Document background
The Supply Agreement Contract is a fundamental commercial document used to establish and govern long-term supply relationships between businesses operating under German law. This agreement is essential when parties intend to create a framework for regular supply of goods or materials, setting out detailed terms for ordering, delivery, quality standards, and risk allocation. The document is particularly important in Germany's robust manufacturing and industrial sectors, where it must comply with the stringent requirements of the German Civil Code (BGB) and Commercial Code (HGB). It typically includes comprehensive provisions for quality control, reflecting Germany's emphasis on technical standards and product quality, while also incorporating relevant EU regulations. The Supply Agreement Contract is designed to provide both legal certainty and commercial flexibility, with core terms in the main agreement and specific details in schedules that can be updated as needed.
