A Settlement With Time to Think

A settlement reached in a German court can carry a reservation of revocation. It then takes effect only if no party revokes it in writing by a set date. In a labor case from Bamberg, the parties settled on 19 January 2004. Any revocation had to reach the court by 2 February 2004.

The law sets no period for this. The parties agree on it. In 2018 the Federal Court of Justice noted why the time matters. If the parties could not extend the period, many would revoke a settlement as a precaution, a step that ausreichender Überlegungszeit, enough time to think it over, would avoid.

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