials, chemicals, metals, or other basic materials needed for manufacturing or processing operations. It addresses critical aspects such as quality specifications, delivery schedules, pricing mechanisms, and compliance with German and EU regulations. The agreement is particularly important in industries where consistent supply of materials is crucial for operational continuity and where quality standards must meet strict German technical and safety requirements. It includes provisions for risk management, force majeure events, and dispute resolution under German jurisdiction.
Suggested Sections

1. Parties: Identification of supplier and buyer with full legal names and addresses

2. Background: Context of the agreement and brief description of parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Core obligations of supplier including quantity, quality, and delivery commitments

5. Ordering Process: Procedures for placing and confirming orders, lead times, and forecasting requirements

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

7. Delivery and Risk: Delivery terms, Incoterms, transfer of risk, and shipping requirements

8. Quality Requirements: Quality standards, specifications, and compliance requirements

9. Acceptance and Rejection: Procedures for acceptance testing and rejection of non-conforming goods

10. Warranties: Supplier warranties regarding product quality, compliance with specifications, and legal requirements

11. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

12. Force Majeure: Events excusing performance and procedures for handling force majeure situations

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

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Jurisdiction: Choice of German law and jurisdiction for dispute resolution

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Exclusivity: Used when parties agree to exclusive supply arrangement or territorial restrictions

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

3. Storage and Handling: Required for materials needing special storage conditions or handling procedures

4. Insurance: Detailed insurance requirements beyond standard coverage

5. Sustainability Requirements: Environmental and social responsibility obligations

6. Security of Supply: Special provisions for critical materials including safety stock requirements

7. Intellectual Property: When IP rights are relevant to the supplied materials

8. Compliance with Sanctions: Required for international supply relationships or regulated materials

9. Bank Guarantee: When financial security is required from either party

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed technical specifications of the raw materials

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume-based discounts

3. Schedule 3 - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific delivery requirements

5. Schedule 5 - Key Performance Indicators: Performance metrics and measurement criteria

6. Schedule 6 - Safety Data Sheets: Required for hazardous materials or chemicals

7. Schedule 7 - Form of Purchase Order: Standard form for placing orders

8. Appendix A - Contact Details: Key contact persons and their details for both parties

9. Appendix B - Compliance Certificates: Required regulatory or quality certifications

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

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Chemical Industry

Mining

Metallurgy

Construction Materials

Automotive

Electronics Manufacturing

Pharmaceuticals

Food and Beverage

Textiles

Agriculture

Energy

Plastics and Polymers

Relevant Teams

Procurement

Supply Chain

Legal

Operations

Quality Control

Compliance

Finance

Logistics

Production

Risk Management

Technical Operations

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Operations Manager

Quality Control Manager

Legal Counsel

Contract Manager

Purchasing Officer

Supply Chain Analyst

Logistics Manager

Compliance Officer

Technical Director

Production Manager

Risk Manager

Chief Operating Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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