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Promissory Deed for Germany

Promissory Deed Template for Germany

A Promissory Deed (Schuldschein) under German law is a formal written instrument containing an unconditional promise to pay a specified sum of money. Governed by the German Civil Code (BGB), particularly 搂搂 780-782, this document represents a binding commitment where the issuer (promissor) promises to pay a defined amount to the recipient (promissee). The document must meet specific formal requirements under German law, including written form and signature requirements, and can be used for both private and commercial purposes, with or without interest provisions and security arrangements.

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Promissory Deed

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What is a Promissory Deed?

The Promissory Deed is a fundamental debt instrument in German legal practice, used to document and formalize payment obligations. This document type is particularly valuable in commercial lending, private financing arrangements, and structured financial transactions. Under German law, the deed must contain an unconditional promise to pay and meet specific formal requirements outlined in the German Civil Code (BGB). It can be used for various purposes, from simple private loans to complex commercial financing arrangements, and may include additional provisions such as interest calculations, security arrangements, and transfer rights. The document's flexibility and legal recognition make it a popular choice for documenting payment obligations in both business and private contexts.

What sections should be included in a Promissory Deed?

1. Title and Date: Clear identification as a Promissory Deed (Schuldschein) with execution date

2. Parties: Full legal names and addresses of the promissor (debtor) and promissee (creditor)

3. Promise to Pay: Clear, unconditional promise to pay a specific sum (essential element under 搂780 BGB)

4. Payment Amount: Precise statement of the principal amount in numbers and words

5. Payment Terms: Due date(s), interest rate if applicable, and payment method

6. Governing Law: Explicit statement that German law governs the deed

7. Signature Block: Space for handwritten signature of the promissor (required under German law)

What sections are optional to include in a Promissory Deed?

1. Interest Provisions: Detailed terms regarding interest calculation and payment, used when the promise includes interest payments

2. Transfer Provisions: Terms governing the transferability of the deed, included when the deed is intended to be transferable

3. Security Arrangements: Details of any collateral or security provided, included when the promise is secured

4. Default Provisions: Consequences of default and acceleration rights, included in more complex commercial arrangements

5. Tax Provisions: Allocation of tax obligations, included when relevant for commercial or cross-border transactions

6. Representations and Warranties: Added for commercial transactions to confirm capacity and authority

What schedules should be included in a Promissory Deed?

1. Payment Schedule: Detailed schedule of installment payments if not a single payment obligation

2. Interest Calculation Schedule: Details of interest calculation methodology if complex interest arrangements apply

3. Security Documents: Copies or details of related security documents if the promise is secured

4. Corporate Authorizations: Copies of relevant corporate approvals if the promissor is a legal entity

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Banking and Financial Services

Real Estate

Commercial Lending

Private Lending

Corporate Finance

Investment Management

Construction

Manufacturing

General Commerce

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Administration

Corporate Secretariat

Investment

Business Development

Commercial Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Credit Manager

Investment Manager

Banking Relationship Manager

Loan Officer

Contract Manager

Risk Manager

Financial Controller

Corporate Secretary

Business Development 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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