Notice of Default Template for Germany

A Notice of Default (Verzugsanzeige) is a formal warning sent to someone who has failed to meet their contractual obligations under German law. It tells the other party they've missed an important deadline or payment and puts them officially "in default" - a crucial legal status that triggers specific rights and consequences.

Under the German Civil Code (BGB), sending this notice often marks the starting point for claiming damages or terminating contracts. While some situations automatically create default status after 30 days, many business relationships still require this written notice to protect legal rights and maintain clear documentation. It's especially common in commercial leases, loan agreements, and business contracts throughout the German market.

Send a Notice of Default when your business partner misses key contract deadlines or payments in Germany. Common triggers include tenants falling behind on rent, suppliers missing delivery dates, or contractors failing to complete work on schedule. Acting quickly with this notice preserves your legal rights under German law and creates clear documentation of the breach.

Timing matters - the BGB requires prompt notification in most commercial situations. The notice becomes especially important when dealing with recurring problems, preparing for potential litigation, or managing relationships with struggling business partners. For construction and real estate contracts, sending it immediately after a missed milestone helps protect your claim to damages or contract termination.

• Simple Payment Default Notice: Most basic form used for missed payments, requiring only the amount owed and deadline
• Construction Delay Notice: Details project milestones, specifications, and completion dates for building contracts
• Commercial Lease Default: Addresses rental arrears and other lease violations, often including cure periods under German tenancy law
• Service Agreement Notice: Outlines specific performance failures in service contracts with detailed quality or delivery requirements
• Loan Default Notice: Used by financial institutions, specifying missed payments and consequences under German banking regulations

• Creditors and Lenders: Banks, financial institutions, and private lenders who send Notices of Default to borrowers missing payments
• Commercial Landlords: Property owners and management companies using notices to address tenant defaults under German lease agreements
• Business Contractors: Companies enforcing performance obligations in supply, service, or construction contracts
• Legal Counsel: Attorneys drafting and reviewing notices to ensure compliance with German Civil Code requirements
• Corporate Finance Teams: Internal departments monitoring payment obligations and initiating default procedures

• Contract Review: Gather the original agreement, payment records, and documented breach evidence
• Timeline Documentation: Note exact dates of defaults, prior communications, and cure periods required by German law
• Party Details: Confirm current legal names, addresses, and authorized representatives for all involved parties
• Default Specifics: Calculate precise amounts owed or detail exact contract violations
• Remedy Requirements: Specify clear deadlines and actions needed to cure the default under BGB guidelines
• Delivery Method: Plan for proper service according to contract terms and German civil procedure rules

• Party Information: Full legal names and addresses of both defaulting party and notice sender
• Contract Reference: Specific agreement details, including date and relevant sections being breached
• Default Description: Clear statement of the exact breach or payment failure with amounts and dates
• Cure Period: Specific timeframe allowed to remedy the default under German law (usually 14-30 days)
• Legal Consequences: Clear outline of actions that will follow if default remains uncured
• Signature Block: Authorized representative's signature, name, title, and date of notice
• Delivery Method: Statement confirming notice delivery method per contract requirements

A Notice of Default differs significantly from a Notice to Remedy Breach in several key aspects under German law. While both documents address contract violations, they serve distinct legal purposes and trigger different consequences.

• Legal Status: A Notice of Default formally establishes the debtor's default status under BGB §286, enabling immediate legal remedies. A Notice to Remedy Breach primarily requests correction without automatically triggering default status
• Timing Requirements: Default notices typically demand immediate action with specific cure periods defined by law. Remedy notices often allow more flexible correction timeframes
• Legal Consequences: Default notices enable claims for damages and interest immediately after the cure period. Remedy notices usually require additional steps before pursuing legal action
• Application Scope: Default notices focus primarily on payment or performance failures. Remedy notices cover a broader range of contract violations