Contract Termination By Agreement for Germany

Contract Termination By Agreement Template for Germany

A Contract Termination by Agreement under German law (Aufhebungsvertrag) is a formal legal document that facilitates the mutual dissolution of an existing contractual relationship between two or more parties. This document, governed by German civil law principles, particularly the German Civil Code (BGB), outlines the terms and conditions under which the parties agree to end their contractual obligations. It includes provisions for the termination date, settlement of outstanding obligations, mutual releases, and any surviving obligations. The agreement ensures legal certainty and compliance with German regulatory requirements while providing a clear framework for winding down the contractual relationship in an amicable manner.

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What is a Contract Termination By Agreement?

The Contract Termination by Agreement is a crucial legal instrument under German law used when parties wish to end their contractual relationship by mutual consent rather than through unilateral termination. This type of agreement is particularly valuable when the original contract doesn't provide for early termination, or when parties prefer to negotiate a clean break to avoid potential disputes. It finds application across various scenarios, from employment relationships to commercial contracts, and must comply with German Civil Code requirements. The document typically addresses key aspects such as termination timing, financial settlements, property returns, and ongoing obligations. Used correctly, it provides legal certainty and protection for all parties while facilitating an orderly contract conclusion.

What sections should be included in a Contract Termination By Agreement?

1. Parties: Identification and details of all contracting parties

2. Background: Context of the original contract and circumstances leading to termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when the original contract will terminate

5. Mutual Agreement to Terminate: Express statement of parties' agreement to terminate the original contract

6. Outstanding Obligations: Treatment of any remaining obligations under the original contract

7. Final Payments: Details of any final payments or financial settlements between the parties

8. Return of Property: Requirements for returning any company property, documents, or materials

9. Confidentiality: Ongoing obligations regarding confidential information

10. Release and Waiver: Mutual release from claims arising from the original contract

11. Survival Clauses: Identification of original contract provisions that survive termination

12. Governing Law: Confirmation of German law as governing law

13. Signatures: Execution blocks for all parties

What sections are optional to include in a Contract Termination By Agreement?

1. Non-Compete Obligations: Continued validity or modification of any non-compete provisions, used when the original contract contained such provisions

2. Reference Letter: In employment contexts, terms regarding the provision of a reference letter

3. Insurance and Benefits: Treatment of insurance or benefits programs, particularly relevant for employment contracts

4. Intellectual Property Rights: Clarification of IP ownership and rights post-termination, used when IP was involved in the original contract

5. Tax Implications: Specific tax-related provisions and responsibilities, used when significant tax consequences may arise

6. Transition Assistance: Provisions for handover of responsibilities or knowledge transfer, used in complex business relationships

7. Public Announcements: Agreement on how termination will be communicated externally, used for sensitive or public-facing relationships

What schedules should be included in a Contract Termination By Agreement?

1. Schedule of Outstanding Payments: Detailed list of all final payments, including amounts and payment dates

2. Property Inventory: List of all physical and digital assets to be returned

3. Surviving Obligations: Detailed list of specific obligations that continue post-termination

4. Release Details: Specific claims or rights being released by each party

5. Handover Schedule: Timeline and specific steps for transitioning responsibilities or projects

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

Technology

Real Estate

Financial Services

Professional Services

Healthcare

Retail

Construction

Energy

Telecommunications

Transportation

Education

Entertainment

Hospitality

Software

Consulting

Relevant Teams

Legal

Human Resources

Procurement

Finance

Compliance

Operations

Commercial

Risk Management

Business Development

Contract Administration

Relevant Roles

Legal Counsel

HR Manager

Contract Manager

Business Development Manager

Procurement Manager

Chief Legal Officer

HR Director

Commercial Director

Operations Manager

Chief Financial Officer

Compliance Officer

Project Manager

Account Manager

General Manager

Risk 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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