German Contract Law
German Contract Law
1996
Recommended Citation
Pieck, Manfred (1996) "A Study of the Significant Aspects of German Contract Law," Annual Survey of International & Comparative
Law: Vol. 3: Iss. 1, Article 7.
Available at: http://digitalcommons.law.ggu.edu/annlsurvey/vol3/iss1/7
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Pieck: German Contract Law
MANFRED PIECK""
111
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Pieck: German Contract Law
C. UNDUE ADVANTAGE
D. IMPOSSIBILITY
E. USUFRUCT
6. [d. §§ 307-308.
7. See id. § 309.
8. [d. § 310.
9. [d. § 312.
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 115
4. A promise of an annuity;
sufficient if first the offer and later the acceptance of the offer
are authenticated by a notary.13
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 117
v. PERFORMANCE
A. PLACE OF PERFORMANCE (LEISTUNGSORT-ERFUELLUNGSORT)
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 119
the creditor bears the risk even though they are still in the
debtor's possession at the time of accidental loss or destruc-
tion. ls If the obligation to perform consists of a money obliga-
tion, the debtor must, at his own risk and expense, forward the
money to the habitual residence or place of business of the
creditor.
B. "CONFORMING PERFORMANCE"
C. "NON-CONFORMING PERFORMANCE"
18. In the case of Schickschulden, the creditor's risk has already begun by the
time the goods are given to the carrier.
19. See infra Part VI.
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 121
The fact that the debtor does not perform on time does
not, in and of itself, constitute delayed performance. Delayed
performance (Verzug) requires both of the following:
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 123
E. IMPOSSIBILITY OF PERFORMANCE
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 125
F. IMPERFECT PERFORMANCE
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 127
. H. CONTRACTUAL PENALTIES
I. DISCLAIMER CLAUSES
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 129
J. RESCISSION
must be repaid with interest starting from the time of its re-
ceipt. 49
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 131
the former may refuse to perform until the latter has either
performed or provided security for performance. 53
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 133
1. In General
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 135
If, at the buyer's request, the seller ships the goods sold to
a place other than the place of performance, the risk passes to
the buyer as soon as the seller has delivered the goods to the
carrier or other entity designated to handle the shipment. If
the seller has expressly or impliedly agreed to deliver the
goods to the buyer's habitual residence or place of business,
then the seller bears the risk until the goods are delivered
there. If the buyer has issued special shipping instructions, but
the seller deviates from such instructions without an urgent
reason, the seller is responsible to the buyer for all the harm
resulting from the deviation. Of course, consistent with their
freedom of contract, the parties may stipulate that the risk
passes at whatever time they want.
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 137
c. Defects in quality
If both the buyer and seller are merchants, and the sale is
thus considered a commercial transaction, the buyer must in-
spect the goods immediately upon arrival and promptly notify
the seller if the wrong quantity of goods were delivered, or if
there were defects in the goods delivered; if the buyer fails to
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 139
78. AbzG was replaced on 1 January 1991, by the Consumer Credits Law,
Verbraucherkreditgesetz .
79. See supra Part V.J.
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 141
80. It should be noted that the court-created rules described in this section
have now been codified in the Consumer Credits Law (Verbraucherkreditgesetz),
entered into force, 1 January 1991.
F. LEASES
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 143
tract; and, lastly, the lessor warrants that he will maintain the
leased subject matter in this condition during the entire term
of the lease. 85 .
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 145
2. Sublease (Untermiete)
3. Payment of Rent
4. Assignment of Lease
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 147
6. Ordinary Termination
7. Extraordinary Termination
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 149
105. See 1983 Federal Gazette, VoL I, p. 210; 1986 Federal Gazette VoL I, p.
2233.
H. LOANS (DARLEHEN)
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 151
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 153
given no later than the 15th of the month. If there are no pay
periods agreed upon, either side can give notice of termination
at any time.117 Mter ordinary notice has been given, the ser-
vant is entitled to reasonable time off to look for other opportu-
nities as well as a letter of reference. us
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 155
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 157
a. Werklieferungsvertrag
If the trip has been impaired in a major way, but the trav-
el organizer, after having been warned by the traveler to cure
such impairment, within a reasonable time fails to do so, then
the traveler is entitled to rescind the contract. In that event,
. the trip organizer is entitled to monetary compensation from
the traveler only for travel services already performed or which
the traveler still desires to be performed; but, otherwise, the
former must bear the expenses necessitated by the rescission
(e.g., a ticket to return home for the traveler). In the latter
situation, the traveler also has the option to obtain monetary
compensation in an amount which reflects the reduced value of
the trip. Whichever option chosen, the traveler is entitled to an
appropriate amount of money to compensate for whatever days
of his vacation (holiday) were needlessly wasted.
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Pieck: German Contract Law
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Pieck: German Contract Law
K. REWARD (AUSLOBUNG)
L. MANDATE (AUFTRAG)
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Pieck: German Contract Law
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Pieck: German Contract Law
N. DEPOSIT (VERWAHRUNG)
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 167
P. PARTNERSHIP (GESELLSCHAFT)
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Pieck: German Contract Law
1. Return of deposits;
R. ANNuITY (LEIBRENTE)
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Pieck: German Contract Law
1. The surety has waived such right (in which case the
surety is substituted for and is liable as the principal debtor)
(Selbstschuldnerische Buergschaft);
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Pieck: German Contract Law
U. COMPROMISE (VERGLEICH)
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Pieck: German Contract Law
1996] GERMAN CONTRACT LAW 175
30 years after the date fIxed for performance; interest and the
like must be sued for within four years after the expiration of
the year in which it became due. 163·"
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