Hauptschuld

Hauptschuld is a German legal term that refers to the principal debt or the main obligation arising from a contract or legal relationship. It designates the core monetary obligation that the debtor is required to fulfill, such as the repayment of the loan principal or the primary price due under a contract.

Distinctions to other obligations are common in German civil law. The Hauptschuld is typically distinguished from ancillary or secondary obligations, such as interest, fees, penalties, and other costs that may accompany the main obligation. In many contexts, payments made by a debtor are applied first to the Hauptschuld unless the debtor or creditor has agreed otherwise.

In contract and debt relationships, there can be a distinction between the person primarily responsible for satisfying the obligation (the Hauptschuldner, or principal debtor) and other parties who may bear secondary liability, such as guarantors or co-debtors. Security interests, such as mortgage (Hypothek) or personal guarantees (Bürgschaft), are commonly used to enhance the creditor’s ability to recover the Hauptschuld if the debtor defaults.

Enforcement and discharge procedures typically center on the Hauptschuld. A payment or set-off generally affects the Hauptschuld as the primary claim, while ancillary claims may be pursued separately or in conjunction depending on the contract and applicable law. The term appears across various contexts, including loans, rental agreements, and other financial obligations, where it helps distinguish the core amount owed from additional charges or damages arising from the contractual relationship.