Deductible Indemnity Agreement Generator for Germany

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Key Requirements PROMPT example:

Deductible Indemnity Agreement

"I need a Deductible Indemnity Agreement under German law for a manufacturing company acquisition closing in March 2025, with a €500,000 deductible and specific provisions for environmental liabilities."

Document background
The Deductible Indemnity Agreement is a crucial risk management tool used in various commercial transactions and business relationships under German law. This document is typically employed when parties wish to allocate risk while maintaining a threshold of self-insurance through a deductible structure. It's commonly used in corporate transactions, ongoing business relationships, or specific project arrangements where one party seeks to protect against potential losses while the other party maintains a degree of risk through the deductible. The agreement must comply with German Civil Code (BGB) requirements, particularly regarding contract formation, liability provisions, and limitations. It's essential in scenarios involving corporate restructuring, asset purchases, service agreements, or other commercial arrangements where risk allocation is a key consideration.
Suggested Sections

1. Parties: Identification and details of the indemnitor and indemnitee, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the indemnification arrangement

3. Definitions: Key terms used throughout the agreement, including 'Indemnified Events', 'Deductible Amount', 'Claims', and 'Losses'

4. Scope of Indemnification: Detailed description of events, losses, and circumstances covered by the indemnity

5. Deductible Structure: Specification of the deductible amount, how it applies, and calculation methodology

6. Claims Process: Procedures for making claims, including notification requirements, timing, and documentation

7. Payment Terms: Terms for payment of indemnified amounts, including currency, timing, and method

8. Limitations and Exclusions: Specific limitations on the indemnity and excluded events or losses

9. Duration and Termination: Term of the agreement and circumstances under which it may be terminated

10. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

11. Entire Agreement: Standard clause confirming this document represents the complete agreement between parties

Optional Sections

1. Insurance Requirements: Required when specific insurance coverage must be maintained by either party

2. Third Party Rights: Include when benefits of the indemnity extend to third parties

3. Subrogation Rights: Required when dealing with insurance-related indemnities or recovery rights

4. Currency Conversion: Include for international agreements where multiple currencies may be involved

5. Tax Provisions: Required when tax implications of indemnity payments need specific addressing

6. Force Majeure: Include when certain extraordinary events should affect indemnity obligations

7. Confidentiality: Required when the agreement involves sensitive commercial information

Suggested Schedules

1. Schedule 1 - Calculation of Deductible: Detailed methodology and examples of deductible calculations

2. Schedule 2 - Claims Documentation Requirements: List of required documents and evidence for making claims

3. Schedule 3 - Excluded Events: Comprehensive list of events and circumstances excluded from indemnification

4. Appendix A - Claim Form Template: Standard form for submitting indemnification claims

5. Appendix B - Notice Requirements: Detailed procedures and contact information for claim notifications

6. Appendix C - Payment Processing Details: Banking and payment processing information for both parties

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

Relevant legal definitions
Relevant Industries

Insurance

Financial Services

Manufacturing

Real Estate

Construction

Technology

Healthcare

Energy

Retail

Transportation and Logistics

Professional Services

Relevant Teams

Legal

Risk Management

Finance

Compliance

Treasury

Operations

Corporate Development

Insurance

Procurement

Business Development

Relevant Roles

Risk Manager

Legal Counsel

Chief Financial Officer

Insurance Manager

Compliance Officer

Corporate Counsel

Finance Director

Treasury Manager

General Counsel

Contract Manager

Chief Risk Officer

Business Development Director

Operations Manager

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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