As an entrepreneur, you will continually be concluding contracts, especially purchase agreements [Kaufverträge], service contracts [Werkverträge] and employment contracts [Arbeitsverträge].

You can, for instance, use template contracts or have them adapted to your specific needs by an attorney or notary. Template contracts are, for instance, available on the websites of the Chambers of Industry and Commerce. Have an attorney or a notary check important contracts with regard to your specific case.

Please observe the following points when drawing up contracts:

  • Binding effect
    Contracts must be adhered to. Special attention should therefore be given to contract negotiations. Each party to the contract is responsible for ensuring that they can meet the obligations undertaken.
  • Validity
    Contracts can in principle be concluded orally. This applies, for example, to everyday things like purchasing office supplies or foodstuffs, but also to work contracts and service agreements. Other contracts should be made in writing. This applies, for instance, to many types of contracts made between an entrepreneur and a consumer (e.g. hire purchase business or consumer loan agreements). Land transfers and property encumbrances must be additionally notarised. This also applies to company law contracts of a private limited company. Binding lists showing the form required for the various types of contracts can be obtained from an attorney.
    Important: Faxes are not recognised as a written form of contract; emails are only recognised if they bear a digital signature in accordance with the Digital Signature Act.
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