Release Of Claims Settlement Agreement for Germany

Release Of Claims Settlement Agreement Template for Germany

A German law-governed Release of Claims Settlement Agreement (Vergleichsvereinbarung mit Ausgleichsquittung) is a legally binding document that finalizes the resolution of disputes between parties. This agreement, structured under German Civil Code (BGB) requirements, particularly §779, documents the terms under which one party agrees to release claims against another party, typically in exchange for compensation or other consideration. It includes specific provisions for the release of claims, settlement terms, confidentiality obligations, and other key elements required under German law to ensure enforceability and finality of the settlement.

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What is a Release Of Claims Settlement Agreement?

The Release Of Claims Settlement Agreement is a crucial legal instrument used in German jurisdiction to formally document the resolution of disputes between parties. It serves as a definitive agreement that outlines the terms under which claims are released and settlements are reached, whether in commercial, employment, or personal contexts. This document type is particularly important under German law as it provides legal certainty through detailed documentation of the settlement terms, released claims, and any ongoing obligations. It must comply with specific requirements under the German Civil Code (BGB), including form requirements and the principle of good faith (Treu und Glauben). The agreement is commonly used following negotiations to resolve disputes, accidents, employment terminations, or commercial disagreements, providing a clear framework for finalizing the settlement and preventing future litigation.

What sections should be included in a Release Of Claims Settlement Agreement?

1. Parties: Identification and details of all parties to the agreement, including their legal capacity and authority to enter into the agreement

2. Background: Description of the dispute or claims, relevant history, and circumstances leading to the settlement

3. Definitions: Key terms used throughout the agreement, including specific definition of 'Claims' being released

4. Settlement Payment: Details of any settlement amount, payment terms, method, and timing of payment

5. Release of Claims: Comprehensive description of claims being released, including specific waivers and acknowledgments

6. Representations and Warranties: Statements by both parties regarding their authority, understanding, and capacity to enter into the agreement

7. Confidentiality: Obligations regarding confidentiality of the settlement terms and related information

8. Tax Implications: Statement regarding responsibility for taxes arising from the settlement payment

9. Severability: Provision addressing the validity of remaining terms if any part is found invalid (salvatorische Klausel)

10. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

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

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Release Of Claims Settlement Agreement?

1. Non-Disparagement: Mutual obligations not to make negative statements about other parties, included when reputation protection is important

2. Return of Property: Provisions regarding return of documents or property, included when physical items or documents need to be exchanged

3. Cooperation: Requirements for future cooperation between parties, included when ongoing interactions are necessary

4. Insurance Claims: Provisions regarding insurance coverage and claims, included when insurance is involved in the settlement

5. Non-Admission of Liability: Statement that settlement does not constitute admission of liability, included in disputed matters

6. Future Claims: Treatment of potential future claims, included when there's risk of related future issues

7. Reference Provision: Terms regarding employment references, included when settlement relates to employment matters

What schedules should be included in a Release Of Claims Settlement Agreement?

1. Schedule 1 - Settlement Payment Details: Detailed breakdown of settlement amount and payment schedule

2. Schedule 2 - Released Claims: Comprehensive list of specific claims being released

3. Schedule 3 - Required Actions: List of specific actions parties must take to implement the settlement

4. Appendix A - Related Proceedings: List of any legal proceedings being terminated by the settlement

5. Appendix B - Form of Release: Standard form for any additional releases required from related 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

Cost

Free to use
Relevant Industries

Legal Services

Insurance

Banking and Financial Services

Manufacturing

Construction

Healthcare

Technology

Retail

Professional Services

Real Estate

Education

Transportation and Logistics

Relevant Teams

Legal

Human Resources

Compliance

Risk Management

Finance

Executive Leadership

Corporate Governance

Insurance

Operations

Administration

Relevant Roles

Legal Counsel

General Counsel

Compliance Officer

Risk Manager

Human Resources Director

Chief Financial Officer

Claims Manager

Settlement Administrator

Corporate Secretary

Business Unit Manager

Employment Law Specialist

Dispute Resolution Officer

Contract Manager

Chief Executive Officer

Insurance Claims Adjuster

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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