Liability for Related Contracts
am 10.12.2007 von http://www.recht.us/amlawCK - Washington. The owner of a remotely sited house ordered from one company the installation of a power and heat plant, and from another company a heating system that draws on the plant. When the building is not properly heated, the owner refuses payment to the second company and rescinds its contract. The power and heat plant has a much lower output than the owner had been advised to order but had not ordered. In addition, the owners low demand for electricity from the plant fails to make it generate enough heat even if he had ordered a plant with higher output. That is the situation facing the German Supreme Court in the matter VII ZR 183/05 which it decided on November 8, 2007. The December 7, 2007-published opinion explains the relative responsibilies and liabilities under §633(2)(1) of the German civil code, Bürgerliches Gesetzbuch. The factual constellation is not particularly unusual. It occurs often when a contract depends on the performance of another and both contracts relate to different parties. Here, the court remanded the dispute to the Munich court of appeals after defining the relative responsibilities. First, it notes that the contract is not substantially performed when the resulting …
Termination of Contracts
German American Law Journal :: American Edition / TS - Washington. On July 7, 2006, the Bundesgerichtshof, BGH, the German supreme court for civil matters, decided in the matter III ZR 145/05 how to interpret a contract without a termination provision. The decision concerns an oral agreement…
Torts and Arbitration
German American Law Journal :: American Edition / CK - Washington. An American arbitration clause provided by contract for retail securities transactions does not cover tort claims arising under the German statute for investor protection, the Düsseldorf appellate court decided on Decemb…
Software Service Contracts Terminable
German American Law Journal :: American Edition / JN - Marl. Most business software solutions require servicing to keep pace with new developments and changing demands. However, purchasers may not forever rely on the support from software developers, the Koblenz appellate court, Oberlandesge…
No Refund for Speed Trap Detectors
German American Law Journal :: American Edition / JN - Marl. The purchase of radar detectors designed to avoid speed traps is immoral pursuant to §138(1) BGB (Bürgerliches Gesetzbuch, Civil Code), the German Supreme Court ruled on February 23, 2005, Bundesgerichtshof (BGH), docket n…
Statutory Legal Fees
German American Law Journal :: American Edition / J.G - Washington. In Germany, legal fees consist of attorney fees for out of court actions and litigation and of court costs. A lawsuit may extend to three instances--trial court, court of appeals and supreme court. At each lev…
Loser Pays Costs
German American Law Journal :: American Edition / J.G - Washington. In Germany, legal fees consist of attorney fees for out of court actions and litigation and of court costs. A lawsuit may extend to three instances--trial court, court of appeals and supreme court. At each lev…
» Urteil des VII. Zivilsenats vom 8.11.2007 - VII ZR 183/05 -
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