Termination of contract: Kündigung or Widerruf. Differences.
For many, these two words are synonyms, but that is not entirely the case.
The result, however, is the same in both cases: the contract ends. Now for the details.
Kündigung
This is the termination of a contract at the initiative of one of the parties, in accordance with the terms of the contract. That is, if there is a 1-year contract, in order to prevent it from automatically renewing for another 1 year, you need to “kündigen” it, i.e., express your wish to terminate it.
At the same time, you must comply with:
The Kündigungsfrist (notice period) is the period of time between the notice of termination and the subsequent termination of the contract. The Kündigungsfrist is usually stated in the contract; if it is not, the statutory period applies (BGB, VVG).
Widerruf
This is the right of a customer to withdraw from a contract for the purchase of goods or a purchased service within a specified period and receive a refund of the money paid.
🔸 The consent of the seller or service provider is not required.
🔸 The contract is cancelled with retrospective effect. Simply put, it is completely undone.
🔸 The right of Widerruf comes from the law; the seller only has to inform you about it (Widerrufsbelehrung – notice of withdrawal rights), and for certain contracts, such as property loan agreements, this must be done in writing.
🔸 For sales made outside the company’s offices or via telephone and/or the internet, Widerruf is almost always possible. It is assumed that you are unable to fully assess the goods. The exceptions are listed in the law (§ 312g Abs. 2 BGB): for example, goods made to your specifications, or hygiene products once you have broken the seal.
That is, if you conclude a mobile phone contract (electricity contract) in a company’s shop or office, you do not have the right to cancel within 14 days. This may be an additional service provided by the seller.
If you enter into these contracts online, you are entitled to a right of withdrawal. The same applies to buying clothes online. In a high-street shop there is no statutory right of withdrawal: you can return or exchange an item only if the shop agrees as a goodwill gesture (Kulanz).
🔸 Generally, the Widerruf period is 14 days. However, there are certain products for which the law stipulates a 30-day period, such as Lebensversicherungen (life insurance policies).
❌ You cannot withdraw from the contract of sale with the seller; you do not have that right.
Personally, I have used my right of Widerruf on numerous occasions when buying goods online from my favourite shop, Amazon (this is not an advert), after ordering the wrong item.
When shopping online, I recommend always checking the cost of return postage and who is responsible for paying it.
My example: I bought a low-quality camping table for €39. The cost of shipping it back to the seller is €40. 🥲
Deadlines: how much time you have
Widerruf – withdrawing from a recently concluded contract
- Insurance policy — two weeks (s. 8 VVG).
- Life insurance — 30 days (Section 152 VVG).
- Online shopping — 14 days from the receipt of the goods (§ 355 BGB).
Important detail: what counts is the date of dispatch of your withdrawal, not the date it was received. If you sent it on the last day of the period, you made it in time.
And the second: the time limit only starts running once you have received a complete set of documents and correct information on your right of withdrawal. If this information was incorrect or incomplete, the withdrawal period never started. For purchases of goods, the right of withdrawal still expires after 12 months and 14 days at the latest, whereas with old life insurance contracts you can withdraw even years later – this is what the practice regarding such contracts is built upon.
From 19 June 2026 a cut-off applies to new insurance contracts: the right of withdrawal expires no later than twelve months and 14 days after the contract is concluded (§ 8 para. 4 VVG), or 24 months and 30 days for life insurance and Berufsunfähigkeitsversicherung (occupational disability insurance) (§§ 152, 176 VVG). The cut-off does not apply if you were never informed of your right of withdrawal, or if the notice left out required details: the right itself, the deadline, how to withdraw and the address to send it to (§ 8 para. 2 VVG).
Kündigung — terminating an existing contract
- Insurance policies: usually three months before the end of the insurance year.
- Car insurance: exception — one month before the end of the insurance year, hence the famous 30 November deadline.
Plus, there is early termination, and in each case you have one month to decide: the insurer has raised the premium under the same terms; the insurance claim has been settled; you have switched to a Krankenkasse (statutory health insurer) — in that case, private health insurance can be cancelled retroactively within three months.
What changed in the customer’s favour
Two rules that few people know about, and yet they save both money and stress.
The contract is no longer being renewed for a year
Since 1 March 2022 (for telecommunications contracts — from 1st December 2021) tacit renewal in the general terms and conditions is permissible only under two conditions simultaneously: the contract is renewed indefinitely, and the notice period after renewal is no more than one month.
That is, a missed deadline no longer ties you to the contract for another year. But: contracts concluded to 1 March 2022 are still subject to the old rules — renewal for another year is still possible for them.
Cancellation button on the website
Since 1 July 2022 companies have been required to have on their website a cancellation button. It must be easily accessible — not hidden in the personal account area and without requiring a login. Once you click, an email confirmation is sent to you immediately, and this serves as proof.
The rule also applies to contracts concluded previously and to contracts signed offline. The exception is financial services websites.
If the button is not there, you can terminate the contract at any time and without observing any notice period: this is expressly laid down in the law (§ 312k Abs. 6 BGB). The company has itself forfeited the protection of notice periods.
And another thing: the termination can be sent by letter, fax or standard email — the company has no right to insist on a signed paper letter.
Letter templates for Kündigung and Widerruf
Kündigung template
Betreff: Kündigung des Versicherungsvertrags [Contract number]
Sehr geehrte Damen und Herren,
hiermit kündige ich den oben genannten Vertrag [Contract number], [First name and surname of the policyholder] in Bezug auf die Versicherungssparte [Type of insurance, e.g. third-party liability, home contents, etc.] zum nächstmöglichen Zeitpunkt bzw. aufgrund [Reason, e.g. a premium increase].
Bitte bestätigen Sie mir die Kündigung schriftlich innerhalb der nächsten sieben Tage.
Vielen Dank im Voraus.
Mit freundlichen Grüßen
[First Name Last Name]
Widerruf template
Betreff: Widerruf des Versicherungsvertrags [Contract number]
Sehr geehrte Damen und Herren,
hiermit widerrufe ich den oben genannten Versicherungsvertrag [Contract number], [First name and surname of the policyholder] in Bezug auf die Versicherungssparte [Type of insurance, e.g. third-party liability, home contents, etc.], vollständig und von Beginn an.
Bitte überweisen Sie etwaig bereits abgebuchte Beiträge auf das Ihnen bekannte Konto zurück.
Ich bitte Sie, mir den Widerruf schriftlich innerhalb der nächsten sieben Tage zu bestätigen.
Vielen Dank im Voraus.
Mit freundlichen Grüßen
[First Name Last Name]
What to do if you have taken out an unwanted contract
This sort of situation often happens to expats and new residents: an agent may take out a policy without your knowledge, or you may have signed the documents in a hurry. In this video, we’ll look at how to cancel an insurance contract or terminate a policy, as well as where to complain if the contract was taken out without your consent or through deception.
This section contains a video from YouTube. To watch it, click the button below. Doing so will share data with Google.
More informationWhat else to read
- 10 useless insurances — and why 3–5 year contracts are disadvantageous.
- Car insurance — it goes into detail about 30 November and early termination.
- Switching between GKV (statutory health insurance) and PKV (private health insurance) — the most common reason for cancelling medical insurance.
- Girokonto (current account) — how to transfer an account to another bank and who does it for you.
Sources: Verbraucherzentrale (consumer advice centre) — Fair Consumer Contracts Act (Gesetz für faire Verbraucherverträge) and cancellation of the insurance policy. Checked in August 2026. This material is for informational purposes and does not replace legal advice.
Valery Melech
Any questions? Write to us and we will reply in detail.
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Good afternoon.
The situation is as follows. When we moved into our new flat, we renewed our contract with the internet provider for two years and had the internet “transferred” to the new address. However, when the technician came to connect the service, he said that the connection itself was impossible because the cable inside the flat was damaged. He said that the caretaker would have to sort out the problem with the cable, and then they would connect it. The caretaker claims that this is not within his remit and is referring us back to the provider.
Is it possible to terminate the contract, given that the “provision” of internet service is not possible? This “back-and-forth” has been going on for nearly two months.
Hello.
Go ahead and try to terminate the contract on the grounds of not being able to use the service.
But regarding the flat, the owner is indeed responsible for the wiring.
Hello. My female acquaintance from Ukraine has ended up in Thuringia and doesn’t know the language at all, but having internet access is vital. A German neighbour took her to a Telekom office and my acquaintance signed a contract for home internet. Only later did she realise that it is home internet, not mobile internet. Furthermore, it is very much too expensive for her, as she cannot currently work, despite all her wishes, without knowing the language and is waiting for courses. Otherwise the problem wouldn’t have arisen. Is it possible to renegotiate the contract with the same company, but for a more budget-friendly mobile internet?
Hello Tatiana.
If the cancellation period has not expired, she must write a notice of withdrawal (Widerruf) and cancel the contract.
And only after that look for a separate mobile internet contract. There are currently tariffs for 50 GB for 10 euros or 100 GB for 20 euros.
Hello, a child attends a sports club. The contract states: the contract is concluded indefinitely. Is this legal in Germany? Or must a validity period be specified? Is an indefinite contract considered to be concluded for a term of 1 year with subsequent automatic renewal?
Hello!
Yes, an indefinite contract is legal in Germany. Such a contract does not require a specified duration. It usually remains in effect until one of the parties terminates it in accordance with the termination conditions (for example, the notice period for leaving the section).
Automatic renewal for 1 year applies only if it is stipulated in the agreement. If there is no such condition, the agreement remains open-ended.
Peace be upon you, and the mercy of Allah and His blessings
I rented an apartment from another tenant, of course with the landlord’s approval. The contract is for a year, but after the first month, the first tenant sent me a message at the beginning of the month demanding that I vacate the flat by the end of the month. When I asked him about it, he said he needed the flat for himself. Is he allowed to do that? Bearing in mind that there is a clause he wrote by hand in the contract stating that if he wants to return to the flat, he must inform me three months in advance. When I reminded him of that, he told me that I had not passed the probation period (Probezeit)! Is this logical, and what should I do in this situation?
No, in this case the argument regarding the Probezeit (probationary period) has no legal validity for renting an apartment in Germany unless such a clause is explicitly stated in the tenancy agreement.
Good evening! Could you please tell me if it is possible to cancel a home internet contract within 14 days if I signed it in an office-shop? Simply due to not knowing the language well, the conditions turned out to be a bit different before and after signing. Thanks in advance for the reply!
Good afternoon! In Germany, the 14-day right of withdrawal (Widerrufsrecht) only applies to contracts concluded at a distance (for example, via the internet, telephone, or through representatives outside of business premises). These are so-called “distance selling contracts” (Fernabsatzverträge).
However, if the contract was concluded at a shop or office, the right to cancel within 14 days does not usually apply, as it is assumed that you had the opportunity to familiarise yourself with the terms of the contract before signing it.
Possible steps in your situation:
1. Contact your provider: You can try contacting your internet service provider and explaining the situation. Sometimes companies are accommodating to customers, especially if the situation arose due to a language barrier.
2. Check the contract: Read the contract carefully; it may contain additional terms regarding cancellation or refunds (for example, if the service provided does not meet the stated requirements).
3. Consultation with consumer organisations: If the provider refuses to terminate the contract, you can contact one of the consumer protection organisations (such as Verbraucherzentrale), where you can receive help checking the legality of the terms and conditions and, potentially, suggestions for further steps.
In any case, it is important to act quickly, as the time elapsed since the contract was signed may be a factor in your claim.
Good afternoon, I was looking to buy a flat in Germany. The seller contacted a notary, who emailed me a draft of the sale and purchase agreement and clarified a few points regarding the clauses in the agreement. However, the transaction did not go ahead because our landlord refused to terminate our current tenancy agreement; in other words, no documents were signed, and I did not attend any meetings with the notary.Today, a letter arrived from the notary with an invoice for 1.2 % of the property’s value. Is the notary entitled to charge us for these costs, and if so, how much?
Hello, ,
We have signed a contract for the sale of a house (the house is situated on leased land). The final settlement with the seller has not yet taken place (due to a loan). Following the signing of the contract of sale, ,
The landowner has increased the rent by 2.7 times more than the amount specified in the sale and purchase agreement. If we do not agree to these terms, he will not grant permission for the sale. .
If the contract of sale is terminated, are we not obliged to pay the penalty, the estate agent’s fees and the notary’s fees?
Thank you for your reply. .
Hello, Marina.
Termination of the contract of sale:
Fines and costs: The terms for terminating a contract of sale are usually set out in the contract itself. If material changes to the terms (such as a significant increase in rent) render the transaction impossible or unprofitable, this may constitute grounds for termination without penalty. However, this must be legally substantiated.
Estate agent and notary services: These costs are usually borne by the party that initiated the termination of the contract. If the termination is due to the fault of the seller or landlord, it is possible that these costs will be borne by them. This also depends on the terms of your contract.
I signed a tenancy agreement last week, but I won’t be able to move in as I have to go back abroad for the first few months. No payments have been made yet, but the agreement states that if no payment is made, the tenant has no right to occupy the property. Can I discuss this with the landlord and cancel the agreement?
Yes, you can certainly talk to the landlord and ask to cancel the rental contract. Here is what to do:
1. Review the contract: look for any clauses on early termination or cancellation. This will show you which obligations or penalties may apply.
2. Contact the landlord as soon as possible. Explain your situation clearly and why you need to cancel the contract. No payments have been made yet, and the contract states that the tenant has no right to occupy the property without payment — so the landlord may be more willing to agree.
3. Propose a solution: for example, find another tenant to take over the lease, or offer to cover any costs the landlord incurs because of the cancellation.
4. Get everything in writing: if the landlord agrees to cancel the contract, make sure you have this agreement in writing. This protects you if a dispute arises later.
5. Keep a polite and professional tone throughout your communication. This makes an agreement easier and improves your chances of a good outcome.
If the landlord refuses, consider consulting a lawyer to better understand your rights and options.
Hello!
Could you please let me know if there is a possible solution to this problem?
In February, my family and I moved into a new flat; the tenancy agreement includes a ‘Kündigung’ clause stipulating that we waive our right to terminate the agreement during the first year of the tenancy. I hold a Blue Card. I lost my job last year. I was given until 15 April to find a new job so as not to lose my Blue Card. I’ve found a job, but to take it I need to move to another city. Is this considered a valid reason for terminating the tenancy agreement? My husband is the main tenant; his circumstances haven’t changed. We came to Germany as two separate professionals, not as a family, so my Blue Card isn’t dependent on his visa.
I’d be grateful for any help!
Hello, Maria.
Taking up a new job does not constitute grounds for early termination of the contract.
However, you can try to reach an agreement with the landlord, suggesting an option such as you finding a Nachmieter, for example.
Good afternoon! I signed a two-year contract with a sports club. A week later, I found a flat in another town and am planning to move there. There isn’t a branch of this club in that town. I sent an email to the sports club asking to terminate the contract due to my move, and also because 14 days have not yet passed since the contract was signed. My request was refused on the grounds that I have no legal right to terminate the contract. The contract was not concluded as part of a “door-to-door” sales operation. How can I terminate the contract with the sports club? Thank you!
Hello.
Indeed, if you signed the contract in person at the club itself, the 14-day cancellation period does not apply.
Please read the contract carefully and familiarise yourself with the terms and conditions governing its termination.
It might be possible to sell your season ticket to someone else at a small discount.
Also, try contacting the consumer advice centre: Verbraucherzentrale Bundesverband: https://www.vzbv.de/
Good evening, my sister signed a car purchase and sale agreement at a car dealership. Probably a preliminary agreement. She was offered help with insurance, she agreed and provided her account details. She did not pay for the car, as she was told to come back in 3 days and collect the completed documents. But she changed her mind about buying. We saw the same cars on the website but much cheaper. In the evening of the same day, she wrote that she would not buy the car. She apologised. And she was told that if she doesn’t buy it, she has to pay €200. Please tell me what to do in this situation?
Hello.
In this situation, it is important to understand on what grounds the payment of €200 is being demanded and what conditions were agreed upon in the preliminary car purchase agreement. In Germany, preliminary agreements and purchase terms may contain provisions for a penalty or fine for withdrawing from the transaction.
Here are a few steps that can be taken in this situation:
1. Reread the contract: Carefully study the terms of the preliminary agreement, paying special attention to clauses regarding refusal to purchase, contractual penalties, fines, or any fees that may be charged in the event of withdrawing from the transaction.
2. Legal advice: If the contract specifies penalties for withdrawal or some of its provisions are unclear, it is recommended to consult a lawyer specialising in civil law or automotive transactions in Germany. This will help you understand your rights and obligations in this situation.
3.Communication with the seller: Try communicating politely with the seller or car dealership representative once more, explaining the situation and expressing your intention to find a mutually acceptable solution. Sometimes issues can be resolved through negotiation.
4.Checking the legality of the requirement: Ensure that the demand for payment of a fine or penalty is lawful and does not contravene current German legislation. A lawyer can help assess the legality of such a demand.
If the situation seems unfair or if you believe your rights have been violated, do not hesitate to seek legal assistance. It is important to know your rights and responsibilities, as well as to understand what steps can be taken to protect your interests.
Hello, on 21.02.2024 I concluded a contract for dental insurance online, provided my address and card number. After that, I decided to cancel the contract, but I was told that the documents would arrive in 2 weeks and I could cancel then. However, I am worried about my account as it is not secure. I wrote an email but there is no reply, and that consultant no longer responds; he spoke Russian, but all the websites are German. I wrote everywhere I could, but in reply I was told to wait for the documents, and that was in German in the email which I translated, or to register on the website, but the website has been abandoned, it doesn’t work and no one replies. Please help me to cancel this contract, as I understand that my card is not secure. I live in Hanover. This is their website.https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://godinlife.de/&ved=2ahUKEwiagMa2772EAxUr9gIHHXXGB3g4ChAWegQIDBAB&usg=AOvVaw1P4eShOy2mMyje2IAiILUy
Hello.
In Germany, any insurance policy can be cancelled without giving a reason within 14 days.
Write cancellation
Hello. A residential tenancy agreement with an end date (fixed-term) has been concluded. Can the landlord and tenant terminate this contract by mutual agreement? Or renew it for a shorter term?
Hello.
Certainly, by mutual agreement they can change the terms of the contract.
Yours sincerely,
Valery Melech
Please tell me how to cancel a car insurance policy in Germany if it was taken out for a year, but only 3 months have passed. I am not using the car. I am not the owner of the car.
Good morning,
Thank you for your question.
You need to deregister the vehicle and then the insurance policy will terminate automatically.