����ֱ��

A Contingency Contract (Bedingter Vertrag) creates binding obligations that only take effect when specific conditions are met. Under German Civil Code (BGB), these agreements let parties set up deals that depend on future events - like a bonus payment that kicks in after reaching sales targets, or a construction payment that's due once building inspections pass.

These contracts follow strict rules in German law about what conditions are legally valid. The triggering events must be clearly defined and can't be purely arbitrary or against public policy. Once the specified condition occurs, the contract automatically becomes active without needing any additional steps from either party.

Use a Contingency Contract when you need to create legally binding agreements that depend on future events in Germany. Common scenarios include construction projects where payment releases depend on completion milestones, business acquisitions that rely on regulatory approvals, or employment agreements with performance-based bonuses.

These contracts work especially well for complex business deals where timing matters. For example, German startups often use them to structure investor funding based on reaching specific growth targets. They're also valuable in real estate transactions when purchase obligations need to align with financing approval or property inspections under BGB regulations.

• Suspensive Condition Contracts: Obligations start only after a specific event occurs (like obtaining permits)
• Resolutive Condition Contracts: Agreement ends automatically when certain conditions are met (such as project completion)
• Performance-Based Contracts: Payments or obligations trigger based on achieving specific targets or milestones
• Time-Dependent Contracts: Rights and duties activate on specific dates or after time periods pass
• Multi-Party Contingency Contracts: Complex agreements where multiple parties' obligations depend on various interconnected conditions

• Business Owners: Use Contingency Contracts to structure deals with performance-based elements or milestone-dependent obligations
• Corporate Lawyers: Draft and review these agreements to ensure compliance with German Civil Code requirements
• Real Estate Developers: Create contracts linking payment schedules to construction milestones or property conditions
• Investors: Structure funding agreements with specific performance targets or market conditions
• Employment Managers: Design bonus schemes and performance-based compensation agreements
• Regulatory Bodies: Review these contracts to ensure compliance with German contract law and industry regulations

• Define Conditions: Clearly specify all triggering events, milestones, or circumstances that activate contract obligations
• Gather Party Details: Collect complete information about all involved parties, including legal names and authorization powers
• Timeline Planning: Map out key dates, deadlines, and time-sensitive conditions that affect contract execution
• Performance Metrics: Document specific measurable criteria for any performance-based conditions
• Legal Requirements: Ensure compliance with BGB regulations regarding conditional contracts
• Documentation Needs: List required supporting documents, permits, or certifications
• Review Process: Set up internal validation steps before finalizing the agreement

• Party Information: Full legal names, addresses, and authorized representatives of all involved parties
• Condition Details: Clear, specific description of triggering events or circumstances per BGB §158
• Timeline Provisions: Explicit deadlines and time frames for condition fulfillment
• Performance Criteria: Measurable standards for evaluating condition completion
• Rights and Obligations: Detailed responsibilities of each party before and after conditions are met
• Notification Process: Procedures for communicating when conditions are fulfilled
• Termination Clauses: Circumstances and procedures for contract dis����ֱ��
• Governing Law: Explicit reference to German law and jurisdiction

A Contingency Contract differs significantly from a Requirements Contract in both structure and purpose under German law. While both are binding agreements, they serve distinct business needs and operate differently in practice.

• Triggering Mechanism: Contingency Contracts activate based on specific future events or conditions, while Requirements Contracts obligate ongoing purchase commitments based on the buyer's actual needs
• Time Framework: Contingency Contracts often have specific milestone dates or completion targets, whereas Requirements Contracts typically run for fixed periods with regular ordering patterns
• Risk Distribution: Contingency Contracts share risk between parties based on condition fulfillment, while Requirements Contracts primarily place volume risk on the supplier
• Legal Enforcement: Under German law, Contingency Contracts need clear, objective conditions to be enforceable, while Requirements Contracts must specify minimum purchase quantities or estimation methods