Contractual partner of Wirecard? What to do?

Wirecard has not only "alienated" investors. There also arise questions for the contractual partners of Wirecard, namely service providers, as to what rights exist in the event of the company's insolvency.

Wirecard has not only “alienated” investors. There also arise questions for the contractual partners of Wirecard, namely service providers, as to what rights exist in the event of the company’s insolvency.

In principle, a contractual agreement does not end due to the insolvency of the contractual partner. However, the contractual rights and obligations are suspended. The insolvency administrator only may and can decide on the continuation (fulfilment) of an existing contract. Only under certain circumstances, the contractual partner can request the insolvency administrator to do so. However, orders and contracts of agency expire as well as granted powers of attorney.

Whether a termination of the contract is possible depends on the circumstances of the individual case and on the contractual arrangements made. So-called “solution clauses” for the event of insolvency are not immediately effective but may be invalid.

Claims for damages for non-performance must be filed as insolvency claims with the administrator. In case of doubt, this will be the fate of the vast majority of service agreements that Wirecard has concluded and not fulfilled.

The fate of any agreed rights of retention of title of the suppliers may, depending on their form, lead to rights of segregation or separation. In the event of segregation, the supplier can demand the return of the goods from the insolvency administrator. In the event of separation, the insolvency administrator has the right of exploitation, but is obliged to release most of the proceeds to the supplier.