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Drafting and reviewing contracts in Germany

Executing contracts in Germany

Contract formation and enforcement is a crucial factor for the company’s existence. Therefore, the legal reliability of the agreement is essential in contract formation. All types of contracts usually contain standard terms, except those concerning marriage, divorce, and child support.

German contract law

German contract law is the most important law for companies doing business with other companies. It guarantees the right of contract formation and enforcement as long as there is no conflict with the law relating to the subject matter of the contract. A contract can be made orally or in writing. The written version is more popular. Contracts can take any form and contain certain provisions agreed to by both parties.

In 2002, German contract law was improved following European directives. Therefore, for the competent drafting and executing contracts in Germany, it is necessary to consult experienced lawyers within the framework of the applicable law.

Civil law system in Germany

The German Civil Code is based on Roman law and contains provisions on property, family law and consists of an introductory part and 4 laws:

  • about obligations: the types of contracts and the obligations that people have once a contract is made;
  • on property: ownership of property, rights and the transfer of such rights;
  • on the family: provisions relating to marriage and family relations;
  • inheritance: provisions relating to the inheritance of property.

The signing of any contract always takes place within the framework of the applicable law. Executing contracts in Germany is compulsory for all parties who have signed the document. 

Investment contracts

The state places no restrictions on investments in the German economy, making no distinction between nationals and foreigners and only imposing formal legal requirements. Thanks to the country’s constantly growing economy, there are opportunities for investment in areas such as real estate, automotive, food industry, etc. The advantages of investing in Germany include a large stock of capital, availability of highly qualified workforce, high level of innovation with low levels of corruption, as well as safety and comfort of living.

Legal support for investing

Legal advice for investors helps you find the best sites for contract formation and enforcement, financial investments with the prospect of good returns. Here you can get the necessary legal services, help with the paperwork according to German law, signing a contract with a German company and the implementation of all procedures in the shortest possible time.

Notarization of contracts

Notaries in Germany provide legal assistance for the conclusion of contracts as well as for the auditing official contracts. They are competent in working with contracts in areas such as :

  • real estate;
  • inheritance;
  • family and child rights;
  • corporate relations and others.

Notarization or signing documents with a notary is necessary for civil contracts, marriage contracts, purchase and sale contracts, and property inheritance documents.

Termination of the contract

There are sometimes circumstances that require the termination of a contract, such as a business conflict. German law provides for certain termination options, some of which are mandatory and cannot be overruled by the parties. In the case of a sales contract or a work contract, for example, one party has the right to terminate the contract if the other party fails to perform or breaches its obligations. For other contracts, you should look at the individual clauses and formal legal requirements. Finally, you must always adhere to the rules established by law. 

FCHAIN’s team of professionals can help resolve any legal issue. Turning to us, you can be sure of the quality of work performed and professionalism.

Consultation

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