Document background
The Contract Rejection Letter is a critical business communication tool used when an organization needs to formally decline a contract proposal or offer. Under German law, this document must be carefully drafted to ensure compliance with the German Civil Code (BGB), particularly regarding contract formation, good faith principles (Treu und Glauben), and commercial correspondence requirements. The letter should be used when a company has decided not to proceed with a contract proposal after careful consideration. It typically includes the formal rejection, a brief explanation of the decision, and maintains professional courtesy while protecting the rejecting party's legal interests. The document is particularly important in German business contexts where formal written communication is highly valued and legal compliance is strictly enforced.
