This Termination Of Contract Due To Non Performance document is essential when a party needs to formally terminate a contract under German law due to significant breaches or failures in performance by the other party. It is typically used when attempts to remedy the situation have failed or when the breach is so substantial that immediate termination is justified. The document must comply with German Civil Code (BGB) requirements, particularly regarding the form and content of termination notices. It includes detailed documentation of the non-performance instances, references to relevant contract clauses and legal provisions, and specifies the consequences of termination. This type of document is crucial for maintaining a clear legal record and protecting the terminating party's rights under German law, especially if the termination is later challenged.
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1. Parties: Full legal names and addresses of both parties to the contract
2. Contract Reference: Clear identification of the original contract including date, title, and any reference numbers
3. Background: Brief context of the contractual relationship and reference to relevant contract provisions regarding termination
4. Instances of Non-Performance: Detailed description of the specific breaches or failures to perform, including dates and relevant details
5. Legal Basis for Termination: Reference to specific provisions of the contract and German Civil Code (BGB) that justify the termination
6. Termination Declaration: Clear and unequivocal statement of contract termination
7. Effective Date: Specification of when the termination takes effect
8. Immediate Actions Required: List of actions required from the defaulting party upon termination
9. Signature: Formal signature block including date and place of signing
1. Damages Claim: Include when seeking compensation for losses caused by the non-performance
2. Outstanding Payments: Include when there are unpaid amounts or financial settlements required
3. Return of Property: Include when there are physical or intellectual property items to be returned
4. Confidentiality Obligations: Include when emphasizing continuing confidentiality obligations post-termination
5. Dispute Resolution: Include when specifying procedures for resolving any disputes arising from the termination
6. Survival Clauses: Include when certain contract provisions need to survive the termination
1. Schedule of Breaches: Detailed chronological list of all instances of non-performance with supporting evidence
2. Schedule of Damages: Calculation and breakdown of any damages being claimed
3. Schedule of Outstanding Items: List of any physical or intellectual property items to be returned or transferred
4. Prior Notifications: Copies of previous warnings, notices, or correspondence regarding the non-performance
5. Relevant Contract Excerpts: Copies of relevant sections from the original contract pertaining to termination and non-performance
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