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Framework Supply Agreement Template for Germany

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Key Requirements PROMPT example:

Framework Supply Agreement

"I need a Framework Supply Agreement under German law for the supply of automotive parts from our manufacturing facility in Munich to multiple European car manufacturers, with specific quality control requirements and just-in-time delivery provisions to commence from March 2025."

Document background
A Framework Supply Agreement is essential for businesses establishing long-term supply relationships in the German market. This document type is particularly relevant when parties anticipate regular, ongoing supplies rather than one-off purchases, providing a efficient structure for recurring transactions. The agreement sets out the master terms governing all future supplies, including ordering processes, quality standards, warranties, and risk allocation, while individual purchases are made through purchase orders under the framework. Under German law, particular attention must be paid to statutory requirements regarding general terms and conditions (AGB-Recht), supply chain due diligence (LkSG), and commercial practices under the HGB. The agreement typically includes detailed schedules for technical specifications, pricing, and operational procedures, allowing for flexibility in updating commercial terms while maintaining the stable framework of the master agreement.
Suggested Sections

1. Parties: Identification of the supplier and purchaser, including full legal names and addresses

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. Scope of Agreement: Description of the framework nature and general scope of supply arrangement

5. Ordering Process: Procedures for placing and accepting orders, including form of purchase orders and order confirmations

6. Delivery Terms: Delivery obligations, Incoterms, timing, and logistics arrangements

7. Price and Payment: Pricing principles, payment terms, invoicing requirements, and currency provisions

8. Quality Requirements: Quality standards, specifications, and quality assurance processes

9. Warranties: Product warranties, quality guarantees, and remedy procedures for defective goods

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

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

12. Confidentiality: Protection of confidential information and trade secrets

13. Force Majeure: Events excusing performance and related procedures

14. Governing Law and Jurisdiction: Choice of German law and jurisdiction provisions

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

Optional Sections

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

2. Minimum Purchase Commitments: Include when buyer commits to minimum purchase volumes or values

3. Forecast Obligations: Used when regular demand forecasting is required for capacity planning

4. Consignment Stock: Include when supplies are held on consignment basis

5. Technology License: Required when intellectual property rights are involved in the supply relationship

6. Compliance with Supply Chain Act: Detailed provisions when falling under German Supply Chain Due Diligence Act

7. Data Protection: Detailed GDPR compliance terms when personal data processing is involved

8. Environmental Compliance: Specific environmental standards and sustainability requirements

9. Change Management: Procedures for handling changes to specifications or processes

10. Service Level Agreement: Include when specific performance metrics and penalties apply

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed technical specifications of products to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing, including price adjustment mechanisms and volume discounts

3. Schedule 3 - Service Levels: Specific performance metrics and measurement criteria

4. Schedule 4 - Quality Requirements: Detailed quality standards, testing procedures, and acceptance criteria

5. Schedule 5 - Ordering Procedure: Detailed ordering process including forms and timelines

6. Schedule 6 - Key Contacts: List of key personnel and contact details for both parties

7. Schedule 7 - Approved Production Facilities: List of approved manufacturing or supply locations

8. Schedule 8 - Compliance Requirements: Specific compliance obligations and certification requirements

9. Appendix A - Form of Purchase Order: Standard form of purchase order to be used

10. Appendix B - Form of Order Confirmation: Standard form of order confirmation to be used

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Automotive

Electronics

Chemical

Retail

Consumer Goods

Industrial Equipment

Pharmaceuticals

Food and Beverage

Technology

Raw Materials

Construction

Energy

Telecommunications

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Quality Assurance

Finance

Compliance

Commercial

Business Development

Risk Management

Logistics

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Chief Operating Officer

Purchasing Director

Quality Assurance Manager

Operations Manager

Compliance Officer

Supply Chain Analyst

Business Development Manager

Category Manager

Sourcing Manager

Chief Financial 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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