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Bilateral Contract Template for Germany

This document is a bilateral contract governed by German law, establishing mutual obligations between two parties. It follows the requirements of the German Civil Code (Bürgerliches Gesetzbuch - BGB) and, where applicable, the German Commercial Code (Handelsgesetzbuch - HGB). The contract creates legally binding commitments for both parties, with each party having both rights and obligations. It includes comprehensive provisions for contract formation, performance requirements, breach consequences, and dispute resolution, all structured to comply with German legal requirements and business practices.

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What is a Bilateral Contract?

This Bilateral Contract template is designed for use under German law when two parties wish to enter into a legally binding agreement with mutual obligations. The document incorporates essential requirements from the German Civil Code (BGB) and, where relevant, the German Commercial Code (HGB). It is particularly suitable for business-to-business relationships where both parties have specific rights and obligations to fulfill. The contract structure ensures compliance with German legal requirements while maintaining flexibility to accommodate various commercial arrangements. It includes provisions for clear identification of parties, detailed description of mutual obligations, payment terms, liability provisions, and dispute resolution mechanisms, all tailored to the German legal framework.

What sections should be included in a Bilateral Contract?

1. Parties (Vertragsparteien): Identification and details of the contracting parties

2. Background (Präambel): Context and purpose of the agreement

3. Definitions (Definitionen): Key terms used throughout the agreement

4. Subject Matter of Contract (Vertragsgegenstand): Core obligations and main subject matter of the agreement

5. Rights and Obligations (Rechte und Pflichten): Detailed description of each party's rights and obligations

6. Payment Terms (Zahlungsbedingungen): Payment amounts, schedules, and methods

7. Duration and Termination (Laufzeit und Kündigung): Contract period, renewal terms, and termination provisions

8. Liability (Haftung): Extent and limitations of liability for both parties

9. Force Majeure (Höhere Gewalt): Provisions for unforeseen circumstances preventing performance

10. Governing Law and Jurisdiction (Rechtswahl und Gerichtsstand): Confirmation of German law application and jurisdiction

11. Entire Agreement (Vollständigkeitsklausel): Integration clause confirming the complete agreement between parties

12. Signatures (Unterschriften): Execution block for parties' signatures

What sections are optional to include in a Bilateral Contract?

1. Confidentiality (Vertraulichkeit): Required when parties exchange sensitive information

2. Intellectual Property (Geistiges Eigentum): Needed when IP rights are involved in the transaction

3. Data Protection (Datenschutz): Required when personal data processing is involved

4. Insurance (Versicherung): Relevant when specific insurance requirements exist

5. Assignment (Abtretung): Include when transfer of rights needs to be addressed

6. Compliance (Compliance): Necessary for regulated industries or specific compliance requirements

7. Warranties (Gewährleistungen): Important for goods or services contracts

8. Change Control (Änderungsverfahren): Useful for long-term or complex contracts

What schedules should be included in a Bilateral Contract?

1. Schedule 1 - Pricing Schedule (Preisliste): Detailed breakdown of prices, rates, or fees

2. Schedule 2 - Service Specifications (Leistungsbeschreibung): Detailed description of services or goods

3. Schedule 3 - Technical Requirements (Technische Anforderungen): Technical specifications or requirements

4. Schedule 4 - Service Levels (Service Level): Performance metrics and service levels if applicable

5. Appendix A - Contact Persons (Ansprechpartner): List of key contacts for both parties

6. Appendix B - Data Processing Agreement (Auftragsverarbeitungsvertrag): Required when GDPR compliance is necessary

Authors

Alex Denne

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

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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