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General Release Agreement Template for Germany

A comprehensive legal document governed by German law that facilitates the formal release of claims, rights, or obligations between parties. This agreement, structured in accordance with the German Civil Code (BGB), provides a legally binding mechanism for parties to resolve disputes, waive future claims, or conclude business relationships. It incorporates specific provisions required under German law regarding liability limitations, form requirements, and consumer protection considerations, while ensuring compliance with German contract formation principles.

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What is a General Release Agreement?

A General Release Agreement serves as a crucial legal instrument in German business and personal relationships, used when parties wish to formally settle disputes, conclude relationships, or prevent future claims. This document type is particularly relevant in employment terminations, business dissolutions, or settlement of disputes, incorporating specific requirements under German law such as those found in the BGB (German Civil Code). The agreement typically includes detailed provisions about the scope of the release, any consideration provided, and necessary representations and warranties. It must comply with German form requirements and restrictions on liability exclusions, particularly regarding personal injury and gross negligence. The document's structure and content are designed to ensure enforceability under German jurisdiction while providing clarity and certainty to all parties involved.

What sections should be included in a General Release Agreement?

1. Parties: Identification and details of the releasing and released parties

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

3. Definitions: Definitions of key terms used in the agreement

4. Release and Discharge: Core provisions detailing the scope of claims being released

5. Consideration: Details of any payment or value exchanged for the release

6. Representations and Warranties: Statements of fact and promises made by the parties

7. Confidentiality: Obligations to keep the agreement and its terms confidential

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

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

10. Execution: Signature blocks and execution requirements

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

1. Non-Disparagement: Mutual obligations not to make negative statements, typically used in employment or business relationship contexts

2. Return of Property: Requirements for returning any physical or intellectual property, relevant when parties had prior business relationship

3. Future Cooperation: Obligations for parties to cooperate in future matters, useful in complex business or legal situations

4. Tax Implications: Addressing tax consequences of any payments, particularly relevant for substantial settlements

5. Severability: Provision for partial invalidity, particularly important for complex releases

6. Assignment: Restrictions on transferring rights under the agreement, relevant for corporate contexts

What schedules should be included in a General Release Agreement?

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

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

3. Payment Schedule: Details of any installment payments or consideration structure

4. Related Agreements: List of any related agreements affected by or excluded from the release

5. Asset Schedule: Inventory of any assets or properties involved in the release

Authors

Alex Denne

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

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use

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