Business Relationship Termination Letter for Germany

Business Relationship Termination Letter Template for Germany

A formal business document governed by German law that serves to officially terminate an existing business relationship between two or more parties. This document must comply with German Civil Code (BGB) and Commercial Code (HGB) requirements, including specific notice periods and formal written requirements. It contains essential elements such as clear identification of parties, explicit termination statement, reference to the original agreement, and compliance with statutory notice periods. The letter may also address transition arrangements, outstanding obligations, and post-termination responsibilities, all while adhering to German legal standards for business communications and contract termination.

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What is a Business Relationship Termination Letter?

The Business Relationship Termination Letter is a crucial document used in German business practice when one party wishes to formally end a business relationship with another party. It must comply with German legal requirements, particularly those outlined in the German Civil Code (BGB) and Commercial Code (HGB). This document is typically used when ending ongoing business relationships, distribution agreements, service contracts, or other commercial arrangements. The letter must include specific elements required under German law, such as explicit termination statements, notice periods, and references to the original agreement. It serves multiple purposes: providing formal notice of termination, ensuring legal compliance, documenting the termination date, and addressing any transition requirements. The document's format and content must meet German formal business communication standards while providing clear direction regarding the termination process and any post-termination obligations.

What sections should be included in a Business Relationship Termination Letter?

1. Sender Details: Full legal name and address of the terminating party

2. Recipient Details: Full legal name and address of the party receiving the termination notice

3. Date: Current date and place of writing

4. Subject Line: Clear indication that this is a termination notice (Kündigungsschreiben)

5. Reference to Original Agreement: Specific details of the business relationship being terminated, including the date of original agreement

6. Termination Statement: Clear and unambiguous statement of termination, including the specific termination date

7. Legal Basis: Reference to relevant termination clause in original agreement or applicable law

8. Notice Period Confirmation: Confirmation that the notice period complies with contractual or statutory requirements

9. Closing: Professional closing statement and signature block

What sections are optional to include in a Business Relationship Termination Letter?

1. Reason for Termination: Include when termination is for cause or when explaining the reason would be beneficial for maintaining professional relationships

2. Transition Arrangements: Include when specific arrangements need to be made for handling ongoing projects or transferring responsibilities

3. Outstanding Payments: Include when there are pending financial matters to be addressed

4. Confidentiality Reminder: Include when there are specific confidentiality obligations that continue post-termination

5. Return of Property: Include when there is company property, documents, or materials that need to be returned

6. Post-Termination Obligations: Include when there are specific obligations that continue after termination

What schedules should be included in a Business Relationship Termination Letter?

1. Copy of Original Agreement: Attach the original business agreement being terminated

2. Transition Plan: If applicable, detailed plan for transitioning ongoing projects or responsibilities

3. Financial Statement: If applicable, statement of outstanding payments or financial obligations

4. Inventory List: If applicable, list of company property to be returned

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Financial Services

Distribution

Logistics

Construction

Healthcare

Energy

Telecommunications

Consulting

Real Estate

Industrial Services

Information Technology

Media and Entertainment

Relevant Teams

Legal

Procurement

Business Development

Sales

Operations

Compliance

Contract Management

Account Management

Corporate Affairs

Risk Management

Commercial Operations

Vendor Management

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Business Development Manager

Contract Manager

Procurement Manager

Sales Director

Account Manager

Commercial Director

Operations Manager

General Counsel

Compliance Officer

Business Unit Head

Regional Manager

Partnership Manager

Vendor Relations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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