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The Release of Contract Letter is a crucial document in German business and legal practice, used when parties mutually agree to terminate their contractual obligations before the natural conclusion of the agreement. This document, governed by German law, particularly the BGB (German Civil Code), serves to formally document the parties' agreement to end their contractual relationship and release each other from future obligations. It typically includes essential elements such as identification of the original contract, effective termination date, settlement terms, and mutual releases. The Release of Contract Letter is particularly important in German jurisdiction as it provides legal certainty and protection for all parties involved, helping prevent future disputes by clearly documenting the terms of the contract's termination and any surviving obligations. This document is commonly used in various scenarios, including business partnerships, service agreements, employment contracts (though employment terminations often require special forms), and commercial arrangements.

1. Header Information: Date, addresses of both parties, and reference number of the original contract

2. Subject Line: Clear identification that this is a Release of Contract Letter (Vertragsaufhebung)

3. Contract Reference: Details of the original contract including date, parties, and subject matter

4. Statement of Mutual Agreement: Clear statement that both parties agree to terminate the contract and release each other from obligations

5. Effective Date: Specific date when the release becomes effective

6. General Release Terms: Statement confirming that parties release each other from all claims and obligations under the contract

7. Signatures: Space for dated signatures of authorized representatives from both parties