The Termination Of Supplier Contract document is essential for companies operating under German law who need to formally end their supplier relationships. It becomes necessary when either party wishes to terminate the supply arrangement, whether due to strategic changes, performance issues, or mutual agreement. This document ensures compliance with German legal requirements, particularly the provisions of the Civil Code (BGB) and Commercial Code (HGB) regarding contract termination. It covers critical aspects such as notice periods, final settlements, and post-termination obligations, while incorporating specific German legal principles such as good faith (Treu und Glauben). The document is particularly important given Germany's strict requirements regarding form and content of commercial contract terminations, and includes provisions for managing transition periods, protecting confidential information, and ensuring proper documentation of the termination process.
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1. Parties: Identification of the contracting parties, including full legal names, registration details, and addresses
2. Background: Reference to the original supplier contract, its date, and key terms; brief context for the termination
3. Definitions: Definitions of key terms used in the termination agreement
4. Termination Date: Clear specification of when the contract will terminate, including any notice periods required under German law
5. Grounds for Termination: Statement of the legal basis for termination under German law and/or the original contract terms
6. Outstanding Obligations: Details of any remaining deliveries, services, or payments to be completed before termination
7. Final Payment Terms: Arrangements for final invoicing, payment schedules, and settlement of accounts
8. Return of Property: Requirements for returning any materials, equipment, or confidential information
9. Confidentiality Obligations: Confirmation that confidentiality obligations survive termination and their duration
10. Mutual Release: Release of claims and liabilities between parties, subject to specified exceptions
11. Governing Law: Confirmation of German law as governing law and jurisdiction for disputes
12. Signatures: Execution blocks complying with German form requirements
1. Transition Arrangements: Detailed transition plan if the termination requires handover to a new supplier
2. Intellectual Property Rights: Specific arrangements for IP rights if relevant to the supplier relationship
3. Employee Matters: Required when termination affects staffing arrangements or transferred employees
4. Non-Competition: Post-termination competition restrictions, if applicable and enforceable under German law
5. Data Protection: Specific arrangements for handling personal data post-termination if GDPR relevant
6. Warranty Obligations: Details of continuing warranty obligations for previously supplied goods
7. Insurance: Requirements for maintaining insurance coverage post-termination
8. Third Party Rights: Provisions regarding the impact on third party contracts or rights
1. Schedule of Outstanding Deliveries: Detailed list of pending deliveries or services to be completed
2. Schedule of Final Payments: Breakdown of all outstanding payments and payment timeline
3. Property Return Schedule: Inventory of all items to be returned and timeline for return
4. Transition Plan: Detailed timeline and responsibilities for transition activities
5. Original Contract: Copy of the original supplier contract being terminated
6. Notice History: Copies of relevant notices or correspondence leading to termination
7. Mutual Release Details: Specific terms and exceptions to the mutual release of claims
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Automotive
Technology
Retail
Construction
Chemical Industry
Pharmaceuticals
Energy
Telecommunications
Logistics
Food and Beverage
Industrial Equipment
Electronics
Consumer Goods
Professional Services
Relevant Teams
Legal
Procurement
Supply Chain
Operations
Finance
Compliance
Risk Management
Commercial
Vendor Management
Strategic Sourcing
Contract Administration
Relevant Roles
Procurement Manager
Supply Chain Director
Legal Counsel
Contract Manager
Commercial Director
Chief Procurement Officer
Vendor Relations Manager
Operations Manager
Category Manager
Sourcing Specialist
General Counsel
Business Unit Director
Chief Financial Officer
Risk Manager
Compliance Officer
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