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Signing Contracts in Germany – and getting out of them

July 15, 2016 by Kathleen Parker 29 Comments

Paperwork

Not long after you move to Germany, you’ll probably start craving the comforts of home. Internet, a mobile phone, maybe even a gym membership. Signing up for the latest shiny deal is usually easy enough: salespeople will fall at your feet, even with limited German. Here’s what you need to know about getting out of German contracts.

Contracts for service providers (gas, electricity, internet, phone) and subscriptions known as Abonnement or Abos (such as gym memberships, newspapers and magazines, Bahn Cards) in Germany tend to be valid for fixed periods, such as 1, 12 or 24 months. The catch though, is that most contracts in Germany also include a tricky clause that automatically renews the agreement once that time period is up. This is becoming more common around the world, but if you’re from a part of the planet where it is not common practice, it’s a nasty surprise.

If you’ve spent the last few months cursing your mobile phone provider (now, haven’t we all!) and waiting impatiently for the end date of the contract so that you can shop around, you may instead be appalled to receive a letter congratulating you on your choice to continue with them for another 24 months.   

To avoid unpleasant surprises like this, you’ll need to master the art of the German Kündigungsbrief (notice of termination). This letter needs to quote all your contract details and the date you’d like to cancel it (kündigen). You can either find a form letter online and fill in the blanks, or you can ask Red Tape Translation to prepare one for you – it’s quick and easy to customise.

Before writing your letter, check your contract and find the terms of your notice period (Kündigungsfrist). This clause will mention the length of the notice period eg: 30 days, 1 full calendar month or 3 calendar months. 1-3 months is fairly standard for telephone and internet contracts and gym memberships.

Your contract might include a reference to another date such as the “contract end date” (Vertragsende) or the “end of the month” (Monatsende). Even if you signed up on the 8th of the month, you might still have to send your cancellation letter before the 31st. If you’re having trouble unravelling the legalese, let us know!

If you’re ending the contract because of a move away from Germany, you’ll need to prove you’re actually leaving to get out of your contract straight away. Red Tape Translation can help you wrap up your affairs in Germany neatly if you’re making the big move overseas.

Finally, request written confirmation of your cancellation within 14 days. The letter must include your original, handwritten signature (sadly, a digital signature usually doesn’t cut it!).

HOT TIP: there’s a cheap and easy way to make sure your letter reaches its recipient! Registered post (Einschreiben) allows you to track the sending online and gives you a reference number. You can choose whether the recipient has to sign for it or not. It’s easy enough for a corporation to claim they never received your cancellation if there’s no written proof, so the few Euros and the trip to the post office are definitely worth it.

 

Filed Under: Dealing with Problems, Doing Business in Berlin Tagged With: contracts, leaving germany

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Reader Interactions

Comments

  1. Katja says

    July 17, 2017 at 9:44 pm

    Hi ,l actually signed a contract for a fitness club i signed a contract that says I can test in the club for( 14 ) days for 25 € and once when my 14 days of testing were finished I didn’t went on the last day of the teset period then I went there two days after my 14 days of testing when I went there to ask them that I don’t want to go to the club I was told that I’m so late and I should go to club for 12months .and also one of the terms of the contract says when my days of testing are finished and if I wanted to go on then I’m supposed to go to the club and pay for 12months .and I don’t want to go and I don’t know what to do in these case

    Reply
  2. Hilary says

    June 13, 2019 at 1:02 pm

    Hi. I made a two years contract for wifi. But now I’m moving in to someplace new where there is probably wifi there and I don’t think I can set mine up too. So in this case what do i do?

    Reply
    • Kathleen Parker says

      July 3, 2019 at 6:21 pm

      Send your service provider your new Anmeldung (registration of address) once you’re in the new place. If they don’t provide service at your new address, you’ll be able to get out of the contract easily. If they do provide service where you live, I’m not sure how they will deal with it. Best way is to call and ask them. In any case, they usually want termination notices in writing, and usually accept them by email if you scan in a signed letter. Worst case scenario: they terminate your contract “zum nächstmöglichen Zeitpunkt” – at the next possible point in time – which means you might have to pay out the remaining duration of your contract (2 years!).

      Reply
  3. Antar Ninad says

    July 6, 2019 at 10:59 pm

    Hi,
    For getting admission of my daughter in a kindergarten, I signed a contract. But since I was not in Germany at that time, so I have sent the scanned copy of contract through email to Kindergarten.
    Because of some reason I could not move to Germany and I informed them well in advance.
    So my question is; Is the scanned contract is valid in Germany and can Kindergarten claim money ( 3 months fee) based on this scanned contract.
    Please let me know.
    Thank you

    Reply
    • Kathleen Parker says

      July 10, 2019 at 2:18 pm

      They probably could try even with your scanned signature, but if you’re not actually residing in Germany it would be very hard for them to do so. Besides, they will fill that place within 2 seconds. I doubt they’ll bother.

      Reply
  4. james jory says

    October 11, 2019 at 6:41 pm

    Hi, so do you have 14 days to get out of any contract, i want to cancel my contract with my internet provider and im 12 days in?

    Reply
    • Kathleen Parker says

      October 14, 2019 at 7:56 am

      Hi James, have a look for “Widerrufsrecht” information on the contract itself, it should give you information on exactly how to withdraw and exactly how long you have. -Kathleen

      Reply
    • Deidré says

      March 9, 2021 at 12:12 pm

      Hi, two years ago at the age of 19 I wanted to put away 1000€ and save it for rainy days. I therefore went to see my banker and asked him to please help me put my money in an account where it won’t loose value. Today I contacted my bank because I need the money I put away and then found out that my money was placed into something called a Bausparkasse and I’m not able to get it back. When my banker explained the contract to me he did not mention that I started on negative 1000€ And I signed it knowing that I can access my money at anytime. My banker no longer works at the bank and now I don’t know what to do. Please can you advise me on what to do. I didn’t read the contract because it’s written in complex German and I trusted what my banker had told me.

      Thank you

      Reply
      • Kathleen Parker says

        April 28, 2021 at 9:19 pm

        Oh dear. That’s a tricky one. What will probably count is that you signed the contract. Ouch. I’m so sorry. I can’t help but I can sympathise – I did something similar ten years ago when I first moved to Germany. You could try talking to a lawyer but to be honest, their fees will probably exceed your investment.

        Reply
  5. safae rahel says

    November 14, 2019 at 1:34 pm

    Hello, in JuneI have signed with a club gym in stuttgart of 24 moths, and now I am sick, my doctor say that I should not do sport anymore. I write a letter to the gym with an attest from the doctor that I can not do sport anymore, but they don’t want terminate my contract, they are enjoying taking my mony every month 40 £. They told me at each time we can help with a thearapy to heal your pain……they are realy deceitful and crooks.
    What should I do to terminate my contract, I need help !
    Is the law in my site ?

    Reply
    • Kathleen Parker says

      December 4, 2019 at 3:11 pm

      I don’t know the answers to your questions, Safae. But I sympathise very much!!

      Reply
  6. Manoj Luitel says

    November 18, 2019 at 1:51 pm

    Hi,
    I registered for a Sprachkurs in an institute. Just after two days I university plan got changed and at any cost I can not take the class now. I informed immediately about my problem. But they ask me to pay again and again no matter what problem I have.
    I am so worried.
    I want to de-register and cancel the contract. How can I do it? Your legal suggestion would really help me.
    Thank you.

    Reply
    • Kathleen Parker says

      December 4, 2019 at 3:52 pm

      Sorry to hear about this, Manoj! I can’t really offer you a legal opinion as I’m not a legal expert. It would be interesting to see if the contract you signed guarantees availability or access at any particular times, or if the contract gives the school the right to change the schedule. I suspect the latter, but I really can’t help, except to offer to call or visit the school with you as an interpreter. Mind you, that would involve you paying (me) too, which is not ideal. I’d love to hear the outcome of this though! – Kathleen

      Reply
  7. Katya says

    May 8, 2020 at 9:05 am

    Hi there, I have a problem with German mobile company. I moved abroad and sent them the proof and Kundigung letter last winter. They made me sign their form for that and that, I think, includes some costs of closing the contract. Now they still send me bills, for huge amounts, more than I ever agreed to pay. Is that even legal after thry confirmed I moved abroad and contract is ending?

    Reply
    • Kathleen Parker says

      May 20, 2020 at 9:12 am

      It’s hard to know the details here, but here are some typical scenarios:
      – The phone company claims to have never received the termination letter, or claims that you sent it too late. Did you send it registered mail? Do you have proof that it was received?
      – What form exactly did you sign? Maybe you signed a contract renewal and you didn’t realise?
      – The phone company did terminate your contract and sent you a final bill which you didn’t pay, probably because you’d moved, and so much time went by that they sent this amount to a debt collection office and added extra fees on top.
      – They’ve been communicating with you by mail to tell you something important but you moved away and never got their letters. Did you give them a forwarding address for the final bill?

      Those are just some ideas.

      Reply
  8. Fabz Adel says

    July 9, 2020 at 7:04 pm

    Hi, I signed a 3-year pet insurance and I want to cancel it now because it’s not useful at all. When I send my kuendigung they said the earliest they can cancel it is in 2022! I don’t want to pay them for another 2 years for nothing, I would be wasting my money! Is there some kind of german law that states, if one is not benefitting from a contract they have the right to terminate their contract immediately or in a short amount of time? Or something along these lines? Thank you.

    Reply
    • Kathleen Parker says

      August 7, 2020 at 7:51 am

      Not that I know of, Fabz, sorry. I know you’d have a chance if the service delivered is different from what was promised in writing, but not that you’re simply not benefiting.

      Reply
  9. Laura says

    September 23, 2020 at 4:20 pm

    Hi, my problem is the following, I signed a contract with a fitness company for 12 months las t January. Back then they had more than 9 clases every day. Now they have between 1 to 4 and it is impossible to reserve a spot because only 8 people can get in. My question is, from my point of view, they are not providing anymore the service I agreed to pay for. I have complain but they won’t give any discount or compensation, and on top of that they want to elongate my contract 3 months because of the time they were closed! Is there any way of saying that I want to terminate my contract (before the 12 months) because they are not providing the service we agreed om anymore? Is it legal to just elongate a contract where it says 12 months starting on this date?
    Thank you very much,
    Laura

    Reply
    • Kathleen Parker says

      September 25, 2020 at 10:27 am

      Hi Laura – I’ve had plenty of trouble with fitness studio contracts in my time, and I even used to work as a debt collector for a chain of fitness studios. However, I don’t know how to deal with this particular issue, although I agree with you, it doesn’t seem like they are providing the service you signed up for. I do know that a lot of contracts in Germany DO auto-renew if you don’t cancel them within a certain time period (usually 3 months before the end). I’ve been stung by it myself. So sorry I couldn’t offer you any more insight than that. –Kathleen

      Reply
      • Laura says

        September 29, 2020 at 11:50 am

        Thank you for your answer. I guess I need to stay until the end of the signed contract. Although I have another issue. They want to extend my contract 3 months because of the 3 months they were closed because of corona. Is that legal? I do not see anything in the contract that says anything like that.
        Thank you

        Reply
  10. Amy says

    October 15, 2020 at 9:52 am

    Hi,

    Husband signed cellular contract in store with Vodafone for three numbers. Turns out they gave us/charged us for five numbers. We gave not activated or used SIM cards. Is there anyway to cancel? Is there any consumer protection in Germany when they have not been honest?

    Reply
    • Kathleen Parker says

      November 12, 2020 at 10:51 am

      Yes, there is consumer protection. I’d go to the Verbraucherzentrale for complaints of that nature.

      Reply
  11. Dina Nasr says

    June 9, 2021 at 10:01 pm

    I registered with an online Nachhilfe company to help my 2 daughters. But I didn’t receive any contracts.
    After 10 months, I could not see any improvement in their grades. I asked to cancel the contract but they told me that the contract is for 2 years and I can not cancel it.
    They mentioned that the contract is on the user profile on their website that my daughters are using.
    I am completely surprised and I have never committed to such a duration.
    They have also been withdrawing more hours than what my daughters have taken.
    Is there anyway I can cancel the contract?

    Reply
    • Kathleen Parker says

      June 10, 2021 at 10:37 am

      Without seeing it, I’m not sure. If you really did agree to it, they’ll have a copy of it with your signature or other legitimate authorisation on it. Ask them to send it to you if you’ve lost it or don’t think you signed it.

      Reply
  12. Sarpong says

    May 23, 2022 at 11:54 am

    Hello, I signed a contract with an NGO which deducts 30€ from my account every month. Please how do I cancel this

    Reply
    • Kathleen Parker says

      July 19, 2022 at 10:07 pm

      Contact the NGO and ask them how to cancel it.

      Reply
  13. Frank says

    September 25, 2022 at 9:38 pm

    Hi, I have signed a 24 monthly contract with a Vodafone shop…
    Well, the service didn’t work as I expected (I wanted for online classes, but if the connection drops, I can’t use it)
    Can I go to the store and cancel this contract??

    Reply
    • Kathleen Parker says

      September 28, 2022 at 8:44 pm

      Yes, but the first possible cancellation date will probably be 24 months from when you signed by default. If you want to dispute this, buckle up and prepare for a fight based on you not receiving the service you signed up for.

      Reply
  14. Ella says

    October 14, 2022 at 11:58 am

    Hello,
    Another contract victim here! I signed a contract for my daughter’s gym. I had been told that it is for one year. I was not informed at all about the cancellation notice of 3 months in advance and now they say that I have to pay another year because I did not cancel it before the cancellation period. I am really angry because the contract is in German and they did not tell me about this nasty detail. And my daughter only went there for 3-4 months. I had been paying already for nothing but now this is over my limit of acceptance. Is there a way to get out of this? I have read that as of March 1 2022, this has changed and now you can cancel with a one month notice but it only applies to contracts signed after this date. Here is a link of that – in case it is useful for someone else: https://www.iamexpat.de/expat-info/german-expat-news/new-law-makes-companies-offer-shorter-contracts-and-easier

    Reply

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