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When it comes to international business dealings, a sourcing agreement is an essential document for companies importing goods from foreign countries. However, for German companies pursuing such a deal with foreign counterparties, it is important to have a German-language version of the agreement to ensure that both parties fully understand the terms and conditions.

A sourcing agreement is a legally binding document between parties that outlines the terms of a business relationship between a supplier and a buyer. It specifies the products or services being provided, the quantity, quality standards, delivery schedules, and payment terms. It is important to have a well-worded and comprehensive sourcing agreement as it can help avoid disputes or unexpected charges that may arise later on.

In Germany, a sourcing agreement is known as a “Beschaffungsvereinbarung,” which translates to “procurement agreement” in English. This agreement can be used for a variety of purposes, including the procurement of goods, services, or raw materials from a supplier.

A well-written sourcing agreement in German should include:

1. Identification of the parties involved: The agreement should include the names and addresses of both the supplier and the buyer.

2. Description of the goods or services: The agreement should describe in detail the goods or services being procured, including technical specifications, quality standards, and any other relevant details.

3. Quantity, delivery schedule and payment terms: The agreement should specify the quantity of goods or services being procured, the delivery schedules, and any payment terms such as payment deadlines and currency of payment.

4. Validity and termination: The agreement should specify how long it will remain valid and the conditions under which it can be terminated.

5. Dispute resolution: The agreement should specify how disputes will be resolved, such as through mediation or arbitration.

6. Confidentiality and intellectual property: If applicable, the agreement should include clauses protecting the confidentiality of any sensitive information shared between the parties and the intellectual property rights associated with the goods or services.

It is important to note that sourcing agreements in Germany must be compliant with the country`s legal requirements, including the German Civil Code (BGB), which regulates contracts between private parties. Working with a legal expert in German contract law is highly recommended to ensure compliance.

In summary, a sourcing agreement is a crucial document for international businesses, and German companies should ensure that they have a comprehensive and well-written agreement in their native language when pursuing such a deal. This helps to avoid misunderstandings and disputes, making the process of importing goods more efficient and cost-effective in the long run.