Section 10 of the master contract provides for the obligation of the seller to provide full and complete information on the existence of employment contracts. This type of ruling is meaningful and can also be applied in German agreements for the purchase and sale of a company.
An addition obligation of the buyer, namely to assume the rights and obligations under the existing employment contracts in accordance with Sections 10.1 (a) and (b) is however superfluous in agreements for the purchase and sale of a company under German law as unavoidable and cogent statutory rulings apply in this case.
For further information please contact Dr Erich Michel, Wessing Berenberg-Gossler Zimmermann Lange, Freiherr-Vom-Stein-Strasse 24-26, Frankfurt am Maim 60323, Frankfurt, Germany- Tel: +496 997 1300, Fax: +496 997 130100.
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