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The Earnest Money Form is a crucial document in German business and real estate transactions, used when parties wish to demonstrate serious intent to complete a transaction and provide security for their commitments. This document type is particularly relevant when substantial transactions are being negotiated, such as property purchases, business acquisitions, or major commercial contracts. The form must comply with German Civil Code (BGB) requirements, particularly §§ 336-338 regarding earnest money (Draufgabe/Anzahlung). It typically includes detailed provisions about the payment amount, timing, holding arrangements, and consequences of contract performance or breach. The document serves both as proof of contract conclusion and as security, with specific legal implications under German law for both parties regarding the eventual completion or failure of the main transaction.

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and any relevant registration numbers

2. Background: Brief context of the underlying transaction and purpose of the earnest money payment

3. Definitions: Key terms used in the agreement, including 'Earnest Money', 'Main Contract', and 'Completion Date'

4. Earnest Money Amount: Specification of the exact amount of earnest money to be paid

5. Payment Terms: Details of how and when the earnest money must be paid, including bank account details

6. Purpose and Effect: Statement of the earnest money's purpose as proof of contract conclusion and its relationship to the main contract

7. Main Contract Completion: Treatment of earnest money upon successful completion of the main contract

8. Default Provisions: Consequences of either party's failure to perform the main contract

9. Governing Law: Explicit statement that the agreement is governed by German law