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.
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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
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
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
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