Subrogation Contract Template for Germany

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Key Requirements PROMPT example:

Subrogation Contract

"I need a Subrogation Contract under German law for our insurance company to take over claim rights from a manufacturing client regarding equipment damage worth €500,000, with the transfer to be effective from March 1, 2025."

Document background
The Subrogation Contract is a crucial legal document used when one party needs to transfer its rights of recovery against a third party to another entity. Under German law, this document is commonly used in insurance scenarios where an insurer pays a claim and then seeks to recover from the responsible third party, or in financial contexts where debt rights are transferred. The contract must comply with the German Civil Code (BGB), particularly sections 398-413 regarding assignment of rights, and may also need to consider the Insurance Contract Act (VVG) if insurance-related. The document includes essential details about the original claim, the scope of rights being transferred, and the obligations of all parties involved. It's particularly important in scenarios involving insurance claims, debt recovery, or the restructuring of financial obligations.
Suggested Sections

1. Parties: Identification of the original creditor (subrogator) and the new creditor (subrogatee), including full legal names and addresses

2. Background: Context of the subrogation, including details of the original claim or right being transferred

3. Definitions: Definitions of key terms used in the agreement, including 'Original Claim', 'Subrogated Rights', 'Effective Date', etc.

4. Subject Matter of Subrogation: Detailed description of the rights, claims, or receivables being transferred through subrogation

5. Consideration: Details of any payment or consideration for the subrogation

6. Transfer of Rights: Explicit declaration of the transfer of rights and the exact scope of the subrogation

7. Representations and Warranties: Confirmations from the subrogator regarding the validity and enforceability of the transferred rights

8. Obligations of the Parties: Ongoing obligations of both parties, including cooperation in enforcement and document provision

9. Effective Date and Conditions: When the subrogation takes effect and any conditions precedent

10. Notices: Process for formal communications between the parties

11. Governing Law and Jurisdiction: Confirmation of German law as governing law and jurisdiction for disputes

Optional Sections

1. Insurance Provisions: Special provisions when the subrogation involves insurance claims or insurers

2. Multiple Creditors: Additional provisions when there are multiple creditors or partial subrogation

3. Security Interests: Provisions regarding any security interests associated with the transferred rights

4. Confidentiality: Confidentiality obligations when dealing with sensitive commercial information

5. Data Protection: GDPR compliance provisions when personal data is involved

6. Further Assurance: Commitment to execute additional documents or take further steps if needed

7. Costs and Expenses: Allocation of costs related to the subrogation process

8. Severability: Provisions for maintaining validity if parts of the agreement are found invalid

Suggested Schedules

1. Schedule 1 - Original Claim Details: Detailed description of the original claim or right being transferred

2. Schedule 2 - Related Documents: List and copies of relevant documents supporting the original claim

3. Schedule 3 - Calculation of Amounts: Detailed breakdown of claimed amounts and any calculations

4. Schedule 4 - Supporting Evidence: Evidence supporting the claim and its validity

5. Schedule 5 - Power of Attorney: If required, power of attorney for enforcement of rights

6. Appendix A - Notice Forms: Template forms for required notices under the agreement

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

Clauses
Relevant Industries

Insurance

Banking and Financial Services

Legal Services

Debt Collection

Healthcare

Construction

Manufacturing

Transportation and Logistics

Real Estate

Professional Services

Relevant Teams

Legal

Claims

Risk Management

Finance

Compliance

Insurance Operations

Credit Control

Debt Recovery

Contract Management

Corporate Affairs

Relevant Roles

Legal Counsel

Claims Manager

Risk Manager

Insurance Underwriter

Debt Recovery Specialist

Compliance Officer

Contract Manager

Chief Financial Officer

Insurance Claims Handler

Credit Manager

Legal Director

Recovery Operations Manager

Subrogation Specialist

Corporate Lawyer

Finance 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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