Hendrik Haag Dr
Edited By: William Johnston, Thomas Werlen, Frederick Link
- Banks and cross-border issues — Contractual set-off — Insolvency set-off — Judicial set-off
This chapter examines statutory and contractual set-off in Germany prior to insolvency proceedings and how such proceedings affect the prerequisites relating to set-off. It begins with a discussion of set-off between solvent parties, focusing on the statutory right of set-off under the German civil code ‘BGB’, contractual right of set-off, exclusions of set-off, set-off restriction in general terms and conditions, and limitations of a set-off claim. It then considers set-off against insolvent parties, taking into account the relevant provisions of the German Insolvency Statute ‘InsO’, acquisition of the right to set-off before the commencement of insolvency proceedings, set-off between two insolvency administrators, and cash pooling in insolvency proceedings. Finally, it analyses cross-border issues arising from the right to set-off.