# Termination in case of insolvency

*Last updated: 2026-06-13*

> When a business partner becomes insolvent or an insolvency proceeding is initiated, freight forwarders or shippers may terminate the contract invoking an insolvency termination clause.

When a business partner becomes insolvent or an insolvency proceeding is initiated, freight forwarders or shippers may terminate the contract invoking an insolvency termination clause. This protects the remaining party from further performance obligations and credit default risk. Claims are treated as general unsecured debts in insolvency distribution; early termination reduces the terminated party's stake in the distribution pool. Such clauses are standard in international trade and logistics to strengthen financial security and reduce exposure.

**Source:** [https://de.wikipedia.org/wiki/Insolvenz](https://de.wikipedia.org/wiki/Insolvenz)

## Quick Facts

| Property | Value |
|---|---|
| Term | Termination in case of insolvency |
| Language | EN |
| Word count | 75 |
| Last updated | 2026-06-13 |
| Source | https://de.wikipedia.org/wiki/Insolvenz |

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