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Commercial Management Agreement

Commercial Management Agreement Template for Germany

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Key Requirements PROMPT example:

Commercial Management Agreement

"Need a Commercial Management Agreement for our German retail chain with 50 stores, appointing ABC Management GmbH to handle day-to-day operations, marketing, and staff management starting March 1, 2025, with significant focus on performance metrics and profit-sharing incentives."

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Document background
The Commercial Management Agreement is essential for businesses operating in Germany that require professional management services or expertise from external providers. This document is commonly used when a company seeks to outsource management functions, bring in specialized operational expertise, or establish clear governance structures for specific business units. The agreement must comply with German legal requirements, particularly the German Commercial Code (HGB) and Civil Code (BGB), while addressing practical business needs such as service scope, authority levels, and performance metrics. It's particularly relevant for companies undergoing restructuring, expansion, or those requiring specialized management expertise without creating permanent employment relationships. The document typically includes comprehensive provisions for governance, reporting structures, and risk allocation, making it suitable for both domestic German operations and international businesses operating under German law.
Suggested Sections

1. Parties: Identification of the contracting parties - the principal company and the management service provider

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

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

4. Appointment and Scope of Services: Formal appointment of the manager and detailed description of management services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination

6. Manager's Obligations: Detailed responsibilities, duties, and performance standards expected from the manager

7. Principal's Obligations: Responsibilities and obligations of the principal company

8. Compensation and Payment Terms: Fee structure, payment schedule, and expense reimbursement terms

9. Reporting Requirements: Requirements for regular reporting, documentation, and performance metrics

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Intellectual Property Rights: Ownership and usage rights of IP created during the management services

12. Liability and Indemnification: Limitation of liability and indemnification provisions

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

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

Optional Sections

1. Non-Competition: Restrictions on competitive activities - include when protecting business interests is crucial

2. Insurance: Insurance requirements - include when specific coverage is needed for risk management

3. Data Protection: Detailed GDPR compliance provisions - include when personal data processing is involved

4. Compliance with Laws: Specific regulatory compliance obligations - include for heavily regulated industries

5. Personnel Management: Rules regarding staff supervision - include when manager will oversee employees

6. Budget Authority: Spending limits and approval processes - include when manager has financial authority

7. Performance Bonuses: Additional compensation based on performance - include when offering incentive-based pay

8. Dispute Resolution: Alternative dispute resolution procedures - include when preferring arbitration/mediation

Suggested Schedules

1. Schedule 1 - Services Description: Detailed breakdown of management services and deliverables

2. Schedule 2 - Fee Structure: Detailed compensation calculations and payment terms

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and evaluation criteria

4. Schedule 4 - Reporting Templates: Standard formats for required reports and documentation

5. Schedule 5 - Authorized Representatives: List of key contacts and their authority levels

6. Appendix A - Power of Attorney: If required, specific powers granted to the manager

7. Appendix B - Compliance Procedures: Detailed compliance requirements and procedures

8. Appendix C - Insurance Requirements: Specific insurance coverage requirements and limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 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

Retail

Professional Services

Technology

Real Estate

Healthcare

Hospitality

Construction

Financial Services

Logistics

Energy

Telecommunications

Media and Entertainment

Relevant Teams

Legal

Operations

Executive Leadership

Compliance

Risk Management

Finance

Human Resources

Commercial

Business Development

Administration

Procurement

Project Management

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Managing Director

Operations Manager

Business Unit Director

Project Manager

General Counsel

Legal Director

Commercial Director

Contract Manager

Risk Manager

Compliance Officer

Business Development Manager

Department Head

Regional Manager

Facility Manager

Administrative Manager

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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