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Definitive Purchase Agreement for Germany

Definitive Purchase Agreement Template for Germany

A comprehensive legal document governed by German law that formalizes the final terms and conditions for the purchase and sale of a business, assets, or shares. This agreement is structured in accordance with German Civil Code (BGB) requirements and commercial law (HGB), incorporating detailed provisions for the transfer of ownership, purchase price mechanisms, warranties, and closing conditions. It includes specific German legal concepts and requirements, such as notarization requirements for certain asset transfers and compliance with §613a BGB for employee transfers, while also addressing EU regulatory requirements where applicable.

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What is a Definitive Purchase Agreement?

The Definitive Purchase Agreement (Kaufvertrag) is the primary transaction document used in German business acquisitions and asset purchases, serving as the final, binding agreement between parties after due diligence and negotiations are complete. This document is essential for transactions governed by German law, requiring compliance with specific provisions of the German Civil Code (BGB) and Commercial Code (HGB). It contains detailed terms covering purchase price, closing conditions, warranties, and indemnities, often requiring notarization for certain asset transfers. The agreement must address particular German legal requirements such as employee transfer regulations (§613a BGB), form requirements for real estate transfers, and specific warranty concepts under German law. It's typically preceded by a letter of intent or preliminary agreement and represents the culmination of the transaction negotiations.

What sections should be included in a Definitive Purchase Agreement?

1. Parties: Formal identification of the seller and purchaser, including full legal names, registration details, and addresses

2. Background: Context of the transaction, including brief description of the business/assets being sold and transaction rationale

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including the object of purchase and binding commitment to sell and buy

5. Purchase Price: Detailed provisions on consideration, including amount, payment terms, adjustments, and payment mechanics

6. Closing Conditions: Prerequisites that must be satisfied before the transaction can complete

7. Pre-Closing Obligations: Parties' obligations between signing and closing, including conduct of business requirements

8. Closing: Mechanics and requirements for completion of the transaction, including closing deliverables

9. Seller's Warranties: Representations and warranties given by the seller regarding the sale object

10. Purchaser's Warranties: Basic representations and warranties given by the purchaser

11. Liability and Indemnification: Provisions governing liability, limitations, and indemnification obligations

12. Taxation: Tax-related provisions, including allocations and responsibilities

13. Confidentiality: Obligations regarding confidential information and announcements

14. Notices: Format and procedure for formal communications between parties

15. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Definitive Purchase Agreement?

1. Intellectual Property: Required when IP assets are a significant part of the transaction, covering ownership and licenses

2. Employee Matters: Necessary when the transaction involves transfer of employees under §613a BGB

3. Real Estate: Required when the transaction includes real property transfers

4. Environmental Matters: Important when the business has significant environmental aspects or risks

5. Competition Restrictions: Non-compete and non-solicitation provisions, if relevant to the transaction

6. Data Protection: Required when personal data processing is involved, ensuring GDPR compliance

7. Transition Services: Needed when post-closing services will be provided by seller

8. Earn-out Provisions: Used when part of purchase price is contingent on future performance

9. Bank Guarantees: Required when payment or performance guarantees are part of the transaction

What schedules should be included in a Definitive Purchase Agreement?

1. Purchase Price Calculation: Detailed methodology for calculating final purchase price, including adjustments

2. Transferred Assets: Comprehensive list of assets included in the transaction

3. Excluded Assets: List of assets explicitly excluded from the transaction

4. Assumed Liabilities: Detailed list of liabilities being assumed by the purchaser

5. Material Contracts: List and copies of key contracts being transferred

6. Intellectual Property Rights: Detailed list of IP rights included in the transaction

7. Real Estate Details: Property descriptions, titles, and related documents

8. Employee Information: List of transferring employees and employment terms

9. Seller's Warranties: Detailed warranties with qualifications and disclosures

10. Closing Checklist: List of all documents and actions required for closing

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 | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses















































Relevant Industries

Manufacturing

Technology

Real Estate

Retail

Healthcare

Financial Services

Professional Services

Energy

Infrastructure

Telecommunications

Automotive

Chemical Industry

Consumer Goods

Industrial Products

Media and Entertainment

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Strategy

Tax

Risk Management

Compliance

Business Development

Operations

Human Resources

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Head of Legal

Corporate Lawyer

M&A Director

Business Development Manager

Finance Director

Transaction Manager

Due Diligence Manager

Integration Manager

Risk Manager

Corporate Secretary

Investment Director

Chief Operating Officer

Head of Strategy

Commercial Director

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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