The Broker Termination Letter is a crucial document used when a company wishes to end its relationship with a commercial broker or agent in Germany. It must be drafted in accordance with the German Commercial Code (Handelsgesetzbuch - HGB), particularly sections §§ 84-92c governing commercial agency relationships. This document is essential when terminating broker agreements, whether for ordinary termination with notice periods (ranging from 1-6 months depending on contract duration) or extraordinary termination for cause. The letter must address mandatory elements including notice periods, potential compensation claims (Ausgleichsanspruch), commission settlements, and handover requirements. It serves as formal documentation of the termination and helps ensure compliance with German legal requirements while protecting both parties' rights.
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1. Sender Details: Full legal name and address of the company terminating the broker relationship
2. Recipient Details: Broker's full name, business address, and any reference numbers
3. Date: Current date and any relevant contract reference numbers
4. Subject Line: Clear indication that this is a termination notice (Kündigung des Handelsvertretervertrages)
5. Contract Reference: Reference to the original broker agreement including its date
6. Termination Declaration: Clear and unambiguous statement of termination with specific effective date
7. Notice Period: Confirmation of the notice period being observed according to HGB § 89
8. Handover Requirements: Instructions regarding the return of company property, documents, and materials
1. Compensation Claim Notice: Reference to potential compensation claims under HGB § 89b (Ausgleichsanspruch) - include when broker has brought new customers
2. Outstanding Commissions: Details of any pending commission payments and how they will be handled - include if there are outstanding payments
3. Reason for Termination: Explanation of termination reasons - include only if it's an extraordinary termination or if specific reasons need to be documented
4. Non-Compete Reminder: Reference to existing non-compete obligations - include only if such provisions exist in the original agreement
5. Transition Arrangements: Details of how ongoing business will be transferred - include if there are active transactions or clients requiring transition
1. Commission Statement: Final statement of outstanding commissions and calculations
2. Client List: List of clients/customers brought in by the broker for compensation claim purposes
3. Company Property List: Inventory of company property to be returned by the broker
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