VADIVM.

Type of refusal

Non-payment with a counterparty in Germany

A claim over non-payment in Germany begins with identifying the counterparty and what is verifiable about it right now, before any procedure is chosen. What can be fixed at this stage is the contract terms, the entity that signed, and its public filings. How this refusal type differs from others is set out on the non-payment refusal page; the forum that would hear the dispute depends on the contract itself.

Who is actually on the other side

A German counterparty is usually a GmbH, an AG, or a GmbH & Co. KG, though it can also be a foreign vehicle merely registered to do business in Germany. The public company register shows the registered seat, current managing directors, share capital, and any insolvency notations. It does not show whether the entity still holds assets, or whether it has already been stripped through intra-group transfers. Before assuming a company is worth pursuing, check the register entry against the contract signatory. Names change, entities merge, and a signature block from three years ago may no longer match the current registered name. The Germany jurisdiction profile sets out what else is publicly verifiable at this stage.

What to secure before the counterparty reacts

Before contacting the counterparty again, gather the documents that fix what was promised and what was paid. Keep the signed agreement, every amendment, the payment schedule, wire confirmations, and any written acknowledgement of the missed payment. If the contract routes disputes to arbitration, that changes what comes next; see how an arbitration clause changes a non-payment claim. Record the dates plainly. Note when payment was due, when it was missed, and when the counterparty was told. A later force majeure claim turns on exactly this timing, covered in how a force majeure claim is tested against non-payment. Reviewing the contract itself is the scope of a payment and redemption default review.

Where a judgment would have to be enforced

A judgment against a German counterparty only matters if it can be enforced there. A judgment from another EU member state is recognised in Germany without exequatur under the EU regime. A judgment from a state bound by the 2019 Hague Judgments Convention benefits from that route since the EU's accession took effect for member states, including Germany, on 1 September 2023. Documents produced outside Germany for use there typically need an apostille; Germany applies the Apostille Convention, in force since 13 February 1966, subject to a declared reservation. Which route fits a specific judgment is addressed under enforcement into Germany. The reverse direction, enforcing a German-origin judgment abroad, is a separate matter and is covered under the Germany-to-UK enforcement route. This firm does not work on a result-only fee, and its registration can be checked against the guidance on how to verify a law firm.

Ines Baumgartner