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Automatic Termination Of Contract

Automatic Termination Of Contract Template for Germany

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Key Requirements PROMPT example:

Automatic Termination Of Contract

"I need an Automatic Termination of Contract document under German law for a software licensing agreement between our tech company and multiple distributors, with specific triggers for termination including payment defaults and breach of data protection requirements."

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Document background
The Automatic Termination of Contract document serves as a critical legal instrument in German business relationships, designed to provide certainty and clarity regarding contract dissolution. It is particularly useful in commercial arrangements where parties wish to define specific circumstances under which their contractual relationship will automatically end without requiring further action or negotiation. The document must comply with German Civil Code (BGB) provisions, especially §§305-310 regarding general terms and conditions, and §314 concerning termination of continuing obligations. It typically includes precise definitions of triggering events, such as insolvency, breach of specific obligations, or change of control, along with detailed procedures for notification and post-termination obligations. This document is essential for risk management and business planning, ensuring all parties understand the circumstances and consequences of automatic contract termination.
Suggested Sections

1. Parties: Identification and details of all contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Automatic Termination Events: Comprehensive list of events that trigger automatic termination

5. Notice and Communication: Process for notification when automatic termination event occurs

6. Effects of Termination: Consequences and obligations following automatic termination

7. Surviving Provisions: Clauses that continue to apply after termination

8. Governing Law: Confirmation of German law application and jurisdiction

9. Severability: Standard clause ensuring remainder of agreement remains valid if part is found invalid

Optional Sections

1. Force Majeure: Include when specific external events should trigger termination

2. Cure Periods: Include when certain termination triggers allow for remedy periods

3. Regulatory Compliance: Include for regulated industries or when specific regulatory requirements apply

4. Data Protection: Include when personal data processing is involved

5. Intellectual Property: Include when IP rights are relevant to the contract

6. Post-Termination Obligations: Include when specific post-termination duties need detailed explanation

7. Alternative Dispute Resolution: Include when parties wish to specify mediation or arbitration procedures

Suggested Schedules

1. Schedule 1 - Termination Events Matrix: Detailed matrix of termination triggers and their specific conditions

2. Schedule 2 - Notice Requirements: Detailed communication procedures and contact information

3. Schedule 3 - Asset Register: List of assets affected by termination and their disposition

4. Appendix A - Form of Termination Notice: Template for formal termination notification

5. Appendix B - Handover Procedures: Detailed procedures for contract wind-down and handover

6. Appendix C - Compliance Checklist: Checklist ensuring all termination requirements are met

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






























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Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Retail

Healthcare

Construction

Telecommunications

Energy

Automotive

Logistics

Software and IT

Real Estate

Consulting

Distribution

Relevant Teams

Legal

Procurement

Compliance

Risk Management

Operations

Commercial

Finance

Business Development

Contract Administration

Corporate Governance

Supply Chain

Account Management

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Director

Chief Legal Officer

Risk Manager

Compliance Officer

Commercial Director

Operations Manager

Project Manager

Supply Chain Manager

Account Executive

Chief Financial Officer

General Counsel

Corporate Secretary

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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