Mutual General Release for Germany

Mutual General Release Template for Germany

A Mutual General Release is a comprehensive legal agreement governed by German law where two or more parties agree to release each other from all claims, demands, and liabilities that may exist between them, whether known or unknown at the time of execution. The document, drafted in compliance with the German Civil Code (BGB), particularly §§ 311, 397, and 779, serves to prevent future litigation and provides a clean break between parties. It includes detailed provisions for the scope of claims being released, representations and warranties, and typically contains specific German law compliance provisions, making it a robust tool for dispute resolution and risk management.

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What is a Mutual General Release?

The Mutual General Release is a critical legal instrument used when parties wish to definitively resolve all existing disputes and prevent future claims under German law. It is commonly employed in various scenarios including business separations, employment terminations, settlement of disputes, or conclusion of business relationships. The document must comply with German Civil Code (BGB) requirements and typically includes comprehensive releases, warranties, and representations from all parties. It's particularly useful in situations where parties seek to achieve a clean break and legal certainty, as it covers both known and unknown claims that may exist at the time of execution. The agreement's effectiveness is supported by German contract law principles, particularly those relating to settlement agreements (Vergleich) under § 779 BGB.

What sections should be included in a Mutual General Release?

1. Parties: Identification and details of all parties entering into the mutual release agreement

2. Background: Context of the relationship between the parties and circumstances leading to the release

3. Definitions: Key terms used throughout the agreement, including 'Claims', 'Released Parties', and specific terms relevant to the relationship

4. Mutual Release: Core provision detailing the mutual releases, including scope of claims being released and effective date

5. Representations and Warranties: Statements by each party regarding their authority to enter into the agreement and ownership of claims being released

6. No Admission of Liability: Statement that the release does not constitute an admission of liability by either party

7. Consideration: Description of the consideration being exchanged for the releases

8. Governing Law: Specification of German law as governing law and jurisdiction

9. Severability: Provision ensuring remainder of agreement remains valid if any part is found unenforceable

10. Entire Agreement: Confirmation that this document represents the complete agreement between parties

11. Execution: Details of how the agreement will be signed and become effective

What sections are optional to include in a Mutual General Release?

1. Confidentiality: Required when parties wish to keep the existence or terms of the release confidential

2. Known Claims Exception: Used when specific claims are to be excluded from the release

3. Future Cooperation: Included when parties need to specify ongoing obligations or cooperation requirements

4. Tax Matters: Required when the release involves payments or tax-relevant transactions

5. Return of Property: Needed when parties must return documents, materials, or other property

6. Non-Disparagement: Optional clause preventing parties from making negative statements about each other

7. Insurance Rights: Required when insurance claims or rights need to be addressed

8. Costs: Used when parties need to specify how legal or other costs are to be handled

What schedules should be included in a Mutual General Release?

1. Schedule of Released Claims: Detailed list of specific claims, disputes, or rights being released

2. Schedule of Excluded Claims: List of specific claims explicitly excluded from the release

3. Schedule of Released Parties: Comprehensive list of all parties benefiting from the release, including affiliated entities

4. Schedule of Outstanding Obligations: List of any continuing obligations that survive the release

5. Schedule of Property to be Returned: Inventory of any property, documents, or materials to be returned between parties

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

Release Agreement

Cost

Free to use
Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Healthcare

Real Estate

Construction

Retail

Telecommunications

Energy

Transportation

Education

Hospitality

Entertainment

Consulting

Insurance

Relevant Teams

Legal

Human Resources

Executive Leadership

Finance

Compliance

Risk Management

Operations

Corporate Governance

Business Development

Administration

Relevant Roles

Legal Counsel

Managing Director

Chief Executive Officer

Chief Financial Officer

Human Resources Director

Compliance Officer

Risk Manager

Business Development Manager

Operations Manager

Contract Manager

General Counsel

Corporate Secretary

Chief Operating Officer

Department Head

Project Manager

Finance Director

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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