A Sole Supply Agreement is a specialized commercial contract used when establishing an exclusive supply relationship between a supplier and purchaser. This document is particularly important in the German market, where it must comply with both German national law (including the Civil Code and Commercial Code) and EU regulations, especially regarding competition law and vertical agreements. The agreement typically covers essential elements such as exclusivity obligations, minimum purchase commitments, quality standards, pricing mechanisms, and delivery terms. It's commonly used in manufacturing and industrial sectors where guaranteed supply chains are crucial for business operations. The Sole Supply Agreement needs to be carefully structured to balance commercial interests with legal compliance, particularly regarding market competition and antitrust considerations under German law.
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1. Parties: Identification and details of the supplier and purchaser
2. Background: Context of the agreement and business relationship
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Exclusivity Obligations: Terms of exclusive supply arrangement and territorial scope
5. Supply Obligations: Supplier's obligations regarding product supply, quantities, and delivery terms
6. Purchase Obligations: Purchaser's obligations including minimum purchase commitments
7. Price and Payment Terms: Product pricing, payment conditions, and price adjustment mechanisms
8. Quality Requirements: Product specifications, quality standards, and compliance requirements
9. Delivery and Logistics: Delivery terms, Incoterms, packaging requirements, and logistics arrangements
10. Term and Termination: Duration of agreement and termination provisions
11. Warranties and Indemnities: Product warranties, representations, and indemnification obligations
12. Liability and Insurance: Limitation of liability, insurance requirements, and risk allocation
13. Confidentiality: Protection of confidential information and trade secrets
14. Force Majeure: Events excusing performance and related procedures
15. Governing Law and Jurisdiction: Application of German law and jurisdiction for disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Intellectual Property Rights: Include when IP rights are relevant to the supply relationship or when branded products are involved
2. Compliance with Laws: Include when specific regulatory compliance (e.g., industry regulations) is critical
3. Anti-Corruption and Ethics: Include for international arrangements or when dealing with public sector
4. Change Control: Include when product specifications or supply terms may need regular updates
5. Security of Supply: Include when continuous supply is critical for business operations
6. Environmental Compliance: Include when environmental standards or sustainability requirements are important
7. Data Protection: Include when personal data processing is involved in the supply relationship
8. Training and Support: Include when supplier must provide technical support or training
9. Marketing and Branding: Include when supplier's products are to be marketed under specific conditions
1. Product Specifications: Detailed technical specifications of products to be supplied
2. Pricing Schedule: Detailed pricing structure, including any volume discounts or special pricing arrangements
3. Quality Standards and Procedures: Detailed quality control requirements and testing procedures
4. Service Levels: Performance metrics and service level requirements
5. Delivery Locations: List of approved delivery locations and specific delivery requirements
6. Forecast and Order Procedures: Detailed procedures for forecasting and ordering
7. Contact Details: Key contact persons and escalation procedures
8. Form of Purchase Order: Standard form of purchase order to be used
9. Compliance Certificates: Required compliance certificates and documentation
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