Sonderkündigungsrecht

Sonderkündigungsrecht, often translated as special right of termination or extraordinary termination right, refers to specific legal provisions that allow parties to a contract to terminate it under circumstances not typically covered by standard termination clauses. These rights are usually triggered by significant changes in the contractual relationship or by events that make the continuation of the contract unreasonable or impossible for one or both parties.

In German law, where the term is most commonly used, Sonderkündigungsrecht can arise in various contexts. For example, in employment law, an employee might have a special right of termination if their employer significantly breaches contractual obligations, such as failing to pay wages. Similarly, in tenancy law, a tenant may have a Sonderkündigungsrecht in specific situations, like after a rent increase or if the landlord intends to occupy the property themselves. Insurance contracts can also feature special termination rights, often allowing the policyholder to terminate the contract shortly after an insurer announces a premium increase or makes a significant change to the policy terms.

The exact conditions and procedures for exercising a Sonderkündigungsrecht are usually detailed in the relevant statute or the contract itself. It often involves a shorter notice period than standard termination and may require the party exercising the right to provide specific reasons for their decision. The purpose of such provisions is to provide a remedy for situations where continuing the contract would impose an undue burden or be fundamentally unfair due to unforeseen or significant changes.