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The Order Processing Agreement (Auftragsverarbeitungsvertrag) is required under German law and the GDPR whenever an organization (the controller) engages another party (the processor) to process personal data on its behalf. This mandatory agreement ensures compliance with Article 28 GDPR and the German Federal Data Protection Act (BDSG), establishing clear responsibilities and obligations for both parties. The document must be in place before any data processing begins and should detail the nature, scope, and purpose of processing, security measures, confidentiality requirements, and procedures for data subject rights. It's particularly crucial in the German business environment, where data protection authorities strictly enforce compliance with data protection regulations.

1. Parties: Identification of the Controller (Verantwortlicher) and Processor (Auftragsverarbeiter)

2. Background: Context of the processing relationship and purpose of the agreement

3. Definitions: Key terms used in the agreement, including those from GDPR Article 4 and any contract-specific terms

4. Subject Matter and Duration: Details of the processing activities and duration of the agreement

5. Nature and Purpose of Processing: Specific description of processing operations and their intended purposes

6. Type of Personal Data and Categories of Data Subjects: Specification of data types being processed and affected individuals

7. Obligations and Rights of the Controller: Controller's responsibilities, including instruction rights and monitoring

8. Obligations of the Processor: Processor's duties under Article 28 GDPR, including confidentiality and security measures

9. Technical and Organizational Measures: General description of security measures implemented by the processor

10. Sub-processing: Rules and procedures for engaging sub-processors

11. Data Subject Rights: Processor's support in fulfilling data subject requests

12. Security Breaches: Notification and handling of personal data breaches

13. Audit Rights: Controller's rights to verify compliance

14. Return or Deletion of Data: Procedures for data handling upon contract termination

15. Liability and Indemnification: Distribution of liability between parties

16. Termination: Conditions and procedures for ending the agreement

17. Governing Law and Jurisdiction: Specification of German law and competent courts