Procurement glossary: Law & contracts
88 terms on Law & contracts.
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- AmendmentContract Amendment · contract change · contract supplementAn amendment is a formal contract change used to subsequently adjust individual clauses of an existing supply or framework agreement. In procurement, this frequ
- Assignment prohibitionAbtretungsausschluss · Abtretungsklausel · assignment prohibitionAn assignment prohibition is a contractual clause that prohibits a contracting party from assigning claims arising from the contract to third parties. In indust
- Automatic Contract Renewaltacit renewal · evergreen clause · evergreen contractAutomatic contract renewal (also known as tacit renewal or an evergreen clause) automatically extends a supply or framework agreement by a fixed term unless not
- Award Documentation NoteVergabeniederschrift · Vermerk über die Vergabeentscheidung · Award documentationThe award documentation note is the written record of the essential considerations and decisions in the course of a purchase or public procurement. It establish
- Award policiesVergabe-/Beschaffungsrichtlinien · procurement policy · purchasing policyAward policies are internal rulebooks that define how companies source requirements, involve suppliers and award contracts. They create binding standards for ap
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- Benchmarking clausePreisbenchmarking · Benchmarking Clause · Market Price Comparison ClauseA benchmarking clause is a contractual provision that links price or term adjustments to the outcome of an agreed market comparison. It ensures that framework p
- Bid protestbid protest · protest in the tendering procedure · bid challengeA bid protest is the formal complaint about a procedural error or rule violation in the tendering or procurement process raised by one of the bidders involved i
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- Certificate of originProof of origin · Certificate of Origin · CoOThe certificate of origin is a trade document that certifies the country of origin of a good and is frequently required for customs clearance, preferential trea
- Change of ControlCoC · change of control · change of ownershipChange of Control refers to a change in the controlling influence over a company, for example through the sale of shares, a merger or a restructuring. For buyer
- Change-order clausechange-order agreement · amendment clause · variation clauseThe change-order clause is a contract provision that governs how changes to an existing order, a framework agreement or a development assignment are bindingly a
- Competitive DialogueCompetitive Dialogue · VgV procedure · dialogic procurement procedureThe Competitive Dialogue is a procurement procedure in which the public contracting authority negotiates with potential bidders about finding a solution in stru
- Compliance ProcurementCompliance Management in Procurement · Procurement Compliance · Purchasing ComplianceCompliance procurement refers to the entire set of policies, processes and controls by which procurement departments ensure that all purchasing activities compl
- ConfidentialityConfidentiality · NDA · Non-Disclosure AgreementConfidentiality refers to the obligation to protect confidential information such as drawings, calculations or trade secrets from unauthorised access. In indust
- Confidentiality levelSecurity Classification Level · Geheimhaltungsstufe · SchutzstufeThe confidentiality level assigns information, documents and business data in procurement to a defined protection category. It specifies who may view, share or
- Contract ComplianceVertragskonformität · Contract adherence · Contractual ComplianceContract compliance refers to ensuring that all procurement contracts are actually adhered to – both on the supplier side and within the company itself. It link
- Contract for servicesDienstleistungsvertrag · Servicevertrag · service contractA contract for services is a contract under the law of obligations under which the contractor undertakes to render a service, while the client owes the remunera
- Contract for workWerkliefervertrag · Werkvertrag BGB · WerkvertragstypThe contract for work is a central contract type under German law of obligations and governs the production of a work outcome against remuneration. For buyers i
- Contract for work vs. service contractContract for work · Service contract · Contract for work and servicesContracts for work and service contracts differ fundamentally in whether the contractor owes an outcome or merely their activity. For buyers in manufacturing in
- Contract ManagementContract Management · Contract Controlling · Supply Contract ManagementContract management refers to the systematic planning, design, implementation and monitoring of contracts throughout their entire life cycle. In industrial proc
- Contract termLaufzeit · Vertragsdauer · Contract TermThe contract term denotes the period for which a contract between the contracting party and the supplier is concluded. In procurement, it determines how long co
- Customs Tariff Classificationcustoms classification · tariff classification · HS classificationCustoms tariff classification is the systematic assignment of goods to customs tariff codes (commodity codes or HS codes) as the basis for duty rates, export an
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- Declaration of ConformityKonformitätserklärung EU · Declaration of Conformity · DoCThe Declaration of Conformity is a formally binding declaration by the manufacturer that a product complies with the applicable statutory and technical requirem
- Dual-use goodsdual-use goods · dual-use items · goods with dual civilian and military usesDual-use goods are goods, software and technologies that can be used both for civilian and for military purposes. For buyers and suppliers in DACH industry, thi
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- Escalation ClausePrice sliding clause · Sliding-price clause · Price adjustment clauseThe escalation clause, in German known as a price adjustment or sliding-price clause, is a contractual provision that links price changes in long-term supply co
- EUDR in ProcurementEU Deforestation Regulation · EU Deforestation Regulation · EUDR complianceThe EUDR (EU Deforestation Regulation, Regulation (EU) 2023/1115) obliges companies to demonstrate that certain raw materials and products derived from them do
- EUR.1 preference certificateEUR.1 movement certificate · preference certificate · certificate of origin movement certificateThe EUR.1 preference certificate is a customs document that proves the preferential origin of goods and thereby enables reduced or zero duty rates under prefere
- Export ControlExport Control · Dual-Use Regulation · AWVExport control refers to the entirety of the legal provisions by which states monitor the export of goods, technology and services across borders. For technical
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- Force Majeureforce majeure · force majeure clause · Force Majeure ClauseForce Majeure refers to force majeure – events outside the control of the contracting parties that make performance of the contract impossible or unreasonable.
- Framework agreement annexContract annex · Annex to the framework agreement · Contract AnnexA framework agreement annex is a contractual supplementary document that specifies the detailed provisions of a framework agreement between buyer and supplier.
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- IndemnityHold Harmless · Freistellung · Indemnity ClauseIndemnity refers to the contractual obligation of one contracting party to hold the other harmless from certain damages, losses or third-party claims. In indust
- Intellectual Property Rights (IPR)Intellectual property rights · Intellectual property · IPRIntellectual Property Rights (IPR) comprise the legal protection rights over intellectual property such as patents, trademarks, designs, copyrights and trade se
- Intrastat returnIntrastat · Intrahandel return · INTRA returnThe Intrastat return is the statistical declaration of goods arrivals and goods dispatches between member states of the European Union. It is not used to levy d
- IP transferIP-Transfer · Rechteübertragung · IPR-ÜbertragungIP transfer refers to the contractual transfer of intellectual property rights, for example in designs, software, formulations or manufacturing know-how, betwee
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- Letter of CreditAkkreditiv · L/C · LoCA letter of credit (LoC), known in German as Akkreditiv, is an abstract payment undertaking by a bank that allows the exporter to ensure he is paid only against
- Limitation of LiabilityHaftungsbeschränkung · Haftungsobergrenze · liability limitationLimitation of liability refers to contractual provisions that restrict a contracting party's liability risk – typically that of the supplier or service provider
- Limitation of LiabilityLiability Cap · Limitation of Liability · Liability LimitationLimitation of Liability refers to the contractual limitation of liability between customer and supplier, usually through caps, exclusion clauses and liability t
- Liquidated DamagesLD · Liquidated damages clause · contractual penaltyLiquidated damages (LDs) are damages amounts agreed in advance by contract that a supplier pays to the customer upon specific breaches of contract – most common
- Long-Term Supplier's Declaration (LTSD)LLE · Langzeit-Lieferantenerklärung · long-term supplier's declarationThe long-term supplier's declaration (LTSD) is a customs declaration by which a supplier confirms that the delivered goods, with a preference document, are rega
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- Master Service Agreement (MSA)MSA · framework agreement · Master AgreementA Master Service Agreement (MSA) is a framework agreement that sets out the fundamental terms for a lasting business relationship between a customer and a contr
- Most-Favoured-Customer ClauseMFC clause · best customer clause · terms privilege clauseThe most-favoured-customer clause (MFC clause) is a contractual commitment by which a supplier guarantees not to grant any other customer more favourable terms
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- Non-Disclosure Agreement (NDA)Geheimhaltungsvereinbarung · Vertraulichkeitsvereinbarung · GeheimhaltungserklärungA Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a contract that governs the handling of confidential information between busines
- Non-Solicitation ClausePoaching ban · Non-Solicitation Agreement · Non-Solicitation ClauseThe non-solicitation clause is a contractual provision that prohibits the contracting parties from poaching the other party's employees, customers or suppliers.
- Notice Periodnotice period · renewal period · termination thresholdThe notice period is the contractually agreed period between the termination of a contract and the point at which it takes effect. In industrial procurement, it
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- Packaging Act (VerpackG)VerpackG · Verpackungsgesetz Deutschland · SystembeteiligungspflichtThe Packaging Act (VerpackG) regulates the placing on the market, take-back and recovery of packaging in Germany and obliges manufacturers, distributors and imp
- Packaging regulationsPackaging regulations · Verpackungsrichtlinien · Packaging compliancePackaging regulations encompass all legal, normative and contractual requirements for the packaging, labelling and take-back of products along the supply chain.
- Parent Company GuaranteePCG · Group Guarantee · Parent GuaranteeA Parent Company Guarantee (PCG) is a contractual suretyship or guarantee declaration by a parent company for the liabilities or performance obligations of its
- Penalty ClauseContractual Penalty · Liquidated Damages · Penalty ClauseThe penalty clause is a contractual agreement under which a supplier pays a contractual penalty to the customer in the event of a failure to meet agreed perform
- Policy Compliance in ProcurementProcurement Compliance · Supplier Compliance · Purchasing CompliancePolicy compliance in procurement refers to the systematic assurance that all procurement processes, contract awards and supplier relationships comply with a com
- PPWRPackaging and Packaging Waste Regulation · EU Packaging Regulation · EU Packaging Regulation (PPWR)PPWR stands for Packaging and Packaging Waste Regulation, the EU Packaging Regulation (Regulation (EU) 2025/40), which governs packaging and packaging waste uni
- PPWR Declaration of ConformityPPWR DoC · Declaration of Conformity PPWR · Declaration of Conformity Packaging RegulationThe PPWR Declaration of Conformity is the written declaration by an economic operator that a packaging or packaged good meets the requirements of the EU Packagi
- Prequalification tenderTeilnahmeverfahren · Teilnahmewettbewerb nach VgV · prequalificationThe prequalification tender is the first stage of a two-stage award procedure in which potential suppliers demonstrate their suitability before being admitted t
- Price adjustment clausePrice Adjustment Clause · Indexation Clause · Escalation ClauseThe price adjustment clause is a contractual agreement that specifies under which conditions, to what extent and by which procedure agreed prices can be adjuste
- Price adjustment clauseIndexklausel · Preisänderungsklausel · PreisgleitungsklauselThe price adjustment clause is a contractual provision that sets out under which conditions and according to which methodology agreed prices may change during t
- Price Adjustment ClausePreisgleitklausel · Preisanpassungsklausel · Price Adjustment ClauseThe price adjustment clause is a contractual provision governing the adjustment of agreed prices in response to changed cost situations. It is indispensable abo
- Price escalation clausePrice adjustment clause · Sliding price clause · Price Escalation ClauseThe price escalation clause is a contractual agreement governing the conditions under which and the extent to which a price may be adjusted during the term of a
- Price Escalation ClauseGleitpreisklausel · Preisanpassungsklausel · IndexklauselThe price escalation clause is a contractual agreement governing the adjustment of an agreed price in line with the development of defined cost-driven factors.
- Procurement FileVergabedokumentation · procurement file · tender fileA procurement file is the complete written documentation of a procurement or award procedure. It comprises all documents relevant to the procedure, from needs a
- Product liability clauseProdukthaftung-Vereinbarung · Haftungsklausel · Product liability clauseThe product liability clause is a contract clause that determines who is liable for damage arising from a delivered product. For buyers and suppliers in the man
- Purchasing terms and conditionsGeneral purchasing terms and conditions · GPTC · purchasing conditionsPurchasing terms and conditions are the contractual framework conditions under which a company procures goods and services. They regulate prices, delivery dates
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- Raw material escalation clauseGleitpreisvereinbarung · Materialpreisbindung · MaterialzuschlagsklauselThe raw material escalation clause is a contractual agreement that automatically adjusts the price of a good or service in line with the development of selected
- REACHSVHC · Kandidatenliste · Candidate ListREACH stands for “Registration, Evaluation, Authorisation and Restriction of Chemicals” and is the central EU chemicals regulation (Regulation (EC) No 1907/2006
- Retention of TitleVorbehaltseigentum · Eigentumsvorbehalt Klausel · retention of titleRetention of title is an agreement under which the seller transfers ownership of the delivered goods only once the buyer has paid the purchase price in full. It
- Right to Auditright of audit · audit right · audit clauseThe right to audit refers to the contractually agreed right of a buyer to inspect the books, records, processes and systems of its suppliers or service provider
- RoHSRestriction of Hazardous Substances · RoHS Directive · RoHS 2RoHS stands for "Restriction of Hazardous Substances" and refers to EU Directive 2011/65/EU restricting certain hazardous substances in electrical and electroni
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- Sanctions list screeningSanctions Screening · Sanctions Screening · Sanctions CheckSanctions list screening is the systematic comparison of business partners, contact persons and transactions against national and international sanctions lists.
- Specification of workLeistungsverzeichnis · LV · SpecificationThe specification of work (Leistungsbeschreibung) defines in binding terms which services, deliveries or construction works a supplier must render, and in what
- Step-in rightStep-in clause · Right of entry · Step-in rightThe step-in right (right of entry) gives a contracting party the right, in certain crisis situations, to step directly into the position of a supplier or subcon
- Supplier Sanctions ScreeningSanctions Screening · Sanctions List Screening · Compliance ScreeningSupplier sanctions screening refers to the systematic checking of suppliers, service providers and their owners against national and international sanctions lis
- Supplier's DeclarationLangzeitlieferantenerklärung · Supplier's Declaration · Ursprungserklärung des LieferantenThe supplier's declaration is a customs law declaration by a supplier confirming that a delivered good meets the origin rules for preferences and can therefore
- Supply Chain Due Diligence ActLkSG · Lieferkettensorgfaltspflichtengesetz · Human Rights Due DiligenceThe Supply Chain Due Diligence Act (officially Lieferkettensorgfaltspflichtengesetz, LkSG) obliges companies in Germany to exercise due diligence in their globa
- Supply Chain Due Diligence Act (LkSG)LkSG · Lieferkettengesetz · LieferkettensorgfaltspflichtengesetzThe German Supply Chain Due Diligence Act (LkSG) obliges companies in Germany to observe human rights and environmental standards in their global supply chains.
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- Tariff preferencesPreferential origin · Preferential agreement · Customs concessionTariff preferences are customs concessions granted under preferential agreements between states or groups of states that allow the import or export of goods at
- Termination for Causetermination for good cause · immediate termination · termination for defaultTermination for Cause refers to the extraordinary termination of a supply or framework agreement for good cause, for example in the event of a material breach b
- Termination for Conveniencetermination for convenience clause · termination at free discretion · convenience terminationTermination for Convenience refers to the buyer's right to terminate a contract for its own reasons without any breach by the supplier. In industrial procuremen
- Termination for material groundfristlose Kündigung · außerordentliche Kündigung · termination for causeThe right of termination for material ground enables contractual parties to end a long-term contract prematurely when adherence to the contract becomes unreason
- Terms and conditionsAGB · Allgemeine Geschäftsbedingungen · Allgemeine LieferbedingungenTerms and conditions (T&Cs) are pre-formulated contract terms that one contracting party establishes for a large number of contracts and presents to the other p
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- WarrantyGuarantee · Statutory warranty · Product WarrantyThe warranty refers to contractually agreed statutory warranty and guarantee claims of a supplier for delivered goods, components or services. For buyers, it is
- Warranty agreementWarranty agreement · Warranty contract · HerstellergarantieA warranty agreement is a contractual commitment by the supplier that a service or product possesses certain characteristics or functions over a defined period,
- Warranty claimsGewährleistung · Sachmängelhaftung · MängelgewährleistungWarranty claims are the contractual and statutory rights of a buyer when delivered goods or services do not have the agreed quality. For technical buyers in the
- WEEEElektroG · Electrical and Electronic Equipment Act · electronic scrapWEEE stands for "Waste Electrical and Electronic Equipment" and refers to EU Directive 2012/19/EU on the take-back and recovery of electrical and electronic equ
- Whistleblowingwhistleblowing system · whistleblower system · reporting systemWhistleblowing refers to the reporting of misconduct, legal violations or irregularities by internal or external whistleblowers. In DACH industry, whistleblowin
- Whistleblowing systemWhistleblower system · reporting office · whistleblowing systemA whistleblowing system is an organised reporting procedure through which employees, suppliers and third parties can report compliance violations within the com