Business law

Supply agreement (Liefervertrag)

contract for the one-off or recurring supply of goods between businesses. Legally, it is generally a purchase agreement, even for custom-made items. Besides price and quantity, it mainly governs the specification, delivery dates, transfer of risk, statutory liability for defects and liability. Where the contract is silent, the statutory rules apply, in cross-border trade often the UN Sales Convention (CISG).

Often enough, the way the parties actually work together has little to do with the contract they signed. An old template was adapted in a hurry, an AI produced something that sounds legal, and the actual list of obligations is only half described. When something then goes wrong, everyone feels badly treated. Especially where large sums are involved, the wording of the contract deserves attention. For ongoing relationships, a framework agreement is often more practical than many individual contracts. Conflicting standard terms are another point of dispute. Rejection clauses make clear that the other party’s terms are not to apply. If the contract is performed despite conflicting standard terms, the statutory rules generally apply to the conflicting provisions. Without a clear objection, the other party’s terms may become part of the contract. Anyone wishing to use their own standard terms should agree on their application before the contract is concluded. This can also be done in advance in a framework agreement.

Term 35 of 44 · As at 21 October 2026

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Licence: CC BY 4.0*

How to cite: Supply agreement (Liefervertrag), in: Berlin Online Glossary of German Business Law, published by STRUB.LAW, as at 21 October 2026, https://strub.law/en/glossary/supply-agreement/, CC BY 4.0

*This licence applies only to the written entries of the Berlin Online Glossary.

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