The Service Agreement Between Two Companies is a fundamental legal document used to formalize business relationships under German law. It is essential for situations where one company provides professional services to another, ranging from consulting and IT services to facilities management and business process outsourcing. The agreement incorporates mandatory provisions required by German law, including specific liability and warranty clauses required under the BGB (German Civil Code) and commercial provisions under the HGB (German Commercial Code). This document type is particularly important in the German business context, where detailed written agreements are standard practice and certain legal provisions must be explicitly addressed. It includes comprehensive sections on service delivery, quality standards, payment terms, and risk allocation, while considering German-specific requirements for B2B contracts and EU regulations where applicable.
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1. Parties: Identification of the contracting parties with full legal names, registration details, and addresses
2. Background: Context of the agreement and business relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, including core obligations and deliverables
5. Term and Commencement: Duration of the agreement and conditions for effectiveness
6. Service Provider's Obligations: Detailed obligations of the service provider, including quality standards and performance requirements
7. Client's Obligations: Cooperation obligations and responsibilities of the client
8. Fees and Payment Terms: Pricing, payment schedule, invoicing requirements, and VAT provisions
9. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Liability and Limitation of Liability: Scope of liability and any limitations in accordance with German law
12. Force Majeure: Provisions for unforeseen circumstances preventing performance
13. Termination: Grounds for termination, notice periods, and consequences of termination
14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
15. Miscellaneous: Standard closing provisions including severability, entire agreement, and amendments
1. Data Protection: Required when services involve processing of personal data, including GDPR compliance measures
2. Personnel Requirements: Include when service provider's staff will work on client premises or when specific qualifications are required
3. Service Levels: Needed when specific performance metrics and KPIs are to be measured
4. Subcontracting: Include when service provider may use subcontractors
5. Insurance: Required when services involve significant risks or high-value deliverables
6. Compliance with Laws: Detailed compliance obligations when operating in regulated industries
7. Non-Competition: Include when services involve access to sensitive market information or strategic resources
8. Change Control: Required for long-term or complex services where scope changes are likely
9. Audit Rights: Include when client needs rights to audit service delivery or compliance
10. Business Continuity: Required for critical services or when regulatory compliance demands it
1. Service Description: Detailed technical specifications and scope of services
2. Service Levels and KPIs: Detailed performance metrics, measurement methods, and remedies
3. Fee Schedule: Detailed pricing, payment terms, and calculation methods
4. Personnel and Key Contacts: List of key personnel, qualifications, and contact details
5. Data Processing Agreement: GDPR-compliant data processing terms and specifications
6. Security Requirements: IT and physical security requirements and procedures
7. Transition Plan: Implementation and service transition procedures
8. Exit Plan: Procedures and obligations for service termination and handover
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Professional Services
Manufacturing
Logistics and Supply Chain
Financial Services
Healthcare
Telecommunications
Business Consulting
Facilities Management
Engineering Services
Marketing and Advertising
Research and Development
Relevant Teams
Legal
Procurement
Commercial
Operations
Finance
Compliance
Risk Management
Business Development
Project Management
Account Management
Service Delivery
Relevant Roles
Legal Counsel
Contract Manager
Procurement Manager
Commercial Director
Business Development Manager
Operations Director
Chief Financial Officer
Project Manager
Account Manager
Compliance Officer
Risk Manager
General Counsel
Head of Operations
Service Delivery Manager
Chief Executive Officer
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