In a forward asset deal scenario where the seller of the property undertakes to construct a building on the property and where the buyer is obliged to pay the purchase price in several installments depending on the progress of the construction, it used to be common to agree on a partial termination right in favor of the buyer for the construction part of the contract. The purpose of this was to ensure that the sale of the property and the transfer of ownership could still be affected even if the seller failed to perform the construction of the building. A new statutory provision which was recently introduced in the German Civil Code gives reason to question whether such partial termination rights can still be validly agreed upon. We would like to discuss this topic and possible solutions with you in the course of our “Talk im Turm” event.
Please contact Miriam Hedke at email@example.com or +49 69 257 811 150 if you have any questions.