THE GERMAN LEGAL SYSTEM

First published in Great Britain 2002 by Cavendish Publishing Limited, The Glass House,Wharton Street, London WC1X 9PX, United KingdomTelephone: +44 (0)20 7278 8000 Facsimile: +44 (0)20 7278 8080Email:Website:info@cavendishpublishing.comwww.cavendishpublishing.com© Fisher, Howard D 2002First edition 1996Second edition 1999Third edition 2002All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted, in any form or by any means, electronic, mechanical,photocopying, recording, scanning or otherwise, except under the terms of theCopyrights Designs and Patents Act 1988 or under the terms of a licence issued by theCopyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE, UK, withoutthe prior permission in writing of the publisher.Fisher, HowardGerman legal system and legal language—3rd ed1 Law—Germany 2 Law—Germany—TerminologyI Title349.4'3ISBN 1 85941 706 XPrinted and bound in Great Britain

PREFACE TO THE SECOND EDITIONTHE GERMAN LEGAL SYSTEMGermany has one of the most scientific legal systems anywhere in the world. For aperson with English as his or her mother tongue to seek to understand that system isnot easy, even with a legal education. Why is this so? The principal reason lies in thefact that, for historical reasons, the methods and sources of German and English lawhave developed differently. Another reason is the German language and its seeminglyendless supply of formal terminology. Certainly, legal and everyday language are notthe same anywhere, but where can this be more so than in Germany?If the linguistic complexities were not enough, the enormous codification ofpractically every area of law in Germany will remain a formidable obstacle tocomprehension of the German system for a foreigner, even after the dawn of the ‘new’Europe after 1993.The German legal system remains, generally speaking, a system of (positive) norms,ie, traditional German legal thinking revolves, in the vast majority of cases, aroundthe twin immutable ‘pillars’ of an established system and norms regarded asauthoritative. 1This contrasts markedly with the ‘mixed’ system of precedents and statutes andthinking in terms of problems (‘Problemdenken’) prevalent in common law countries.Alternative legal methods have not (yet) made great inroads in Germany. 2The main tool of the German legal system is the German legal language, which isof a precision unmatched (and perhaps unattainable) in English. 3THIS BOOKThis book contains a general survey in the English language of the structure andconcepts of some of the main areas of German law. My aim has thereby been to providea basic insight into the German legal system and technical language.The book is based on my understanding and study of German laws and texts andconstitutes a summary and introduction only. A more detailed account, for example,of the ‘Grundgesetz’ and the BGB, would have involved lengthy exposition, which Iwanted to avoid. Understanding the layout of the various laws is, in my view, themain task for the newcomer (see Chapter X, Note 109).In particular, the book does not deal with banking, competition, insurance,intellectual property, planning (building), environmental or tax law nor with many ofthe numerous statutes in the fields of private and public law to be found in thehandbook collections ‘Schönfelder’ and ‘Sartorius’ (for examples see Chapter XIX A).These areas can be considered at another time.It should also be mentioned that I merely touch upon the Special Part of the CriminalCode (StGB; Chapter XVI B) and that, in the law of criminal procedure, a descriptionof the provisions concerning the main hearing and consequent remedies still needs tobe added (Chapter XVII G).To well versed German lawyers and experts the book will, I am sure, provideopportunity for criticism of misunderstanding, errors and incompleteness. Readersix

The German Legal System and Legal Languageare, therefore, advised to consult German laws, authorities and guides in their originalversions for the necessary detail or in cases of doubt.Readers with a love for plenty of case-law should always remember that it is a factthat the German legal system is almost entirely based on codifications. This book onlycontains references to a handful of cases, most of which stem from Donald Kommers’The Constitutional Jurisprudence of the Federal Republic of Germany and from the Sourcebookon German Law by Raymond Youngs. They concern the ‘Grundgesetz’, the first twoBooks of the BGB and the StGB (Chapters II, V, VII, VIII, X and XVI).THE INTERNATIONAL PERSPECTIVEFor those readers, who wish to compare English and German law, I have indicated inthe Index (under ‘English law’) where aspects of English law are referred to in thebook. However, I do not hold the book out as a work on comparative law. If that iswhat is sought, I would draw the reader’s attention to the distinguished treatise in thefield of private law by Zweigert and Kötz, to the scholarly analysis by BS Markesinis(The German Law of Obligations: A Comparative Introduction) and to the admirable workby Raymond Youngs (English, French and German Comparative Law).Zweigert and Kötz make the interesting prediction that ‘the day may not be too fardistant when the project of a European Civil Code will be undertaken’ (Chapter 14 II).Whatever the chances of such a Code ever being enacted, I would venture to wagerthat the long established and highly developed concepts contained in the variouscodifications of German law will remain in use for so long as German is spoken. Thevital role of language and the question of popular acceptance should not beunderestimated. 4In the light of developments in the European Union, 5 it should be pointed out herethat some very difficult problems, perhaps ultimately requiring root-and-branchreform, still exist:– The coordination and ‘harmonisation’ of the various legal systems and proceduresin Europe (‘Rechtsangleichung’) is extremely complex. What should be retained orcopied and what is irrelevant or outdated? How much is really necessary? 6– Constitutional issues are bound, more and more, to preoccupy the Europeanlegislatures. Is a federal system a foregone conclusion? What will happen to themonarchies? 7– Can the traditionally immovable national administrative structures be integrated?Should they be streamlined? How can the risk of a usurpation of power beminimised?– Can the principle of legal certainty (‘Rechtssicherheit’) be upheld in a multi-lingualenvironment? 8In theory, these are matters which can be resolved, provided the member states of theEuropean Union have the necessary (political) will and mutual trust and are notdeflected by internal frictions and other pressures. 9x

The German Legal System and Legal LanguageI hope that these changes will be considered helpful.Finally, as before, I have endeavoured to maintain correct and consistent translationand to cross-reference the text, Notes and Appendices.Howard D FisherFrankfurt am MainJune 1999xii

CONTENTSPreface to the Third EditionPreface to the Second EditionMaterialsBibliographyCross-ReferencesviiixxxiiixxvxxxiI HISTORICAL INTRODUCTION 1II THE FEDERAL STATE 5A The Division of Power 5B The Passing of Laws 5C The Executive 5D The Administration of Justice 6E The ‘Rechtsstaat’ Principle 6F The Origin, Separation and Binding of State Power 7G The ‘Freiheitliche Demokratische Grundordnung’ 7H Foreign Relations 8III THE SUPREME FEDERAL ORGANS 9IV THE SUPREME AND OTHER FEDERAL AUTHORITIES 11V THE ‘LÄNDER’ 13A Introduction 13B State Administration in the ‘Länder’ 14VI LOCAL GOVERNMENT 15VII THE CONSTITUTION (‘GRUNDGESETZ’) 17A Introduction 17B Rank of the Basic Law and Validity of Norms 17C The Federal and State Constitutional Courts 18xiii

Contents3 Sections 1–9 73(a) Section 1 (§§ 854–872 BGB) 73(b) Section 2 (§§ 873–902 BGB) 74(c) Section 3 (§§ 903–1011 BGB) 75(d) Section 4 (§§ 1012–1017 BGB) 77(e) Section 5 (§§ 1018–1093 BGB) 77(f) Section 6 (§§ 1094–1104 BGB) 77(g) Section 7 (§§ 1105–1112 BGB) 77(h) Sections 8 and 9 (§§ 1113–1296 BGB) 78E Book IV: Family Law (§§ 1297–1921 BGB) 80F Book V: Law of Succession (§§ 1922–2385 BGB) 811 Introduction 812 Constitutional Guarantee 823 The Modes of Inheritance (‘Erbfolge’) 82(a) By statute (§§ 1924–1936 BGB) 82(b) By disposition on death (‘Verfügung von Todes wegen’) 83(c) The will (‘Testament’; §§ 1937, 2064–2086, 2229–2264 BGB) 84(d) The joint will (‘Gemeinschaftliches Testament’; §§ 2265–2273 BGB) 86(e) The estate contract (‘Erbvertrag’; §§ 1941, 2274–2302 BGB) 874 The Estate (‘Erbschaft’/‘Nachlaß’) and the Heir(s) 87(a) Universal succession (§ 1922 BGB) 87(b) The community of heirs (‘Erbengemeinschaft’; §§ 2032–2063 BGB) 87(c) Appointment of an heir (‘Erbeinsetzung’; §§ 1937, 1941, 2087–2099 BGB) 88(d) Appointment of a substitute heir (‘Ersatzerbe’; §§ 2096–2099 BGB) 89(e) Appointment of a subsequent heir (‘Nacherbe’; §§ 2100–2146 BGB) 89(f) Exclusion from succession 90(g) Entitlement to a compulsory portion (‘Pflichtteil’; §§ 2303–2338 BGB) 91(h) Legacies and directions (‘Vermächtnis’/‘Auflage’; §§ 1939–19402147–2196 BGB) 92(i) Appointment of an executor (‘Testamentsvollstrecker’;§§ 2197–2228 BGB) 925 Procedural Aspects 93(a) Acceptance (‘Annahme’) and disclaimer (‘Ausschlagung’;§§ 1942–1966 BGB) 93(b) Liability of the heir(s) for debts (‘Haftung für Nachlaßverbindlichkeiten’;§§ 1967–2017, 2058–2063 BGB) 94(c) Claims against third parties (§§ 2018–2031 BGB) 94(d) The certificate of inheritance (‘Erbschein’; §§ 2353–2370 BGB) 94(e) The probate court (‘Nachlaßgericht’) 95xv

The German Legal System and Legal LanguageXIPRIVATE LAW: BGB COMPANY LAW ANDTHE COMMERCIAL CODE (HGB) 97A Context and Definitions 97B Duties, Management (‘Geschäftsführung’), Representation (‘Vertretung’) andLiability (‘Haftung’) 99C The HGB in Detail 1001 Introduction 1002 Book I (§§ 1–104 HGB): ‘Handelsstand’ 101(a) Section 1 (§§ 1–7 HGB) 101(b) Sections 2 and 3 (§§ 8–37 HGB) 101(c) Section 5 (§§ 48–58 HGB) 101(d) Section 6 (§§ 59–83 HGB) 102(e) Sections 7 and 8 (§§ 84–104 HGB) 1043 Book II (§§ 105–237 HGB): ‘Handelsgesellschaften’ 104(a) Content 104(b) Section 1 (§§ 105–160 HGB) 104(c) Section 2 (§§ 161–177a HGB) 107(d) Section 3 (§§ 230–237 HGB) 1074 Book III (§§ 238–339 HGB): ‘Handelsbücher’ 1075 Book IV (§§ 343–460 HGB): ‘Handelsgeschäfte’ 108XII THE PRIVATE LIMITED COMPANY (GMBH) 111A Introduction 111B Establishment 111C ‘Stammkapital’, ‘Stammeinlage’ and ‘Geschäftsanteil’ 112D Organs 112E Directors (‘Geschäftsführer’) 113XIII CIVIL PROCEDURE 115A The ‘Zivilprozeßordnung’ (ZPO) 115B The Maxims of Civil Procedure 115C Points to Note 116D The ZPO in Detail 1181 Book I (§§ 1–252 ZPO): General Provisions 118(a) Content 118xvi

The German Legal System and Legal Language2 Content 1583 The ‘Verwaltungsverfahren’ 158C The‘Verwaltungsakt’ (VA) 1591 Definition 1592 Content 1593 Validity and Legality 1604 ‘Bestandskraft’, ‘Rücknahme’ and ‘Widerruf’ 1605 Types 1606 Grant of an ‘Erlaubnis’ or ‘Genehmigung’ 161XV ADMINISTRATIVE PROCEDURE 163A Available Remedies. The ‘Verwaltungsgerichtsordnung’ (VwGO) 163B Types of Writ 163C Preliminary Requirements 163D The Hearing in the Administrative Court 164XVI CRIMINAL LAW 167A Introduction 167B Types of Offence 167C Elements of an Offence 1681 ‘Tatbestandsmäßigkeit’ of the ‘Handlung’ 168(a) When an act is ‘tatbestandsmäßig’ 168(b) Crimes by omission 169(c) Acts by persons representing others 1692 ‘Rechtswidrigkeit’ of the ‘Handlung’ 170(a) When a ‘Handlung’ is ‘rechtswidrig’ 170(b) ‘Rechtfertigungsgründe’ 1703 ‘Schuld’ 170(a) Meaning of ‘Schuld’ 170(b) ‘Schuldfähigkeit’ 171(c) Forms of ‘Schuld’ 171(d) Exclusion of ‘Schuld’ 172D Consequences of an Offence 173‘Strafen’ 173‘Maßreglen der Besserung und Sicherung’ 173xviii

ContentsXVIICRIMINAL PROCEDURE 175A Introduction 175B The ‘Staatsanwaltschaft’ 176C The‘Verteidiger’ 177D The Police 178E Action Following Investigation 179F ‘Hauptverhandlungshaft’ 179G The Main Proceedings and Thereafter (Book II (Section 6)—Book IV StPO) 180H Involvement of the Injured Party (Book V StPO) 180I Special Types of Proceedings (Book VI StPO) 180J Enforcement of Punishment and Costs of the Proceedings (Book VII StPO) 180XVIII EMPLOYMENT LAW 181A Introduction 181B Form and Termination of a Contract of Employment 181C The ‘Betrieb’ and ‘Betriebsrat’ 183D Cooperation between Employer and ‘Betriebsrat’ 184E The Rights of the ‘Betriebsrat’ 184F ‘Mitbestimmung’ in Large ‘Unternehmen’ 185G The Coalitions 186H ‘Arbeitsschutzrecht’ 186I Accidents at Work 187XIX BUSINESS LAW (‘WIRTSCHAFTSRECHT’) 189A Introduction 189B Law of Securities (‘Wertpapierrecht’) 190What is a ‘Wertpapier’? 191XX PRIVATE INTERNATIONAL LAW 195A The EGBGB 195B Points to Note 195C Personal and Family Matters 196xix

The German Legal System and Legal LanguageD The Law of Obligations 1971 Contractual Obligations 1972 Questions of Jurisdiction (‘Zuständigkeit’) 198(a) Special venues 198(b) Agreements 1983 Non-Contractual Obligations 199E Proof of Foreign Law 199XXI INTERNATIONAL LEGAL COOPERATION 201A Introduction 201B Sources of Law 201C Extradition (‘Auslieferung’) 202XXIITHE LEGAL PROFESSION AND COURT SYSTEM 203A The Judges 203B The ‘Rechtspfleger’ 204C The Court System 2051 The ‘Gerichtsbarkeiten’ 2052 The ‘ordentliche Gerichtsbarkeit’ 2053 The ‘besondere Gerichtsbarkeit’ 2064 The ‘Verwaltungsgerichtsbarkeit’ 2065 ‘Rechtspflege’ 2076 ‘Justizverwaltung’ 207D The ‘Rechtsanwalt’ 2071 Introduction 2072 Status of the ‘Rechtsanwalt’ 2083 Admission as a ‘Rechtsanwalt’ 2084 Relationship of the ‘Rechtsanwalt’ to his Client 2095 Rights and Duties of the ‘Rechtsanwalt’ 2096 The ‘Rechtsanwaltskammer’ 2117 Complaints 2128 Legal Fees 213(a) Basis of calculation 213(b) Civil proceedings and non-contentious matters 214xx

دولة الكويتمجلس الأمةدستور دولة الكويت) ١٠٣ ( مادةاذا تخلى رئيس مجلس الوزراء او الوزير عن منصبه لأي سبب من الأسباب يستمر في تصريفالعاجل من شئون منصبه لحين تعيين خلفه.) ١٠٤ ( مادةيفتتح الأمير دور الانعقاد السنوي لمجلس الأمة ويلقى فيه خطابا أميريا يتضمن بيان أحوال البلادوأهم الشئون العامة التي جرت خلال العام المنقضى وما تعتزم الحكومة اجراءه من مشروعاتواصلاحات خلال العام الجديد.وللأمير ان ينيب عنه في الافتتاح او في القاء الخطاب الأميري رئيس مجلس الوزراء.) ١٠٥ ( مادةيختار مجلس الأمة لجنة من بين اعضائه لاعداد مشروع الجواب على الخطاب الأميري ، متضمناملاحظات المجلس وامانيه ، وبعد اقراره من المجلس يرفع إلى الأمير.) ١٠٦ ( مادةللأمير أن يؤجل ، بمرسوم ، اجتماع مجلس الأمة لمدة لا تجاوز شهرا ، ولا يتكرر التأجيل في دورالانعقاد الواحد الا بموافقة المجلس ولمدة واحدة ، ولا تحسب مدة التأجيل ضمن فترة الانعقاد.مادة- ٢٢ -( ١٠٧ )للأمير ان يحل مجلس الأمة بمرسوم تبين فيه اسباب الحل ، على أنه لا يجوز حل المجلس لذاتالأسباب مرة أخرى.واذا حل المجلس وجب اجراء الانتخابات للمجلس الجديد في ميعاد لا يجاوز شهرين من تاريخ الحل.فان لم تجر الانتخابات خلال تلك المدة يسترد المجلس المنحل آامل سلطته الدستورية ويجتمع فوراآأن الحل لم يكن ، ويستمر في أعمال إلى ان ينتخب المجلس الجديد.

The German Legal System and Legal LanguageAPPENDIX AVocabulary: Selected German and Latin Words and Phrases(With Their English/Legal Meanings) 345APPENDIX BAbbreviations Referred to in the Text (For English Meanings See Appendix A) 463APPENDIX CParagraph Register 469APPENDIX DTable of Cases 533German Cases 533European and United Kingdom Cases 540APPENDIX ETable of English Statutes 541APPENDIX FTable of Articles from ZAP 543Index 553xxii

MATERIALSIn order to be able to derive use from and follow the explanations in this book, it isessential to have the texts of German (federal) laws (‘Gesetzestexte’) to hand. They areavailable in various forms, of which very well known are the regularly updatedpaperback editions published by DTV/Beck and the handbook collections entitled‘Schönfelder: Deutsche Gesetze’ and ‘Sartorius I: Verfassungs- und Verwaltungsgesetze derBundesrepublik Deutschland’ and ‘Sartorius II: Internationale Verträge/Europarecht’. I wouldalso particularly recommend:– Creifelds: Rechtswörterbuch, which is a concise German legal dictionary;– The Constitutional Jurisprudence of the Federal Republic of Germany by Donald PKommers, which is an outstanding casebook and treatise on that subject; and– Raymond Youngs’ Sourcebook on German Law, which contains a selection of manyinstructive German texts with English translations and commentary.Additionally, reference can be made to the numerous textbooks (‘Lehrbücher’) andcommentaries (‘Kommentare’) on the various areas of German law, if more detailedadvice is required. Included in my bibliography are many standard books for Germanlaw students.A multitude of regular magazines, general and specialist, cover every aspect of theGerman legal scene. I subscribe to the ‘Zeitschrift für die Anwaltspraxis’ (ZAP), which ispublished every two weeks by the ‘Verlag für die Rechts- und Anwaltspraxis’ (BeisingerWeg la, D-45657 Recklinghausen; Internet: www.zap-verlag.de) and forms part of areference work divided into 25 subject-areas (‘Fächer’). It contains (inter alia):– an editorial column (ZAP-Kolumne);– a report on current developments (ZAP-Aktuell) and new or proposed legislation(‘Gesetzgebungsreport’);– urgent news (‘Eilnachrichten’), consecutively numbered by year (eg, ZAP EN-Nr402/1996);– a critical section on the judiciary (‘Justizspiegel’);– articles (‘Aufsätze’); and– case-law surveys (‘Rechtsprechungsübersichten’) on certain common areas of law(ie, landlord and tenant, construction, road traffic, family, employment,constitutional and administrative and criminal).References in this book to ZAP are by issue number and year (eg, ZAP 21/1995).xxiii

The German Legal System and Legal LanguageDrews/Wacke/Vogel/Martens: Gefahrenabwehr: Allgemeines Polizeirecht (Ordnungsrecht)des Bundes und der Länder; 9th edn (1986) (Carl Heymanns)Dulckeit/Schwarz/Waldstein: Römische Rechtsgeschichte; 9th edn (1995) (CH Beck)Eisenhardt: Gesellschaftsrecht; 8th edn (1999) (CH Beck)Engisch: Einführung in das juristische Denken; 9th edn (1997) (Kohlhammer)Erichsen: Allgemeines Verwaltungsrecht; llth edn (1998) (Walter de Gruyter)Fikentscher: Schuldrecht; 9th edn (1997) (Walter de Gruyter)Flume: Allgemeiner Teil des Bürgerlichen Rechts; Volume 2: Das Rechtsgeschäft; 4th edn(1992) (Springer)Gallwas: Grundrechte; 2nd edn (1995) (Luchterhand)Geimer: Internationales Zivilprozeßrecht; 4th edn (2001) (Dr Otto Schmidt)Gernhuber/Grunewald: Bürgerliches Recht; 4th edn (1998) (CH Beck)Gesetzestexte: see MaterialsGiemulla/Jaworsky/Müller-Uri: Verwaltungsrecht; 6th edn (1998) (Carl Heymanns)Gierke/Sandrock: Handels- und Wirtschaftsrecht I; 9th edn (1975) (Walter de Gruyter)Gursky: Wertpapierrecht; 2nd edn (1997) (CF Müller)Haft: Aus der Waagschale der Justitia; 3rd edn (2001) (CH Beck/DTV)Haft: Strafrecht Allgemeiner Teil; 8th edn (1998) (CH Beck); referred to in the Notes as‘Haft (AT)’Haft: Strafrecht Besonderer Teil; 7th edn (1998) (CH Beck); referred to in the Notes as‘Haft (BT)’Hanau/Adomeit: ‘Arbeitsrecht’; 12th edn (2000) (Luchtemand)Hartley: The Foundations of European Community Law; 3rd edn (1994) (Oxford)Hesse: ‘Grundzüge des Verfassungsrechts der Bundesrepublik Deutschland’; 20th edn (1999)(CF Müller)Hofmann: Handelsrecht; 9th edn (1996) (Luchterhand)Honsell: Römisches Recht; 4th edn (1997) (Springer)Hubmann/Götting: Gewerblicher Rechtsschutz; 6th edn (1998) (CH Beck)Hueck: Gesellschaftsrecht; 20th edn (1998) (CH Beck)Jakobs: Strafrecht Allgemeiner Teil; 2nd edn (1993) (Walter de Gruyter)Jarass/Pieroth: Grundgesetz für die Bundesrepublik Deutschland; 5th edn (2000) (CH Beck)Jauernig: Bürgerliches Gesetzbuch (BGB); 9th edn (1999) (CH Beck); referred to in thexxvi

BibliographyNotes as ‘Jauernig (BGB)’Jauernig: Zivilprozeßrecht; 26th edn (2000) (CH Beck); referred to in the Notes as‘Jauernig (ZP)’Jauernig: Zwangsvollstreckungs- und Insolvenzrecht; 21st edn (1999) (CH Beck); referredto in the Notes as ‘Jauernig (ZVS)’Kaiser: Bürgerliches Recht; 7th edn (2000) (CF Müller)Kallwass: Privatrecht; 16th edn (2000) (U Thiemonds)Katz: Staatsrecht; 14th edn (1999) (CF Müller)Kegel/Schurig: Internationales Privatrecht; 8th edn (1999) (CH Beck)Klunzinger: Einführung in das Bürgerliches Recht; 9th edn (2000) (Franz Vahlen); referredto in the Notes as ‘Klunzinger (Einführung)’Klunzinger: Grundzüge des Handelsrechts; 10th edn (1999) (Franz Vahlen); referred toin the Notes as ‘Klunzinger (Grundzüge) (HR)’Klunzinger: Grundzüge des Gesellschaftsrechts; 11th edn (1999) (Franz Vahlen); referredto in the Notes as ‘Klunzinger (Grundzüge) (GR)’Köbler: Deutsche Rechtsgeschichte; 5th edn (1996) (Franz Vahlen)Köhler: BGB Allgemeiner Teil; 25th edn (2001) (CH Beck)Kommers: The Constitutional Jurisprudence of the Federal Republic of Germany, 2nd edn(1997) (Duke UP)Kötz: Deliktsrecht; 8th edn (1998) (Luchterhand)Kötz: Europäisches Vertragsrecht; 1st edn: Volume 1 (1996) (JCB Mohr); referred to inthe Notes as ‘Kötz (EVR)’Kraft/Kreutz: Gesellschaftsrecht; 10th edn (1997) (Luchterhand)Krause/Thoma: Strafrecht Allgemeiner Teil; 3rd edn (1985) (Kohlhammer)Kriele: ESJ Grundrechte; 1st edn (1986) (CH Beck)Langenscheidt: Taschenwörterbuch Englisch (pocket German /English dictionary)Laufs: Rechtsentwicklungen in Deutschland; 5th edn (1996) (Walter de Gruyter)Leipold: Erbrecht; 13th edn (2000) (JCB Mohr)Loewenheim: Bereicherungsrecht; 2nd edn (1997) (CH Beck)Loveland: Constitutional Law: A Critical Introduction; 1st edn (1996) (Butterworths)Löwisch: Allgemeiner Teil des BGB; 6th edn (1997) (CH Beck)Maunz/Zippelius: Deutsches Staatsrecht; 30th edn (1998) (CH Beck)xxvii

The German Legal System and Legal LanguageMaurer: Allgemeines Verwaltungsrecht; 13th edn (2000) (CH Beck)Medicus: Bürgerliches Recht; 18th edn (1999) (Carl Heymanns); referred to in the Notesas ‘Medicus (BR)’Medicus: Schuldrecht I Allgemeiner Teil; 12th edn (2000) (CH Beck); referred to in theNotes as ‘Medicus (AT)’Medicus: Schuldrecht II Besonderer Teil; 10th edn (2000) (CH Beck); referred to in theNotes as ‘Medicus (BT)’Mensler: Der Allgemeine Teil des BGB; 1st edn (1998) (Fortis)Meyer: Wirtschaftsprivatrecht; 3rd edn (2001) (Springer)Model/Creifelds/Lichtenberger/Zierl: Staatsbürger-Taschenbuch; 30th edn (2000)(CH Beck)Naucke: Strafrecht; 9th edn (2000) (Luchterhand)Nicholas: An Introduction to Roman Law, (1991) (Oxford)Otto: Grundkurs Strafrecht (Allgemeine Strafrechtslehre); 5th edn (1996) (Walter deGruyter); referred to in the Notes as ‘Otto (AS)’Otto: Grundkurs Strafrecht (Die einzelnen Delikte); 5th edn (1998) (Walter de Gruyter);referred to in the Notes as ‘Otto (ED)’Rehbinder: Einführung in die Rechtswissenschaft; 8th edn (1995) (Walter de Gruyter)Reich/Schmitz: Einführung in das Bürgerliche Recht; 1st edn (1996) (Gabler)Rittner: Wettbewerbs- und Kartellrecht; 6th edn (1999) (CF Müller)Rosenberg/Schwab/Gottwald: Zivilprozeßrecht; 15th edn (1993) (CH Beck); referredto in the Notes as ‘Rosenberg/Schwab’Roxin: Strafverfahrensrecht; 25th edn (1998) (CH Beck)Rüthers: Allgemeiner Teil des BGB; 10th edn (1997) (CH Beck)Sartorius I and II: see MaterialsSchack: Internationales Zivilverfahrensrecht; 2nd edn (1996) (CH Beck)Schellhammer: Zivilprozeß; 8th edn (1998) (CF Müller); referred to in the Notes as‘Schellhammer (ZP)’Schellhammer. Zivilrecht nach Anspruchsgrundlagen; 3rd edn (1999) (CF Müller); referredto in the Notes as ‘Schellhammer (ZR)’Schlechtriem: Schuldrecht Allgemeiner Teil; 3rd edn (1997) (JCB Mohr); referred to in theNotes as ‘Schlechtriem (AT)’Schlechtriem: Schuldrecht Besonderer Teil; 4th edn (1995) (JCB Mohr); referred to in theNotes as ‘Schlechtriem (BT)’xxviii

BibliographySchlosshauer-Selbach: Internationales Privatrecht; 1st edn (1989) (CF Müller)Schmidt-Aßmann: Besonderes Verwaltungsrecht; 11th edn (1999) (Walter de Gruyter)Schmitt Glaeser: Verwaltungsprozeßrecht; 14th edn (1997) (Boorberg)Scholler Grundzüge des Kommunalrechts in der Bundesrepublik Deutschland; 4th edn (1990)(CF Müller)Schönfelder: see MaterialsSchulte: Grundkurs im BGB; 5th edn: Volume 1 (1996); 3rd edn: Volume 2 (1992); 3rdedn: Volume 3 (1999) (CF Müller)Schunck/De Clerck: Allgemeines Staatsrecht und Staatsrecht des Bundes und der Länder;15th edn (1995) (Reckinger & Co)Schwab/Prütting: Sachenrecht; 29th edn (2000) (CH Beck); referred to in the Notes as‘Schwab/Prütting’D Schwab: Einführung in das Zivilrecht; 14th edn (2000) (CF Müller); referred to in theNotes as ‘Schwab (Einführung)’D Schwab: Familienrecht; 10th edn (1999) (CH Beck); referred to in the Notes as‘Schwab (F)’Schwerdtfeger: Öffentliches Recht in der Fallbearbeitung; 10th edn (1997) (CH Beck)Seidl-Hohenveldern: Völkerrecht; 9th edn (1997) (Carl Heymanns)Söllner: Grundriß des Arbeitsrechts; 12th edn (1998) (Franz Vahlen)Stein: Staatsrecht; 17th edn (2000) (JCB Mohr)Stern: Verwaltungsprozessuale Probleme in der öffentlich-rechtlichen Arbeit; 7th edn (1995)(CH Beck)Stober: Kommunalrecht in der Bundesrepublik Deutschland; 3rd edn (1996) (Kohlhammer)Student Law Review Yearbook (SLRYB) (Cavendish)Thomas-Putzo: Zivilprozeßordnung; 23rd edn (2001) (CH Beck)Tipke/Lang: Steuerrecht; 16th edn (1998) (Dr Otto Schmidt)Verdross/Simma: Universelles Völkerrecht; 3rd edn (1984) (Duncker & Humblot)Wesel: Juristische Weltkunde; 6th edn (1992) (Suhrkamp); referred to in the Notes as‘Wesel (JW)’Wesel: Fast alles, was Recht ist; Study edn (1994) (Eichborn); referred to in the Notes as‘Wesel (FR)’Westermann: Grundbegriffe des BGB; 15th edn (1999) (Kohlhammer); referred to in theNotes as ‘Westermann (Grundbegriffe)’xxix

The German Legal System and Legal LanguageWestermann: Sachenrecht; 7th edn (1998); previously 6th edn: Volume I: Grundlagenund Recht der beweglichen Sachen (1990) and Volume II: Immobiliarsachenrecht (1988) (CFMüller); referred to in the Notes as ‘Westermann (SR)’Wolf: Sachenrecht; 16th edn (2000) (CH Beck)Wolff/Bachof /Stober: Verwaltungsrecht I; 11th edn (1999) (CH Beck)Wolff/Bachof/Stober: Verwaltungsrecht II; 6th edn (2000) (CH Beck)Wurm/ Wagner/Zartmann: Das Rechtsformularbuch; 15th edn (2000) (Dr Otto Schmidt)Youngs: English, French and German Comparative Law (1998) (Cavendish); referred to inthe Notes as ‘Youngs (CL)’Youngs: Sourcebook on German Law (1994) (Cavendish); referred to in the Notes as ‘theSourcebook’ (2nd edn, forthcoming (2002))Zöllner/Loritz: Arbeitsrecht; 5th edn (1998) (CH Beck)Zweigert and Kötz: Einführung in die Rechtsvergleichung auf dem Gebiet des Privatrechts;3rd edn (1996) (JCB Mohr); English title: An Introduction to Comparative Law; 2nd edn(1987) (translated by Tony Weir; OUP and JCB Mohr (Paul Siebeck)References in the Notes to the books listed above are by authors’ surnames unlessotherwise stated above and are made with grateful acknowledgement to the relevantauthors and publishers.xxx

CHAPTER II HISTORICAL INTRODUCTION 1The present day German legal system has its roots in Roman law.The first compilation of Roman law was contained in the Twelve Tables, which waspublished during the Roman Republic in 450 BC. The Twelve Tables provided thebasic legal code of Rome for almost a thousand years. 2The end of the western Roman Empire in 476 AD following the incursion ofGermanic peoples from the east led to a revival of Roman jurisprudence from theclassical period (the first and second centuries AD) in the eastern part of the Empire.Between the years 528 and 534 AD the Emperor Justinian initiated a collection ofimperial Roman law from the reign of Hadrian (117–138 AD) onwards in a ‘Codex’(code) and a collection in fifty books of the writings of numerous classical Romanjurists in the ‘Digesta’ (digests) or ‘Pandectae’ (pandects). Together with an introductorytextbook, the ‘Institutiones’ (institutes)—based on the writings of the jurist Gaius, the‘Codex’ and ‘Digesta’ are referred to as the ‘Corpus iuris civilis’ (body of civil law) ofJustinian. 3A copy of the ‘Digesta’ was discovered in north Italy in the 11th century and Romanlaw became the subject of renewed attention by such scholars as Irnerius and hispupils, the ‘Quattuor Doctores’ Bulgarus, Hugo, Jacobus and Martinus in the 12thcentury. The University of Bologna, the oldest university in Europe, became famousfor the study of Roman law and, in the 13th century, Accursius completed his ‘Glossaordinaria’ (ordinary gloss), which remained authoritative for centuries thereafter. 4In the 14th century, Roman law was further developed in the commentaries of thejurists Bartolus and Baldus. 5The scholastic revival of Roman law in the Middle Ages spread across continentalEurope. In Germany, a multitude of regional legal sources then existed, the mostwellknown of which is the ‘Sachsenspiegel’ (Saxon Mirror) of 1221–1224. However,Roman law was gradually taken up: the so-called ‘Rezeption des römischen Rechts’(reception of Roman law). 6By 1495, the date of the establishment of the highest German court (the‘Reichskammergericht’ (Imperial Chamber (Court)), Roman law took precedence as thegeneral law (‘das gemeine Recht’ or ‘ius commune’) of the Holy Roman Empire (of theGerman Nation) (‘Heiliges Römisches Reich (Deutscher Nation)’). 7However, the fields of criminal procedure and punishment were governed by the‘Constitutio Criminalis Carolina’ of 1532, which contained a mixture of German andecclesiatical principles and remained of some influence until the reforms of the 19thcentury. 8In the 17th century, there was a change. The age of reason brought about a gradualdeparture from the traditional principles of Roman law and a return to the principlesof natural law. 9In Holland, the founder of the modern theory of natural law and pioneer of publicinternational law, Grotius, wrote ‘De jure belli ac pacis libri tres’ (three books on the law1

The German Legal System and Legal Languageof war and peace) in 1625. His view of law as the product of human reason and man’sinborn ‘appetitus societatis’ (social appetite), where contract forms the binding element(‘pacta sunt servanda’ (agreements must be honoured)), was followed in Germany byPufendorf, Thomasius and Wolff at the beginning of the 18th century. 10At this time, Germany consisted of numerous absolute principalities. It was the eraof the rise of Prussia (under Frederick II) and its struggle with Austria (under MariaTheresa).Intellectually, the hallmarks of the early 18th century—referred to as the Age ofEnlightenment—were a turning away from spiritual dogma, in favour of toleranceand a search for the truth based on secular understanding (‘Verstand’). The irrationalityand superstition of the Middle Ages finally gave way to an optimistic view of theworld according to logical, mathematical principles (Leibniz). The former preeminenceof theology was assumed by philosophy and French ideas, in particular, were held inhigh esteem (Descartes, Voltaire).The 18th century was also the greatest period of modern German drama andliterature (Lessing, Goethe, Schiller). 11At the end of the 18th century, reason (‘Vernunft’) was criticised in the philosophyof Kant, in favour of the general freedom of the individual. Individualism and radicalnotions of natural rights were the liberating forces underlying the American and FrenchRevolutions. 12Despite this, however, the ideas of natural law and the Enlightenment influencedthree important codifications: 13– the ‘Allgemeines Landrecht für die preußischen Staaten’ (General Law for thePrussian States (ALR)) of 1794;– the ‘Code Civil des Francais’ (French Civil Code, also known as the ‘CodeNapoleon’ (Napoleonic Code)) of 1804; and– the Austrian ‘Allgemeines Bürgerliches Gesetzbuch’ (General Civil Code (ABGB))of 1811.In 1814, a dispute broke out between two German jurists as to the need for acodification of civil law 14 in Germany 15In favour of a uniform, national statute was Professor Thibaut from Heidelberg.Against it was the famous Professor Savigny from Berlin.Savigny was the founder of the so-called ‘Historische Rechtsschule’ (historical school),which regarded law as an organic product of history (‘Geschichte’). According toSavigny, law was not based on ‘Vernunft’ (reason) or ‘Willkür’ (arbitrariness), but was‘Gewohnheitsrecht’ (customary law) and originated from the ‘Volksgeist’ (spirit of thepeople). 16Roman law already provided the best available methodic system and the basicprinciples; an unorganic codification was unnecessary and could be dangerous.During the 19th century, jurists such as Puchta and Windscheid followed Savigny’sviews, but changed the emphasis to a scientific approach to law (the so-called‘Pandektenwissenschaft’ (science of the pandects)). Roman law was taught and refinedon a scientific basis throughout Germany. Abstraction was the order of the day: the2

Chapter I: Historical Introductionsolution to every legal problem lay in the application of formal, abstract legal concepts(‘Begriffsjurisprudenz’ (conceptual jurisprudence)).‘Begriffsjurisprudenz’ dominated at the time the German Civil Code (BGB) was finallyenacted in 1896, but the theory’s positivist dogma was criticised by Jhering (whoregarded law as motivated by the protection of human aims (‘Zwecke’) and interests(‘Interessen’): (‘Interessenjurisprudenz’)) and, subsequently, by the so-called ‘free’(sociological) legal school at the start of the 20th century. 17With the coming into force of the BGB on 1 January 1900 a long period ofdevelopment of Roman law ended, but its principles live on. 183

CHAPTER IIII THE FEDERAL STATE 1A THE DIVISION OF POWERIn Germany, state power (‘Staatsgewalt’) is not centralised. Germany is divided intothe Federal Republic/Federation (‘Bundesrepublik’ or ‘Bund’) as the main state(‘Zentralstaat’) and its constituent states (‘Länder’). 2Each state (‘Land’) is a member of the whole, but at the same time maintains its ownstate power; it is not fully independent, as otherwise the Federal Republic would be aconfederation of states (‘Staatenbund’). The ‘Bund’ is a federal state (‘Bundesstaat’), anew state created by the joining together of its members. 3B THE PASSING OF LAWSThe ‘Bund’ and the ‘Länder’ are each entitled to pass laws (‘Gesetze’) 4 and their respectivecompetence to do so (‘Gesetzgebungskompetenz’) is laid down in the (federal) constitution(‘Grundgesetz’/GG/Basic Law). 5Article 70 GG lays down a presumption in favour of the competence of the ‘Länder’,but the constitution allocates to the ‘Bund’ the right to pass laws in the most importantfields; this right is either exclusive (‘ausschließlich’: Article 71 GG) or concurrent(‘konkurrierend’: Article 72 GG) or permits the ‘Bund’ to lay down a general framework(‘Rahmen’) for legislation by the ‘Länder’ (Article 75 GG). 6The law of the ‘Bund’, regardless of rank, takes precedence over that of the ‘Länder’(Article 31 GG: ‘Bundesrecht bricht Landesrecht’). 7C THE EXECUTIVE 8The administration (‘Verwaltung’) of Germany is divided between the ‘Bund’ and the‘Länder’ as carriers (‘Träger’) thereof. The key to an understanding of the term‘Verwaltungsträger’ (carrier of administration) and, thus, of the construction of theexecutive in Germany is the recognition that ‘Verwaltungsträger’ have specific ‘Organe’(organs) and (as a subsidiary term) ‘Behörden’ (authorities). 9Executive power (‘vollziehende Gewalt’) is exercised in the following forms:– administration by the ‘Bund’ (‘bundeseigene Verwaltung’);– administration by the ‘Länder’ (‘landeseigene- or Landerverwaltung’);– administration by the ‘Länder’ on instruction by the ‘Bund’ (‘Auftragsverwaltung’). 10The ‘Bund’ and the ‘Länder’ can administer either directly (‘unmittelbar’) or indirectly5

The German Legal System and Legal Language(‘mittelbar’) by delegation to other carriers. Such carriers of indirect state administration(‘Staatsverwaltung’) are the public (‘öffentliche’) corporations (‘Körperschaften’),institutions (‘Anstalten’) and foundations (‘Stiftungen’). 11The activity of the executive (‘Verwaltungstätigkeit’) is usually official (‘hoheitlich’).By contrast, however, it can also:– act fiscally (‘fiskalisch’), ie, participate in the economy for commercial purposes(‘erwerbswrtschaftlich’; eg, as the owner or shareholder of an enterprise) or engagein accessory transactions (‘Hilfsgeschäfte’; eg, acquisition of goods); or– perform its public functions (‘öffentliche Aufgaben’) in the forms available underprivate law: so called ‘Verwaltungsprivatrecht’ or ‘Verwaltung in Privatrechtsform’. 12Thus, ‘Anstalten’ are part of the wider term ‘öffentliche Einrichtungen’ (public facilities).In each ‘Land’, the statute governing local authorities (the ‘Gemeindeordnung’) 13 laysdown a (public legal) right of admission (‘Zulassung’) for its residents (‘Einwohner’).The use (‘Benutzung’) of the relevant amenity itself can, however, be governed byprivate law. 14 Although the executive has freedom of choice (‘Wahlfreiheit’), it remainsbound to observe the restrictions of public law (‘öffentlich-rechtliche Bindungen’) generally(eg, the basic rights). 15This so-called two-tier theory (‘Zweistufentheorie’) has the important proceduralconsequence that, depending on the party involved on the side of the executive, adispute may fall within the jurisdiction of the administrative courts (§ 40 VwGO) orwithin that of the ordinary courts (§ 13 GVG). 16D THE ADMINISTRATION OF JUSTICEThe administration of justice in Germany is divided into five branches (‘Zweige’):– the ordinary jurisdiction (‘ordentliche Gerichtsbarkeit’);– the employment jurisdiction (‘Arbeitsgerichtsbarkeit’);– the (general) administrative jurisdiction (‘allgemeine Verwaltungsgerichtsbarkeit’);– the social jurisdiction (‘Sozialgerichtsbarkeit’);– the finance jurisdiction (‘Finanzgerichtsbarkeit’). 17The administration of justice is carried by the state, ie, the ‘Bund’ is responsible for thefederal courts specified in the Basic Law and the ‘Länder’ for the others (Article 92 GG).E THE ‘RECHTSSTAAT’ PRINCIPLEIt is a founding and unalterable principle of the Basic Law that the ‘Bund’ and the‘Länder’ are democratic and social republican states in which the rule of law prevails(‘Rechtsstaaten’) (Articles 20(i), 28(i) and 79(iii) GG). 18The ‘Rechtsstaat’ principle is a general legal principle and is only partially concretisedin Article 20(iii) of the Basic Law. It also underlies, for example, Articles 19(iv), 101(i) and103(i) and is the source of the principle of proportionality (‘Verhältnismäßigkeitsgrundsatz’).6

Chapter II: The Federal StateOther important elements of the ‘Rechtsstaat’ principle are the requirements of legalcertainty (‘Rechtssicherheit’) and the protection of trust (‘Vertrauensschutz’), ie, relianceon particular laws and the (basic) prohibition of retrospective legislation(‘Rückwirkungsverbot’). 19F THE ORIGIN, SEPARATION AND BINDING OF STATE POWERArticle 20(ii) GG sets out other fundamental principles.First, all state power (‘Staatsgewalt’) in the ‘Bund’ and the ‘Länder’ springs from thepeople (‘Volk’): the principle of the sovereignty (or right of self-determination) of thepeople (‘Volkssouveranität’).Secondly, state power is exercised by the people in elections and plebiscites: theprinciple of representative democracy. 20Thirdly, state power is exercised by separate special organs of the legislature(‘gesetzgebende Gewalt’/‘Gesetzgebung’), executive (‘vollziehende Gewalt’/‘Verwaltung’) andjudicature (‘rechtsprechende Gewalt’/‘Rechtsprechung’): 21 the principle of the separationof powers (‘Gewaltenteilung’). 22By Article 20(iii) GG the legislature is bound to the constitutional order(‘verfassungsmäßige Ordnung’) and the executive and judicature to statute and law(‘Gesetz und Recht’). 23The binding (‘Bindung’) of the executive to statute is referred to as the ‘Gesetzmäßigkeitder Verwaltung’ (‘Vorbehalt des Gesetzes’) and the priority of statute as the ‘Vorrang desGesetzes’. 24The Basic Law can be amended by the legislature—subject to approval by a qualifiedmajority of two-thirds of the members of the Federal Parliament (‘Bundestag’) andtwo-thirds of the votes of the members of the Federal Council (‘Bundesrat’))—but Article79(iii) GG—the so-called perpetuity clause (‘Ewigkeitsklausel’)—forbids any changesto the federal structure of Germany or to the core constitutional principles set out inArticles 1 and 20 GG.G THE ‘FREIHEITLICHE DEMOKRATISCHE GRUNDORDNUNG’The ‘freiheitliche demokratische Grundordnung’ is the basic order of freedom anddemocracy upon which, by common consent, Germany is constructed. It includes:– the ‘Rechtsstaat’ principle;– the people’s right of self-determination (‘Selbstbestimmungsrecht’);– the separation of powers; 25– the binding of the legislature to the constitutional order and of the executive andjudiciary to statute and law;– the multi-party system (‘Mehrparteiensystem’); 26– the independence of the judges (‘Unabhangigkeit der Richter’); 27– the basic rights; 287

The German Legal System and Legal Language– the ‘Rechtsschutzgarantie’. 29The concept of the ‘freiheitliche demokratische Grundordnung’ is occasionally used inGerman statutes, eg, in Article 18 GG (‘Verwirkung von Grundrechten’ (forfeiture ofbasic rights)), in Article 21 (ii) GG (‘Verfassungswidrigkeit von Parteien’(unconstitutionality of political parties), in provisions relating to the protection of theconstitution (‘Verfassungsschutz’) and in criminal provisions concerning treason(‘Verrat’) and similar offences (§§ 86(ii) and 93(ii) StGB). 30H FOREIGN RELATIONS 31Only the ‘Bund’ enjoys unrestricted sovereign authority in foreign relations: Article32(i) GG.Treaties with foreign states (‘Verträge mit auswärtigen Staaten’) are concluded in thename of the ‘Bund’ by the Federal President: Article 59(i) GG.The usual stages are as follows: 32– agreement on and initialling of the draft text (‘Paraphierung’) by (federal) governmentrepresentatives (‘Unterhändler’) following negotiations (‘Verhandlungen’);– signature (‘Unterzeichnung’), normally by a (federal) government minister;– where the proposed treaty seeks to regulate the political relations of the ‘Bund’ orrelates to matters of federal legislation, approval (‘Zustimmung’) or participation(‘Mitwirkung’) as necessary by the body/bodies having relevant (federal) legislativecompetence (ie, the ‘Bundestag’ and ‘Bundesrat’) in the form of a federal statute(‘Bundesgesetz’): Article 59(ii) GG.This is the so-called ‘Vertragsgesetz’ (treaty law) or ‘Zustimmungsgesetz’ (approvallaw). The ‘Zustimmungsgesetz’ is also referred to as the ‘Transformationsgesetz’because it transforms the provisions of the treaty (ie, public international law(‘Völkerrecht’)) into national law. 33After transformation, treaties have the rank of ‘(einfache) Gesetze’ ((simple)statutes) below the Basic Law. Thus, they remain subject to the rule ‘lex posteriorderogat legi priori’ (a later law supercedes an earlier one) and can, in so far as nationallaw is concerned, be repealed. 34However, by Article 25 GG, the general rules of public international law—whichterm includes customary public international law (‘Völkergewohnheitsrecht’)—takeprecedence over (simple) (federal or state) laws and confer rights and obligationsdirectly on the inhabitants of the (German) federal territory: ‘Sie gehen den Gesetzenvor und erzeugen Rechte und Pflichten unmittelbar für die Bewohner des Bundesgebietes’; 35– ratification (‘Ratifikation’) by the Federal President.The ‘Länder’ are largely free to conclude treaties (‘Staatsverträge’) amongst themselves(see, eg, Article 29(vii) GG). However, a treaty between a ‘Land’ and a foreign statemust fall within the legislative competence of the ‘Land’ and requires the approval ofthe Federal Government: Article 32(iii) GG.8

CHAPTER IIIIII THE SUPREME FEDERAL ORGANS 1The main supreme organs of the ‘Bund’ (‘oberste Bundesorgane’) are:– the Federal Parliament (‘Bundestag’);– the Federal Council (‘Bundesrat’);– the Federal President (‘Bundespräsident’);– the Federal Government (‘Bundesregierung’). 2The ‘Bundestag’ is an organ of the legislature, while the ‘Bundesrat’ is an organ throughwhich the ‘Länder’ assist (‘mitwirken’) in the passing of federal laws and in theadministration of the ‘Bund’ (Article 50 GG). 3The ‘Bundespräsident’ (the head of state of the ‘Bund’) and the ‘Bundesregierung’ areorgans of the executive.The ‘Bundesregierung’ consists of the Federal Chancellor (‘Bundeskanzler’) and thefederal ministers (‘Bundesminister’) (Article 62 GG). The ministeries themselves aresupreme federal authorities (‘oberste Bundesbehörden’).Further supreme federal organs are:– the (emergency) Joint Council (‘gemeinsamer Ausschuß’);– the Federal Assembly (‘Bundesversammlung’); 4– the Federal Constitutional Court (‘Bundesverfassungsgericht’). 5The supreme federal organs are laid down in Articles 38–69 of the Basic Law and in §1(i) of the Law relating to the Federal Constitutional Court (‘Bundesverfassungsgerichtsgesetz’(BVerfGG)).9

CHAPTER IVIV THE SUPREME AND OTHERFEDERAL AUTHORITIESThe highest executive organs of the ‘Bund’ are the ‘Bundespräsident’ and the‘Bundesregierung’. Beneath them, the administration (‘Verwaltung’) of the ‘Bund’ is builtup on the following levels:– the supreme federal authorities (‘oberste Bundesbehörden’);– the upper federal authorities (‘Bundesoberbehörden’);– the (middle) federal authorities (‘Bundesbehörden’);– the lower federal authorities (‘Bundesunterbehörden’).The supreme federal authorities are:– the federal ministeries (‘Bundesministerien’);– the Federal Presidential Office (‘Bundespräsidialamt’);– the Federal Chancellor’s Office or Chancellery (‘Bundeskanzleramt’);– the Press and Information Office of the Federal Government (‘Presse- undInformationsamt der Bundesregierung’);– the Federal Accounts Court (‘Bundesrechnungshof’).The upper federal authorities are usually entitled ‘Bundesamt für…’ (‘Federal Officefor/of …’). Another designation is ‘Bundesanstalt für…’ (Federal Institute of…’).Administration by a ‘Bundesamt’ or by a ‘Bundesanstalt’, which has no independentlegal capacity (‘nicht rechtsfähig’), is an example of direct (state) administration by the‘Bund’ (‘bundeseigene Verwaltung’). The relevant authority is incorporated (‘eingegliedert’)into the ‘Bund’. 1To be distinguished are so-called ‘selbständige Bundesoberbehörden’ (independentupper federal authorities) and the ‘(bundesunmittelbare) Körperschaften und Anstaltendes öffentlichen Rechts’ (public corporations and institutions under the direct control ofthe ‘Bund’), which can both be formed under Article 87(iii) GG, as means of indirectstate administration (‘mittelbare Staatsverwaltung’), in such areas, in which the ‘Bund’has (federal) legislative competence. 2Examples of (middle) federal authorities are the various ‘Direktionen’ (directorates),eg, the ‘Bundesbahndirektion’ (Federal Railway Directorate) and (formerly) the‘Oberpostdirektion’ (Upper Post Directorate).The best examples of lower federal authorities are the ‘Grenzschutzämter’ (borderprotection offices) and the ‘Zollämter’ (customs offices). The ‘Finanzämter’ (tax offices)are, however, lower authorities of the ‘Länder’; the ‘Oberfinanzdirektion’ (Upper FinanceDirectorate) is hybrid (ie, it is both a federal authority and one of a ‘Land’).Unlike the middle and lower federal authorities, the competence of the upper federalauthorities extends to the whole federal territory (‘Bundesgebiet’). 311

CHAPTER VV THE ‘LÄNDER’A INTRODUCTIONBefore the reunification (‘Wiedervereinigung’) of Germany on 3.10.1990, 1 the followingeleven ‘Länder’ were constituent member states of the ‘Bund’:– Baden-Württemberg; 2– Bayern (Bavaria);– Berlin;– Bremen;– Hamburg;– Hessen;– Niedersachsen (Lower Saxony);– Nordrhein-Westfalen (Northrhein-Westphalia);– Rheinland-Pfalz (Rheinland-Palatinate);– Saarland;– Schleswig-Holstein.Berlin, Bremen and Hamburg are city states (‘Stadtstaaten’).Since reunification, the following (five) states in east Germany (the ‘neueBundesländer’ (new federal states)) now also form part of the ‘Bund’:– Brandenburg;– Mecklenburg-Vorpommern;– Sachsen (Saxony);– Sachsen-Anhalt;– Thüringen (Thuringia).Each ‘Land’ has its own constitution (‘Landesverfassung’). 3The Basic Law requires that the constitutional order in the ‘Länder’ must accordwith the principles of a republican, democratic and social ‘Rechtsstaat’ (Article 28(i),1st sentence GG; homogeneity clause) and that the people must have a representativebody (‘Vertretung’) following general, direct, free, equal and secret elections (Article28(i), 2nd sentence GG). 4Each ‘Land’ has as its organs a parliament (usually known as the ‘Landtag’), agovernment (usually known as the ‘Landesregierung’ and usually headed by a‘Ministerpräsident’ (prime minister)), an accounts court (‘Rechnungshof’) and (except inBerlin and Schleswig-Holstein) a constitutional court (usually known as the‘Verfassungsgerichtshof’). 513

The German Legal System and Legal LanguageB STATE ADMINISTRATION IN THE ‘LÄNDER’In the absence of other provisions in or allowed by the Basic Law, there is a presumption(‘Vermutung’) that state administration in the ‘Länder’ is within their competence(‘Zuständigkeit’; Article 30 GG). 6The ‘Länder’, therefore, usually carry out the administration of federal laws(‘Bundesgesetze’) as their own matter (‘als eigene Angelegenheit’; Article 83 GG) throughtheir authorities (‘Landesbehörden’; Article 84 GG). 7State administration in the ‘Länder’ is direct and indirect and is usually constructedon the following levels: 8– upper level (‘Oberstufe’);– middle level (‘Mittelstufe’);– lower level (‘Unterstufe’)In the ‘Stadtstaaten’, Saarland and Schleswig-Holstein, there is no middle level.The upper level is composed of the ministeries and state chancelleries(‘Staatskanzleien’) acting as ‘oberste Landesbehörden’, to which the ‘Landesämter’(‘Landesoberbehörden’) directly reportEach ‘Land’ is (usually) divided into governmental areas or districts(‘Regierungsbezirke’) headed by a president (‘Regierungspräsident’). The governments(Regierungen’) of these areas make up the middle level.The lower level is composed of lower administrative authorities or lower authoritiesof the ‘Länder’ (‘untere Verwaltungsbehörden’ or ‘untere Landesbehörden’;=direct stateadministration) and local authorities (usually known as ‘(Land-)Kreise’ and ‘Gemeinde’),which can function both as such or as lower authorities of the ‘Länder’ (= indirect stateadministration), ie, they have a ‘Doppelfunktion’ (double function).The ‘Länder’ are represented at the ‘Bund’ through the ‘Bundesrat’ and by ministers(of the ‘Länder’) responsible for federal matters (‘Bevollmächtigte beim Bund’). 914

CHAPTER VIVI LOCAL GOVERNMENTBeneath the ‘Bund’ and the ‘Länder’, the administrative authorities on the third (lower)level are the communal territorial corporations (‘kommunale Gebietskörperschaften’),usually known as the ‘(Land-)Kreise’ (regional authorities) and the ‘Gemtinden’ (localauthorities, ie, the most local communal units). 1‘Gemeinden’ can either belong to a ‘Kreis’ (‘kreisangehörig’) or be independent thereof(‘kreisfrei’). The same applies to a city (‘Stadt’), which term is used to describe a municipal‘Gemeinde’. Once a city reaches a certain size or importance, it can become a ‘kreisfreieStadt’. 2The relevant local government laws in the ‘Länder’ are the ‘(Land-)Kreis-’ and‘Gemeinde-’ ‘Ordnungen’. 3The Basic Law guarantees the right of the ‘Gemeinden’ (and the ‘Kreise’) to administerall local matters (‘alle Angelegenheiten der örtlichen Gemeinschaft’) themselves under theauspices (‘Aufsicht’) of the state (‘Recht der Selbstverwaltung’; Article 28(ii) GG). 4The so-called ‘Universalitätsgrundsatz’ (universality principle) applies: within theframework of statute (‘im Rahmen der Gesetze’), ‘Gemeinden’ have full competence(‘Allzuständigkeit’) in and responsibility (‘Eigenverantwortlichkeit’) for all mattersconcerning the local community. 5In particular, ‘Gemeinden’ have a duty to care for the welfare of their residents (‘Wohlder Einwohner’) by way of service provision (‘Daseinsvorsorge’) and to make availablethe necessary public facilities (‘öffentliche Einrichtungen’). ‘Gemeinden’ create suchfacilities by way of ‘Widmung’ (dedication). 6The fundamental status of the ‘Gemeinden’ (and the ‘Kreise’) is that of‘Selbstverwaltungskörperschaften’ (self-governing corporations) having their own sphereof operation (‘eigener Wirkungskreis’). 7The ‘Gemeinden’ are entitled not only to pass bye-laws (‘Satzungen’), 8 but can alsouse the instruments of the ‘Rechtsverordnung’ (regulation) and ‘Verwaltungsakt’(administrative act).The ‘Gemeindeordnungen’ provide for the ‘Gemeinden’ in the various ‘Länder’ to becomposed in different forms. 9Usually, the organs of a ‘Gemeinde’ are known as:– the ‘Gemeindevertretung’/‘Stadtverordnetenversammlung’/‘Gemeinderat’/‘Stadtrat’ (thelegislative organ); and– the ‘(Ober-)Bürgermeister’/‘Magistrat’/‘Gemeindeverwaltung’ (the executive organ).Local matters extending beyond the capacity of a ‘Gemeinde’ (‘überörtlicheAngelegenheiten’)—subsidiarity principle!—are dealt with by the ‘(Land-)Kreis’, whichhas the following organs:– the ‘Kreis’ Parliament (‘Kreistag’),– the ‘Kreis’ Council (‘Kreisausschuß’);15

The German Legal System and Legal Language– the Chief Executive (‘Landrat’ or, in Lower Saxony and Northrhein-Westphalia,the ‘Oberkreisdirektor’).The members of the ‘Kreistag’ are elected by the local population.The ‘Landrat’ is usually a ‘Kommunal- (not ‘Staats-’) beamter’ (communal civil servant)and is appointed by the ‘Kreistag’ (except in Bavaria, where there is a direct electionfor the post). 10The ‘Landrat’ has a dual role: he or she performs the administrative matters of the‘Kreis’ itself (‘Selbstverwaltungsangelegenheiten’/‘eigene Aufgaben’) and, as the lower levelof (indirect) administration by the state (‘Land’), matters which the ‘Land’ allocates(‘überträgt’) to the ‘Kreis’ (‘Auftragsangelegenheiten’/‘übertragene Aufgaben’). In the lattercapacity, the office of the Chief Executive (‘Landratsamt’) is, therefore, ‘Staatsbehörde’. 11A ‘kreisangehörige Gemeinde’ is the fourth administrative level, beneath the ‘Landrat’.The ‘Landrat’ is the third level, beneath the ministeries of the ‘Land’ and the governmentsof the ‘Regierungsbezirke’.A ‘kreisfreie Gemeinde’ is, by definition, not attached to a ‘Kreis’ (ie, it has no ‘Kreis’above it) and is, therefore, (merely) a substitute for the ‘Landrat’. 1216

CHAPTER VIIVII THE CONSTITUTION (‘GRUNDGESETZ’)A INTRODUCTION 1The federal constitution of the ‘Bund’ (‘Grundgesetz’/Basic Law) dated 23.5.1949contains 146 Articles and is divided into 11 main Sections:I The basic rights (‘Grundrechte’): Articles 1–19.II The ‘Bund’ and the ‘Länder’: Articles 20–37. 2III–VI The supreme federal organs (or constitutional organs (‘Verfassungsorgane’)):Articles 38–69:III The ‘Bundestag’: Articles 38–48;IV The ‘Bundesrat’: Articles 50–53;IVa The ‘Gemeinsamer Ausschuß’ (Joint Council): Article 53a;V The ‘Bundespräsident’: Articles 54–61;VI The ‘Bundesregierung’: Articles 62–69.VII Legislative competence and procedure: Articles 70–82 (entitled ‘DieGesetzgebung des Bundes’). 3VIII Administration of federal laws: Articles 83–91 (entitled ‘Die Ausführung derBundesgesetze und die Bundesverwaltung’).IX The judicature: Articles 92–104 (entitled ‘Die Rechtsprechung’). 4X Finances: Articles 104a-115 (entitled ‘Das Finanzwesen’). 5XI Transitional and final provisions: Articles 116–146. 6B RANK OF THE BASIC LAW AND VALIDITY OF NORMSThe Basic Law ranks higher than other legal norms (‘Rechtsnormen’), which must beinterpreted so as to conform with it (‘verfassungskonforme Auslegung’). 7It is often of importance to establish whether a particular norm is valid (‘gültig’)/constitutional (‘verfassungsgemäß’). The judiciary (which is independent Article 97(i)GG) has the right to check whether this is so (‘richterliches Prüfungsrecht’).Thus, for example, where a ‘Verwaltungsakt’ (administrative act (VA)) is concerned,not only must it be valid, but the (authorising) norm upon which it is based—the‘Ermächtigungsgrundlage’ (‘Rechtsgrundlage‘)—must also itself be valid. 8The following questions arise:– What sort of norm is involved? It may form part of a ‘Gesetz’ (statute), a‘Rechtsverordnung’ (statutory regulation) or a ‘Satzung’ (bye-law).– Is the norm formally or materially invalid /unconstitutional (‘verfassungswidrig’)?17

The German Legal System and Legal LanguageOn the formal side, the relevant body must have possessed legislative competence(‘Zuständigkeit’), gone through the correct procedure (‘Verfahren’) and issued thenorm in the appropriate form. On the material side, there must be no violation/contravention of higher-ranking norms (‘kein Verstoß gegen höherrangiges Recht’),eg, no breach of basic rights. 9C THE FEDERAL AND STATE CONSTITUTIONAL COURTS(i) The competence (‘Zuständigkeit’) of the Federal Constitutional Court(‘Bundesverfassungsgericht’) is set out in Article 93 GG (and in § 13 BVerfGG); 10 or,in the case of the constitutional court of a ‘Land’, in its constitution (and VerfGG).The decisions of the Federal Constitutional Court bind the constitutional organsof the ‘Bund’ and the ‘Länder’, as well as all courts and authorities (§ 31(i) BVerfGG).(ii) If a court considers a ‘Gesetz’ upon which its decision depends to beunconstitutional, it is obliged to refer the (legal) question as appropriate to theFederal Constitutional Court or to the constitutional court of the ‘Land’(‘Landesverfassungsgericht’): 11 so-called concrete norm-control (‘konkreteNormkontrolle’; Article 100(i) GG). 12Thus, in accordance with the subsidiarity principle, to prevent divergingdecisions and in order to uphold the authority of the legislature, whenever thepreliminary question is raised in legal proceedings whether there is a collisionbetween a particular (statutory) norm and a higher-ranking (constitutional) norm,the competence to decide the issue (ie, the validity of the lower norm) iscentralised/concentrated at the appropriate constitutional court, which is said tohave a monopoly power of rejection (‘Verwerfungsmonopol’).Otherwise, under its ‘richterliches Prüfungsrecht’ ((inherent) right of judicialreview) the court hearing the case can decide incidentally (‘inzident’) itself—socalledincidental control (‘Inzidentkontrolle’)—as it anyway can in the case of normsranking below statutes (eg, ‘Rechtsverordnungen’=statutory regulations). 13(iii) On application by the government of the ‘Bund’ or a ‘Land’ or 1/3 of the membersof the ‘Bundestag’, the Federal Constitutional Court can decide whether a norm(including one below a statute) is unconstitutional or whether the law of a ‘Land’is incompatible with federal law: so-called abstract norm-control (‘abstrakteNormkontrolle’; Article 93(i) No 2 GG).In such proceedings, the Federal Constitutional Court acts as guardian of theconstitution (‘Hüter der Verfassung’).If the norm is found to be unconstitutional or the law incompatible, it is declaredvoid (§ 78 BVerfGG). Moreover, if a criminal conviction is based on such a norm,a re-opening of the case (re-trial) is possible (§ 79(i) BVerfGG).These last-mentioned provisions apply correspondingly in cases of concretenorm-control (§ 82(i) BVerfGG).(iv) Any person can apply to the Federal Constitutional Court by way of constitutionalcomplaint (‘Verfassungsbeschwerde’) (usually only after normal legal channels have18

Chapter VII: The Constitution (‘Grundgesetz’)been exhausted) 14 on the basis that one of its basic rights (or those in Articles20(iv), 33, 38, 101, 103 and 104 GG) has been infringed by the (German) publicpower (‘öffentliche Gewalt’, ie, by the legislature, executive or the judiciary; Article93(i) No 4a GG and § 90(i) and § 90(ii) BVerfGG). 15 A constitutional complaintdirected against a (judicial or administrative) decision must be lodged—andsubstantiated—within a period of one month from service or informal notificationof the decision in full form, as required by the relevant procedural provisions,otherwise within one month from pronouncement of the decision or the date onwhich the decision is made known: §93(i)BVerfGG.In the case of a constitutional complaint against a statute or other official act, thecomplaint must be brought within a year from the date the statute came into forceor the date the official act was issued: § 93(iii) BVerfGG.In order for the complaint to be admissible (‘zulässig’), the infringement mustaffect the complainant individually, currently and directly (‘selbst, gegenwärtig undunmittelbar’). 16Local authorities can also apply to the Federal Constitutional Court in the eventthat a federal statute infringes their right of self-administration (Article 93(i) No4b GG).If it allows the complaint, the Federal Constitutional Court pinpoints the relevantbreach of the Basic Law. In the case of a court decision, it quashes it and refers itback to a competent court; 17 in the case of a (provision in a) statute, it declares itvoid (§ 95 BVerfGG). 18(v) The decision of the Federal Constitutional Court regarding a norm has statutoryforce (‘Gesetzeskraft’; § 31(ii) BVerfGG).(vi) The Federal Constitutional Court can also decide (inter alia) in disputes:– between supreme federal organs regarding the interpretation of the Basic Law(Article 93(i) No 1 GG; ‘Organstreit’); 19– between the ‘Bund’ and ‘Länder’ regarding their constitutional rights andobligations (Article 93(i) No 3 GG; ‘Bund/Lander Streit’). 2019

CHAPTER VIIVIII THE BASIC RIGHTSA INTRODUCTION 1The basic rights (‘Grundrechte’) are dealt with at the beginning of the Basic Law (Articles1–19 GG). 2Certain of the basic rights only benefit Germans (Articles 8(i), 9(i), 11(i) and 12(i) GG).Despite the precedence of federal laws over that of the ‘Länder’ (Article 31 GG;‘Bundesrecht bricht Landesrecht’), those basic rights also contained in constitutions of the‘Länder’ remain in force so far as they accord with Articles 1–18 GG (Article 142 GG).The basic rights bind (‘binden’) the legislature, executive and judicature as directlyapplicable law (‘unmittelbar geltendes Recht’; Article 1(iii) GG). 3The main groupings are those of freedom rights (‘Freiheitsrechte’) and equality rights(‘Gleichheitsrechte’). 4The basic rights are principally regarded as (subjective) defensive rights(‘Abwehrrechte’) against attacks (‘Eingriffe’) by the state. However, they also includecertain institutional guarantees and are the expression of an objective value-order(‘Wertordnung’). 5Increasingly, there is a tendency to regard certain of the basic rights as conferringthe right to claim positive action from the state (‘Grundrechte’ as ‘Leistungsrechte’). 6The applicability of basic rights in the area of private relations (the so-called‘Drittwirkung’ of basic rights) is not generally accepted, although they can indirectly(‘mittelbar’) be called in aid in the interpretation of private law. 7It is customary to speak of the adressee (‘Adressat’) of a ‘Grundrecht’, its carrier(‘Träger’), its protected area (‘Schutzbereich’), its impairment (‘Beeintrachtigung’) orinfringement (‘Verletzung’). 8B LIMITATION OF BASIC RIGHTS 9It is possible for basic rights to be limited (‘eingeschrankt’). In many cases, the right for thisto be done through or on the basis of a statute (‘durch Gesetz oder aufgrund eines Gesetzes’) isexpressly reserved in the various Articles of the Basic Law (so-called ‘Gesetzesvorbehalt’).The limiting statute must apply generally and not only to an individual case and theArticle being limited must be cited (Article 19(i) GG: the ‘Zitiergebot’).It is also possible for the limits (‘Schranken’) of a basic right to be implicit (‘immanent’)in the relevant basic right or interpreted by means of a balancing (‘Abwägung’) betweenconflicting rights. 10The limitation of basic rights is itself limited by so-called (often unwritten) ‘Schranken-Schranken’: 1121

The German Legal System and Legal Language– An express limitation of a basic right must itself be interpreted in the light of thebasic right (the so-called ‘Wechselwirkungstheorie’ (theory of reciprocal effect)). 12– In no case can the essence (‘Wesensgehalt’) of a basic right be touched (‘angetastet’;Article 19(ii) GG)). 13– The so-called ‘Übermaßverbot’ (prohibition of excess), which flows from theprinciple that the executive must act in accordance with statute and law (Article20(iii) GG: ‘Bindung der Verwaltung an Gesetz und Recht’/‘Gesetzmäßigkeit undRechtmäßigkeit der Verwaltung’). The measures undertaken by the executive mustbe proportionate, ie, suitable (‘geeignet’), necessary (‘erforderlich’) and in fair relationto the intended goal (verhätttnismäßig’). 14– Essential (political) decisions (‘wesentliche Entscheidungen’) must be taken by thelegislature and cannot be delegated to the executive (‘Wesentlichkeitsprinzip’). 15An infringement (‘Verletzung’) of a basic right is only legitimate (a so-called ‘rechtmäßigerEingriff’), if there is appropriate statutory authority (‘Ermächtigung’) covered (‘gedeckt’)by a ‘Gesetzesvorbehalt’, which is itself not limited by a ‘Schranken-Schranken’.C THE ACTUAL RIGHTS 16Article 19(iv) GG guarantees the right of everyone to go to law (usually to theadministrative courts), if his rights are infringed by the executive(‘Rechtsschutzgarantie’). This right is supplemented by the right to lodge a constitutionalcomplaint (Article 93(i) No 4aGG). 17In private law matters, a general right of (access to) justice(‘Justizgewährungsanspruch’) is derived from Article 2(i) GG. 18The following basic rights are included in Articles 1–17 of the Basic Law:– human dignity (Article l(i): ‘Menschenwürde’); 19– free development of the personality/freedom of action (Article 2(i): ‘freie Entfaltungder Persönlichkeit’/‘allgemeine Handlungsfreiheit’); 20– the right to life and bodily integrity (Article 2(ii), 1st sentence: ‘Recht auf Leben undkörperliche Unversehrtheit’); 21– freedom of the person (Article 2(ii), 2nd sentence: ‘Freiheit der Person’);– equality before the law (Article 3(i): ‘Gleichheit vor dem Gesetz’); 22– equal rights of men and women (Article 3(ii): ‘Gleichberechtigung zwischen Mannund Frau’); 23– no discrimination or preference due to sex, descent, race, language, home, origin,belief, religion or political views (Article 3(iii): ‘Benachteiligungs- undBevorzugungsverbot’);– freedom of belief, conscience and confession (Article 4(i): ‘Freiheit des Glaubens,Gewissens und des Bekenntnisses’); 24– the right to conscientious objection against military service (Article 4(iii): ‘Rechtzur Kriegsdienstverweigerung aus Gewssensgründen’); 25– freedom of expression (‘Meinungsfreiheit’), press freedom (‘Pressefreiheit’), freedom22

Chapter VIII: The Basic Rightsof reporting (‘Freiheit der Berichterstattung’) and freedom of information/access topublic sources (‘lnformationsfreiheit’) (Article 5(i)); 26– freedom of art, science, research and teaching (Article 5(iii): ‘Freiheit der Kunst,Wissenschaft, Forschung und Lehre’); 27– protection of marriage and the family (including illegitimate children) (Article 6:‘Schutz der Ehe und der Familie’); 28– state supervision of the school system (‘Schulwesen’); participation in religiousinstruction (‘Religionsunterricht’) (Article 7); 29– freedom of assembly (Article 8(i): ‘Versammlungsfreiheit’);– freedom of (private) association (Article 9(i): ‘Verein(igung)sfreiheit’ or‘Vereinsautonomie’) and freedom to form coalitions (‘Koalitionsfreiheit’: Article 9(iii)); 30– secrecy of communication by letter, post and telephone (Article 10(i): ‘Brief-, PostundFernmeldegeheimnis’);– freedom of movement (‘Freizügigkeit’) and freedom of establishment(‘Niederlassungsfreiheit’) (Article 11(i)), 31– free choice of workplace and occupation (Article 12(i): ‘Freiheit der ArbeitsplatzundBerufswahl’); 32– inviolability of the home (Article 13(i): ‘Unverletzlichkeit der Wohnung’);– guarantee of property and succession (Article 14(i): ‘Garantie des Eigentums unddes Erbrechts’); 33– prohibition on removal of citizenship and extradition (Article 16: ‘Verbot derAusbürgerung und Auslieferung’); 34– right of asylum (Article 16a: ‘Asylrecht’); 35– right of complaint and petition (Article 17: ‘Petitionsrecht’). 3623

CHAPTER IXIX PUBLIC AND PRIVATE LAWA INTRODUCTIONGerman law divides itself strictly into public law (‘öffentliches Recht’)—dealing withthe relationship of the individual to the state and other carriers of public power—andprivate law (‘Privatrecht’)—dealing with the relationship of citizens amongst each other. 1German private law has two main branches:– civil law (‘bürgerliches Recht’), the main source of which is the ‘BürgerlichesGesetzbuch’ (Civil Code (BGB)); and– commercial and company law (‘Handelsrecht’ and ‘Gesellschaftsrecht’). 2It is important to note here, however, that the subject-matter of private law in Germanyis dealt with in numerous secondary and special statutes (‘Neben- und Sondergesetze’),apart from the BGB and the statutes relating to commercial and company law, eg, inthe fields of property and landlord and tenant law, employment law, traffic and publicliability law, insurance and intellectual property law. 3The main branches of German public law are:– state and constitutional law (‘Staats- und Verfassungsrecht’);– administrative law (‘Verwaltungsrecht’);– tax law (‘Steuerrecht’);– criminal law (‘Strafrecht’);– procedural law (‘Prozeßrecht’);– public international law (‘Völkerrecht’). 4§ 40(i) VwGO gives access to the administrative court in all public law disputes of anon-constitutional nature, unless a federal statute expressly gives another courtjurisdiction.B DISTINGUISHABILITY OF NORMSThere are various theories as to how to establish whether a particular norm falls withinthe area of private or public law, for example:– the ‘interest’ theory, which asks if the norm serves the interests of the state orthose of the individual;– the ‘subordination’ theory, which asks if the legal relationship between the partiesis ‘on equal terms’ (‘auf der Grundlage der Gleichordnung’) or one of dominance andsubordination (Über- und Unterordnung’); and– the ‘modified subject’ or ‘special rights’ theory (‘Sonderrechtstheorie’), which asksif the norm necessarily only benefits or is directed at a carrier of public power (‘obeine Norm nur ein Träger öffentlicher Gewalt berechtigt oder verpflichtet’). 525

The German Legal System and Legal LanguageNorms can also be distinguished according to whether they:– are norms of material or formal law. Formal law (‘formelles Recht’) deals with theapplication (‘Anwendung’) and carrying out (‘Durchsetzung’) of material law(‘materielles Recht’), which contains the substantive provisions. Examples of formallaw are procedural law (‘Prozeßrecht’/‘Verfahrensrecht’) and the law governing thevarious court jurisdictions (‘Gerichtsbarkeiten’);– are norms of federal or state law or norms with only more limited application, ie,those which are set by ‘Körperschaften’ and ‘Anstalten’;– are compulsory norms (‘zwingende Normen’: ius cogens) or dispositive norms(‘nachgiebige Normen’/‘dispositives Recht’: ius dispositivum). Dispositive norms arereferred to as being ‘abdingbar’, ie, they can be derogated from by agreement. Theyare largely to be found in private law, where the important principles of freedomof contract (‘Vertragsfreiheit’) and private autonomy (‘Privatautonomie’) prevail.Thus, the contract law of the BGB usually only applies in the absence of anagreement between free contracting parties; 6– emanate from statute/statutory instrument (‘Gesetz’) or custom (‘Gewohnheit’).26

CHAPTER XX PRIVATE LAW: THE CIVIL CODE (BGB) 1A INTRODUCTIONThe Civil Code (‘Bürgerliches Gesetzbuch’) of 18.8.1896 came into force on 1.1.1900. 2It is the most important source (‘Quelle’) of private law in Germany. It consists of2385 paragraphs divided into five Books: 3Book I: ‘Allgemeiner Teil’ (general part), §§ 1–240.Book II: ‘Schuldrecht’ (law of obligations), §§ 241–853.Book III: ‘Sachenrecht’ (law of property), §§ 854–1296.Book IV: ‘Familienrecht’ (family law), §§ 1297–1921.Book V: ‘Erbrecht’ (law of succession), §§ 1922–2385.Each Book (‘Buch’) is divided into ‘Abschnitte’ (Sections), which are in turn sub-dividedinto ‘Titel’ (Titles).B BOOK I: THE ‘ALLGEMEINER TEIL’ (§§ 1–240 BGB) 4The key rules contained in Book I of the BGB (the ‘Allgemeiner Teil’); §§ 1–240) arevalid for all the other Books of the BGB and are of general application for the whole ofGerman private law.The ‘Allgemeiner Teil’ (AT) is divided into seven Sections.1 Terminology to NoteA knowledge of the following terminology is essential for an understanding of the BGB:1 ‘Die Rechtsfähigkeit’: the capacity to be a carrier of rights and obligations (‘dieFähigkeit, Träger von Rechten und Pflichten zu sein’). 52 ‘Die Rechtssubjekte’ (legal subjects or persons). 6Only ‘Rechtssubjekte’ possess ‘Rechtsfähigkeit’. ‘Rechtssubjekte’ are either naturalpersons (‘natürliche Personen’=‘Menschen’, ie, humans) or juristic persons (‘juristischePersonen’). These concepts are dealt with in Section 1 of the ‘Allgemeiner Teil’(entitled ‘Personen’; §§ 1–89).Every natural person has a ‘Wohnsitz’ ((place of) residence). A juristic person hasa ‘(Haupt)-niederlassung’ ((main) office, place of business) or ‘Sitz’ (seat/(registered)address). 7‘Wohnsitz’ is a legal term (‘Rechtsbegriff’) and refers to the focal point of a person’saffairs (‘der räumliche Schwerpunkt der Lebensverhältnisse eines Menschen’). Its broadequivalent in the English (legal) language is the term ‘domicile’, although a bettertranslation thereof would be ‘Heimat’ (home).27

The German Legal System and Legal LanguageA person’s ‘Wohnsitz’ is of importance for various purposes, eg, as the place ofperformance under § 269(i) BGB and in order to establish which court has localjurisdiction in civil or criminal proceedings (§§ 13 ZPO and 8(i) StPO). 8One distinguishes a person’s:– main (‘Haupt-’) and secondary (‘Zweit-’) ‘Wohnsitz’ (§ 7 (ii) BGB), the formerusually being the significant one for (public) legal purposes;– voluntary (‘gewillkürtes’) and statutory (‘gesetzliches’) ‘Wohnsitz’ (§ 7 and §§ 8–11 BGB respectively); and– (temporary) residence (‘(vorübergehender) Aufenthalt’).Mere ‘Aufenthalt’ does not suffice to establish a person’s ‘Wohnsitz’, even if it ishabitual/usual (‘gewöhnlich’) or continuous (‘dauernd’). The key element of a‘Wohnsitz’ is constant settlement (‘ständige Niederlassung’) at a particular place, thedecisive factor being the desire to establish an intensive connection (‘intensiveBindung’) to that place. 93 ‘Die Rechtsobjekte’ (legal objects): 10A ‘Rechtsobjekt’ is any thing/matter (‘Gegenstand’) with which the law can concern itself.If a ‘Gegenstand’ is corporeal/tangible (‘körperlich’), it is known as a ‘Sache’. ‘Sachen’ aredealt with in Section 2 of the ‘Allgemeiner Teil’ (entitled ‘Sachen’; §§ 90–103). 11 Other‘Rechtsobjekte’ are ‘Immaterialrechtsgüter’ (intellectual property) and ‘Rechte’ (rights).Unlike ‘Rechtssubjekte’, ‘Rechtsobjekte’ have no rights and usually belong to‘Rechtssubjekte’. 124 ‘Das subjektive Recht’ (subjective (legal) right). 13A ‘subjektives Recht’ is conferred upon a person by the legal system (‘Rechtsordnung’)to protect his interests.A ‘subjektives Recht’ is the legal power (‘Rechtsmacht’) or legally protected interest(‘rechtlich geschütztes Interesse’) of the individual, as opposed to the objective law(‘das objektive Recht’), which is the sum-total of all valid norms. It is to bedistinguished from the so-called ‘Rechtsreflex’ (legal reflex), which is the nonenforceablefavouring of an individual by the legal system.With certain exceptions, the state has a monopoly regarding the protection of asubjective legal right. 14One speaks of the acquisition (‘Erwerb’) and transfer (‘Übertragung’/‘Übergang’) ofa subjective legal right and of limits (‘Grenzen’) on its exercise. 15Subjective legal rights are divided into the following main types. 16The first two are absolute rights (‘absolute Rechte’), effective against everyone. Theothers are relative rights (‘relative Rechte’), as they are only directed againstindividual persons within a particular legal relationship:– ‘Herrschaftsrechte’ (rights of dominance): they give power over ‘Gegenstände’(eg, ‘Sachen’; they are then known as ‘real rights’ (‘dingliche Rechte’)). The most28

Chapter X: Private Law: The Civil Code (BGB)comprehensive ‘dingliches (Herrschafts-)recht’ is ‘Eigentum’ (ownership). Powerover incorporeal things (eg, ‘Ansprüche’) is known as ‘Inhaberschaft’(entitlement/ownership).– ‘Persönlichkeitsrechte’ (personality rights). A general right to one’s personalityis based on Articles 1 and 2 of the Basic Law. 17– ‘Ansprüche’ (claims). An ‘Anspruch’ is defined in § 194(i) BGB as ‘das Recht, voneinem anderen ein Tun oder ein Unterlassen zu verlangen’ (the right to demand anact or omission from another). A contractual ‘Anspruch’ is known as a ‘Forderung’(§241 BGB).An ‘Anspruch’ must always have an ‘Anspruchsgrundlage’ (basis), the conditionsof which must all be fulfilled if the ‘Anspruch’ is to be ‘begründet’ (well founded). 18– ‘Gestaltungsrechte’ (formulation rights). Their exercise enables their ‘Inhaber’ toinfluence a particular legal situation (eg, the right of challenge (‘Anfechtung’), theright to give notice (‘Kündigung’), the right of withdrawal/rescission (‘Rücktritt’)). 19– ‘Gegenrechte’ (counter-rights, defences). These enable a defendant to negatean ‘Anspruch’. They are classified as ‘Einwendungen’ and ‘Einreden’. 20– ‘Familienrechte’ (family rights), eg, parental rights.Subjective rights exist both in private and public law (a public subjective right is a‘subjektives öffentliches Recht’) .215 ‘Das Rechtsverhältnis’: the legal relationship between ‘Rechtssubjekte’ or between‘Rechtssubjekte’ and ‘Rechtsobjekte’. It gives rise to (subjective) legal rights and/orduties (‘Rechte und Pflichten’). 226 ‘Die Privatautonomie’ (private autonomy (principle)).In accordance with man’s right to self-determination (‘Selbstbestimmung’), it is abasic principle of the legal order (‘Rechtsordnung’) that the individual is free toenter into and form legal relationships (‘Gestaltungsfreiheit’). It incorporates theindividual’s freedom to conclude a legal transaction (such as a contract) on suchterms as he wishes: ‘Vertragsfreiheit’. 237 ‘Das Rechtsgeschäft’ (legal transaction). 24A ‘Rechtsgeschäft’ is composed of at least one ‘Willenserklärung’ (declaration of will)and can be unilateral (‘einseitig’, eg, a will, the grant of a ‘Vollmacht’) or multilateral(‘mehrseitig’, eg, a contract). By means of a ‘Rechtsgeschäft’, a ‘Rechtssubjekt’ canachieve a legal consequence (‘Rechtsfolge’) and create or vary a legal relationship(‘Rechtsbeziehung’) to another ‘Rechtssubjekt’ or to a ‘Rechtsobjekt‘.8 ‘Rechtshandlungen’ (legal actions). 25The term ‘Rechtsgeschäft’ is part of the more general term ‘Rechtshandlung’. To beadditionally distinguished are:– a ‘Rechtshandlung’ directed to achieving a factual consequence, eg, the setting of atime limit, consent to an operation, establishment of a ‘Wohnsitz’. This is an actionsimilar to a ‘Rechtsgeschäft’ (‘rechtsgeschäftsähnliche Handlung’) and the provisionsconcerning ‘Geschäftsfähigkeit’ and ‘Willenserklärungen’ are applied analogously.29

The German Legal System and Legal Language– a pure factual act (‘Tathandlung’ or ‘Realakt’). Like a ‘Rechtsgeschäft’, it can leadto legal consequence, not because of a ‘Willenserklärung’, but due to the generallaw, eg, statutory acquisition of ownership. However, it requires no‘Geschäftsfähigkeit’. 269 ‘Die Geschäftsfähigkeit’ (capacity to undertake a ‘Rechtsgeschäft’).Only natural persons are ‘geschäftsfähig’ and can declare their will by means of a‘Willenserklärung’. Thus, only natural persons can conclude a ‘Rechtsgeschäft’ alone.The statutory representatives of persons not fully ‘geschäftsfähig’ are their ‘gesetzlicheVertreter’. 272 The Provisions of the ‘Allgemeiner Teil’ Regarding ‘Rechtsgeschäfte’(§§ 104–185 BGB) (Section 3)‘Geschäftsfähigkeit’, ‘Willenserklärung’ and ‘Rechtsfolge’ form the main elements of avalid ‘Rechtsgeschäft’.‘Rechtsgeschäfte’ are dealt with in Section 3 of the ‘Allgemeiner Teil’ (§§ 104–185).Section 3 is divided into six Titles:Title 1: ‘Geschäftsfähigkeit’ (capacity to undertake a ‘Rechtsgeschaft’): §§ 104–115.Title 2: ‘Willenserklärung’ (declaration of will): §§ 116–144.Title 3: ‘Vertrag’ (contract): §§ 145–157.Title 4: ‘Bedingung’ (condition). ‘Zeitbestimmung’ (time provision): §§ 158–163.Title 5: ‘Vertretung’ (representation/agency). ‘Vollmacht’ (power of attorney): §§164–181. 28Title 6: ‘Einwilligung’ ((prior) consent). ‘Genehmigung’ (approval): §§ 182–185.(a) Title 1 (§§ 104–115 BGB)Although the BGB contains no specific provision to that effect, it proceeds on the basisthat ‘Geschäftsfähigkeit’ (the capacity to undertake a ‘Rechtsgeschäft’) commences withthe age of majority (‘Volljährigkeit’), which, by § 2, is 18 years.The BGB distinguishes sharply between:– persons who have no ‘Geschäftsfähigkeit’ at all, referred to as ‘geschäftsunfähig’;– those who enjoy limited ‘Geschäftsfähigkeit’, referred to as ‘beschränkt geschäftsfähig’;and– those who are fully ‘geschäftsfähig’. 29§ 104 BGB defines those who are ‘geschäftsunfähig’, ie, infants under seven and personspermanently mentally disturbed.The ‘Willenserklärung’ of somebody who is ‘geschäftsunfähig’ is void (‘nichtig’), asis that declared (not received!) by a person in a state of unconsciousness or sufferingfrom a temporary intellectual impairment (§ 105).A child between seven and 18 years of age is a ‘Minderjähriger’ (minor) and is‘beschränkt geschäftsfähig’ in accordance with §§ 107–113 (§ 106). As a result, to make a30

Chapter X: Private Law: The Civil Code (BGB)‘Willenserklärung’ he needs the prior consent (‘Einwilligung’) of his parents, except ifhe receives merely a legal (not commercial!) advantage (‘lediglich einen rechtlichenVorteil’) from the transaction (§§ 107,1629). 30Whilst the entry into a contract (‘Vertrag’) by a minor involves him in obligations,his receipt of property (for example, by way of gift) is regarded as a legal advantageand requires no approval (‘Zustimmung’).§§ 108–110 deal with the position where a contract is concluded by a minor withoutprior consent. Its validity is then dependant on the subsequent consent (‘Genehmigung’)of his parents, until which time it is referred to as being ‘schwebend unwirksam’, ie, itsvalidity is in abeyance. If consent is refused, the contract is finally void. In the meantime,the other party has certain rights to demand a statement regarding the ‘Genehmigung’from the parents and to withdraw from the transaction (§§ 108 (ii) and 109). 31A contract concluded by a minor without approval is regarded as valid from thestart, if the contractually required ‘Leistung’ (performance) is (immediately) effected(‘bewirkt’) with ‘Mitteln’ (funds) given to him by his parents for that purpose or placedat his free disposal by his parents (or by a third party with their approval): the socalled‘pocket-money’ (§ 110). Prior consent is deemed to have been granted.A contract with a minor can, therefore, be approved by parents before or after itsconclusion. If it turns out to be void, that does not affect the ‘property level’(‘sachenrechtliche Ebene’) of the transaction, which is abstract. 32However, the minor has been unjustly enriched: he has received something (‘etwas’)without a legal basis (‘ohne rechtlichen Grund’), the return of which (‘Herausgabe’) theother party can claim (§ 812).Although the fact that one is not or no longer enriched (§ 818 (iii)) is usually adefence to such a claim, this does not apply in the event that there is bad faith(‘Bösgläubigkeit’) on the part of the minor and he is unable to return the item due to hisown fault (‘Verschulden’): he is then liable for damages (§§ 818(iv), 819(i), 292, 990, 989:so-called ‘verschärfte Haftung’). 33The approval of the guardianship court (‘Vormundschaftsgericht’) is required, ifparents or guardians wish to engage in certain property or other transactions for thechild (§§ 1643,1821,1822). 34(b) Title 2 (§§ 116–144 BGB)§§ 116–144 contain a mixed-bag of important provisions concerning:– the validity of a ‘Willenserklärung’ (ie, the question of its making (‘Abgabe’) andreceipt (‘Zugang’)) (§§ 130–132);– the interpretation (‘Auslegung’) of a ‘Willenserklärung’ (§ 133);– the challengability (‘Anfechtbarkei’) and nullity (‘Nichtigkeit’) of a ‘Willenserklarung’/‘Rechtsgeschäft’, ie, vitiating elements (§§ 116–124, 125, 134, 138, 139–144); 35– the form of a ‘Rechtsgeschäft’ (§§ 125–129);– the content (‘Inhalt’) of a ‘Rechtsgeschäft’ (§§ 134–138).31

The German Legal System and Legal LanguageThe term ‘Willenserklärung’The BGB nowhere contains a definition of a ‘Willenserklärung’. Instead, it containsnumerous provisions regulating the ability of a person to make a ‘Willenserklärung’and the validity, form, interpretation and content of a ‘Willenserklärung’ and‘Rechtsgeschäft’. Moreover, Section 3 of the ‘Allgemeiner Teil’ (headed ‘Rechtsgeschäfte’)proceeds on the basis that a ‘Rechtsgeschäft’, also nowhere defined, consists of one ormore ‘Willenserklärungen’; indeed, Title 2 is headed ‘Willenserklärung’. 36But what is a ‘Willenserklärung’?The word itself indicates that a ‘Willenserklärung’ has two components: 371 the (internal) will (‘Wille’) to bring about a legal consequence; and2 the (external) declaration (‘Erklärung’) showing what legal consequence is desired.More exactly, one customarily says that the first component comprises the followingelements:– the ‘Handlungswille’, ie, the will to act at all;– the ‘Rechtsbindungswille’, ie, the will to be legally bound by one’s act; and– the ‘Geschäftswille, ie, the will to engage in a particular transaction. 38The second component (the ‘Erklärung’) does not have to consist of a particularformulation.A particular act can (and often does) constitute a ‘Willenserklärung not only when itis expressed, but also when it is implied from conduct (‘schlüssiges Verhalten’). 39Silence (‘Schweigen’) itself, however, does not, as a rule, suffice. 40If one of the two components is missing, there is no ‘Willenserklärung’. If the twocomponents diverge from one another (‘von einander abweichen’), the ‘Willenserklärung’is either challengable (‘anfechtbar’) or void (’nichtig’). 41Validity of a ‘Willenserklärung’ 42At what moment does a ‘Willenserklärung’ become valid? The following rules apply:– a ‘Willenserklärung’ made to another person, who is absent, becomes effective fromthe moment of its communication/receipt (‘Zugang’; § 130(i)); 43– a ‘Willenserklärung’ made to a person having no or only limited ‘Geschäftsfähigkeit‘is normally only valid if made to the person’s statutory representative (§ 131).When a ‘Willenserklärung’ requires to be received by another person it is referred to asbeing ‘empfangsbedürftig’. A ‘nichtempfangsbedürftige Willenserklärung’ only has to beplaced into circulation (‘abgegeben’), eg, a will (‘Testament’).Interpretation of a ‘Willenserklärung’ 44The BGB proceeds on the assumption that a ‘Willenserklärung’ should only bechallengable (‘anfechtbar’) by its maker in certain limited cases (§§ 119, 120 and 123)and that the upholding of a ‘Willenserklärung’ (and consequent validity of the legaltransaction) is desirable in the interests of legal certainty and clarity (‘Sicherheit und32

Chapter X: Private Law: The Civil Code (BGB)Klarheit des Rechtsverkehrs’). (Beneficial) interpretation takes precedence overchallengability (‘Auslegung geht Anfechtung vor’). 45§ 133 sets out the general principle that a ‘Willenserklärung’ should not be interpretedliterally, but in accordance with the real will (‘wirkliche Wille’) of its author (‘natürlicheAuslegung’). Surrounding circumstances can be taken into account as means ofinterpretation, but only in so far as the interests of legal certainty and clarity allow.However, where a ‘Willenserklärung’ is ‘empfangsbedürftig’ (ie, whenever a contract isinvolved) the recipient can only go by what is recognisable to him (‘erkennbar’). It ishis point of view that requires protection and counts, if the meaning of a‘Willenserklärung’ is disputed (‘Auslegung vom Empfängerhorizont’). The aim is then theestablishment of the ‘objektiver Erklärungswert’, ie, the ‘Willenserklärung’ must beinterpreted objectively (‘normative Auslegung’). 46Always to be considered together with § 133 is § 157 BGB, which requires contractsto be interpreted in accordance with the principle of trust and good faith (‘Treu undGlauben’) taking account of custom/common practice (‘die Verkehrssitte’). 47Nullity and challengability of a ‘Willenserklärung’Even if a ‘Willenserklärung’ is clear, it can be void by operation of law (‘nichtig’) orchallengable/voidable (‘anfechtbar’) by its maker. One must always ask: are there anyreasons for the nullity or challengability of the ‘Willenserklärung’? (Liegen NichtigkeitsoderAnfechtungsgründe vor?’)The consequence of the challenge (‘Anfechtung’) of a ‘Willenserklärung’ is that the‘Willenserklärung’ is regarded as void from the start (‘von Anfang an nichtig’; § 142(i)). 48However, ‘Anfechtbarkeit’ and ‘Nichtigkeit’ are not the same: ‘Anfechtung’ is a‘Gestaltungsrecht’ (formulation right), which must be exercised to be effective. Untilthen, the ‘Willenserklärung’ is valid. If a ‘Willenserklärung or ‘Rechtsgeschäft’ is ‘nichtig’,it never had any effect.A ‘Willenserklärung’ is ‘nichtig’ (void) in the following cases:– incapacity (‘Geschäftsunfähigkei’: § 105);– if the necessary subsequent consent (‘Genehmigung’) to a contract entered into bya minor is not forthcoming (§ 108(i));– if the person making the ‘Willenserklärung’ is conscious of one of the followingcircumstances: 49• he has a mental reservation (‘geheimer Vorbehalt‘) about what he is declaringand the other party knows this (§ 116); 50• he is making the ‘Willenserklärung’ with the agreement of the other party onlyfor the sake of appearance (‘nur zum Schein’) § 117);• the ‘Willenserklärung’ is not meant seriously and he expects the other party torealise that (§ 118).In order to safeguard the interests of legal certainty and clarity, the ‘Anfechtung’(challenge) of a ‘Willenserklärung’ is subject to various restrictions:– a ‘Willenserklärung’ can only be challenged on certain statutory grounds(‘Anfechtungsgründe’), which are: 5133

The German Legal System and Legal Language• mistake (‘Irrtum’): § 119, distinguished by the BGB into three types:‘Inhaltsirrtum’ (mistake as to content/meaning), ‘Erklärungsirrtum’ (mistakein the declaration itself) and (in § 119 (ii)) ‘Eigenschaftsirrtum’ (mistake as to aparticularly important quality of the person or thing concerned);• false transmission (‘falsche Übermittlung’) (§ 120);• fraudulent deceit (‘arglistige Täuschung’) or illegal threat (‘widerrechtlicheDrohung’) of or to the person making the ‘Willenserklärung’: § 123; 52– the ‘Anfechtung’ must be declared: § 143(i);– the ‘Anfechtung’ must be exercised within a particular time limit (‘Anfechtungsfrist’):§§ 121(i) and 124(i). In the case of §§ 119 and 120, this must be forthwith(‘unverzüglich’), ie, without blameworthy delay (‘ohne schuldhaftes Zögern’) and inthe case of § 123, within a year;– the bona fide recipient of a ‘Willenserklärung’ challenged under § 119 or § 120 isentitled to compensation for the damage suffered in reliance on the validity of thedeclaration (§ 122).Form and nullity of a ‘Rechtsgeschäft’The basic rule is that, unless otherwise required or agreed, neither a ‘Willenserklärung’nor a ‘Rechtsgeschäft’ require a particular form: the principle of ‘Formfreiheit’ (freedomof form). 53This said, the BGB distinguishes various forms for a ‘Rechtsgeschäft’: 54– writing as prescribed by statute (‘gesetzliche Schriftform’; § 126);– writing as desired by the parties to the ‘Rechtsgeschäft’ (‘gewillkürte Schriftform’ ‘; § 127);– notarial documentation (‘notarielle Beurkundung’; § 128);– public certification (‘öffentliche Beglaubigung’; § 129). 55A ‘Rechtsgeschäft’ is ‘nichtig’ (void)– if it lacks the necessary statutory form (§ 125, 1st sentence); 56– if it is itself the object of a statutory prohibition (‘gesetzliches Verbot’) and contravenesit (§ 134); 57– if it is ‘sittenundrig’, ie, breaches good morals (‘gute Sitten’: § 138(i)). 58The term ‘Einigung’(c) Title 3 (§§ 145–157 BGB)If two or more ‘Willenserklärungen’ correspond (‘übereinstimmen’), the parties are saidto have reached a consensus or agreement (‘Einigung’). 59The conclusion of a contract (‘Vertrag’) usually depends on an ‘Einigung’ (this isclear from §§ 154 and 155). 60An ‘Einigung’ can be achieved by mere joint statement or, more commonly, byexchange of offer (‘Angebot’) and acceptance (‘Annahme’). It is this means of reachingan ‘Einigung’ that is dealt with in §§ 145–157. 6134

Chapter X: Private Law: The Civil Code (BGB)§§ 145–157 only handle the question of how an ‘Einigung’ is reached by offer andacceptance (the question of formation). They do not deal with the questions of thecontent (‘Inhalt’), form or legal consequences (‘Rechtsfolgen’) of an ‘Einigung’, ie:– on what points must the ‘Willenserklärungen’ of the parties correspond?;– does the ‘Einigung’ require a particular form?;– what duties (‘Pflichten’) result?The particular provisions of each area of law (contract, property, family, succession,company) contain the replies to these questions. 62Rules governing offer and acceptance 63It is an unwritten rule that the content of an offer (‘Angebot’) 64 —ie, the essentialcontractual points (‘essentialia negotii’)—must be sufficiently specific (‘hinreichendbestimmt’) or at least capable of specification (‘bestimmbar’) 65Moreover, an offer must indicate an intention to be legally binding (‘rechtlichverbindlich’). 66By § 145, an offeror is bound to his offer 67 unless, as is commonly done, he excludeshis liability by such phrases as ‘freibleibend’ (subject to availability) or ‘ohne Obligo’(without obligation).An offer expires (‘erlischt’) if it is refused (‘abgelehnt’). If, however, it is desired toaccept an offer, the acceptance (‘Annahme’) 68 must(a) usually be declared in some form; and(b) reach the offeror in time (‘rechtzeitig’; § 146), ie, immediately (‘sofort’) where both partiesare present or within such a period as the offeror can expect under normalcircumstances (‘unter regelmäßigen Umständen’) or as he may specify (§§ 147 and 148).If the acceptance is delayed (‘verspätet’) or contains additions, restrictions or otheramendments (‘Erweiterungen, Einschränkungen oder sonstige Änderungen’), it is deemedto be a new offer (in the latter case, together with a refusal of the original offer) fromthe accepting party (§ 150). 69Exceptionally, it is possible for a contract to be concluded without an acceptance beingdeclared, if such a declaration is not customarily to be expected (‘nach der Verkehrssittenicht zu erwarten’, eg, booking of an hotel room) or is waived by the offeror (§ 151) 70However, some form of acceptance is always required and silence or inaction(‘Schweigen’; ‘Nichtstun’) does not suffice, unless:– it is agreed upon between the parties as having the effect of an acceptance; or– the person to whom the offer is made is a businessman (‘Kaufmann’), in whichcase he must, in certain circumstances, reply forthwith (‘unverzüglich’) if he is notto be bound. 71Failure to reach an ‘Einigung’The BGB contains two difficult provisions (§§ 154 and 155) dealing with so-called‘Einigungsmängel’ (‘Dissens’), ie, the situation where the parties do not reach a fullymatching consensus (‘Einigung’). 7235

The German Legal System and Legal LanguageWhen considering §§ 154 and 155, one must bear in mind that a contract (‘Vertrag’)can contain both:– ‘wesentliche Bestandteile’ (essential components; ‘essentialia negotii’): if the partiesfail to reach agreement on points essential to the particular contract, theirrelationship is one of ‘Total-dissens’ (total disagreement)—§§ 154 and 155 do notrefer to this situation; and– ‘Nebenpunkte’ (accessory points), ie, those points on which, in accordance with thedeclared will of at least one party, an ‘Einigung’ is necessary. Here, §§ 154 and 155lay down certain rules of interpretation (‘Auslegungsregel’) in the event of doubt(‘im Zweifel’, ie, where the situation cannot be clarified):• if an ‘Einigungsmangel’ is ‘offen’ (open), ie, both parties are aware that theoutstanding point(s) still require(s) to be agreed, the contract is deemed not tohave been concluded: § 154;• if an ‘Einigungsmangel’ is ‘versteckt’ (hidden), ie, the parties conclude a contractunaware that the outstanding point(s) is or are still outstanding, the partiesare deemed to have agreed the contract as it stands, so far as can be assumedthat the contract would also have been concluded without agreement on theoutstanding point(s): § 155.The situation which § 155 has in mind is that where the wording in an agreement isobjectively ambiguous and each of the parties attaches a different meaning to it (hiddendissent). It is to be distinguished from the situation where the parties merely use a falsedescription of an item and in fact mean the same thing (falsa demonstratio (non nocet)). 73(d) Title 4 (§§ 158–163 BGB)The term ‘Bedingung’ (condition) as contained in §§ 158–163 is used solely in the senseof a future uncertain event (‘zukünftiges ungewisses Ereignis’). 74A ‘Bedingung’ can be either ‘aufschiebend’ (suspensive) or ‘auflösend’ (resolutive) ineffect. 75The ‘conditions’ (terms) contained in a contract (‘Vertrags-’ or ‘(Allgemeine)Geschäftsbedingungen’) 76 or laid down by law (‘Rechtsbedingungen’) are not ‘Bedingungen’in the sense of §§ 158–163.Also to be distinguished is the term ‘Zeitbestimmung’ (time provision: § 163), whichrefers to the specification of a date or time for the start or end of a ‘Rechtsgeschäft’.The prime example of a suspensive condition is purchase under reservation of title(‘Eigentumsvorbehalt’), where the purchaser only becomes owner on condition of fullpayment of the purchase price. Until then, he has a so-called ‘Anwartschaftsrecht’ (rightof expectancy) 77 and is protected against hindering acts by the other party (vendor):– if in the meantime the other party frustrates or impairs his future right by his (theother party’s) ‘Verschulden’ (fault), he can claim damages (§ 160);– if the other party undertakes a ‘Verfügung’ over the item in the meantime (eg,purports to transfer title again to someone else), the ‘Verfügung’ has no effect againsthim (§ 161); 7836

Chapter X: Private Law: The Civil Code (BGB)and– if in bad faith (‘wider Treu und Glauben’) the other party prevents the conditioncoming into effect, it is deemed to have come into effect (§ 162).Introduction(e) Standard business terms (AGB) 79The fact that the norms of the law of obligations are largely dispositive 80 does notmean that contracting parties are free to ignore them whenever they please. The riskof abuse of unlimited freedom of contract is particularly acute when there is inequalityof bargaining power (‘Machtungleichgewicht’) and the weaker party to a contract isopen to exploitation (‘Ausnutzung’).In Germany at the start of the 20th century, case-law was directed against abuses offreedom of contract in the form of monopolies. At first, the Imperial Court(‘Reichsgericht’) used § 138 BGB as its benchmark, but the Federal Supreme Court (BGH)later replaced this means of control with the concept of trust and good faith (‘Treu undGlauben’) under § 242 BGB.However, it gradually became clear that, despite the formulation of case-lawprinciples in individual cases, statutory intervention was necessary to protect theposition of the consumer (‘Verbraucher’) in the face of sophisticate, small print’(‘Kleingedrucktes’). Codification was also desirable in the interests of legal certainty.Today, therefore, standard business terms are regulated by the AGBG (‘Gesetz zurRegelung des Rechts der Allgemeinen Geschäftsbedingungen’) of 9.12.1976, in force since1.4.1977.The principal provisions of the AGBG are divided into a substantive part (§§ 1–11),a paragraph dealing with contracts subject to foreign law (§ 12), paragraphs enablingcertain organisations to seek restraint and/or withdrawal of terms, which infringethe AGBG’s system of control (§§ 9–11), and setting out the relevant procedure (§§ 13–22), and two paragraphs laying down substantive and personal exceptions from thescope of the AGBG (§§ 23–24).DefinitionsBy § l(i), 1st sentence AGBG, standard business terms (‘allgemeine Geschäftsbedingungen’(AGB)) are defined as contract terms (‘Vertragsbedingungen’), which are formulated inadvance (‘vorformuliert’) for numerous contracts and which one party presents to theother (‘stellt’) when the contract is entered into; for example, the common situationwhere the contract is to be concluded using a standard, preprinted, stereotyped form(‘Formularvertrag’). The extent of the relevant clause is irrelevant: § l(i), 2nd sentenceAGBG. 81Excluded from the ambit of standard business terms within the meaning of theAGBG are terms, which are individually negotiated by the parties (‘im einzelnenausgehandelt’): § l(ii) AGBG. An individually negotiated agreement (‘Individualabrede’)is the opposite of a unilaterally-imposed ‘Formularvertrag’; it can be concluded beforeor after the contract, orally or in writing and can be express or implied. 8237

The German Legal System and Legal LanguageAn ‘Individualabrede’ takes precedence over standard business terms: § 4 AGBG.Thus, for example, clauses requiring amendments to be made in writing(‘Schriftformklauseln’) are permissible, but can be overriden by an inconsistent oralarrangement. 83IncorporationFor AGB to be binding, they must be made part of the contract (‘Bestandteil desVertrages’), whether in the contract document itself or separately.By § 2 AGBG, incorporation of AGB into a contract has three requirements:(i) at the moment of conclusion of the contract (‘bei Vertragsabschluss’), attention mustbe drawn to the AGB in clear fashion by the party wishing to use them (the‘Verwender’), ie, there must be an express reference (‘ausdrücklicher Hinweis’) to theAGB, or, if this involves disproportionate difficulties, a dearly visible notice(‘Aushang’) at the place of contracting;(ii) at the same moment, the user must provide the other party with the opportunityto acquaint himself with the content of the AGB in an acceptable manner (‘inzumutbarer Weise); and(iii) the other party must agree to the application of the AGB.Actual agreement (‘Einverständnis’) is necessary and not mere submission(‘Unterwerfung’). 84InterpretationA common criticism of standard business terms is that they are frequently opaque(‘undurchsichtig’) and involved (‘unübersichtlich’).One of the main aims of the AGBG is, therefore, the production of clear businessterms (‘Transparenzgebot’). This purpose could be wrecked, if, when using standardterms, persons were able to take their business partners by surprise (‘überrumpeln’)and insert provisions that would normally not be expected in the relevant circles(‘beteiligte Personenkreise’).For this reason, surprising clauses (‘überraschende Klauseln’) do not become part ofthe contract: § 3 AGBG. A surprising clause is one, which, according to thecircumstances, is so unusual (‘ungewöhnlich’) that the other contracting party does nothave to reckon with it (‘nicht zu rechnen braucht’).Whether a clause is surprising in this sense must, generally, be assessed objectivelyfrom the viewpoint of the average customer (‘Durchschnittskunde’). However, theindividual circumstances can affect the position, eg, if a third party believes he isproviding security for a particular loan, but does not realise that the relevant clausecontains an extension of his liability (‘Erweiterung der Haftung’) to all other future claims(‘alle sonstige zukünftige Forderungen’). 85Thus, in contrast to the rules of interpretation for individually negotiated agreements(§§ 133,157 BGB), the AGBG proceeds on the basis that standard business terms shouldbe interpreted objectively, according to the understanding of a typical, innocentcontractual partner. If a clause still remains ambiguous (‘mehrdeutig’) or there are doubts(‘Zweifel’), it must be interpreted narrowly against its user (‘contra proferentem’; § 538

Chapter X: Private Law: The Civil Code (BGB)AGBG), ie, in a legal action brought by an individual, the term should be given ameaning favourable to the customer (‘kundenfreundlich’).InvalidityContrary to the normal rule in § 139 BGB, § 6(i) AGBG provides that the validity ofthe rest of a contract is not affected, if a standard business term is not (fully or partially)incorporated into the contract or is (fully or partially) ineffective (‘unwirksam’). Whetherthe term is ineffective because of the AGBG or on other grounds (§§ 134, 138 BGB) isirrelevant.Any resulting gaps in the contract (‘Lücken’) must be filled by the dispositive law (§6(ii) AGBG) or, in the absence of specific statutory provisions, by supplementaryinterpretation (‘ergänzende Auslegung’). However, if terms, as drafted, contravene theAGBG, they cannot be reduced to their essentially valid core (‘Verbot dergeltungserhaltenden Reduktion’). Moreover, saving clauses (‘salvatorische Klauseln’), whichmerely attempt to replace ineffective terms by such other provisions as are legallypermissible, are not sufficient.Exceptionally, the contract is completely void, if, despite any amendments, insistenceon its validity would represent an unacceptable hardship (‘unzumutbare Härte’) forone of the parties: § 6(iii) AGBG.ScopeThe AGBG does not apply to contracts in the fields of employment law, family law,the law of succession and company law: § 23(i) AGBG. Further specific exceptionsare contained in § 23(ii) AGBG, eg, the conditions of carriage (‘Beförderungsbedingungen’)for passengers on buses or trams need not comply with the requirements of § 2.Contracts of public law (‘öffentlich-rechtliche Verträge’) are subject to the AGBG, asare terms in contracts offering public services in private law form. However, bye-laws(‘Satzungen’) and other conditions or tariffs having normative character are excluded.More importantly, by § 24, 1st sentence AGBG, certain provisions of the AGBG (§§2, 10, 11 and 12) do not apply vis à vis a businessman (‘Kaufmann’), if a contract isentered into by him for the purposes of his business (not private purposes!), ie, thecontract belongs to the businessman’s trading activities (§ 343 HGB).However, by § 24, 2nd sentence AGBG, in such cases, contract terms falling under§§ 10 and 11 AGBG can still be invalid on the basis of § 9 AGBG, although this, in turn,is qualified by the requirement that account must be taken of commercial customsand usages (§ 346 HGB).Where a private consumer in Germany is involved, § 12 AGBG extends the scopeof the AGBG to contracts with a foreign element. § 12 states that, even if a contract isgoverned by foreign law, account is to be taken of the provisions of the AGBG if:1 the contract is concluded on the basis of a public offer, public advertising or a‘similar business activity’ by the user in Germany; and2 the other party has his domicile or usual residence in Germany at the time hiscontractual declaration is made.39

The German Legal System and Legal LanguageStatutory control§§ 9–11 AGBG constitute a special statutory system of control of the content of standardbusiness terms (‘Inhaltskontrolle’). The freedom of the user (‘Verwender’) to design acontract as he pleases (‘Gestaltungsfreiheit’) is thereby significantly restricted.The aim of §§ 9–11 AGBG is to protect the other party to a contract against beingunfairly prejudiced by standard business terms. The method adopted by the AGBG isto go from the general (§ 9) to the specific (§§ 10–11), although, in practice, §§ 10–11are examined first, since § 9 is a mopping-up provision (‘Auffangtatbestand’), whichusually only comes into play on a subsidiary basis (at any rate where the other contractparty is not a businessman (note § 24)). 86Thus, § 9 lays down a general principle (bench-mark) for establishing the proprietyof standard business terms, while §§ 10 and 11 comprises a non-exhaustive catalogueof typical clauses at particular risk of prohibition. The clauses listed in § 11 areprohibited outright, while those in § 10 are open to evaluation (‘Wertung’) on the basisof the rule in §9.§ 9(i) AGBG provides that standard business terms are of no effect (‘unwirksam’), if,contrary to the requirements of trust and good faith (‘Treu und Glauben’), they constitutean inappropriate disadvantage (unangemessene Benachteiligung’) of the other party to acontract by the user.What amounts to an ‘inappropriate disadvantage’?§ 9(ii) AGBG states that, in the event of doubt, an inappropriate disadvantage canbe (rebuttably) presumed, if a term either:1 is not compatible with the essential principles (‘wesentliche Grundgedanken’) of thelegal provisions, from which it diverges; or2 so restricts essential rights or obligations arising from the nature of the contractthat the achievement of the purpose of the contract (‘Erreichung des Vertragszwecks’)is endangered.§ 9 AGBG requires a comprehensive balancing of the parties’ respective interests(‘Interessenabwägung’) and, to that end, concretises certain criteria by way of examplein subsection § 9(ii), Nos 1 and 2. Under No 1, the question is: is the relevant term outof line with important (written or unwritten) legal principles? The test in No 2, on theother hand, involves an examination of the typical object of the contract(‘Vertragsgegenstand’) and extends to contracts without a statutory model (‘Leitbild’).In particular, under § 9(ii), No 2 AGBG, it is not permissible for the user of standardbusiness terms to erode (‘aushöhlen’) significant rights or cardinal duties(‘Kardinalpflichten’), such as are indispensible (‘unentbehrlich’) to implementation ofthe contract (‘Durchführung des Vertrages’), eg, by using a clause excluding liability forbreaches of contract or negligence (‘Freizeichnungsklausel’). 87The individual treatment of standard business terms in particular types of contractunder § 9 AGBG is the subject of a vast case-law, which is usually set out alphabeticallyin the German commentaries.§§ 9–11 AGBG only apply to standard business terms, which diverge from orsupplement legal provisions: § 8 AGBG. They are not directed at rectifying imbalances40

Chapter X: Private Law: The Civil Code (BGB)in the price/performance ratio (‘Preis-/Leistungsverhältnis’), ie, the adequacy of theconsideration for a particular transaction.In particular, provisions which merely declare the statutory position (declaratoryclauses), which give a description of the main object of performance required by acontract (‘Leistungsbeschreïbung’) or which lay down the price are not subject to control.(Compare, however, terms which modify ancillary obligations (‘Nebenpflichten’) orcollateral agreements concerning the price (‘Preisnebenabreden’), eg, conditions ofpayment (‘Zahlungsbedingungen’).)So far as they apply, §§ 9–11 AGBG take priority over, but do not oust, other statutoryprovisions, which may give grounds for nullifying contract terms (eg, §§ 134, 138, 242BGB).Group remedies§§ 13–21 AGBG provide additional protection for consumers against standard businessterms, which are ineffective under §§ 9–11 AGBG.Thus, by § 13 AGBG, certain associations (‘Verbände’) and chambers (‘Kammern’)—ie, consumer associations (‘Verbraucherverbände’), chambers of commerce and industry(‘Industrie und Handelskammern’) and handicraft chambers (‘Handwerkskammern’)—aregiven power to bring actions in their own right claiming restraint/stoppage(‘Unterlassung’) of the use of ineffective terms and, in the case of a recommendation touse such terms, withdrawal (‘Widerruf’) of the recommendation.The period for the making of claims is two years from knowledge of use orrecommendation or, in the absence of such knowledge, four years from the date therelevant term was used or recommended: § 13(iv) AGBG.The effect of a court judgment under § 13 AGBG ordering stoppage(‘Unterlassungsurteil’) is extended by § 21 AGBG. Although, normally, such a judgmentdoes not prevent the user of the relevant standard business term from using it again ina subsequent contract (‘Folgevertrag’), the term is ineffective to the extent that the newcontracting party specifically relies on the judgment (by way of defence in a laterindividual action): § 21, 1st sentence AGBG. However, this does not apply, if the usercould bring an action against the judgment under § 19 AGBG (on the ground ofdivergence from a subsequent decision of the BGH or the Joint Senate of the SupremeFederal Courts): § 21, 2nd sentence AGBG.The Federal Cartel Office (‘Bundeskartellamt’) keeps a register of actions under §§ 13and 19 AGBG: § 20 AGBG.Analogously to § 13 AGBG, § 22 AGBG gives various organisations a wide powerto restrain infringements of statutory provisions serving the protection of consumers(eg, the HaustürWG, VerbrKrG, FernAbsG and §§ 651 a–1 BGB (travel contracts)).3 The Rest of the ‘Allgemeiner Teil’ (§§ 186–240 BGB) (Sections 4–7) 88The remaining Sections of the ‘Allgemeiner Teil’ are as follows:Section 4. ‘Fristen’ (time limits). ‘Termine’ (dates): §§ 186–193.41

The German Legal System and Legal LanguageA ‘Termin’ is a definite date or point in time (‘Zeitpunkt’), while a ‘Frist’ is a limitedperiod of time, which can be set by statute, by the court or by the parties to a‘Rechtsgeschäft’.§§ 187–193 BGB contain general rules of interpretation for the calculation of timeperiods and for the assessment of certain dates.‘Fristen’ are distinguished according to whether a failure to observe them results inthe relevant right being destroyed or precluded—so-called ‘Ausschlußfristen’—or resultsin realisation of the right being prevented due to limitation (‘Verjährungsfristen’).Procedural time periods usually fall within the former category. 89If a procedural time limit is missed (‘versäumt’), the remedy is an application forreinstitution of the previous position (‘Wiedereinsetzung in den vorigen Stand’). 90Even before expiry of a time limit, a right can be considered forfeited (‘verwirkt’), if,in the circumstances, its exercise would infringe § 242 BGB. 91Section 5. ‘Verjährung’ (limitation): §§ 194–225 (see Exposé).Section 6. ‘Ausübung der Rechte’ (exercise of rights). ‘Selbstverteidigung’ (self-defence).‘Selbsthilfe’ (self-help): §§ 226–231.Section 7. ‘Sicherheitsleistung’ (provision of (suitable forms of) security): §§ 232–240.4 Exposé: ‘Verjährung’ (§§ 194–225 BGB) (Section 5) 92(a) By § 194(i) BGB an ‘Anspruch’ (claim) is subject to ‘Verjährung’ (limitation). Certainclaims are, however, not so subject and are ‘unverjährbar’, eg, those relating to theland register (§§ 898, 902).‘Verjährung’ constitutes a ‘Leistungsverweigerungsrecht’, ie, gives the debtor the rightto decline performance (§ 222(i)). However, if the debtor wishes to rely on it inproceedings, it must be raised by him, ie, it is a so-called ‘Einrede’ and not an‘Einwendung’ (which the court takes into account of its own accord). 93(b) The actual limitation periods (‘Verjährungsfristen’) are set out in §§ 195–197 BGB.By § 195 the normal ‘Verjährungsfrist’ is 30 years (three years from 1.1.2002).§§ 196–197 lay down a short limitation period (‘kurze Verjährung’) for certain claims.Thus, by § 196(i) No 1, a two year limitation period applies to claims of ‘Kaufleute’(businessmen), ‘Fabrikanten’ (manufacturers) and ‘Handwerker’ (manual workers)concerning delivery of goods (‘Waren’) and carrying out of work (‘Arbeiten’) orother persons’ business (‘fremde Geschäfte’), unless with regard to the business ofthe recipient (in which case a four year period applies: § 196(ii)).Other persons whose claims are subject to the two year limitation period includefreight and shipping companies (§ 196(i) No 3), innkeepers (No 4), privateemployees (No 8), doctors, dentists and lawyers (Nos 14 and 15).Outstanding amounts of interest, rent, and pensions become statute-barred afterfour years (§ 197).42

Chapter X: Private Law: The Civil Code (BGB)The normal limitation period of 30 years begins when the ‘Anspruch’ arises (§ 198,1st sentence). The ‘kurze Verjährung’ of two or four years begins with the end ofthe year in which the ‘Anspruch’ arises (§ 201, 1st sentence).Once a claim has been (finally) legally established (eg, in an ‘Urteil’ (judgment) or‘vollstreckbare Urkunde’ (enforceable document)), it becomes statute-barred in 30years, even if the actual limitation period is shorter (§ 218(i)).(c) Other important limitation periods contained in the BGB are as follows:– in the case of a contract of sale (‘Kaufvertrag’) of movables, six months fromdelivery (‘Ablieferung’), provided that the relevant fault was not fraudulentlyconcealed (‘arglistig verschwiegen’): § 477(i) BGB; 94– in the case of a rental agreement (‘Mietvertrag’), 95 six months from:(i) return of the item rented, in respect of claims by the lessor forcompensation for alterations or deterioration;(ii) the end of the rental agreement, in respect of claims by the lessee forcompensation for expenditure (under § 547 BGB) or removal of fittings(under § 547a BGB): § 558 BGB;– in the case of a contract for services (‘Werkvertrag’), six months from acceptance(‘Abnahme’), provided that the relevant fault was not fraudulently concealed:§ 638(i) BGB.Where the ‘Werkvertrag’ involves a piece of land or a building, the period isextended to one year and five years (from acceptance) respectively:– in the case of a tort (‘unerlaubte Handlung’), three years from knowledge of thedamage and the identity of the tortfeasor, otherwise 30 years from the timethe damaging act was committed: § 852(i) BGB; 96– in the case of a claim to a compulsory portion of an estate (‘Pflichtteil’), threeyears from the time the claimant acquires knowledge of the ‘Erbfall’ (the evententitling him or her to inherit, ie, the testator’s death: § 1922(i) BGB) and ofthe relevant impairing transaction (‘beeinträchtigende Verfügung’)—eg, a willcontaining a disinheritance (‘Enterbung’)—otherwise 30 years from theoccurrence of the entitling event: § 2332(i) BGB. 97(d) In certain cases, ‘Verjährung’ is temporarily suspended/prevented from running(‘gehemmt’), eg, where a creditor grants a respite (‘Stundung’), 98 during marriagein the case of claims between spouses or where faulty work carried out under a‘Werkvertrag’ (contract for services) needs to be rectified (§§ 202–207 and 639(ii)).Alternatively, ‘Verjährung’ can be interrupted (‘unterbrochen’), eg, by the debtor’sacknowledgement of debt (‘Anerkenntnis’), by the issue of a writ (‘Klage’) or serviceof a default notice (‘Mahnbescheid’), by a claim of set-off (‘Aufrechnung’) or issue ofa 3rd party notice (‘Streitverkündung’) in proceedings or by acts of enforcement(‘Vollstreckungshandlungen’): §§ 208–216.The effect of such an interruption (‘Unterbrechung’) is that the period up to it is nottaken into account and that after it ends a (full) new ‘Verjährung’ begins: § 217.43

The German Legal System and Legal Language(e) A debtor who satisfies an ‘Anspruch’, which has become statute-barred, has noright of reclaim, even if he did not know of the ‘Verjährung’ (§ 222(ii)). However,the ‘Verjährung’ of an ‘Anspruch’ does not prevent a mortgagee or chargee fromenforcing his mortgage or charge (§ 223(i)).Whilst by agreement a limitation period can be shortened, 99 ‘Verjährung’ cannotbe excluded or rendered more difficult (§ 225).C BOOK II: THE LAW OF OBLIGATIONS (§§ 241–853 BGB) 1001 IntroductionBook II of the BGB is entitled ‘Recht der Schuldverhältnisse’ (law of obligations). It consists ofseven Sections, which are traditionally divided into a general part (‘Allgemeiner Teil’ (AT):Sections 1–6, §§ 241–432) and a special part (‘Besonderer Teil’ (BT): Section 7, §§ 433–353).The general part sets out, for example, the principles governing the content,disturbance and termination of contracts, damages and assignment, while the specialpart sets out in 25 Titles provisions regarding various individual types of contract—which apply in the absence of contrary agreement—and statutory obligations.2 Points to NoteIt is important to understand the following:1 The main example of a ‘rechtsgeschäftliches Schuldverhältnis’ (obligation (relationship)arising from a legal transaction) is the ‘Vertrag’ (agreement or contract). 1012 German law distinguishes rigidly between the law of obligations (‘Schuldrecht’)and the law of property (‘Sachenrecht’). By means of the abstraction principle(‘Abstraktionsgrundsatz’), the ‘Verpflichtung’ (obligation) of a ‘Rechtssubjekt’ (legalsubject or person) is strictly separated from his ‘Verfügung’ (disposition), ie, histransfer, release, burdening or variation of a (subjective) right (‘Übertragung,Aufhebung, Belastung oder Änderung eines Rechtes’). Both are ‘Rechtsgeschäfte’, butare independent of each other. 102The ‘sale’ of a book, for example, requires not only an obligatory contract, but alsothe transfer of ownership (‘Übereignung’). Only when the latter (abstract)transaction is concluded, is the former performed (‘erfüllt’). 103By § 433(i), 1st sentence BGB the contract of sale (‘Kaufvertrag’) of a ‘Sache’ obligesthe vendor to do two things:(a) transfer physical possession of (ie, hand over) the ‘Sache’=‘Übergabe’; and(b) ensure that ‘Eigentum’ (ownership) over the ‘Sache’ passes to the purchaser =‘Verschaffung von Eigentum’.The ‘Kaufvertrag’ itself merely creates a ‘Verpflichtung’ (obligation). The actualtransfer of ownership (the ‘Übereignung’ (a ‘Verfügung’)) is dealt with separatelyin Book III of the BGB according to whether movables (§§ 929–984) or immovables(§§ 873 and 925–928) are concerned. 10444

Chapter X: Private Law: The Civil Code (BGB)In this connection, it is vital to understand the construction of the BGB and itsnorms (the ‘Gesetzesaufbau’):– whether or not a valid ‘Rechtsgeschäft’ (eg, a ‘Kaufvertrag’) has been concludedis the domain of the ‘Allgemeiner Teil’ (Book I), which supplements the rest ofthe BGB and deals with general questions first (such matters are said to be‘vor die Klammer gezogen’ (drawn before the clasp);– the usual pattern of German legal norms is that, first, the content (‘Tatbestand’)of the norm—a particular ‘Vomussetzung’ ((pre)condition; in § 433(i), 1stsentence the existence of a ‘Kaufvertrag’)—is stated and, second, a particularlegal consequence (‘Rechtsfolge’; in § 433(i), 1st sentence the ‘Verpflichtung’ ofthe vendor) is laid down. 1053 ‘Schuldverhältnisse’ (obligations) can arise either from (‘aus’) a ‘Rechtsgeschäft’ (socalled‘rechtsgeschäftliche Schuldverhältnisse’, eg, ‘Vertrag’) 106 or from statute. Examplesof statutory obligations (‘gesetzliche Schuldverhältnisse’) are torts (‘unerlaubteHandlungen’) 107 and unjust enrichment (‘ungerechtfertigte Bereicherung’). 1083 Sections 1-7 109 (a) Section 1 (§§ 241–304 BGB) 110Section 1 of Book II (§§ 241–304) deals with the ‘Inhalt’ (content) of ‘Schuldverhältnisse’(obligations) and is divided into two Titles:Title 1: ‘Verpflichtung zur Leistung’ (duty (of the ‘Schuldner’ (debtor/obligor)) toperform): §§ 241–292.The term ‘Leistung’ has no equivalent usage in English. In German legal speech itexpresses the content of a ‘Schuldverhältnis’ (obligation), ie, what is owed.A ‘Schuldverhältnis’ gives rise to a ‘Leistungsverpflichtung’ or ‘-pflicht’ (duty ofperformance) on the part of a ‘Schuldner’. 111The counterpart of the ‘Leistung(-spflicht)’ owed by the ‘Schuldner’ is the right orentitlement (‘das Recht’/‘die Berechtigung’) of the ‘Gläubiger’ (creditor/obligee) to demand(‘fordern’) it/performance (§ 241). This right is, accordingly, referred to as a(‘schuldrechtliche’) ‘Forderung’ ((contractual) claim or demand). If the ‘Gläubiger’ himselfowes a reciprocal ‘Leistung’, it is referred to as a ‘Gegenleistung (counter-performance),eg, the price payable by a purchaser. 112When using the term ‘Leistung’ it should be borne in mind that it can be used to meanboth the performance (result) owed by the ‘Schuldner’—the ‘Leistungserfolg’—and theact/conduct (‘Verhalten’) or omission (‘Unterlassen’) due from him (the ‘Leistungshandlung).The ‘Leistung referred to in § 241 BGB is the ‘Leistungshandlung’ . 113Moreover, there is a basic difference in legal meaning between the term ‘Leistung’and the term ‘Erfüllung’ (§ 362(i)), both of which can be translated as ‘performance’.When the BGB refers to ‘Erfüllung’ it has the technical meaning of the (proper) fulfilment(performance) by the ‘Schuldner’ of his ‘Leistungspflicht’, 114 as a result of which theindividual claim (‘Anspruch’) of the ‘Gläubiger’ against the ‘Schuldner’ is extinguished. 115Title 2: ‘Verzug des Gläubigers’ (delay of the creditor/obligee): §§ 293–304.45

The German Legal System and Legal LanguageArrangement of Titles 1 and 2§§ 241–304 can be arranged into the following groups:Title 1§§ 241–242: ‘Leistungspflicht’ (duty of performance)§§ 243–245: ‘Leistungsgegenstand’ (object of performance)§ 243: Gattungsschuld’ (generic debt) 116§§ 244–245 ‘Geldschuld’ (money debt) 117§§ 246–248: ‘Zinsen’ (interest (on the debt))§§ 249–255: ‘Schadensersatz’ (damages) 118§ 249: Art und Umfang des Schadensersatzes’ (type and extent ofdamages)§ 250: Schadensersatz in Geld nach Fristsetzung’ (damages in moneyafter setting a time limit)§ 251: ‘Schadensersatz in Geld ohne Fristsetzung’ (damages in moneywithout setting a time limit)§ 252: ‘Entgangener Gewinn’ (lost profit)§ 253: ‘Immaterieller Schaden’ (non-financial loss) 119§ 254: ‘Mitverschulden’ (contributory fault (on the part of the injuredparty)) 120§ 255: ‘Abtretung der Ersatzansprüche’ (assignment of compensationclaims)§§ 256–257: ‘Aufwendungsersatz’ (compensation for expenditure) 121§ 258: ‘Wegnahmerecht (bei Herausgabepflicht)’ (right of removal (from a thing whichhas to be returned))§§ 259–261: ‘Auskunftspflicht’ (duty of information)§§ 262–265: ‘Wahlschuld’ (selectable (alternative) debt) 122§ 266: ‘Teilleistungen’ (partial performance) 123§§ 267–268: ‘Leistung durch Dritte’ (performance by a third party)§§ 269–270: ‘Leistungsort’; ‘Zahlungsort’ (place of performance; place of payment)§§ 271–272: ‘Leistungszeit’ (time of performance) 124§§ 273–274: ‘Zurückbehaltungsrecht’ (right of retention (withholding)) 125§§ 275–283: ‘Leistungsstörungen’ (disturbances in performance) 126§§ 284–290:‘Verzug des Schuldners’ (delay on the part of the debtor)§§ 284–285:‘Voraussetzungen’ (preconditions) 127§§ 286–290:‘Rechtsfolgen’ (legal consequences)— replacement of damage resulting from delay (‘Verzugsschaden’):§ 286— extended liability during delay (‘erweiterte Haftung’): § 287— interest during delay (‘Verzugszinsen’): §§ 288–290 12846

Chapter X: Private Law: The Civil Code (BGB)§§ 291–292:‘Lage des Schuldners nach Rechtshängigkeit’ (position of the debtor once amatter is sub judice)Title 2§§ 293–304:‘Verzug des Gläubigers’ (delay on the part of the creditor)§§ 293–299:‘Voraussetzungen’ (preconditions)§§ 300–304:‘Rechtsfolgen’ (legal consequences) 129(b) Section 2 (§§ 305–361 BGB) 130Section 2 of Book II (§§ 305–361) deals with obligations arising out of ‘Verträge’ (contracts)(ie, so-called ‘rechtsgeschäftliche Schuldverhältnisse’) and is divided into five Titles:Title 1: ‘Begründung’ (establishment (of a ‘rechtsgeschäftliche’ obligation by meansof a ‘Vertrag’); ‘Inhalt’ ((content) of the ‘Vertrag’): §§ 305–319.Title 2: ‘Gegenseitiger Vertrag’ (reciprocal/synallagmatic contract): §§ 320–327. 131Title 3:‘Versprechen der Leistung an einen Dritten’ (promise of performance for thebenefit of a third party): §§ 328–335.Title 4: ‘Draufgabe’ (bonus); ‘Vertragsstrafe’ (contractual penalty): §§ 336–345.Title 5: ‘Rücktritt’ (rescission): §§ 346–361.Arrangement of Titles 1–5§§ 305–361 can be arranged into the following groups:Title 1§ 305: ‘Begründung’ (establishment) 132§§ 306–307: ‘Anfängliche Unmöglichkeit’; ‘Ersatz des Vertrauensschadens’ (initial (objective)impossibility; compensation for damage suffered due to reliance on thevalidity of the contract)§ 308: ‘Vorübergehende Unmöglichkeit’ (temporary impossibility)§ 309: ‘Gesetzwidriger Vertrag’ ((corresponding application of §§ 307–308 to a)contract contrary to statute)§§ 310–312: ‘Verträge über künftiges oder gegenwärtiges Vermögen oder über den Nachlaßeines lebenden Dritten’ (contracts regarding future or present assets or theestate of a living third party)§ 313: ‘Form der Verpflichtung zur Veräußerung oder zum Erwerb eines Grundstücks’ (formof an agreement for the sale or purchase of a piece of land)§ 314: ‘Erstreckung auf Zubehör’ (extension (of a contract) to accessories)§§ 315–316: ‘Bestimmung der Leistung (Gegenleistung) durch eine Partei’ (specification ofperformance (or counter-performance) by one party) 133§§ 317–319: ‘Bestimmung der Leistung durch einen Dritten’ (specification of performanceby a third party)47

The German Legal System and Legal LanguageTitle 2§ 320: ‘Einrede des nichterfüllten Vertrags’ (objection to (right to decline)performance until counter-performance is effected)§ 321: ‘Vermögensverschlechterung’ (right to decline performance where anobligation to perform in advance (‘Vorleistungspflicht’) exists and there is adeterioration in the other party’s assets)§ 322: ‘Folgen der Einrede’ (procedural consequences of the objection; judgment‘Zug um Zug’ (one against the other))§§ 323–325: ‘Nachträgliche Unmöglichkeit’ (subsequent impossibility—effect on the‘Gegenleistung’; position of the other party)§ 326: ‘Verzug; Fristsetzung mit Ablehnungsandrohung’ (delay; setting of a time limitwith threat of rejection)§ 327: ‘Anwendbarkeit der §§ 346–356 beim gesetzlichen Rücktritt’ (application of §§346–356 to the statutory right of rescission) 134Title 3§ 328: ‘Vertrag zugunsten Dritter’ (contract for the benefit of a third party) 135§§ 329–332: ‘Auslegungsregel’ (rules of interpretation)§ 329: ‘Erfüllungsübernahme’ ((internal) promise of performance) 136§ 330: ‘Lebensversicherungsvertrag’ (life insurance contract)§ 331: ‘Leistung nach Todesfall’ (performance after death of the promisee)§332: ‘Änderung durch Verfügung von Todes wegen bei Vorbehalt’(substitution of the third party by the promisee is also possiblein a ‘Verfügung von Todes wegen’, if the right is reserved)§§ 333–335: Miscellaneous§ 333: ‘Zurückweisung des Rechts durch den Dritten’ (rejection of theright by the third party)§ 334: ‘Einwendungen des Schuldners’ (objections by the promisor(debtor))§ 335: ‘Forderungsrecht des Versprechensempfänger’ (right of thepromisee to demand performance (to the third party))Title 4§§ 336–338: ‘Draufgabe’ (bonus)§§ 339–345: ‘Vertragsstrafe’ (contractual penalty) 137Title 5§§ 346–361:apply directly only in the case of a right of rescission (termination/withdrawal) being reserved in a contract (‘Rücktrittsvorbehalt’) eg, inconjunction with a reservation of title (§ 455 BGB). However, their mainimportance is their corresponding application (‘entsprechendeAnwendung’) to statutory rights of rescission (§§ 327, 440(i), 467, 634(iv);also §§ 280(ii), 286(ii)). 13848

Chapter X: Private Law: The Civil Code (BGB)§§ 346–349: ‘Wirkung’; ‘Haftung’; ‘Erklärung’ (effect of rescission; liability; requirementof an ‘Erklärung’ (declaration))§§ 350–353: ‘Ausschluß des Rücktritts’ (exclusion of rescission)§§ 354–355: ‘Fristsetzung für Rückgewähr’; ‘Fristsetzung für die Ausübung desRücktrittsrechts’ (setting of a time limit for return of the relevant item; settingof a time limit for the exercise of the right of rescission)§ 356: ‘Mehrere Beteiligte’ (exercise of the right of rescission by or against severalpersons)§§ 357–361: ‘Rücktritt in besonderen Lagen’ (rescission in special situations):§§ 357–358: (‘wegen Nichterfüllung’ (for non-performance))§ 359: (‘gegen Reugeld’ (on payment))§ 360: (‘Verwirkungsklausel’ (in the case of a forfeiture clause))§ 361: (in the case of a ‘Fixgeschäft’ (a (relative) time-relatedtransaction).§ 361 BGB is a special provision enabling a ‘Gläubiger’ (obligee) to rescind where a‘gegenseitiger Vertrag’ (reciprocal contract) is involved, according to which performanceis to take place exactly (‘genau’) at a certain time (‘zu einer fest bestimmten Zeit’) orwithin a certain period (‘innerhalb einer fest bestimmten Frisit’). In other words, time isof the essence (‘von entscheidender Bedeutung’).The area of operation of § 361 BGB is limited to the narrow concept of the ‘Fixgeschäft’(time-fixed transaction). It must be carefully distinguished from:(i) the situation where performance can (objectively) only take place at a particulartime, ie, the transaction stands and falls (‘steht und fällt’), if performance does notthen take place. Later performance would be pointless (‘sinnlos’). That is a case of(absolute) impossibility and § 361 BGB does not apply;(ii) the (mere) specification of a date for performance (‘Fälligkeitstermin’). Of itself,that is not enough to establish a ‘Fixgeschäft’. Rather, if the date is missed, it is acase of delay (‘Verzug’);(iii) § 326 BGB. Unlike § 326 BGB, § 361 gives no right to claim damages (‘Schadensersatz’).However, § 361 BGB does not require the setting of a deadline with a threat ofrejection (‘Fristsetzung mit Ablehnungsandrohung’) and a ‘Gläubiger’ can rescind under§ 361 BGB even if there is no blame (‘Verschulden’) on the part of the ‘Schuldner’. 139Exposé: particular issues regarding rescission (‘Rücktritt’)Worthy of closer attention are the difficult provisions §§ 347 and 351 BGB. The formerdeals with questions of liability in the event of rescission and the latter with one of thesituations—dealt with in §§ 350–353 BGB—in which the right of rescission is excluded,(a) By § 347, 1st sentence BGB, in the event of rescission, claims for damages due tothe deterioration, loss or other impossibility of return of the relevant item sincethe time of its receipt (‘von dem Empfange der Leistung an’) are governed by the(strict) rules regarding the relationship between an ‘Eigentümer’ (owner) and‘Besitzer’ (possessor), ie, by §§ 987ff BGB. 14049

The German Legal System and Legal Language§ 351 BGB provides that rescission cannot be sought, if the claimant is to blame fora significant deterioration, the loss or other impossibility of return of (a large partof) the item received.When considering §§ 347 and 351 BGB, it must be borne in mind that complexdistinctions are made, according to whether contractual or statutory rescission isinvolved and according to which party is due to return the item concerned (ie,either the person seeking to rescind or the opponent/other party (the‘Rücktrittsgegner’)). Thus, while § 347 BGB applies to both parties to a contractualrescission and to the liability of the ‘Rücktrittsgegner’ (the party in default) in astatutory rescission, it is ousted in cases of statutory rescission by § 327, 2ndsentence BGB with regard to the question of the liability of the (‘other’) party,who is not to blame for the rescission (the innocent party). § 327, 2nd sentenceBGB is regarded as expressing a general principle that an innocent party is onlyliable under the unjust enrichment provisions (§§ 812ff BGB). The strict rules laiddown in §§ 987ff then do not apply.(b) Contractual and statutory rescission also have to be kept distinct for the purposeof the definition of blame (‘Verschulden’) in §§ 347 and 351. In cases of contractualrescission, § 276 BGB applies, but when statutory rescission is concerned,‘Verschulden’ is understood in a wider, non-technical sense: failure to exercise thedegree of care, to which one is accustomed in one’s own affairs (‘die in eigenenAngelegenheiten gebotene Sorgfalt’ or ‘diligentia quam in suis’)—so-called ‘Verschuldengegen sich selbst’ (blame against oneself)—is necessary (but also suffices). Moreover,while in cases of contractual rescission the question of knowledge (‘Kenntnis’) ofthe grounds for rescission is not a relevant consideration, it is important whenstatutory rescission is involved, ie, were the relevant acts undertaken withknowledge of the right of rescission (the conduct is then blameworthy) orinnocently? In the latter situation, the blameless rescinding party is not preventedfrom rescinding and is only liable under §§ 812ff BGB.The reason for these differentiations in cases of statutory rescission lies in the factthat the parties reckon with rescission whenever it is provided for in theircontract—and have to bear the usual consequences—but not when the right arisesfrom statute. The issue of blame then becomes relevant.(c) The following points regarding the BGB rescission provisions should also be noted:1 Sometimes other special mandatory statutory rules concerning rescission exist.They then take precedence over §§ 346ff BGB.2 Rescission does not affect claims arising from PVV.3 §§ 350–353 BGB are dispositive, ie, they can be excluded by the parties.4 §§ 350–353 BGB relate only to the position of the person seeking to rescind,not the other party.5 §§ 350–353 BGB only apply before the right of rescission is exercised. The exerciseof the right of rescission requires a declaration to the other party: § 349 BGB.6 §§ 350–353 BGB presuppose that the changes (‘Veränderungen’) which occurin the item received are significant (‘wesentlich’).50

Chapter X: Private Law: The Civil Code (BGB)7 In the case of events subsequent to the declaration of rescission or changeswhich are insignificant, § 347 BGB—and not §§ 350–353 BGB—applies.8 In the event of fortuitous loss, § 350 BGB amends the usual position regardingcarriage of risk (§§ 446, 447 BGB) in favour of the person claiming rescission.It is a controversial provision.9 § 352 BGB excludes rescission, if the item involved is transformed (‘umgestaltet’)into something else.10 The principle underlying §§ 351 and 352 BGB is that rescission should beexcluded whenever the person seeking to exercise the right would therebyact contrary to his own previous conduct (‘venire contra factum proprium’). 141(c) Section 3 (§§ 362–397 BGB) 142Section 3 of Book II (§§ 362–397) deals with the ‘Erlöschen’ (extinction/discharge/ending) of obligations and is divided into four Titles:Title 1: ‘Erfüllung’ (fulfilment/performance): §§ 362–371. 143Title 2: ‘Hinterlegung’ (deposit): §§ 372–386.Title 3: ‘Aufrechnung’ (set-off): §§ 387–396.Title 4: ‘Erlaß’ (remission of debt): § 397.Arrangement of Titles 1–4§§ 362–397 deal with the ‘Beendigung’ (ending) of ‘Schuldverhältnisse’ (and thereby theextinction of the relevant ‘Ansprüche’ (claims)) by the ‘Befriedigung’ (satisfaction) ofthe creditor’s interest in performance.Events which, broadly speaking, can also cause a ‘Schuldverhältnis’ (or ‘Anspruch’)to end or which can cause a ‘Rechtsgeschäft’ to lose its effect are: 144– ‘Nichtigkeit’ (nullity (by operation of law)); 145– § 142(i): ‘Anfechtung’ (challenge); 46– ‘Kündigung’ (termination by notice (for the future)); 147– § 158(ii): ‘Eintritt einer auflösenden Bedingung’ (occurrence of a resolutivecondition); 148– ‘§ 163: ‘Zeitablauf’ (lapse of time);– § 242: ‘Verwirkung’ (forfeiture) or ‘Wegfall der Geschäftsgrundlage’ (collapse of thebasis of the transaction (frustration)); 149– § 305: ‘Aufhebungsvertrag’ (contrary agreement) or ‘Novation’ (novation); 150– §§ 275ff, §§ 323ff: ‘Leistungsstörung’ (disturbance in performance); 151– §§ 346ff: ‘Rücktritt’ (rescission). 152Titles 1–4 can be arranged into the following groups:Title 1‘Erfüllung’§§ 362–363: ‘Wirkung’ (effect); ‘Beweislast’ (burden of proof)§§ 364–365: ‘Leistung an Erfüllungs Statt’ (performance in lieu)51

The German Legal System and Legal Language§§ 366–367: ‘Anrechnung’ (credit)§§ 368–371: ‘Pflichten des Gläubigers’ (duties of the creditor)§§ 368–370: ‘Quittung’ (receipt)§ 371: ‘Rückgabe des Schuldscheins’ return of document confirmingthe debt)Title 2 ‘Hinterlegung’ 153§§ 372–375: ‘Voraussetzungen’ (preconditions); ‘allgemeine Vorschriften’ (generalconditions)§§ 376–377: ‘Rücknahmerecht’ (right of reclaim)§§ 378–379: ‘Wirkung der Hinterlegung’ (effect of deposit)§§ 380–382: ‘Nachweis und Erlöschen des Gläubigerrechts; Kosten’ (proof and extinctionof the creditor’s right; costs)§§ 383–386: ‘Selbsthilfeverkauf durch Versteigerung; Kosten’ (self-help sale by auction; costs)Title 3 ‘Aufrechnung’ 154§§ 387–388: ‘Voraussetzungen’ (preconditions); ‘Erklärung’ (declaration)§ 389: ‘Wirkung’ (effect)§§ 390–395: ‘Ausschluß durch Gesetz’ (exclusion (by statute))§ 396: ‘Mehrere Forderungen’ (several claims)Title 4 ’Erlaß’§ 397: ‘Wirkung’ (effect)(d) Section 4 (§§ 398–413 BGB)Section 4 of Book II (§§ 398–413) deals with the ‘Übertragung’ (transfer) of a ‘Forderung’(claim) by means of a contract of ‘Abtretung’ (assignment). 155§§ 398–413 can be arranged into the following groups:§ 398: ‘Begriff’ (definition); ‘Wirkung’ (effect)§§ 399–400: ‘Ausschluß’ (exclusion)§401: ‘Übergang von Neben- und Vorzugsrechte’ (transition of accompanying andpreferential rights)§§ 402–403: ‘Pflichten des (bisherigen) Gläubigers’ (duties of the (previous) creditor)§§ 404–411: ‘Schuldnerschutz’ (protection of the debtor)§ 412: ‘Gesetzlicher Forderungsübergang’ (assignment by operation of law) 156§ 413: ‘Übertragung anderer Rechte’ (transfer of other rights)(e) Section 5 (§§ 414–419 BGB)Section 5 of Book II (§§ 414–419) deals with ‘Schuldübernahme’ (substitution). 157§§ 414–419 can be arranged into the following groups:§§ 414–415: ‘Vereinbarung des Übernehmers entweder mit dem Gläubiger oder mit demSchuldner’ (agreement between the third party and either the creditor orthe debtor)52

Chapter X: Private Law: The Civil Code (BGB)§ 416: ‘Übernahme einer Hypothekenschuld’ (assumption of a mortgage debt)§ 417: ‘Einwendungen des Übernehmers’ (objections by the third party)§418: ‘Erlöschen von Sicherungs- und Vorzugsrechten’ (extinction of security andpreferential rights)§419: ‘Vermögensübernahme’ (assumption of assets); ‘Haftung des Übernehmers’(liability of the third party)(f) Section 6 (§§ 420–432 BGB)Section 6 of Book II (§§ 420–432) is entitled ‘Mehrheit von Schuldnern und Gläubigern’(multitude of debtors and creditors). 158§§ 420–432 can be arranged into the following groups:§ 420: ‘Teilbare Leistung’ (divisible performance)§ 421: ‘Gesamtschuldner’ (joint debtors)§§ 422–425: ‘Wirkung’ (effect) of ‘Erfüllung’ (performance); ‘Erlaß’ (remission of debt);‘Gläubigerverzug’ (delay on the part of the creditor); and ‘anderer Tatsachen’(other facts) for or against joint debtors§ 426: ‘Innenverhältnis’ (internal relationship); ‘Ausgleich’ (indemnity)§ 427: ‘Auslegungsregel’ (rule of interpretation) in the case of a ‘teilbaren Leistung’(divisible performance)§§ 428–430: ‘Gesamtgläubiger’ (joint creditors)§§ 431–432: ‘Unteilbare Leistung’ (indivisible performance); ‘Mitgläubiger’ (co-creditors)(g) Section 7 (§§ 433–853 BGB) 159Section 7 of Book II (§§ 433–853) deals with the typical individual ‘Schuldverhältnisse’(both ‘rechtsgeschäftliche’ and ‘gesetzliche’) and is arranged into 25 Titles as follows:Title 1: ‘Kauf’ (purchase); ‘Tausch’ (exchange): §§ 433–515. 160Title 2: ‘Schenkung’ (gift): §§ 516–534. 161Title 3: ‘Miete’ (tenancy/lease); ‘Pacht’ (commercial lease): §§ 535–597. 162Title 4: ‘Leihe’ (gratuitous loan): §§ 598–606. 163Title 5: ‘Darlehen’ (loan): §§ 607–610. 164Title 6: ‘Dienstvertrag’ (contract of service): §§ 611–630. 165Title 7: ‘Werkvertrag’ (contract for services); ‘Reisevertrag’ (travel contract): §§ 631–651k. 166Title 8: ‘Maklervertrag’ ((civil) agency contract): §§ 652–656. 167Title 9: ‘Auslobung’ (public offer of reward): §§ 657–661. 168Title 10: ‘Auftrag’ ((gratuitous) contract of instruction, mandate): §§ 662–676. 169Title 11: ‘Geschäftsführung ohne Auftrag’ (transaction (of a matter) withoutinstruction): §§677–687. 170Title 12: ‘Verwahrung’ (deposit in custody): §§ 688–700. 17153

The German Legal System and Legal LanguageTitle 13:‘Einbringung von Sachen bei Gastwirten’ (bringing in of things at a‘Gastwirtschaft’ (inn): §§ 701–704. 172Title 14: ‘Gesellschaft’ (company): §§ 705–740. 173Title 15: ‘Gemeinschaft’ (community): §§ 741–758. 174Title 16: ‘Leibrente’ (annuity, pension for life): §§ 759–761. 175Title 17: ‘Spiel’ (game); ‘Wette’ (bet): §§ 762–764. 176Title 18: ‘Bürgschaft’ (contract of surety): §§ 765–778. 177Title 19: ‘Vergleich’ (settlement): § 779. 178Title 20:‘Schuldversprechen’ (promise); ‘Schuldanerkenntnis’ (acknowledgement ofdebt): §§ 780–782. 179Title 21: ‘Anweisung’ (documentary instruction): §§ 783–792. 180Title 22: ‘Schuldverschreibung auf den Inhaber’ (bearer bond): §§ 793–808a. 181Title 23: ‘Vorlegung von Sachen’ (presentation for inspection): §§ 809–811.Title 24: ‘Ungerechtfertigte Bereicherung’ (unjust enrichment): §§ 812–822. 182Title 25: ‘Unerlaubte Handlungen’ (torts): §§ 823–853. 183Arrangement of Titles 1–25Arrangement of Title 1§§ 433–515 are arranged as follows:I ‘Allgemeine Vorschriften’ (general provisions): §§ 433–458§433: ‘Grundpflichten des Verkäufers und Käufers’ (basic duties of vendor andpurchaser) 184§ 434: ‘Gewährleistung wegen Rechtsmängel’ (liability for legal faults (title)) 185§§ 435–436: ‘Nicht bestehende Buchbelastungen’; ‘Öffentliche Lasten bei Grundstücken’ (nonexistentregistered charges; public charges over land)§§ 437–438: ‘Verkauf einer Forderung oder sonstigen Rechtes’ (sale of a claim or other right)§ 439: ‘Kenntnis des Käufers vom Rechtsmangel’ (the purchaser’s knowledge of alegal fault)§§ 440–441: ‘Rechte des Käufers’ (rights of the purchaser)§§ 442–444: ‘Beweislast für Rechtsmängel’; ‘Ausschluß der Gewährleistung (für Rechtsmängel)’;‘Nebenpflichten des Verkäufers’ (burden of proof of legal faults; exclusion ofliability (for legal faults); the vendor’s (statutory) accessory duties)§ 445: ‘Ähnliche Verträge’ (similar contracts)§§ 446–447: ‘Übergang des Preisgefahrs’; ‘Nutzungen’; ‘Lasten’ (transition of (price) risk;benefit; burden) 186§§ 448–450: ‘Nebenpflichten des Käufers’ (the purchaser’s (statutory) accessory duties)§ 451: ‘Entsprechende Anwendung von §§ 446–450 bei Rechtskauf’ (correspondingapplication of §§ 446–450 to the sale of a right to a thing)54

Chapter X: Private Law: The Civil Code (BGB)§ 452: ‘Verzinsung des Kaufpreises’ (interest on the purchase price)§ 453: ‘Marktpreis’ (market price)§ 454: ‘Ausschluß des Rücktrittsrechts’ (exclusion of the right of rescission)§ 455: ‘Eigentumsvorbehalt’ (retention of title) 187§§ 456–458: ‘Kaufverbote’ (forbidden purchases)II ‘Gewährleistung wegen Mängel der Sache’ (liability for faulty goods): §§ 459–493 188§ 459: ‘Haftung für Sachmängel’ (liability for faulty goods) 189§ 460: ‘Kenntnis des Käufers’ (knowledge of the purchaser)§ 461: ‘Pfandverkauf’ (sale on the basis of a lien: vendor’s liability)§§ 462–465: ‘Rechtsfolgen’ (legal consequences)§ 466: ‘Ausschlußfrist für Wandlung’ (exclusion period for rescission)§ 467: ‘Anwendbare Vorschriften bei der Durchführung der Wandlung’ (provisionsapplicable to rescission) 190§§ 468–471: ‘Wandlung in besonderen Lagen’ (rescission in particular situations)§ 472: ‘Berechnung der Minderung’ (calculation of reduction in price)§§ 473–475: ‘Minderung in besonderen Lagen’ (reduction in price in particular situations)—‘Sachleistungen als Kaufpreis’ (performance in kind): § 473—‘Mehrere Beteiligte’ (several parties): § 474—‘Mehrmalige Gewährleistung’ (repeated liability): § 475§ 476: ‘Vertraglicher Ausschluß der Gewährleistung’ (contractual exclusion ofliability)§ 476a: ‘Aufwendungen beim Recht auf Nachbesserung’ (vendor’s liability for costswhere a right to request repair is substituted)§ 477: ‘Verjährung’ (limitation period)§§ 478–479: ‘Lage nach Verjährung bei vorheriger Mängelanzeige’ (supervening limitation)§ 480: ‘Gattungskauf’ (generic purchase)§§ 481–492: ‘Viehkauf usw’ (sale of cattle etc)§ 493: ‘Kaufähnliche Verträge’ (similar contracts)III ‘Besondere Arten des Kaufes’ (special types of purchase): §§ 494–514 1911 ‘Kauf nach Probe. Kauf auf Probe’ (purchase by sample; purchase on approval)§ 494: ‘Kauf nach Probe’ (purchase by sample)§§ 495–496: ‘Kauf auf Probe’ (purchase on approval)2 ‘Wiederkauf’ (repurchase)§§ 497–5033 ‘Vorkauf’ (preemption)§§ 504–514IV ‘Tausch’ (exchange): § 515 19255

The German Legal System and Legal LanguageExposé: ‘Fernabsatz’ (Long-Distance Transactions)On 30.6.2000, the Law concerning Long-Distance Transactions (‘Fernabsatzgesetz’;FernAbsG) came into force.The FernAbsG is an attempt to counteract perceived disadvantages of consumers,who conclude transactions (not merely purchases) when not face-to-face with the otherparty, eg, electronically via the Internet. It also clamps down generally on undesirablebusiness practices by inserting a new § 22 into the AGBG.The FernAbsG casts the net widely, but, in reality, there are various preconditionsfor its application and many types of transaction are either expressly excluded fromthe scope of the Law (eg, long-distance learning (correspondence) courses, agreementsinvolving real estate, time-sharing) or fall within the ambit of other statutes (eg, theConsumer Credit Law), which contain provisions more favourable for the consumer(‘günstigere Regelungen’).Thus, the FernAbsG only applies to long-distance contracts (‘Fernverträge’), whichare concluded:(a) between a business(man) (‘Unternehmer’) and a consumer (‘Verbraucher’);(b) by way of the exclusive use of long-distance means of communication(‘Fernkommunikationsmittel’); and(c) within the framework of an organised system for the distribution of products orthe provision of services (‘organisiertes Vertriebs- und Dienstleistungssystem’).The FernAbsG has generated a whole series of new supporting norms, which areincorporated into the main body of the civil law: §§ 13, 14, 241a, 361a, 361b, 661a and676h BGB; § 29a EGBGB. 193Arrangement of Title 2§§ 516–534 are arranged as follows: 194§§ 516–517: ‘Begriff’ (definition)§§ 518–520: ‘Schenkungsversprechen’ (promised gift)§§ 521–524: ‘Haftung des Schenkers’ (liability of the donor)§§ 525–527: ‘Schenkung unter Auflage’ (direction by the donor)§§ 528–534: ‘Rückforderung; Widerruf der Schenkung’ (claim to return of the gift;revocation)Arrangement of Title 3§§ 535–597 are arranged as follows (Note: new numbering applies after 1.9.2001):I ‘Miete’ (lease/tenancy): §§ 535–580a§§ 535–536: ‘Begriff; Pflichten der Parteien’ (definition; duties of the parties)§§ 537–541: ‘Haftung des Vermieters für Mängel’ (lessor’s liability for faults)§§ 541a-541b: ‘Maßnahmen zur Erhaltung/Verbesserung’ (tenant must toleratemeasures of maintenance and improvement)§§ 542–544: ‘Fristlose Kündigung durch den Mieter’ (termination without notice bythe lessee)56

Chapter X: Private Law: The Civil Code (BGB)§ 545: ‘Mängelanzeige’ (notice of faults)§ 546: ‘Lasten der Mietsache’ (lessor’s liability for charges)§ 547: ‘Ersatz von Verwendungen’ (compensation for lessee’s expenditure)§ 547a: ‘Wegnahme von Einrichtungen’ ((lessee’s right of) removal of fixtures)§ 548: ‘Abnutzung durch vertragsmäßigen Gebrauch’ (wear and tear)§ 549: ‘Untermiete’ (sub-letting)§ 550: ‘Vertragswidriger Gebrauch’ (use in breach of agreement)§ 550a: ‘Vertragsstrafe unwirksam’ (invalidity of contractual penalty)§ 550b: ‘Mietkaution’ (deposit (for residential premises))§§ 551–552a: ‘Entrichtung des Mietzinses’ (payment of rent)§§ 553–554b: ‘Fristlose Kündigung durch den Vermieter’ (termination without noticeby the lessor/landlord)§ 556: ‘Rückgabe der Mietsache’ (return of the rental object)§§ 556a-556c: ‘Widerspruch des Mieters; Fortsetzung des Mietverhältnisses’ (objectionby the tenant (to termination of a tenancy of residential premises);continuation of the tenancy)§ 557: ‘Ansprüche bei verspäteter Rückgabe’ ((lessor’s) rights in the event ofdelayed return of the rental object)§ 558: ‘Verjährung’ (limitation period (for claims))§§ 559–563: ‘Vermieterpfandrecht’ (landlord’s lien)§ 564: ‘Ende des Mietverhältnisses’ (end of the lease/tenancy)§§ 564a–564b: ‘Form und Voraussetzungen der Kündigung’ (form of and requirementsfor termination (of tenancy of residential premises))§ 564c: ‘Fortsetzung’ (continuation (of a tenancy of residential premises))§ 565: ‘(Ordentliche) Kündigungsfristen’ (time limits for (ordinary) termination(of tenancy of premises)/lease (of movables)§ 565a: ‘Verlängerung’ (extension (of tenancy of residential premises))§§ 565b-565e: ‘Werkunterkünfte’ (works accommodation)§ 566: ‘Form des Mietvertrags’ (form of tenancy agreement (of more than oneyear))§ 567: ‘Kündigung bei Verträgen für mehr als 30 Jahre’ (termination ofagreements for more than 30 years)§ 568: ‘Stillschweigende Verlängerung’ (tacit extension (of lease))§ 569: ‘Kündigung bei Tod des Mieters’ (termination following death of tenant)§§569a-569b: ‘Ehegatten; Familienangehörige’ ((position of) married couples/familymembers (following death of tenant))§ 570: ‘Versetzung des Mieters’ (tenant’s job transfer)§ 570a: ‘Vereinbartes Rücktrittsrecht’ ((corresponding application to) contractualright of rescission)57

The German Legal System and Legal Language§§571–576: ‘Veräußerung (eines vermieteten Grundstücks)’ (disposal of rentedproperty)§ 577: ‘Belastung des Mietgrundstücks’ (incumbrances over rented property)§ 578: ‘Veräußerung vor Überlassung’ (disposal before rental)§ 579: ‘Weiterveräußerung’ (further disposal)§§ 580–580a: ‘Zusätzliche Geltung der Vorschriften’ (additional application of theprovisions)II ‘Pacht’ (commercial lease): §§ 581–584b§§ 581–584bIII ‘Landpacht’ (agricultural lease): §§ 585–597§§585–597Exposé: ‘Miete’ (§§ 535–597 BGB) (Section 7, Title 3)(a) Preliminary pointsThe comparatively large number of paragraphs in the BGB on this subject reflectsits practical importance.With effect from 1.9.2001, the Rental Law Reform Act (‘Mietrechtsreformgesetz’)has brought into force detailed changes to the law concerning ‘Miete’. Theprovisions in the BGB have been extensively reorganised and renumbered.In the following exposé, the paragraph numbers stated are basically those as theyexisted up to 1.9.2001.I hope to correct and update the numbering in full in a subsequent edition of thisbook, but, in the meantime, I have inserted certain of the new paragraph numbers,as they apply from 1.9.2001, in bold print in parentheses.Any resulting confusion is regrettable, but many readers will still possess an oldedition of the BGB and new literature on the subject is appearing from day to day.For a recent synopsis of the changes see, for example, Börstinghaus in ZAP, Fach4, p 691.(b) The object of a ‘Mietvertrag’In line with the basic classification of the law of property, the object of an agreementof rental (‘die gemietete Sache’) is distinguished according to whether movables(‘bewegliche Sachen’) or immovables (ie, pieces of land (‘Grundstücke’)) areconcerned.In principle, all types of ‘Miete’ are governed by the same rules, whether the rentalis one of movables (so-called ‘Fahrnismiete’) or not. However, there are separateprovisions in the BGB regarding the rental of land, which also apply to the rental ofresidential accommodation (‘Wohnraum’) and other premises (‘Räume’): § 580 BGB.Thus, for the purposes of ‘Miete’, there is a three-fold classification to be borne in mind.An agreement of ‘Miete’ is directed to the grant of use (‘Gebrauchsüberlassung’) of a‘Sache’ in return for the agreed rent (‘Mietzins’): § 535 BGB.58

Chapter X: Private Law: The Civil Code (BGB)A collection of ‘Sachen’ (a ‘Sachgesamtheit’) can be the object of a ‘Mietvertrag’, butnot a contractual claim (‘Forderung’) or other rights. These can be the object of‘Pacht’ (commercial lease § 581 BGB).(c) Distinctions:‘Pacht’A contract of ‘Pacht’ can relate not only to corporeal things (eg, a piece of land),but can also cover incorporeal objects (eg, rights) or both together (eg, a business).By virtue of a contract of ‘Pacht’, the lessee (‘Pächter’) is granted not only the use ofthe object (as with ‘Miete), but also and especially the enjoyment of its fruits (‘Genußder Früchte’), ie, such produce or yield, which is directly or indirectly won from itsuse. 195The provisions on ‘Miete’ are of corresponding application, in so far as they arenot amended in §§ 582–584b BGB.‘Leihe’By an agreement of ‘Leihe’—in contrast to ‘Miete’—the borrower (‘Entleiher’) isgranted use of a ‘Sache’ gratuitously (‘unentgeltlich’): § 598 BGB. Accordingly, theliability of the lender (‘Verleiher’) is significantly restricted (§§ 599–600 BGB).‘Leihe’ is a so-called ‘incomplete’ bilateral contract, ie, initially there is only aunilateral obligation on the lender to provide use of the ‘Sache’ 196The borrower’s general liability for fault in connection with his use of the ‘Sache’is governed by §§ 276 and 278 BGB. In particular, he has (accessory) duties ofsafekeeping and care (‘Obhuts- und Sorgfaltspflichten’) and must bear the costs ofusual maintenance (‘gewöhnliche Erhaltungskosten’; § 601 BGB). However, theborrower bears no responsibility, if the object of the loan changes or deterioratesdue to normal use (‘vertragsmäßiger Gebrauch’): § 602 BGB.The lender can demand return of the ‘Sache’ at any time (‘jederzeit’), if the periodof the loan is neither specified nor apparent from the purpose of the loan: § 604(iii)BGB.Leasing, licence and franchise agreementsLeasing is basically a form of ‘Miete’. However, other fields of law can be relevant,eg, if there is an obligation or option to purchase the relevant asset, sale of goodslaw (§ 445 BGB) and, if the leasing customer (‘Leasingnehmer’) is a consumer, the‘Verbraucherkreditgesetz’ (Consumer Credit Law). In particular, cash-flow,reservation of title and tax considerations often play a part in financed leasing(‘Finanzierungsleasing’), which is treated as a mixed contract (‘gemischter Vertrag’). 197Other examples of contracts for the grant of the use of an asset(‘Gebrauchsüberlassungsverträge’) are the licence (‘Lizenzvertrag’) and the franchise.They usually involve a permission to use certain rights (often intellectual property)and can, therefore, be classified as varieties of ‘Pacht’. 19859

The German Legal System and Legal Language(d) Rights and duties(i) § 536 BGB (§ 535 BGB) lays down a comprehensive duty on the lessor to handover the object of a rental agreement to the lessee in such a condition (‘Zustand’)as is suitable for the contractually required use (‘vertragsmäßiger Gebrauch’) and tomaintain it in that condition during the rental period (‘Mietzeit’).In other words, the lessor must not only ensure that the rented item is in conformitywith the contract (‘vertragsgemäß’) at the moment it is handed over (‘Überlassung’),but he also has a duty to undertake all such measures as may be necessary to keepit in, and restore it to, such a condition (‘Instandhaltungs- und Instandsetzungspflicht’).The lessee can insist on performance (‘Erfüllung’). 199 The statutory rule is frequentlydeparted from in practice, ie, § 536 (§ 535 BGB) is dispositive (‘abdingbar’). Thus,the carrying out of so-called cosmetic repairs (‘Schönheitsreparaturen’), officiallythe responsibility of the lessor (§ 548 BGB) (§ 538 BGB), are often shifted onto thelessee (‘Abwälzung auf den Mieter’). 200(ii) In the event of a disturbance in performance (‘Leistungsstörung’) by the lessor, §§537–538 BGB (§§ 536–536a BGB) contain special additional provisions setting outthe position of the lessee and, in certain circumstances, giving him a remedy indamages. Their purpose is the protection of the lessee.By § 537(i) BGB (§ 536 BGB), if, on or after the handing-over of the object of therental agreement to him, a defect in the object (‘Fehler’/‘Sachmangel’) 201 exists orarises, such that the fitness of the rented item for its contractually required use(‘Tauglichkeit zu dem vertragsmäßigen Gebrauch’) is suspended, the lessee is(automatically) released (‘befreit’) from his obligation to pay rental. 202 Similarly,the lessee need only pay a reduced rental, if the fitness is (significantly) reduced.Before ‘Überlassung’, the general provisions of the BGB regarding disturbances inperformance (§§ 320ff BGB) apply. Moreover, even after ‘Überlassung’, the lessor’sgeneral duties under § 536 BGB remain separately enforceable.Like § 536 BGB, § 537 BGB (§ 536 BGB) is dispositive, ie, can be departed from bya contrary agreement (‘abweichende Vereinbarung’). However, an agreement whichdisadvantages a tenant of residential accommodation has no effect: § 537(iii) BGB.(iii) § 538(i) BGB (§ 536a BGB) grants to the lessee the right to claim damages for nonperformance(‘Schadensersatz wegen Nichterfüllung’) against the lessor in threecircumstances:(a) if there is a defect in the object of the agreement of the type described in § 537BGB at the time of conclusion of the agreement (‘bei Vertragschluß’); or(b) if such a defect arises later due to circumstances, for which the lessor is responsible;or(c) if the lessor delays rectification (‘Beseitigung’) of a defect.The lessor’s liability under (a) arises regardless of fault on his part and is extremelywide; it effectively constitutes a guarantee of the initial condition of the renteditem in favour of the tenant.60

Chapter X: Private Law: The Civil Code (BGB)If rectification is delayed, the lessee has an additional right to rectify the defecthimself and to claim reimbursement of his outlay from the lessor: § 538(ii) BGB.(iv) In certain circumstances, it may be unjust to allow a lessee to exercise the rightsspecified in §§ 537–538 BGB (§§ 536–536a BGB). Thus, if the lessee is aware of therelevant defect on conclusion of the rental agreement or remains ignorant thereof,due to gross negligence on his part, or accepts a faulty item, despite his contraryknowledge, the lessee’s rights under §§ 537–538 BGB are forfeit, unless the defectwas fraudulently concealed (‘arglistig verschwiegen’) by the lessor or the lesseereserves his position: § 539 BGB (§ 536b BGB).(v) Independently of the lessee’s rights under §§ 537–538 BGB (§§ 536–536a BGB),the lessee has an extraordinary right to terminate the rental agreement(‘außerordentliches Kündigungsrecht’), if, for whatever reason, the contractuallyrequired use is not provided to him (in time (‘rechtzeitig’)) or is withdrawn fromhim, whether in whole or in part: § 542(i), 1st sentence BGB (§ 543 BGB).The lessee must first give the lessor a reasonable opportunity to put the matterright, ie, he must set an appropriate deadline (‘angemessene Frist’). If the lessorallows the deadline to pass without taking remedial steps (‘ohne Abhilfe zu schaffen’),the lessee can terminate the agreement without notice (‘fristlos’): § 542(i), 2ndsentence BGB.Termination is not possible, if the impairment is insignificant (‘unerheblich’, ‘deminimis’), unless the lessee shows a special justifying interest (‘besonderes Interesse’):§ 542(ii) BGB. Moreover, termination can be barred under § 242 BGB, if the lesseeis to blame for the impairment (‘Verschulden’), if he does not cooperate in itsrectification (‘fehlende Mitwirkung’) or if he has forfeited his right (‘Verwirkung’;estoppel).The setting of a time limit for remedial action is not required, if performance ofthe contract is (objectively) no longer of interest to the lessee (§ 542(i), 3rd sentenceBGB), nor if the lessor ‘seriously and finally’ (‘ernsthaft und endgültig’) refuses toremedy the situation.§ 542 BGB (§ 543 BGB) can be excluded by agreement of the parties, but not in thecase of rental of residential accommodation: § 543, 2nd sentence BGB (§ 569 BGB).(vi) Apart from the parties’ primary duties (‘Hauptpflichten’), as laid down in § 535BGB, both have (unwritten) ancillary duties (‘Nebenpflichten’), which follow from§ 242 BGB. Thus, for example, the lessor and the lessee must each showconsideration (‘Rücksichtnahme’) for the other.Moreover, the lessee has a general duty to safeguard the rented item (‘allgemeineObhutspflicht’). In particular, he must notify the lessor without delay (‘unverzüglich’),if a defect in the rented object comes to light during the period of the lease or ifprotective measures (‘Schutzvorkehrungen’) need to be taken against an unforeseendanger (‘unvorhergesehene Gefahr’): § 545(i) BGB (§ 536c BGB).If the lessee fails to do so—even innocently—and, as a result, the lessor is not in aposition to take relieving action, the lessee loses his rights under §§ 537–538 BGB:61

The German Legal System and Legal Language§ 545(ii) BGB. However, the lessee’s duty of notification (‘Anzeigepflicht’) under §545 BGB (§ 536c BGB) can be modified by agreement(vii) Where the rental of premises (‘Räume’) is concerned, each party has anextraordinary right to end the agreement, if the other infringes his duties in ablameworthy manner (‘schuldhaft’) to such an extent that the party wishing toterminate cannot be expected to continue with the contract: § 554a BGB (§ 569BGB). The disturbance must be significant.By § 554b BGB, a lessor of residential accommodation (‘Wohnraum’) is limited tothe statutory grounds for extraordinary termination, as set out in the BGB (ie, §§553–554a BGB) (§§ 543, 569 BGB), but the general (unwritten) right to terminatefor an important reason (§ 242 BGB) remains unaffected.(e)(f)Written formBy § 566 BGB (§ 550 BGB), an agreement for rental of a piece of land (‘Grundstück’)for more than one year must be made in writing. 203 Written documentation is alsorequired for significant amendments (‘wesentliche Änderungen’) or supplements(‘Ergänzungen’/‘Nachträge’) to such an agreement. Collateral arrangements(‘Nebenabreden’), on the other hand, require no particular form.§ 566 BGB is a compulsory provision (‘zwingende Vorschrift’), its function being towarn the parties of the risks of entering into long term contracts (‘langfristigeVerträge’) and to inform successors in title of the lessor of the position (§ 571 BGB)(§ 566 BGB).Failure to comply with § 566 BGB (§ 550 BGB) results in the agreement beingdeemed to have been concluded for an indefinite period (‘unbestimmte Zeit’; cf §125 BGB), although it can be terminated under § 565 BGB (§ 580a BGB). 204Exceptionally, the assertion of an infringement of § 566 (§ 550 BGB) by one of theparties can constitute a breach of trust.Tenants of land and third parties§§ 571–579 BGB (§§ 566–567b, 578 BGB) are directed to the protection of theinterests of a tenant of rented land, who is confronted by transactions concludedby his landlord involving third parties.Thus, § 571(i) BGB (§ 566 BGB) provides that if the ownership of such rentedproperty—which includes residential accommodation (‘Wohnraum’)—istransferred to a third party after the property has been handed over to the lessee,the third party assumes the rights and obligations of the (former) landlord, ie,steps into the landlord’s legal position vis à vis the tenant.In conjunction with § 571 BGB (§ 566 BGB), the following points should be noted: 205(i)(ii)§ 571 BGB codifies the maxim ‘Kauf bricht nicht Miete’ (sale does not breachrental) and is an exception to the principle of privity of contract;only those rights and duties pass to the transferee, as are an inextricable part62

Chapter X: Private Law: The Civil Code (BGB)(iii)(iv)of the rental agreement, ie, the original parties remain contractually boundto each other, insofar as the relevant rights and duties are not typical of arental agreement (‘miettypisch’), but merely have a commercial connection(‘wirtschaftlicher Zusammenhang’) to it;the former landlord/owner remains liable to the tenant to fulfil such claims,as arise before the transfer takes place. In addition, the tenant can claim anindemnity against the former landlord for any loss caused by a failure onthe part of the new owner to perform his obligations. The former landlord istreated as if he had given a personal surety (‘selbtschuldnerische Bürgschaft’):§ 571(ii), 1st sentence BGB. However, if he informs the tenant of the changeof ownership, he is released from liability from the first possible date fortermination by the tenant after the change: § 571(ii), 2nd sentence BGB.the transferee is, strictly speaking, not successor in title (‘Rechtsnachfolger’)of the former landlord, but is substituted for him by operation of law (‘kraftGesetzes’). Thus, except in certain situations (§§ 573–574 BGB) (§§ 566b-cBGB), he is not bound by transactions effected by the former owner.(g) Termination and security of tenure§ 564 BGB (§ 542 BGB) sets out certain of the ways in which a rental agreementordinarily ends.Thus, § 564(i) BGB lays down the basic rule that a rental agreement entered intofor a limited period (a ‘befristeter Vertrag’) ends with the expiry of that period(‘Zeitablauf’). Extension (‘Verlängerung’) is possible, also tacitly. 206Otherwise—ie, in the case of a rental agreement with no specific date of expiry (a‘Vertrag auf unbestimmte Zeit’ or ‘unbefristetes Mietverhältnis’ )—either side canterminate the agreement by way of unilateral cancellation (‘Kündigung’): § 564(ii)BGB. The relevant notice periods—for rental agreements over land, residentialaccommodation and movables, respectively—are set out in § 565 BGB.Besides the above grounds for the ordinary termination (‘ordentliche Beendigung’)of a rental agreement, the BGB contains various provisions permitting the(extraordinary) termination of a rental agreement without notice (‘fristloseKündigung’), eg, §§ 544, 553–554b BGB (§§ 543, 569 BGB). Moreover, in keepingwith the status of a rental agreement as an ongoing obligation(‘Dauerschuldverhältnis’), its termination without notice for an important reason(‘aus wichtigem Grand’) always remains possible. 207The protection of a tenant of residential accommodation (‘Wohnraum’) againstordinary termination (ie, security of tenure) is the subject of numerous, complexprovisions in the BGB, as amended—with effect from 1.1.1975—by the second‘Wohnraumkündigungsschutzgesetz’ (2 WoRKSchG; Law concerning the Protectionof Residential Tenancies against Termination) of 18.12.1974 and—with effect from1.9.2001—by the ‘Mietrechtsreformgesetz’. Thus, broadly:63

The German Legal System and Legal Language(i)(ii)(iii)(iv)a rental agreement of residential accommodation can only be terminated inwriting. The grounds should be stated: § 564a (i) BGB (§ 568 BGB);a tenant of residential accommodation can object to termination (‘Kündigungwidersprechen’) and demand continuation of the tenancy (‘Fortsetzung desMietverhältnisses’), if normal termination would involve a hardship (‘eineHärte’) for himself or for his family such as cannot be justified, despite takinginto account the proper interests of the landlord: § 556a (i), 1st sentence BGB(the so-called ‘social clause’ (‘Sozialklausl’)) (§ 574 BGB); 208termination by the landlord for the purpose of increasing rent (so-called‘Änderungskündigung’) is forbidden: § 1 of the ‘Gesetz zur Regelung der Miethöhe’(Law to regulate the Level of Rent (MHRG)=Article 3, 2 WoRKSchG) of18.12.1974 (§§ 557–561 BGB);a landlord of residential accommodation can only terminate the tenancy, ifhe has a justified interest (‘berechtigtes Interesse’) in the termination: § 564b (i)BGB (§ 573 BGB). Otherwise, the termination is void (§ 134 BGB). 209Arrangement of Title 4§§ 598–606 are arranged as follows:§ 598: ‘Begriff ’ (definition)§§ 599–600: ‘Haftung des Verleihers’ (liability of the lender)§§ 601–604: ‘Rechte und Pflichten des Entleihers’ (rights and duties of the borrower)§ 605: ‘Kündigung’ (termination)§ 606: ‘Kurze Verjährung’ (short limitation period)Arrangement of Title 5§§ 607–610Exposé: ‘Darlehen’ (§§ 607–610 BGB) (Section 7, Title 5)§ 607(i) BGB lays down the basic rule that a person who receives money or otherfungibles (‘vertretbare Sachen’) by way of loan (‘als Darlehen’) is obliged to return whathe has received to the lender in the form of things of similar type, quality and quantity(‘Sachen von gleicher Art, Güte und Menge’).Thus, unlike ‘Miete’ and ‘Leihe’, where the same object must be returned at the end ofthe contract of rental (§ 556(i) BGB) or (gratuitous) loan (§ 604(i) BGB), the borrowerunder a ‘Darlehen’ (the ‘Darlehensnehmer’) obtains ownership of the object of the ‘Darlehen’.A ‘Darlehen’ must also be distinguished from a contract of custody (‘Verwahrung’;§§ 688–700 BGB). That type of contract is directed to safekeeping of a movable in theinterest of the depositor (‘Hinterleger’), rather than to the use of the relevant object bythe custodian (‘Verwahrer’). 210 If the custodian is intended to obtain ownership offungibles, this constitutes a so-called ‘irregular contract of custody’ (‘unregelmässigeVerwahrung’), to which the provisions regarding ‘Darlehen’ apply: § 700(i) BGB. 211Being a bilateral contract, a ‘Darlehen’ obliges the lender (the ‘Darlehensgeber’) toobtain the object of the loan, make it available to the borrower and leave it with himfor the duration of the loan. Thus, in the case of a loan of money (‘Kredit’), the lender64

Chapter X: Private Law: The Civil Code (BGB)must effect a payment out (‘Auszahlung’) of the capital to the borrower. The borrower,on his part, must make any relevant payments of interest, if an interest-bearing loan(‘verzinsliches Darlehen’) has been agreed.A separate issue is the question when the duty to return the object of the loan arises,ie, the question of maturity (‘Fälligkeit).If no particular date is set or period (‘Laufzeit’) agreed, ‘Fällgket’ is dependent ontermination of the loan (‘Kündigung’) by the lender or borrower: § 609(i) BGB.Like other ongoing obligations (‘Dauerschuldverhältnisse’), eg, a contract ofemployment, ‘Kündigung’ can be ‘ordentlich’ (in ordinary form) or ‘außerordentlich’(extraordinary/summary) for an important reason (‘aus wichtigem Grund’). 212The statutory notice period (‘Kündigungsfrist’) for ordinary termination is three monthsfor loans of more than 200 Euro and one month for lesser amounts: § 609(ii) BGB.If a loan is interest-free (‘zinslos’), the borrower can effect return at any time withouthaving to terminate the contract: § 609(iii) BGB.There are special, compulsory provisions regarding (ordinary) termination of loanswhere the interest rate is fixed (‘fest’) or variable (‘variabel’): § 609a BGB.The (binding) promise of a loan can be withdrawn if, before it is fulfilled, there is asignificant deterioration (‘wesentliche Verschlechterung’) in the economic circumstances of theother party, such that the claim to repayment would thereby be endangered: § 610 BGB.Arrangement of Title 6§§ 611–630 are arranged as follows:§ 611: ‘Begriff’ (definition)§§ 611a-611b: ‘Diskriminierung durch einen Arbeitgeber’ ((prohibition of) discrimination(by an employer)§ 612: ‘Vergütung’ (reimbursement, payment)§ 612a: ‘Weiteres Benachteiligungsverbot’ (further prohibition of discrimination (byan employer))§ 613: ‘Persönliche Rechte und Pflichte im Dienstvertrag’ (personal rights and dutiesin a contract of service)§ 613a: ‘Rechte und Pflichte bei Betriebsübergang’ (rights and duties in the event ofa transfer of a ‘Betrieb’ (business)) 213§ 614: ‘Fälligkeit der Vergütung’ (time at which payment is due)§§ 615–616: ‘Vergütung ohne Dienstleistung’ (payment where service is not rendered)§§ 617–619: ‘Schutzpflichten des Dienstherrn’ (duties of protection)§ 620: ‘Ende des Dienstverhältnisses’ (end of the relationship)§§ 621–622: ‘Ordentliche Kündigungsfristen’ (time limits for (ordinary) termination)§ 623: ‘Schriftform’ (necessity of written form)§ 624: ‘Kündigung bei Verträgen von mehr als 5 Jahren’ (termination of contractsfor more than five years)§ 625: ‘Stillschweigende Verlängerung’ (tacit extension)§§ 626–628: ‘Fristlose Kündigung’ (termination without notice)§§ 629–630: ‘Rechte und Pflichte nach Beendigung’ (rights and duties after expiry)Arrangement of Title 765

The German Legal System and Legal Language§§ 631–651k are arranged as follows:I ‘Werkvertrag’ (contract for services)§§ 631–632: ‘Begriff’ (definition); ‘Vergütung’ (reimbursement)§ 632a: ‘Abschlagszahlung’ (payment on account)§ 633: ‘Leistungspflicht des Herstellers’ (duty of manufacturer); ‘Beseitigung desMangels’ (correction of the defect)§§ 634–636: ‘Sekundäre Rechte bei erfolgloser Nachbesserung’ (secondary rights in the eventof unsuccessful repair)§ 637: ‘Vertraglicher Ausschluß der Haftung’ (contractual exclusion of liability)§§ 638–639: ‘Kurze Verjährung’ (short limitation period)§§ 640–641: ‘Abnahme des Werkes’ (acceptance of the work)§ 641a: ‘Fertigstellungsbescheinigung’ (certificate of completion)§§ 642–643: ‘Mitwirkung des Bestellers’ (cooperation by the customer)§ 644: ‘Übergang der Gefahr’ (transition of risk)§ 645: ‘Teilvergütungsanspruch’ (claim to partial reimbursement)§ 646: ‘Vollendung statt Abnahme’ (completion instead of acceptance)§§ 647–648: ‘Sickening des Unternehmers’ (security for the manufacturer)§ 649: ‘Kündigung durch den Besteller’ (termination by the customer)§ 650: ‘Überschreitung eines Kostenanschlags’ (exceeded estimate)§ 651: ‘Werklieferungsvertrag’ (contract of work and materials) 214II ‘Reisevertrag’ (travel contract)§§ 651a–651b: ‘Begriff’ (definition); ‘Teilnahme eines Dritten’ (participation of a thirdparty)§§ 651c–651g: ‘Rechte des Reisenden’ (rights of the traveller)§ 651h: ‘Haftungsbeschränkung’ (restriction of liability)§ 651i: ‘Rücktritt vor Reisebeginn’ (rescission before commencement of travel)§ 651j: ‘Kündigung wegen höherer Gewalt’ (termination due to force majeure)§ 651k: ‘Abweichende Vereinbarungen’ (divergent agreements)Arrangement of Title 8§§ 652–656Arrangement of Title 9§§ 657–661Arrangement of Title 10§§ 662–676 are arranged as follows:§ 662: ‘Begriff’ (definition)§ 663: ‘Anzeigepflicht bei Ablehnung’ (duty to notify refusal)66

Chapter X: Private Law: The Civil Code (BGB)§§ 664–668: ‘Rechte und Pflichte des Beauftragten’ (rights and duties of the personinstructed)§§ 669–670: ‘Aufwendungen’ (disbursements)§§ 671–674: ‘Ende des Auftrags’ (end of the contract of instruction)§ 675(i): ‘Entgeltliche Geschäftsbesorgung’ (contract to transact business for reward)§675(ii): ‘Keine Haftung für Rat oder Empfehlung’ (no liability for advice orrecommendation) 215§ 675(ii) BGB was formerly § 676 BGB. It was renumbered by the Law concerning BankTransfers (‘Überweisungsgesetz’) of 21.7.1999, which implemented EU Directive 1997/5.The ‘Überweisungsgesetz’ also inserted the following new paragraphs (mainly relatingto banking transactions) into the BGB:§ 675a: persons, who publicly offer to carry out business for others for reward(‘entgeltliche Geschäftsbesorgung’), have a duty to provide information(‘Informationspflicht’) in writing and free of charge concerning charges anddisbursements (‘Entgelte und Auslagen’) for ‘standard transactions’; creditinstitutions have a duty to give additional information.§ 676: termination of a contract concerning the transfer of, or a right to claim,securities (‘Übertragungsvertrag’) is only effective, if the beneficiary’saccount-holding institution is informed in good time (‘rechtzeitig’) beforeregistration (‘Verbuchung’) of the securities on the account.§ 676a-c: contract to undertake a bank transfer (‘Überweisungsvertrag’).§ 676d-e: contract to effect a bank transfer via an intermediary credit institution(‘zwischengeschaltetes Kreditinstitut’) (‘Zahlungsvertrag’).§ 676f-h: contract to maintain a current account (‘Girovertrag’).The contracts involved in §§ 675a–676h are all sub-types/variations of the‘Geschäftsbesorgungsvertrag’ in § 675(i) BGB. 216Arrangement of Title 11§§ 677–687 are arranged as follows:§ 677: ‘Pflichten des Geschäftsführers’ (duties of the person transacting the matter)§§ 678–679: ‘Unberechtigte Geschäftsführung’ (unjustified transaction of a matter)§ 680: ‘Haftung bei Notgeschäftsführung’ (liability in the event that a matter istransacted in an emergency)§ 681: ‘Nebenpflichten des Geschäftsführers’ (accessory duties of the persontransacting the matter)§ 682: ‘Haftungsprivileg bei fehlender Geschäftsfähigkeit’ (reduced liability wherethere is no ‘Geschäftsfähigkeit’)§ 683: ‘Aufwendungsersatzanspruch des berechtigten Geschäftsführers’(reimbursement of expenditure for a justified transaction)67

The German Legal System and Legal Language§ 684: ‘Lage bei nicht berechtigten Geschäftsführung’ (position where transaction isnot justified)§ 685: ‘Schenkungsabsicht’ (intended gift)§ 686: ‘Irrtum über den Geschäftsherrn’ (mistake as to principal)§ 687: ‘Eigengeschäftsführung’ (self-transaction)Arrangement of Title 12§§ 688–700Arrangement of Title 13§§ 701–704Arrangement of Title 14§§ 705–740 are arranged as follows:§ 705: ‘Begriff’ (definition)§§ 706–707: ‘Beiträge’ (contributions)§ 708: ‘Erleichterte Haftung’ (reduced liability)§§ 709–712: ‘Geschäftsführung’ (management) 217§§ 714–715: ‘Vertretung’ (representation) 218§ 716: ‘Kontrollrecht’ (right of control)§ 717: ‘Übertragbarkeit von Rechten’ (transferability of rights)§§ 718–720: ‘Gesellschaftsvermögen’ (company assets)§§ 721–722: ‘Verteilung von Gewinn und Verlust’ (distribution of profit and loss)§§ 723–729: ‘Auflösungsgründe’ (grounds for termination)§§ 730–735: ‘Auseinandersetzung’ (split-up)§§ 736–740: ‘Gesellschafterwechsel’ (change of members)Arrangement of Title 15§§ 741–758 are arranged as follows:§ 741: ‘Begriff’ (definition)§§ 742–743: ‘Anteile’ (shares)§§ 744–746: ‘Verwaltung und Benutzung’ (administration and use)§§ 747–748: ‘Rechte und Pflichten’ (rights and duties)§§ 749–751: ‘Aufhebung’ (termination)§§ 752–754: ‘Art der Aufhebung’ (manner of termination)§§ 755–757: ‘Folgeansprüche bei Aufhebung’ (claims consequent on termination)§ 758: ‘Unverjährbarkeit des Aufhebungsanspruchs’ (the right to claim terminationis not subject to limitation)68

Chapter X: Private Law: The Civil Code (BGB)Arrangement of Title 16§§ 759–761Arrangement of Title 17§§ 762–764Arrangement of Title 18§§ 765–778 are arranged as follows:§§ 765–766: ‘Begriff’ (definition); ‘Form’ (form)§ 767: ‘Umfang der Bürgschaftsschuld’ (extent of the guarantor’s debt)§ 768: ‘Einreden des Bürgen’ (objections by the guarantor)§ 769: ‘Mitbürgschaft’ (co-surety)§§ 770–773: ‘Einreden des Bürgen’ (objections by the guarantor)§ 774: ‘Gesetzlicher Forderungsübergang’ (transition of claim by operation of law)§§ 775–777: ‘Befreiung des Bürgen’ (release of the guarantor)§ 778: ‘Kreditauftrag’ (instruction to provide credit)Arrangement of Title 19§ 779Arrangement of Title 20§§ 780–782Arrangement of Title 21§§ 783–792 are arranged as follows:§§ 783–786: ‘Begriff’ (definition); ‘Verpflichtung’ (obligation)§§ 787–791: ‘Rechtsverhältnisse’ (legal relationships)§ 792: ‘Übertragung’ (transfer)Arrangement of Title 22§§ 793–808a are arranged as follows:§§ 793–797: ‘Begriff; Lage des Ausstellers; Voraussetzungen’ (definition; position of theissuer; preconditions)§§ 798–800: ‘Ersatzurkunde und Kraftloserklärung’ (replacement document anddeclaration of nullity)§§ 801–802: ‘Verjährung und Vorlegungsfrist’ (limitation and presentation period)§§803–808a: ‘Scheine; Umschreibung auf den Namen; Besondere Arten’ (notes (coupons);alteration in favour of a named person; special types)Arrangement of Title 23§§ 809–811Arrangement of Title 2469

The German Legal System and Legal Language§§ 812–822 are arranged as follows:§§ 812–813(i): ‘Grundtatbestände’ (basic (substantive) provisions): ‘Leistungskondiktion’and ‘Nichtleistungskondiktion’§§ 813(ii)–815: ‘Ausschluß der Rückforderung’ (exclusion of the claim to return (ofsomething received due to a ‘Leistung’))§816: ‘Verpflichtung zur Herausgabe des Erlangten nach Verfügung einesNichtberechtigten: Besonderer Fall der Eingriffskondiktion’ (liability of anunauthorised person to hand out what he receives following his (valid)‘Verfügung’: special case of the ‘Eingriffskondiktion’)§§ 817, 1stsentence:§ 817, 2ndsentence:‘Verpflichtung des Empfängers, der gegen Gesetz oder gute Sitten verstößt’(liability of a recipient who breaches statute or good morals)‘Ausschluß der Rückforderung, wenn dem Leistenden (gleichfalls) ein solcherVerstoß zur Last fällt’ (exclusion of the claim to return, where the claimantis (similarly) in breach)§ 818(i), (ii): ‘Umfang des Anspruchs: Gegenstand der Bereicherung’ (extent of the claim:object of enrichment)§ 818(iii): ‘Wegfall der Bereicherung’ ((exclusion of the claim) where the enrichmentfalls away)§ 818(iv)-820: ‘Verschärfte Haftung des Empfängers’ (increased liability of the recipient)§ 821: ‘Einrede der Bereicherung’ (objection of unjust enrichment)§ 822: ‘Dritthaftung’ (liability of third parties)Arrangement of Title 25§§ 823–853 are arranged as follows:§ 823: ‘Grndtatbestände’ (basic (substantive) provisions) 219§§ 824–826: ‘Weitere Anspruchsgrundlagen’ (further (legal) grounds for claiming(damages)) 220§§ 827–829: ‘Deliktsfähigkeit’ (capacity to commit a delict)§ 830: ‘Beteiligung mehrerer’ (involvement of several persons) 221§831: ‘Haftung für den Verrichtungsgehilfen’ ((presumed) (vicarious) liability for aperson entrusted with a particular task) 222§ 832: ‘Haftung des Aufsichtspflichtigen’ (liability of the person who supervises)§§ 833–834: ‘Haftung für Schaden durch Tiere’ (liability for (damage caused by) animals)§§ 836–838: ‘Haftung bei Einsturz eines Gebäudes’ (liability in the event of collapse of abuilding) 223§ 839: ‘Beamtenhaftung’ (civil servant’s liability for breach of his ‘Amtspflicht’(official duty)) 224§§ 840–841: ‘Haftung mehrerer’ (liability of several persons) 225§§ 842–843: ‘Umfang des Schadensersatzes bei Verletzung einer Person’ (extent of damagesin the case of personal injury)§§ 844–846: ‘Ansprüche Dritter bei Tötung oder wegen entgangener Dienste’ (third party claimswhere a person is killed or was obliged by statute to provide services) 22670

Chapter X: Private Law: The Civil Code (BGB)§ 847: ‘Schmerzensgeld’ (damages for pain and suffering) 227§§ 848–851: ‘Haftung bei Entziehung einer Sache’ (liability in the event of removal of athing)§§ 852–853: ‘Verjährung’ (limitation period); ‘Verweigerung der Erfüllung’ (refusal ofperformance) 228D BOOK III: THE LAW OF PROPERTY (§§ 854–1296 BGB) 2291 Introduction(i) Book III of the BGB (‘Sachenrecht’/law of property; §§ 854–1296) is divided into 9Sections.In the important first 3 Sections of Book III provisions are set out dealing withpossession (‘Besitz’; §§ 854–872), rights to land (‘Rechte an Grundstücken’; §§ 873–902) and ownership (‘Eigentum’; §§ 903–1011).In the BGB, the term ‘Eigentum’ only relates to ownership of corporeal things(‘Sachen’). It is a right ‘in rem’ (over a thing) and not, such as a right based on a‘Schuldverhältnis’ (obligation), a right ‘in personam’ (over a person). 230Sections 5–9 (§§ 1018–1296) contain a ‘numerus clausus’ (fixed number) of so-called‘beschränkte dingliche Rechte’ (limited real rights, as opposed to ‘Eigentum’ as themost comprehensive, unlimited real right). 231‘Beschränkte dingliche Rechte’ are classified as user rights (‘Nutzungsrechte’, eg,servitudes) and disposal or security rights (‘Verwertungs- oder Sicherungsrechte’,eg, mortgages and pledges). 232The common thread running through Sections 5–8 (§§ 1018–1203 BGB) is thatthey deal with encumbrances (‘Belastungen’) over land, while Section 9 (§§ 1204–1296 BGB) deals with movables and rights.(ii) Book III distinguishes between movable (‘bewegliche’) and immovable(‘unbewegliche’) ‘Sachen’. The only ‘unbewegliche Sachen’ are ‘Grundstücke’ ((piecesof) land (‘Immobilien’)). 233 Movables are further classified (in Book I) according towhether they are:– fungible (‘vertretbar’); and/or– consumable (‘verbrauchbar’).A ‘vertretbare Sache’ is one which is customarily counted, weighed or measured (§91 BGB). It is interchangeable with another of the same class and is notindividualised. 234 A ‘verbrauchbare Sache’ is one which is intended for consumptionor disposal (§ 92 BGB). 235Ordinary parts (‘Bestandteile’) of a ‘Sache’ are distinguished from substantialcomponents (‘wesentliche Bestandteile’), for which, in the case of land or buildings,the English legal term is ‘fixtures’. Substantial components always share the fateof the main thing (‘Hauptsache’) to which they are attached and cannot be thesubject of separate rights: §§ 93–94 BGB.To be contrasted with ‘Bestandteile’ are ‘Zubehör’ (fittings, accessories), which arelegally independent movables: § 97 BGB.71

The German Legal System and Legal Language2 ‘Dingliches Recht’ and ‘Verfügung’With regard to the term ‘dingliches Recht’ (real right), it is helpful to note the following:(i) ‘Besitz’ (possession) is not a ‘dingliches Recht’ (real right) or ‘Recht an der Sache’(right with regard to a ‘Sache’/right ‘in rem’), but merely ‘tatsächliche Sachherrschaft’(actual dominance over a ‘Sache’).(ii) ‘Dingliche Rechte’ are absolute, ie, have effect against everyone (‘gegen jedermann’) and,for reasons of certainty, are restricted to the types set out in Sections 5–9 of Book III.To be contrasted therewith are the rights of parties to a ‘Schuldverhältnis’, whichare relative, ie, effective only amongst the parties. The principles underlying BookII are the parties’ fundamental freedom of contract (‘Vertragsfreiheit’) and choiceof type of ‘Schuldverhältnis’ (‘Typenfreiheit’, ie, the parties are not limited to thetype or form of the ‘Schuldverhältnisse’ listed in §§ 433–811), while in Book III theprinciple of ‘Typenzwang’ (compulsory choice of type) prevails. 236(iii) Each ‘dingliches Recht’ is ‘spezial’ (special), ie, exists only with reference to a specific,individual ‘Sache’ (‘Spezialitätsgrundsatz’ or principle of speciality). A‘Sachgesamtheit’ (collection of ‘Sachen’) is not one ‘Sache’, but a multitude of ‘Sachen’(eg, a herd, library or business enterprise (‘Unternehmen’)). 237(iv) An ‘Anwartschaftsrecht’ is a right of expectancy with regard to a ‘dingliches Recht’.It is a concept developed by the judiciary (‘richterliche Rechtsfortbildung’) and, whilenot being expressly referred to in the BGB, is treated as essentially similar to (the‘wesensgleiches Minus’ of) the relevant ‘dingliches Recht’.Thus, for example, in the case of an instalment purchase (‘Abzahlungskauf’), it iscommon for a retention of title (‘Eigentumsvorbehalt’) to be agreed in favour of thevendor. The purchaser acquires an ‘Anwartschaftsrecht’, which graduallystrengthens (‘erstarkt’) into the full right (‘Vollrecht’) of ‘Eigentum’ (ownership) onfinal payment of the last instalment. Until then, the real agreement between theparties (the so-called ‘Einigung’) is said to be conditional upon (‘bedingt durch’)full payment of the price (§455). 238Just as his future ‘Eigentum’, the purchaser’s ‘Anwartschaftsrecht’ can be transferred,charged, enjoys the same protection and can also be the subject of‘Zwangsvollstreckung’ (enforcement) by a creditor. 239(v) The abstraction principle (‘Abstraktionsgrundsatz’). 240The ‘Rechtsgeschäfte’ of Book III (eg, transfer of ownership) are ‘Verfügungen’ or‘Verfügungsgeschäfte’ and are abstract from the basic or causal transaction (eg,purchase contract).It is important to understand that, in German legal speech, the term ‘Verfügung’ isused in various contexts. Thus, in court or administrative terminology, a ‘Verfügung’can refer to the decision of the presiding judge (‘Verfügung des Vorsitzenden’), aninjunction (‘einstweilige Verfügung’) or an administrative order or ban (‘Gebot oderVerbot’), eg, from the police (‘polizeiliche Verfügung’). In the BGB, where it is used inthe sense of a ‘disposition’, it is important both for Book in (law of property) andBook V (law of succession). 24172

Chapter X: Private Law: The Civil Code (BGB)In Book V, the term ‘Verfügung’ is used to refer to the legal transaction(‘Rechtsgeschäft’) of a person having effect in the event of that person’s death, ie, aso-called ‘Verfügung (Rechtsgeschäft) von Todes wegen’, eg, a will (‘Testament’) orcontract of succession (‘Erbvertrag’), including any direction (‘Anordnung’) therein.In Book III, the term ‘Verfügung’ means a legal transaction which, in strict contrastto a ‘Verpflichtung’ (obligation), has direct effect on the constitution of a real right(‘dingliches Recht’) by means of its transfer, release or burdening or a variation ofits content (‘ein Rechtsgeschäft, welches den Bestand eines Rechts unmittelbar beeinflusstdurai Übertragung, Aufhebung, Belastung oder inhaltliche Änderung’). 242The use of the term ‘Verfügung’ in this sense is apparent from the provisions ofBook III regarding rights to land, which lay down the necessary components of a‘Verfügung’ over such rights (§§ 873, 875 and 877).The validity of a ‘Verfügung’ in the Book III (property) sense is dependent not onlyon the special preconditions laid down in the relevant paragraphs of Book III andon the general requirement of all ‘Rechtsgeschäfte’—‘Geschäftsfähigkeit’—but alsoon the so-called ‘Verfügungsbefugnis’ (entitlement to undertake a ‘Verfügung’).By means of this important concept, a distinction is drawn between the usual caseof a right being held by its owner (who is then referred to as the ‘Berechtigter’ or‘Inhaber des Rechts’ (owner of the right)) and the case of an unauthorised thirdparty (a so-called ‘Nichtberechtigter’), who purports to undertake a ‘Verfügung’. 243Statutory provisions limiting the ‘Verfügungsbefugnis’ in various circumstances (socalled‘Verfügungsbeschränkungen’ or ‘Veräusserungsverbote’) can be absolute (ie,effective as against all the world, eg, § 1365 BGB or § 81(i) InsO) or relative (§ 135BGB) in effect. A court order (eg, an ‘einstweilige Verfügung’ (injunction)) forbiddinga ‘Verfügung’ is an example of a relative ‘Verfügungsbeschränkung’: a ‘Verfügung’undertaken despite the order is effective for all purposes except as against theperson in favour of whom the order was granted. 244A person cannot exclude or limit his ‘Verfügungsbefugnis’ by means of a‘Rechtsgeschäft’, but a purely contractual restriction (abstraction principle!) ispossible (§137).A ‘Verfügung’ usually remains valid even if its causal/obligational transaction(‘Verpflichtungsgeschäft’) is void. 245To rectify the position, a claim for unjust enrichment (‘ungerechtfertigte Bereicherung’)can be made (within the Law of Obligations), for which complex provisions arecontained in §§ 812–822 BGB. 2463 Sections 1–9 247 (a) Section 1 (§§ 854–872 BGB)Section 1 (§§ 854–872) deal with the acquisition, types and protection of ‘Besitz’(possession). 24873

The German Legal System and Legal Language(b) Section 2 (§§ 873–902 BGB) 249Section 2 (§§ 873–902) sets out provisions dealing (inter alia) with:– the acquisition, release and variation of rights to land (§§ 873–878);– the rank of limited rights to land between themselves (§§ 879–881);– the protection of the position of a person claiming a right to land by means of theentry of a so-called ‘Vormerkung’ (priority notice) in the land register (‘Grundbuch’)(§§883–888);– the effect of entries (‘Eintragungen’) in the Land Register (‘Grundbuch’; §§ 891–893);Of particular importance are §§ 891 and 892 BGB. The underlying rationale ofthese provisions is that one must be able to rely on (‘sich verlassen auf’) the LandRegister.First, § 891 BGB lays down a statutory presumption that entries in the LandRegister are correct (‘Vermutung der Richtigkeit’), ie, that the person registered asproprietor is so entitled and that any right which has been deleted (‘gelöscht’) nolonger exists.§ 892 BGB goes further and protects third parties. It establishes the principle of thepublic credence of the Land Register (‘öffentlicher Glaube des Grundbuchs’)—in favourof anyone who acquires a right to a piece of land by legal transaction (‘Rechtsgeschäft’)the content of the Land Register is deemed to be correct, unless an objection against itsaccuracy is registered or the acquiring party (‘Erwerber’) (positively) knows that theentries in the Register are incorrect (§ 892(i), 1st sentence BGB). 250Further, any relative limitations on the proprietor’s right to undertake a disposition(‘relative Verfügungsbeschränkungen’)—eg, the seizure (‘Beschlagnahme’) of the land as ameasure of enforcement—must appear on the Register or be (positively) known to theacquiring party to be effective against him (§ 892(i), 2nd sentence BGB).Thus, in marked contrast to to the position regarding movables (§ 932 BGB), the‘bona fide’ acquisition of an unencumbered right to immovables is possible, even if theacquiring party is grossly negligent (‘grob fahrlässig’) as to the situation. The acquiringparty is protected not only if there is a favourable registration, but also if an entry onthe Register has been omitted or deleted, and regardless of his inspection of the Register.§ 892 BGB is of corresponding application, if the proprietor of a right in the LandRegister receives some act of performance (‘Leistung’) on the basis of the right or if heengages in a transaction not falling within § 892, but which includes a disposition(‘Verfügung’) over the right: § 893 BGB:– the correction of incorrect entries in the Land Register (§§ 894–899);– the influence of expiry of time on rights to land (§§ 900–902).74

Chapter X: Private Law: The Civil Code (BGB)(c) Section 3 (§§ 903–1011 BGB)Section 3 (§§ 903–1011) is divided into five Titles:(i) Title 1 (§§ 903–924 BGB)Title 1: ‘Inhalt des Eigentums’ (content of ownership): §§ 903–924Subject to certain exceptions, the owner of a ‘Sache’ can deal with it as he pleases andexclude others from it (§ 903).However, Article 14(ii) of the Basic Law makes it clear that he also has certainobligations in the public interest (‘Eigentum verpflichtet’). The term ‘Eigentum’ as usedin Article 14 GG is wider than that of § 903 BGB (which is limited to ‘Sachen’) andincludes all legal positions of value. 251The content (‘Inhalt’) and limits (‘Schranken’) of ‘Eigentum’ are set (‘bestimmt’) bystatute and only if ‘Eigentum’ is removed by ‘Enteignung’ (expropriation) or a similarinterference (‘Eingriff’) is compensation (‘Entschädigung’) available. 252The owner of land has a duty to tolerate (‘Duldungspflicht’) nuisances(‘Einwirkungen’), which emanate from other land 253 —ie, (incorporeal) emissions/pollution (‘Immissionen’) (eg, in the form of noise or smell)—in so far as they (only)amount to an insignificant interference (‘unwesentliche Beeinträchtigung’): § 906(i) BGB.The owner of the land affected has such a duty even when the interference issignificant, if the use of the other land is normal for the locality (‘ortsüblich’) andpreventive measures are not commercially viable (‘wirtschaftlich zumutbar’). However,appropriate compensation in money can be claimed, if the nuisance extends beyondan acceptable level (‘über das zumutbare Maß hinaus’): § 906(ii) BGB. 254(ii)/(iii) Title 2 (§§ 925–928 BGB) and Title 3 (§§ 929–984 BGB)Title 2: ‘Erwerb und Verlust des Eigentums an Grundstücken’ (acquisition and loss ofownership to land (immovables)): §§ 925–928.Title 3: ‘Erwerb und Verlust des Eigentums an beweglichen Sachen’ (acquisition and loss ofownership to movables): §§ 929–984.The components of a transfer of ownership 255The transfer of ownership (‘Übertragung des Eigentums’ or ‘Übereignung’) of a ‘Sache’by means of a ‘Rechtsgeschäft’ is composed of 2 elements:– the so-called ‘Einigung’ (a real agreement; known as the ‘Auflassung’ (conveyance)in the case of immovables: § 925(i)); 256– the ‘Übergabe’ (transfer of physical possession (‘Besitz’)) in the case of movables (§929) or ‘Eintragung’ (entry in the land register (‘Grundbuch’)) in the case ofimmovables (§ 873).An ‘Übergabe’ (of movables) can in certain circumstances be unnecessary (ie, wherethe transferee (‘Erwerber’) is already in possession of the ‘Sache’: § 929, 2nd sentence)or replaced (‘ersetzt’):75

The German Legal System and Legal Language– by a so-called ‘Besitzkonstitut’ (constructive possession, ie, an arrangementwhereby the (original) ‘Eigentümer’ remains in possession of the ‘Sache’, but holdsit for the proper (new) owner: § 930. This is the usual technical legal basis for a‘Sicherungsübereignung’ (transfer of ownership as security, ie, a chattelmortgage); 257or– by an ‘Abtretung des Herausgabeanspruchs’ (assignment of the right to claim returnof the ‘Sache’: § 931).Bona fide acquisition of ownership to movables 258Normally, a transfer of ownership (of movables) is from the ‘Eigentümer’ himself (§929). If, however, the transferor (‘Veräusserer’) is (a person) not entitled to (transfer)the ‘Sache’ (a so-called ‘Nichtberechtigter’), the bona fide acquisition of ‘Eigentum’ by thetransferee (‘gutgläubiger Erwerb’) is possible (§ 932) unless:– the ‘Erwerber’ is not in good faith (‘nicht in gutem Glauben’ (‘bösgläubig’), ie, if he isaware of or grossly negligent as to the situation); 259 or– the ‘Sache’ has been stolen, lost or has otherwise gone astray (‘abhanden gekommen’:§ 935) 260The transfer of physical possession (‘Übergabe’) to the transferee, being a componentof a transfer of ownership, must, of course, still take place.Bona fide acquisition of ownership is also possible in the event that a ‘Besitzkonstitut’or ‘Abtretung des Herausgabeanspruchs’ is entered into/granted by a ‘Nichtberechtigter’.In the former case, however, the transferee must obtain physical possession from thetransferor. 261In the event of bona fide acquisition by the transferee (ie, where the transfer(‘Verfügung’) is effective (‘wirksam’) against the ‘Eigentümer’) the ‘Nichtberechtigter’ hasto compensate the original owner. 262Statutory acquisition of ownership to movables 263Ownership of movables can be acquired not only in accordance with §§ 929–936 bymeans of a ‘Rechtsgeschäft’, but also by statute (so-called ‘gesetzlicher Erwerb’; dealtwith in §§ 937–984), ie, by:– ‘Ersitzung’ (prescription, ie, acquisition of ownership through the passage of time:§§ 937–945).– ‘Verbindung. Vermischung. Verarbeitung’ (connection; mixture; processing): §§ 946–952. 264– ‘Erwerb von Erzeugnissen und sonstigen Bestandteilen einer Sache’ (acquisition ofproduce and other parts of a ‘Sache’): §§ 953–957. 265– ‘Aneignung’ (acquisition of ownership to ownerless movables (appropriation): §§958–964.– ‘Fund’ (finding of lost property: §§ 965–984).76

Chapter X: Private Law: The Civil Code (BGB)(iv) Title 4 (§§ 985–1007 BGB)Title 4: ‘Ansprüche aus dem Eigentum’ (claims arising out of ownership): §§ 985–1007.The owner of a ‘Sache’, whether movable or immovable, has various ‘dinglicheAnsprüche’ (real claims), eg, to return (‘Herausgabe’) of the ‘Sache’ against a personwith no right to possession (‘Recht zum Besitz’) of it (so-called ‘Vindikation’/‘rei vindicatio’under § 985) and to removal or stoppage of a disturbance (‘Beseitigung oder Unterlassungeiner Störung’: § 1004). 266(v) Title 5 (§§ 1008–1011 BGB)Title 5: ‘Miteigentum’ (‘nach Bruchteilen’: joint ownership by shares (as opposed to‘Gesamthandseigentum’): 267§§ 1008–1011.(d) Section 4 (§§ 1012–1017 BGB) 268Section 4 of Book III (§§ 1012–1017), which formerly dealt with the ‘Erbbaurecht’(heritable building right), has been replaced by the ‘Verordnung über das Erbbaurecht’of 15.1.1919.(e) Section 5 (§§ 1018–1093 BGB)Section 5 (§§ 1018–1093) deals with ‘Dienstbarkeiten’ (servitudes) and is divided intothree Titles:Title 1: ‘Grunddienstbarkeiten’ (easements): §§ 1018–1029.Title 2: ‘Nießbrauch’ (usufruct): §§ 1030–1089.Title 3: ‘Beschränkte persönliche Dienstbarkeit’ (limited personal servitude): §§ 1090–1093.(f) Section 6 (§§ 1094–1104 BGB)Section 6 (§§ 1094–1104) deals with the ‘Vorkaufsrecht’ (right of preemption). The‘Vorkaufsrecht’ referred to here is the ‘dingliches Vorkaufsrecht’ (real right of preemption)and not the contractual one (dealt with in §§ 504–514).(g) Section 7 (§§ 1105–1112 BGB)Section 7 (§§ 1105–1112) deals with the ‘Reallast’ (duty of successive supply from land).The object of a ‘Reallast’ is the successive supply (‘wiederkehrende Leistung’) of goods orservices from a piece of land. It can be granted in favour of a particular person or infavour of another property: § 1105 BGB.In contrast to a ‘Rentenschuld’ (rentcharge; § 1199 BGB), the supply does not have toconsist of the payment of a sum of money, nor need it be regular. Moreover, in addition tothe land itself, the respective owner of the burdened land is personally liable for fulfillmentof the supply, ie, a ‘Reallast’ additionally results in a personal covenant § 1108 BGB.77

The German Legal System and Legal LanguageBeing a limited real right, a ‘Reallast’ requires registration in the Land Register (§873 BGB). It is nowadays of limited practical importance, mainly for retiring farmers,who wish to ensure appropriate provision for themselves and their families afterretirement frequently in conjunction with a right to use particular accommodation(‘Wohnungsrecht’; § 1093 BGB; so-called ‘Altenteil’). 269(h) Sections 8 and 9 (§§ 1113–1296 BGB)Sections 8 and 9 of Book III deal with security/disposal rights over immovables andmovables respectively (ie, mortgages and pledges) and are set out as follows:Section 8 (§§ 1113–1203) deals with ‘Grundpfandrechte’ (security rights over land) andis divided into 2 Titles: 270Title 1: ‘Hypothek’ (mortgage): §§ 1113–1190.Title 2: ‘Grundschuld. Rentenschuld’ (land charge; rentcharge): §§ 1191–1203.At this point, it is perhaps useful initially to recall the abstraction principle and thefundamental distinction drawn by German law between a contractual claim(‘Forderung’) and a right ‘in rem’ (‘dingliches Recht’). 271A right ‘in rem’ gives its holder the right to seek satisfaction out of a particular asset.The asset is liable (‘haftet’), ie, can be realised to satisfy the right. A contractual obligation,on the other hand, merely binds the parties (privity of contract). The debtor owes(‘schuldet’) performance.It should also be realised that German law distinguishes between a loan, for whichpersonal security is given (eg, in the form of a personal guarantee (‘Bürgschaft’))—aso-called ‘Personalkredit’—and a loan, for which the security comprises particular‘Sachen’ (eg, real estate)—a so-called ‘Realkredit’.Where immovable property is involved, the BGB makes available three differenttypes of security right over land (‘Grundpfandrecht’):– a mortgage (‘Hypothek’);– a land charge (‘Grundschuld’), and– a rentcharge (‘Rentenschuld’).A mortgage (‘Hypothek’) is a means of securing the payment of a particular sum ofmoney due under a contractual obligation, usually a loan (‘Darlehen’, ‘Kredit’). Theobligee (creditor (‘Gläubiger’)) must have an existing, future or conditional contractualclaim (‘Forderung’) against the obligor (debtor (‘Schuldner’)): § 1113 BGB.Thus, no mortgage can arise, if there is no such claim. The ‘mortgage’ is said to beheld by the owner of the land (mortgagor): § 1163 (a so-called ‘Eigentümerhypothek’).Nor can a mortgage arise, if the creditor and owner (debtor) are not different persons.If ownership of the land and the claim belong to one and the same person, the‘mortgage’ is converted into a land charge: § 1177 (a so-called ‘Eigentümergrundschuld’).The provisions in the BGB regarding mortgages are of corresponding applicationto land charges—see below—unless (as is the strict legal position) a land charge is notdependent on the existence of a contractual claim: § 1192 BGB.78

Chapter X: Private Law: The Civil Code (BGB)Attention is drawn to the following provisions:– registration (‘Eintragung’): § 1115 BGB. The name of the mortgagee, the amount ofthe claim, the rate of interest (‘Zinssatz’) and any other collateral services(‘Nebenleistungen’) must be entered in the Land Register.– types: § 1116 BGB. The grant of a mortgage usually involves the issue of a mortgagecertificate (‘Hypothekenbrief’). However, the parties can agree that, instead, a mortgagetake the form of an entry in the Land Register (‘Buchhypothek’): § 1116(ii) BGB.If a mortgage certificate is issued, the mortgagee does not acquire the mortgage beforethe certificate is handed over: § 1117(i) BGB. Moreover, by § 1160(i) BGB, if it is soughtto enforce such a mortgage, the owner of the land can insist on presentation of themortgage certificate (‘Vorlage des Briefs’) and also—if there has been an assignment ofthe mortgage (see §§ 1153, 1154 BGB), but the name of the new creditor does notappear in the Land Register,—presentation of the documents specified in § 1155 BGB,ie, an unbroken chain (‘Kette’) of publicly certified declarations of assignment (‘öffentlichbeglaubigte Abtretungserklärungen’). In such a case, the holder of the certificate ispresumed to be the legitimate mortgagee (§§ 891ff BGB):– rights of the mortgagee before maturity of the claim (‘Fälligkeit’): §§ 1133–1135 BGB;– extension of the provisions concerning the public credence of the Land Register(§§ 891 ff BGB) for the purpose of the mortgage (‘für die Hypothek’) in favour of a‘bona fide’ transferee of a registered mortgage: § 1138 BGB, ie, such a transfereeacquires the mortgage, even if a claim (‘Forderung’) does not exist and despite anyobjections, which might normally be available to the owner under § 1137 BGB; 272– termination by the mortgagee (‘Kündigung’): § 1141 BGB;– position of the parties after maturity (viz satisfaction (‘Befriedigung’)): §§ 1142–1150 BGB.Satisfaction of the creditor is achieved by means of enforcement in the land(‘Zwangsvollstreckung’): § 1147 BGB. The preconditions for enforcement of a mortgage are:(i) maturity (‘Fälligkeit’) of the contractual claim;(ii) the existence of an enforceable title (‘Vollstreckungstitel’), either in the form of a judgment(‘Urteil’) or an enforceable document (‘vollstreckbare Urkunde’) (§§ 704, 794 ZPO); and(iii) the issue of an enforceable copy (‘vollstreckbare Ausfertigung’), upon which anenforcement clause (‘Vollstreckungsklausel’) has been appended (§§ 724, 725 ZPO).Effect of, and mode of, assignment of the claim; position of the new creditor: §§1153–1159 BGB.The distinguishing characteristic of a land charge (‘Grundschuld’) is that, unlike amortgage, it is a non-accessory right, ie, it can exist independently of a contractualclaim and remains unaffected, whatever the fate of any related contractual claim. 273Thus, a ‘Grundschuld’ can be, and frequently is, registered by an owner for futureuse (‘Eigentümergrundschuld’): § 1196 BGB. 274However, a ‘Grundschuld’ is rarely granted in isolation; it is usually granted as securityfor a loan, on the basis of a security agreement (‘Sicherungsvertrag’/‘Sicherungsabrede’). 27579

The German Legal System and Legal LanguageFlowing from such an arrangement, on repayment of the contractual claim(‘Forderungstilgung’) the grantor/owner has a personal claim to return of the ‘Grundschuld’(‘Rückgewähranspruch’) and/or its deletion (‘Löschung’) in the Land Register. 276This claim, which is one type of defence (‘Einrede’) against enforcement by thecreditor, 277 can be safeguarded by registration of a ‘Vormerkung’ in the Land Register(§ 883 BGB). 278Moreover, by analogy with §§ 1142–1143 BGB, a ‘Grundschuld’ passes back to theowner, and the contractual claim is discharged, on redemption (‘Ablösung’) of the‘Grundschuld’ by the owner (‘Leistung auf den Grundschuld’; cf the position, when securityis given by a third party (‘Drittsicherung’)) 279Section 9 (§§ 1204–1296) deals with the ‘Pfandrecht’ (pledge) and is divided into twoTitles: 280Title 1: ‘Pfandrecht an beweglkhen Sachen’ (pledge of movables): §§ 1204–1258.Title 2: ‘Pfandrecht an Rechten’ (pledge of rights): §§ 1273–1296.E BOOK IV: FAMILY LAW (§§ 1297–1921 BGB) 281Book IV of the BGB (‘Familienrecht’ / family law); §§ 1297–1921) is divided into threeSections (in turn sub-divided into Titles) as follows:Section 1: ‘Bürgerliche Ehe’ (civil marriage): §§ 1297–1588.Title 1: ‘Verlöbnis’ (engagement): §§ 1297–1302.*Title 2: ‘Eingehung der Ehe’ (conclusion of marriage): §§ 1303–1322.*Title 3:‘Nichtigkeit und Anfechtbarkeit der Ehe’ (nullity and voidability of marriage):§§ 1323–1347.*Title 4: ‘Wiederverheiratung im Falle der Todeserklärung’ (remarriage in the event ofdeclaration of death): §§ 1348–1352.* Titles 2, 3 and 4 above have been repealed (‘aufgehoben’) and are dealt with in the‘Ehegesetz’ (Marriage Law) of 20.2.1946.Title 5: ‘Wirkungen der Ehe im allgemeinen’ (effects of marriage in general): §§1353–1362.Title 6: ‘Eheliches Güterrecht’ (marital property law): §§ 1363–1563. 282Title 7: ‘Sceidung der Ehe’ (divorce): §§ 1564–1587p. 283Title 7 consists of three parts:§§ 1564–1568: ‘Scheidungsgründe’ (grounds for divorce);§§ 1569–1586: ‘Unterhalt der geschiedenen Ehegatten’ (maintenance of the divorcedspouses) or ‘nachehelicher Unterhalt’ (maintenance after divorce);§§ 1587–1587p: ‘Versorgungsausgleich’ (equalization of pension and disabilityprovision, ie, settlement of expectancies or rights acquired or upheldby the divorced spouses during their marriage).80

Chapter X: Private Law: The Civil Code (BGB)Title 8: ‘Kirchliche Verpflichtungen’ (ecdesiastical obligations): §§ 1588.Section 2: ‘Verwandtschaft’ (kinship): §§ 1589–1772.Title 1: ‘Allgemeine Vorschriften’ (general provisions): §§ 1589–1590.Title 2: ‘Abstammung’ (descent): §§ 1591–1600o.Title 3: ‘Unterhaltspflicht’ (duty of maintenance): §§ 1601–1615o.Title 4: ‘Rechtsverhältnis zwischen den Eltern und dem Kinde im allgemeinen’ (legalrelationship between parents and child in general): §§ 1616–1625.Title 5: ‘Elterliche Sorge für eheliche Kinder’ (parental care for legitimate children):§§ 1626–1704.Title 6: ‘Elterliche Sorge für nichteheliche Kinder’ (parental care for illegitimatechildren): §§ 1705–1718.Title 7: ‘Legitimation nichtehelicher Kinder’ (legitimation of illegitimate children):§§ 1719–1740g.Title 8: ‘Annahme als Kind’ (adoption): §§ 1741–1772.Section 3: ‘Vormundschaft’ (guardianship): §§ 1773–1921.Title 1: ‘Vormundschaft über Minderjährige’ (guardianship over minors): §§ 1773–1895.Title 2: ‘Betreuung’ (care and attendance over adults suffering from a psychologicalillness or a physical or mental handicap): §§ 1896–1908i.Title 3: ‘Pflegschaft’ (appointment of an administrator (‘Pfleger’) in special cases,eg, where parents or a guardian cannot act; where an adult is absent andcannot be located; for a foetus): §§ 1909–1921.F BOOK V: LAW OF SUCCESSION (§§ 1922–2385 BGB) 2841 IntroductionBook V of the BGB (‘Erbrecht’ /law of succession; §§ 1922–2385) is divided into nineSections:Section 1: ‘Erbfolge’ (mode of inheritance): §§ 1922–1941.Section 2: ‘Rechtliche Stellung des Erben’ (legal position of the heir): §§ 1942–2063.Section 3: ‘Testament’ (will): §§ 2064–2273.Section 4: ‘Erbvertrag’ (contract of succession): §§ 2274–2302.Section 5 :‘Pflichtteil’ (compulsory portion (of the estate)): §§ 2303–2338.Section 6: ‘Erbunwürdigkeit’ (unworthiness to inherit): §§ 2339–2345.Section 7: ‘Erbverzicht’ (waiver of inheritance): §§ 2346–2352.Section 8: ‘Erbschein’ (certificate of inheritance): §§ 2353–2370.Section 9: ‘Erbschaftskauf’ (estate purchase): §§ 2371–2385.81

The German Legal System and Legal Language2 Constitutional Guarantee 285The German law of succession is founded on a recognition of the principles of privateproperty and the freedom of the individual/private autonomy. Thus, Article 14(i), 1stsentence of the Basic Law guarantees both the law of succession as an institution andinheritance as a personal, subjective right, the essence of which must be respected bythe state. In particular, the BGB acknowledges the principle of testamentary freedom(‘Testierfreiheit’), whilst protecting the interests of the nearest family members byappointing them as statutory heirs and by granting a compulsory portion of the estate(‘Pflichtteil’) to those excluded by the testator (‘Erblasser’).3 The Modes of Inheritance (‘Erbfolge’)(a) By statute (§§ 1924–1936 BGB) 286(i)Capacity to inherit (‘Erbfähigkeit’) is dependent on the relevant heir being alive atthe time of the death (‘Erbfall’; § 1923 BGB).There are three categories of statutory heirs (‘gesetzliche Erben’):– relatives (‘Verwandte’; §§ 1924–1929 BGB);– the spouse (‘Ehegatte’; § 1931 BGB); and– the State (‘Fiskus’); § 1936 BGB).In family law, the grade of kinship (‘Verwandtschaft’) correlates to the number ofintermediate births, relatives being distinguished according to whether they aredirect or collateral (§ 1589 BGB). Kinship is based on (legitimate or illegitimate)descent (‘Abstammung’; §§ 1591–1600o BGB).The law of succession classifies kinship differently. Relatives are distinguishedaccording to various orders (‘Ordnungen’). Thus, the 1st order comprises the issue(‘Abkömmlinge’) of the deceased (§ 1924 BGB), ie, children and childrens’ children.The 2nd order comprises the parents of the deceased and their issue (§ 1925 BGB).The 3rd order comprises the grandparents of the deceased and their issue (§ 1926BGB) and so on.Closer relatives on one level (ie, in a lower order) exclude (ie, take priority over)more distant ones: § 1930 BGB. Moreover, within the (downward) stem (‘Stamm’)of any one order, more senior relatives displace more junior ones, the share of anypredeceased relative passing to his or her issue—the principle of representation(‘Eintrittsprinzip’; § 1924(iii) BGB).Children inherit in equal shares (§ 1924(iv) BGB), ie, the estate is divided betweenstems equally.In the absence of issue (ie, in the 2nd order), the share of any predeceased parentfalls to his or her issue (§ 1925(iii) BGB). One speaks of succession according to the(paternal or maternal) parental line.The distance of a relative from the deceased is no bar to inheritance, but personsrelated by marriage (in-laws) are not statutory heirs.82

Chapter X: Private Law: The Civil Code (BGB)(ii) § 1931(i) and (ii) BGB lay down the general position regarding the survivingspouse’s statutory entitlement (ie, the spouse’s statutory part of the estate(‘gesetzlicher Erbteil’)). Thus, in conjunction with relatives of the 1st order (ie, issue),the spouse is entitled to one-quarter of the estate. Together with relatives of the2nd order, the spouse receives half.§ 1931 (iii) and (iv) BGB make certain modifications. These provide that the size ofthe spouse’s statutory right of inheritance differs according to the marital propertyregime, which subsisted between the spouses at the time of the death (the statutorycommunity based on gain (‘Zugewinngemeinschaft’) or separation of property(‘Gütertrennung’).Thus, in the former case (‘Zugewinngemeinschaft’), the statutory part of the survivingspouse is increased by one-quarter, to one-half of the estate: § 1371(i) BGB. If thesurviving spouse does not become heir or legatee (ie, due to disinheritance in adisposition on death or due to disclaimer), he or she can claim settlement of anyactual gain (‘Zugewinnausgleich’)—under marital property law—and, in addition,a (‘small’) compulsory portion of the estate (‘kleiner Pflichtteil’)—under the law ofsuccession—amounting to half in value of the (non-increased) statutory share, ie,1 / 8 (§§ 1371(ii), (iii), 2303(ii), 2307(i) BGB). 287If there was separation of property (‘Gütertrennung’) at the time of death, the generalposition regarding the surviving spouse’s entitlement (§ 1931 (i) and (ii) BGB)governs and § 1371 BGB does not apply. However, if the deceased leaves (asstatutory heirs) one or two children besides the spouse, the estate is dividedbetween the surviving spouse and the child(ren) in equal shares: § 1931(iv) BGB.The surviving spouse’s statutory right of inheritance is excluded if, at the time ofthe death, there were grounds for divorce and the deceased had made anapplication for, or consented to, divorce: § 1933, 1st sentence BGB.(b) By disposition on death (‘Verfügung von Todes wegen’) 288The wishes of the deceased take precedence over the statutory rules of succession(‘Vorrang der gewillkürten Erbfolge’). Thus, the statutory rules can be overriden by a will(‘Testament’; § 1937 BGB)—ie, a unilateral disposition on death—or by an estate contract(‘Erbvertrag’; § 1941 BGB)—ie, a binding bilateral agreement. 289The term ‘Verfügung von Todes wegen’ (disposition on death) is understood in a widesense to include a unilateral disposition (a will (‘Testament’)), an estate contract(‘Erbvertrag’) and any order (‘Anordnung’) taking effect on death (eg, a legacy, a directionor the appointment of an executor).Although the types of testamentary disposition (‘letztwillige Verfügung’) arestatutorily fixed (‘Typenzwang’), 290 a person is free to dispose of his property on deathas he wishes (‘Testierfreiheit’). The personal character of this right makes it essentialthat any disposition is executed personally (‘persönlich’; §§ 2064, 2274). Moreover, otherpersons are not permitted to decide on the validity of a disposition, nor can a thirdparty determine a beneficiary or the object of a grant (‘Zuwendung’; § 2065 BGB). 291Contractual restrictions of the right of testamentary freedom are void (§ 2302 BGB). 29283

The German Legal System and Legal Language(c) The will (‘Testament’; §§ 1937, 2064–2086, 2229–2264 BGB) 293(i) Execution (‘Errichtung’)Capacity 294A minor only has capacity to execute a will (‘Testierfähigkeit’) once he or she reachesthe age of 16: § 2229(i) BGB. Moreover, a will cannot be made by a person who isunable to appreciate the significance of his or her acts due to pathological mentaldisorder (‘krankhafte Störung der Geistestätigkeit’), imbecility (‘Geistesschwäche’) ordisturbance of consciousness (‘Bewusstseinsstörung’): § 2229(iv) BGB.FormThe BGB distinguishes two types of will—the (normal) will executed in proper form(‘das ordentliche Testament’; §§ 2231–2248 BGB) and the extraordinary or emergencywill (‘Nottestament’; §§ 2249–2252 BGB). 295The former can be executed in two different ways:1 as a public will (‘öffentliches Testament’) before a Notary, who makes a written record(‘Niederschrift’) thereof: § 2232 BGB; or2 by a personally handwritten and signed declaration: § 2247(i) BGB.(ii) Revocation (‘Widerruf’) 296Revocation of a will or any testamentary disposition (‘letztwillige Verfügung’) is possibleat any time (‘jederzeit’; § 2253 BGB) in the following manners:1 by will (§ 2254 BGB);2 by destruction (‘Vernichtung’) or alteration (‘Veränderung’) of the (original) will bythe testator with the intention of annulling it (‘Aufhebungsabsicht’; § 2255, 1stsentence BGB);3 by withdrawal of the will from official custody, eg, from a Notary (‘Rücknahme ausamtlicher Verwahrung’; § 2256(i) BGB); or4 by the execution of a later will, in so far as its content is not compatible with thatof the earlier one (ie, a will containing contradictory dispositions; § 2258(i) BGB).If the later will is itself revoked, the earlier will remains valid (ie, is restored), if thatwas the testator’s intention (§ 2258(ii) BGB).(iii) Interpretation (‘Auslegung’) 297If the meaning (‘Sinn’) of the words used by a testator are clear (‘eindeutig’), no problemof interpretation arises.However, it can happen that, even if a will is valid, a testator expresses himselfunclearly (‘unklar’) or that, for some reason, his motives turn out to have been incorrectand there is a gap (‘Lücke’) in the will.In such cases, the purpose of interpretation is, respectively, to ascertain the truewishes (‘wirklicher Wille’) of the testator (§ 133 BGB) or, by supplementary interpretation(‘ergänzende Auslegung’), to discover the testator’s hypothetical wishes (‘hypothetischer84

Chapter X: Private Law: The Civil Code (BGB)Wille’), had he been correctly informed at the time the will was made (‘zum Zeitpunktder Testamentserrichtung’).Generally, if various interpretations of a disposition on death are possible, the oneshould be chosen, which gives effect to the disposition—the principle of favourableinterpretation (‘wohlwollende Auslegung’): § 2084 BGB. Interpretation is alwayspreferable to challenge (‘Auslegung geht der Anfechtung vor’). 298To this end, the BGB (§§ 2066–2077) lays down various statutory rules ofinterpretation (‘Auslegungsregeln’) for wills, which are of corresponding application toestate contracts (§ 2279 BGB). 299As far as wills are concerned, the literal meaning of the words used (the ‘Wortlaut’)does not play as important a role in interpretation today, as it did at the time the BGBwas enacted. The text itself is not a limit to interpretation and surroundingcircumstances (‘Umstände außerhalb der Testamentsurkunde’) can be taken into account.However, if it is asserted that a particular disposition was intended, it must be possibleto find sufficient support (‘hinreichende Stütze’) for it or at least some reference(‘Andeutung’) to it in the will. 300(iv) Challenge (‘Anfechtung’) 301(i)The challenge of a disposition on death is unnecessary, if, by means of beneficialinterpretation (‘Auslegung’), the disposition can be given a meaning, which accordswith the true wishes of the deceased.‘Anfechtung’ comes into play, if there is a divergence between the real wishes ofthe deceased and those expressed in the disposition because of a mistake (‘Irrtum’)on the part of the deceased or because the deceased was unduly influenced by anillegal threat (‘widerrechtliche Drohung’). In such a situation, the disposition isvoidable (‘anfechtbar’) at the instance of the person, who would directly benefit, ifthe disposition were quashed (eg, the statutory heir(s) in the case of a will).The effect of a successful challenge is that the relevant disposition is void ‘abinitio’: § 142(i) BGB. Initially, it is valid (‘wirksam’), unlike a disposition, whichcontravenes good morals (‘gute Sitten’), which is void by law (§ 138(i) BGB). 302(ii) For the purpose of ‘Anfechtung’, the concept of mistake is wider than in § 119 BGB.Thus, a disposition can be challenged not only:1 because the deceased made a mistake as to the content/meaning of thedisposition (‘Inhaltsirrtum’) or in its declaration (‘Erklärungsirrtum’) (§ 2078(i)BGB); but also2 because the deceased based himself on wrong assumptions (‘falscheVorstellungen’) or expectations (‘Erwartungen’), ie, on the ground that hismotives were mistaken (‘Motivirrtum’) (§ 2078(ii) BGB).An additional requirement is that it must be shown that the disposition was causedby the mistake, ie, that the deceased would not have made the disposition, had heknown the true position (‘bei Kenntnis der Sachlage’). For this purpose, it is only thesubjective viewpoint of the deceased that counts—objective considerations areirrelevant.85

The German Legal System and Legal LanguageThis is in marked contrast to § 119 BGB, the underlying reason being the overridingimportance attached by the law of succession to the principle of testamentaryfreedom. A will is a unilateral declaration (‘nichtempfangsbedürftigeWillenserklärung’), which can be revoked at any time. The interests of businesssafety (‘Sicherheit des Rechtsverkehrs’) are irrelevant, since there is no businesspartner, and the trust of other persons, who rely on the validity of a will, enjoys noprotection (ie, there is no ‘schutzwürdiges Vertrauen’). Thus, third parties have noright to compensation, if they suffer loss in reliance on the validity of a will (§2078(iii) BGB).(iii) A disposition on death can also be challenged, if a person entitled to a compulsoryportion, who was living at the death, but of whose existence the deceased was notaware, was mistakenly bypassed (‘übergangen’) by the deceased, unless thedeceased would have made the disposition anyway, had he known the trueposition: § 2079 BGB.(iv) The challenge of a disposition appointing an heir, excluding a statutory heir fromsuccession or appointing an executor (or the revocation thereof) must be declaredat the probate court (‘Nachlassgericht’): § 2081(i) BGB.Challenge must be claimed within a year of knowledge of the grounds for challengeand, at the latest, within 30 years from the death: § 2082 BGB.(d) The joint will (‘Gemeinschaftliches Testament’; §§ 2265–2273 BGB) 303The ‘gemeinschaftliches Testament’ equates to the English ‘mutual will’, with thequalification that it can only be concluded by spouses: § 2265 BGB.It is usually a will simultaneously executed by both spouses (ie, personally signedby each in turn (§ 2267 BGB)) containing either entirely separate dispositions(‘selbständige Verfügungen’) or ones which are mutually agreed between them(‘untereinander abgestimmt’) and which are interdependent (‘wechselbezüglich’), ie, bothdispositions fail, if one of them is void or revoked: § 2270(i) BGB.Interdependent dispositions (‘wechselbezügliche Verfügungen’) are presumed to arise,if spouses appoint each other as heir or make dispositions in favour of (dose) thirdparties, which are conditional on the other spouse’s survival: § 2270(ii) BGB.Thus, for example, spouses can leave their respective estates to each other, with theproviso that, after the death of the survivor, the relevant estate should pass to a thirdperson (the final heir (‘Schlußerbe’)) eg, a child. In such a case (a so-called ‘BerlinerTestament’ (Berlin will)), it can be difficult to tell whether the estate should pass to thethird person separately (‘getrennt’) from the survivor’s own estate or together with it,ie, as a unit (‘als Einheit’). Accordingly, it is a rule of interpretation that, if there is anydoubt, the third party is presumed to be the heir of the last deceased spouse andentitled to the whole estate of both spouses: § 2269 BGB. 304The importance of interdependent dispositions is that they are only freely revocable(‘frei widerruflich’) during the lifetime of both spouses: § 2271(i) BGB. Once the firstspouse dies, they are (usually) irrevocable and binding (‘bindend’) on the survivor: §2271(ii) BGB. 30586

Chapter X: Private Law: The Civil Code (BGB)(e) The estate contract (‘Erbvertrag’; §§ 1941, 2274–2302 BGB) 306Unlike a will, which is a unilateral transaction, an estate contract is a bilateral agreementbetween the deceased and another person, by means of which either or both can makecertain binding contractual dispositions (‘vertragmässige Verfügungen’), ie, appoint anheir, leave a legacy or make a direction: §§ 1941, 2278 BGB.It is important to realise that an estate contract is a special type of agreement underthe law of succession, the essential feature of which is its binding effect(‘Bindungswirkung’).Apart from the abovementioned contractual dispositions, an estate contract canalso contain unilateral dispositions (‘einseitige Verfügungen’; § 2299 BGB), but these arefreely revocable. Moreover, an estate contract is frequently accompanied by separate,collateral obligations (‘Verpflichtungen’).An estate contract does not prevent the deceased from disposing of his estate in hislifetime as he pleases: § 2286 BGB. However, any prior or subsequent testamentarydisposition is invalidated by an estate contract, insofar as the right of the beneficiaryunder the estate contract would thereby be impaired: § 2289 BGB. Moreover, acontractual heir (‘Vertragserbe’) is protected, if the deceased makes a gift (‘Schenkung’)during his or her lifetime with the intention of impairing the heir’s position(‘Beeinträchtigungsabsicht’). The heir can demand return of the gift on the grounds ofunjust enrichment within three years of the death: § 2287 BGB. Similarly, if the objectof a contractual legacy is intentionally destroyed, fraudulently removed or damaged(‘zerstört, beiseite geschafft oder beschädigt’) by the deceased, the contractual legatee candemand its value: § 2288(i) BGB. 307An estate contract must be notarially documented in the presence of both parties: §2276(i) BGB.4 The Estate (‘Erbschaft’/‘Nachlaß’) and the Heir(s)(a) Universal succession (§ 1922 BGB)The German law of succession proceeds on the basis that on the death of a person (‘Erbfall’)that person’s assets (‘Vermögen’) pass as a whole (‘ungeteilt’) to one or more heirs (‘Erben’)—the principle of universal succession (‘Gesamtrechtsnachfolge’; § 1922 BGB).The estate devolves on the heir(s) directly by operation of law (‘ipso iure’), regardlessof the knowledge or wishes of the heir(s) (‘Anfall der Erbschaft’; § 1942(i) BGB).Thus, single items cannot be separated out of the estate with effect ‘in rem’ (‘dinglicheWirkung’). In particular, a legacy (‘Vermächtnis’) or a direction for division of the estate(‘Teilungsanordnung’; § 2048 BGB) creates no proprietary rights, but merely gives riseto a statutory obligation (‘gesetzliches Schuldverhältnis’), ie, a claim (‘Anspruch’ /‘Forderung’) against the heir(s). 308(i)(b) The community of heirs (‘Erbengemeinschaft’; §§ 2032–2063 BGB) 309A deceased’s estate often passes not to a sole heir (‘Alleinerbe’), but to several persons.Legally, these persons comprise a joint community (‘Gesamthandsgemeinschaft’),87

The German Legal System and Legal Languagealthough, unlike a civil law company (‘BGB-Gesellschaft’), their relationship doesnot arise by agreement. 310The estate constitutes a separate, special mass (‘Sondervermögen’) belonging to thecommunity. Each heir can dispose of his or her share (‘Anteil’) in the (joint) estate,but not of his or her share of individual assets: § 2033 BGB. A disposition(‘Verfügung’) of particular assets (‘Nachlaßgegenstände’) always requires the priorapproval (‘Einwilligung’) or subsequent consent (‘Genehmigung’) of all heirs: §2040(i) BGB. 311(ii) The relationship between the joint heirs (‘Miterben’) ends on break-up of the estate(‘Auseinandersetzung’), ie, settlement of all debts (‘Nachlaßverbindlichkeiten’) and divisionof any balance (‘Verteilung des Überschusses’) among them (§§ 2042, 2046, 2047 BGB).Until then, administration of the estate (‘Verwaltung des Nachlasses’) is the heirs’joint responsibility. Normally, their cooperation (‘Mitwirkung’) must be unanimous(‘einstimmig’). However, emergency steps directed to preservation of the estate(‘Erhaltung des Nachlasses’) can be taken by any heir acting alone (so-called‘Notverwaltung’) and measures of proper administration (‘ordnungsgemässeVerwaltung’) can be decided upon by a majority, provided no significant change(‘wesentliche Veränderung’) in the estate is made (§§ 2038, 745 BGB). 312In principle, each heir can demand break-up of the estate at any time: § 2042(i)BGB. However, there are exceptions, eg, the testator can direct that break-up beexcluded for up to 30 years (§ 2044 BGB) and exclusion can be (expressly orimpliedly) agreed upon between the heirs. 313The deceased can direct the mode of break-up: § 2048 BGB.(iii) If children of the deceased, who are statutory heirs, receive an endowment(‘Ausstattung’) from the deceased during the latter’s lifetime, they have a duty tobring it into account amongst themselves (‘Ausgleichungspflicht’) on break-up of theestate, unless the deceased directed otherwise at the time of the grant: § 2050 BGB.Such a duty also arises, if a child made a special contribution (‘besonderer Beitrag’)to the preservation or increase of the deceased’s assets, eg, by way of financial supportor by assistance in the deceased’s household, profession or business: § 2057a BGB.(iv) If an executor (‘Testamentsvollstrecker’) is appointed, break-up and administrationof the estate are undertaken by him: §§ 2204, 2205 BGB.(c) Appointment of an heir (‘Erbeinsetzung’; §§ 1937, 1941, 2087–2099 BGB)§ 2087 BGB contains a general rule of interpretation to the effect that, if the deceasedleaves all his assets (‘sein Vermögen’) or a part thereof (‘Bruchteil’) to a beneficiary, thedisposition is presumed to be the appointment of an heir (‘Erbeinsetzung’), even if thebeneficiary is not referred to as ‘heir’. 314However, a testator is not forced to appoint an heir, nor to dispose of his whole estate.Insofar as he does not do so, the statutory rules of succession apply: § 2088 BGB. 315If a testator appoints several heirs, one of whom falls away (‘wegfällt’) before thetestator’s death, his or her share does not lapse, but accrues to the others and is sharedamong them proportionately (the principle of ‘Anwachsung’ (accretion)): § 2094 BGB.88

Chapter X: Private Law: The Civil Code (BGB)‘Anwachsung’ is a general principle, which applies to all forms of‘Gesamthandsgemeinschaft’ (joint community) and, therefore, also in company law. 316(d) Appointment of a substitute heir (‘Ersatzerbe’; §§ 2096–2099 BGB) 317‘Anwachsung’ can be avoided, if the testator appoints a substitute heir. Theinheritance does not then pass to the heir, who was originally appointed (‘berufen’)and who, for some reason, is unable or unwilling to be heir, but to the substitute:§ 2096 BGB.Appointment of a substitute heir is to be distinguished from rules ofinterpretation taking effect in the event of doubt (‘im Zweifel’). Thus, where a testatorleaves his estate to his ‘children’, there is a statutory presumption that if any childpredeceases the making of the will, his or her issue take: § 2068 BGB. Similarly, ifany issue, who are appointed, fall away after the making of the will, their issuetake: § 2069 BGB.(e) Appointment of a subsequent heir (‘Nacherbe’; §§ 2100–2146 BGB) 318(i) Instead of appointing a substitute heir, a testator can dispose of his estate in sucha way that a person first becomes heir after someone else, at a particular time(‘Zeitpunkt’) or on the occurrence of a particular event (‘Ereignis’). The estate passesto the heirs successively (‘nacheinander’), the later one being referred to as thesubsequent heir (‘Nacherbe’): § 2100 BGB.If the relevant moment or event is not specified, it is presumed that the testator’sestate passes to the subsequent heir on the death of the prior heir (‘Vorerbe’): §2106(i) BGB.If the testator fails to specify the prior or subsequent heir, their position is assumedby his statutory heirs: §§ 2104–2105 BGB.Once the event of succession (‘Nacherbfall’) arises, the prior heir ceases to be heirand the estate passes (directly) to the subsequent heir: § 2139 BGB. Before then,the subsequent heir has a right of expectancy (‘Anwartschaftsrecht’), which is itselfcapable of succession (‘vererblich’): § 2108(ii) BGB. However, the appointment ofa subsequent heir generally becomes ineffective 30 years after the testator’s death,if the event of succession does not occur beforehand: § 2109(i)BGB.(ii) The purpose of ‘Vor-’ and ‘Nacherbschaft’ is to keep an inheritance as far as possibleintact for future generations. In this respect, the institution is similar to the English‘settlement’.Thus, the prior heir’s own right to dispose of the items in the estate is subject torestrictions (§§ 2112, 2113–2115 BGB), although bona fide acquisition by a thirdparty is possible: § 2113(iii) BGB.Moreover, the prior heir is obliged to hand over the estate to the subsequent heirin such a condition as accords with proper administration (‘ordnungsmäßigeVerwaltung’): § 2130(i) BGB. However, this rule is significantly qualified:(a) the prior heir is only required to exercise the standard of care expected of himin his own affairs (‘diligentia quam in suis’): § 2131 BGB; and89

The German Legal System and Legal Language(b) the prior heir has no liability for ordinary wear and tear (‘gewöhnlicheAbnutzung’): § 2132 BGB.The prior heir can be released altogether from all restrictions and obligations, if thetestator merely leaves ‘the rest’ of his estate to the subsequent heir (§ 2137(i) BGB) or ifthe estate is left to the prior heir’s free disposal (‘zur freien Verfügung’; § 2137(ii) BGB).(f) Exclusion from successionDisinheritance (‘Enterbung’; § 1938 BGB);A testator can disinherit a relative or spouse without reason at any time by will or byunilateral disposition in an estate contract.Disinheritance covers not only direct exclusion (‘Ausschliessung’), but also thelimitation of an heir to the compulsory portion or the appointment of another personas heir.Unworthiness (‘Erbunwürdigkeit’; §§ 2339–2345 BGB) 319Whether or not a person deserves to become heir or to receive a legacy or compulsoryportion is usually irrelevant.However, certain forms of particularly reprehensible conduct (‘verwerflichesVerhalten’) on the part of an heir can justify challenging the devolution of the estate tothat heir. The possible grounds are (§ 2339 BGB):1 murder or attempted murder of the deceased or placing him in a condition, suchthat he was incapable of making or revoking a disposition before his death;2 illegally preventing the deceased from making or revoking a disposition;3 fraudulently deceiving or illegally threatening the deceased, causing him to makeor revoke a disposition; or4 commission of an offence under §§ 267, 271 to 274 StGB, ie, forgery or falsedocumentation of a disposition.A declaration of un worthiness (‘Erbunwürdigerklärung’) can be sought by means of anaction for challenge (‘Anfechtungsklage’) by anyone, who would benefit (even indirectly)if the unworthy person fell away: §§ 2340–2342 BGB.The effect of a successful challenge is that the devolution of the estate to the unworthyheir is retrospectively (‘rückwirkend’) nullified. The estate is dealt with as if the unworthyheir had not been alive at the death of the testator: § 2344 BGB.Challenge of a legatee or a person entitled to a compulsory portion is possible onthe same grounds: § 2345 BGB. In such cases, however, a declaration of challenge(‘Anfechtungserklärung’) suffices.Waiver (‘Erbverzicht’; §§ 2346–2352 BGB)90

Chapter X: Private Law: The Civil Code (BGB)(g) Entitlement to a compulsory portion (‘Pflichtteil’; §§ 2303–2338 BGB) 320(i) The rationale underlying these provisions is that close dependants of the deceased(‘nahe Angehörige’)—ie, the deceased’s children, parents and spouse—should beentitled to share in the estate, even if they are excluded from inheritance in adisposition on death. By means of the instrument of the compulsory portion, theBGB tempers excessive testamentary freedom.The compulsory portion (‘Pflichtteil’) is not a minimum right of inheritance, butonly a pecuniary claim (‘Anspruch’) against the heir(s), which arises on death: §2317 BGB. 321The claim must be made within three years of (positive) knowledge of the deathand the impairing disposition or, without such knowledge, within 30 years of thedeath: § 2332(i) BGB. 322(ii) The claim amounts to half in value of the statutory share, to which the claimantwould have been entitled under the statutory rules: § 2303(i) BGB.The basis for calculating the compulsory portion is the value of the estate (‘Wertdes Nachlasses’) at the time of death: § 2311(i) BGB.The person entitled to a compulsory portion can demand information (‘Auskunft’)regarding the estate from the heir(s): § 2314(i) BGB. 323The relevant person must be excluded from inheritance (ie, usually, disinherited).However, ‘exclusion’ does not have to be express, nor need it be complete. 324 Thus,a person, who is appointed as heir, but who receives a share of the estate amountingto less than half of his or her statutory entitlement can claim the shortfall as aadditional compulsory portion (‘Zusatzpflichtteil’): § 2305 BGB. Moreover, a legatee,who disclaims the legacy, can always claim a compulsory portion: § 2307(i) BGB. 325(iii) Where there is a surviving spouse, who lived with the deceased under the statutoryproperty regime of ‘Zugewinngemeinschaft’ (community based on gain), § 1371 BGBhas to be taken into account in the calculation (‘Berechnung’) of the compulsoryportion. 326Thus, if the spouse is disinherited or disclaims the estate, the spouse’s compulsoryportion is based on her non-increased statutory share (§§ 1931(i), 1371(ii), (iii)BGB)—the so-called ‘small’ compulsory portion (‘kleiner Pflichtteil’). However, ifthe spouse becomes heir, the basis for calculation of the spouse’s (additional)compulsory portion is the increased statutory entitlement (§ 1371(i) BGB)—theso-called ‘large’ compulsory portion (‘grosser Pflichtteil’). 327The increased statutory entitlement is also the basis for computation, if there areother persons, apart from the spouse, who wish to claim a compulsory portion(eg, children).(iv) The purpose of the compulsory portion would be thwarted, if the deceased coulddeplete his estate by grants (‘Zuwendungen’) or gifts (‘Schenkungen’) during his lifetime.Thus, where there is an ‘Ausgleichungspflicht’ between children of the deceased (§2050, § 2057a BGB), this must be taken into account when calculating the value oftheir statutory shares for the purpose of the compulsory portion: § 2316 BGB. 32891

The German Legal System and Legal LanguageMoreover, a claim to supplement the compulsory portion can be made(‘Pflichtteilergänzungsanspruch’), if, within ten years before death, the deceased madea gift (‘Schenkung’) to a third party: § 2325 BGB. Gifts received by the claimant alsohave to be brought into account § 2327 BGB. However, these provisions do notapply, if the relevant gift was made in accordance with a moral duty (‘sittlichePflicht’) or in consideration of decency (‘Anstand’): § 2330 BGB. 329(v) Withdrawal of the compulsory portion (‘Entziehung des Pflichtteils’) is only possibleon special grounds (§§ 2333–2335 BGB). It must be effected by will, stating theground for withdrawal (§ 2336 BGB). The testator can forgive the claimant, inwhich case the right of withdrawal ceases (§ 2337 BGB). 330(i)(ii)(h) Legacies and directions (‘Vermächtnis’/‘Auflage’;§§ 1939–2940, 2147–2196 BGB) 331By means of a legacy, a testator can bestow a pecuniary advantage (‘Vermögensvorteil’)on someone (e.g. a sum of money or a particular item), without appointing thatperson as heir: § 1939 BGB.The grant of a legacy merely has obligational effect (‘verpflichtende Wirkung’), ie,unlike an heir, the legatee (‘Vermächtnisnehmer’) obtains no proprietary right tothe object of the legacy (‘der vermachte Gegenstand’), nor does it pass to him or herdirectly. The legatee merely acquires a claim (‘Anspruch’) to fulfillment of the legacy(eg, by transfer (‘Übertragung’) of the relevant item): § 2174 BGB.The claim arises on death (‘Anfall des Vermächtnisses’; § 2176 BGB) and thebeneficiary (‘der Bedachte’) must then be alive (§ 2160 BGB).The person liable to effect/perform the legacy is referred to as the person charged (‘derBeschwerte’), ie, usually the heir(s), unless the testator otherwise directs: § 2147 BGB.The testator can grant a legacy to an heir in addition to his or her share of theestate: § 2150 BGB (a so-called ‘Vorausvermächtnis’ (advance legacy)). Moreover,the testator can direct that a legacy take effect subject to a suspensive condition(‘aufschiebende Bedingung’) or at a particular time: § 2177 BGB. Such a legacy usuallyhas a 30-year time limit: §2162 BGB.If the object of a legacy does not form part of the estate at death, the legacy isnormally invalid (‘unwirksam’): § 2169(i) BGB. However, the person charged isrequired to obtain the item for the legatee, if it was intended that the legatee shouldreceive it regardless of whether or not it belonged to the estate. Such a legacy isvalid (a so-called ‘Verschaffungsvermächtnis’ (procurement legacy); § 2170 BGB).A legacy can be disclaimed by the legatee before acceptance (‘Annahme’; § 2180(i) BGB).Unlike a legacy, which gives the beneficiary a claim to performance (‘Leistung’), adirection (‘Auflage”) bestows no rights, whilst placing a legal obligation on theperson charged: § 1940 BGB. Enforcement is possible: § 2194 BGB.(i) Appointment of an executor (‘Testamentsvollstrecker’;§§ 2197–2228 BGB)92

Chapter X: Private Law: The Civil Code (BGB)5 Procedural Aspects(a) Acceptance (‘Annahme’) and disclaimer (‘Ausschlagung’; §§ 1942–1966 BGB)(i) Despite the automatic devolution of the estate (‘Anfall der Erbschaft’) on the heir(s),the heir(s) retain(s) the right to disclaim the inheritance: § 1942(i) BGB.The right of disclaimer must be exercised within six weeks from the time the heir(s)learn of the death and their status as heir(s) (‘Erbenstellung’): § 1944(i), (ii) BGB.The period for disclaimer (‘Ausschlagungsfrist’) is extended to six months, if thedeceased had his or her last domicile (‘Wohnsitz’) abroad or if the heir(s) wereabroad at the start of the period: § 1944(iii) BGB.In the meantime, there is a period of suspense (‘Schwebezustand’). Any interim(obligational) transactions concerning the estate (‘erbschaftliche Geschäfte’)undertaken by the provisional heir (‘vorläufiger Erbe’) before disclaimer are treated(internally) as being carried out by him without instructions as a ‘Geschäftsführerohne Auftrag’: § 1959(i) BGB. 332 Externally, he is liable with his own assets(‘Eigenvermögen’), unless he dearly contracted on behalf of the estate.Dispositions of items belonging to the estate (‘Verfügungen über Nachlaßgegenstände’)before disclaimer are nullified on disclaimer, unless they were urgent (‘dringlich’):§ 1959(ii) BGB. However, ‘bona fide’ acquisition is possible (§ 932 BGB). 333In the event of disclaimer, devolution is retrospectively nullified: § 1953(i) BGB.The estate passes to the person(s), who would have been entitled on the death,had the disclaiming person not then been alive: § 1953(ii) BGB. 334(ii) No disclaimer is possible, if the inheritance is accepted or if the period for disclaimeris missed. In the latter situation (‘Versäumung der Ausschlagungsfrist’), theinheritance is deemed to be accepted: § 1943 BGB. 335Acceptance does not have to be express. It can be implied from conduct(‘konkludentes Verhalten’). 336 Thus, if the provisional heir meddles in the estate, thiscan indicate that the heir wishes to accept the inheritance (‘gestio pro herede’). 337Acceptance is ineffective, if the heir is mistaken as to the reason for succession:§1949(i) BGB.Moreover, the challenge (‘Anfechtung’) of acceptance (or disclaimer) is possible.The successful challenge of an acceptance is deemed to be a disclaimer and viceversa: §1957(i) BGB.Unlike the challenge of a disposition on death, there are no special grounds forchallenge (‘Anfechtungsgründe’). The general provisions in §§ 119, 123 BGB apply. 338Generally, challenge must be effected within six weeks of knowledge of the groundfor challenge (§ 1954(i), (ii) BGB) and not later than 30 years after acceptance ordisclaimer (§ 1954(iv) BGB). The declaration of challenge must be made at theprobate court (§ 1955 BGB).93

The German Legal System and Legal Language(b) Liability of the heir(s) for debts (‘Haftung für Nachlaßverbindlichkeiten’;§§ 1967–2017, 2058–2063 BGB) 339The liability of the heir(s) for debts of the estate—which include not only those of thedeceased, but also the duty of the heir(s) to fulfil any compulsory portions, legaciesand directions (§ 1967(ii) BGB)—is, in principle, unlimited (‘unbeschränkt’). Thus, itincludes the heir’s personal assets (‘Eigenvermögen’).A means of ensuring that the liability of the heir(s) is limited to the assets of theestate and that, as far as possible, these remain available for the satisfaction of estatecreditors (‘Befriedigung der Nacrdaßgläubiger’) is to apply to the probate court for anorder of estate administration (‘Nachlaßverwaltung’): § 1975 BGB. Estate administrationis a particular form of estate guardianship (‘Nachlaßpflegschaft’). 340Application for estate administration can be made by the heir(s) or by an estatecreditor. In the latter case, however, there must be reason to believe that the satisfactionof creditors is endangered by the conduct or commercial position of the heir(s) andthe application must be made not more than two years after acceptance of the estate:§ 1981(ii) BGB.The effects of estate administration are:1 the assets of the estate and those of the heir(s) are separated retrospectively(‘rückwirkend’) to the date of death (‘Trennung der Vermögensmassen’); and2 the heir loses the right to administer and dispose of the estate (§ 1984(i) BGB). 341This right passes to an estate administrator (‘Nachlaßverwalter’), who is officiallyappointed by the probate court and who, like a guardian, is under the supervision(‘Aufsicht’) of the court (§ 1837(i) BGB).The estate administrator must administer the estate and settle debts out of the estate:§ 1985(i) BGB.If the estate is over-indebted (‘überschuldet’)—the estate need not be insolvent(‘zahlungsunfähig’)—application must be made to commence proceedings for estatebankruptcy (‘Nachlaßkonkurs’): § 1980(i) BGB. Estate administration then ends: §1988(i) BGB.(c) Claims against third parties (§§ 2018–2031 BGB)(d) The certificate of inheritance (‘Erbschein’; §§ 2353–2370 BGB)The ‘Erbschein’ is an official certificate (‘Zeugnis’) of the right of inheritance (‘Erbrecht’),which is issued to the heir(s) by the probate court (‘Nachlaßericht’) on application(‘Antrag’). It shows the names of the deceased and the heir(s) and, if the heir(s) is/areonly entitled to a share of the estate (‘Erbteil’), the size of that share: § 2353 BGB.The ‘Erbschein’ must also give details of any restrictions on the entitlement ofthe heir(s) to dispose of the estate (‘Verfügungsbeschränkungen’), ie, the appointmentof a subsequent heir (‘Nacherbe’) or an executor (‘Testamentsvollstrecker’): §§ 2363,2364 BGB. 34294

Chapter X: Private Law: The Civil Code (BGB)The competent court for the issue (‘Erteilung’) of an ‘Erbschein’ is the local‘Amtsgericht’ (District Court) for the last domicile (‘Wohnsitz’) or residence (‘Aufenthalt’)of the deceased in Germany: § 73(i) FGG. 343An ‘Erbschein’ can only be issued once the facts have been established to thesatisfaction of the court (‘Feststellung der Tatsachen’): § 2359 BGB.An ‘Erbschein’ is presumed to be correct (‘Vermutung der Richtigkeit’; § 2365 BGB). Ifit transpires that the ‘Erbschein’ is incorrect, the probate court must withdraw it(‘Einziehung’). It is then automatically devoid of legal effect (‘kraftlos’): § 2361(i) BGB.Alternatively, the true heir can require an incorrect ‘Erbschein’ to be returned to theprobate court: § 2362(i) BGB.In parallel with § 892 BGB, an ‘Erbschein’ also enjoys public credence (‘öffentlicherGlaube’). Thus, in favour of a third party, who acquires an item out of the estate or aright to, or release from, such a right from the heir, the content of the ‘Erbschein’ isdeemed to be accurate, unless the acquiring person (positively) knows that it is incorrector knows that the probate court has requested return of the ‘Erbschein’ on that ground:§ 2366 BGB. 344 (e) The probate court (‘Nachlaßgericht’)Anyone holding a will, which is not in official custody (‘amtliche Verwahrung’), mustdeliver it to the probate court once he learns of the death of the testator: § 2259(i) BGB.The same applies to any authority, other than a court, holding a will in official custody:§2259(ii) BGB.The probate court is responsible for the setting of a date (‘Termin’) for the openingof a will in its possession (‘Eröffnung des Testament’): § 2260(i) BGB. It must keep arecord (‘Niederschrift’) of the proceedings: § 2260(iii) BGB.Before acceptance or disclaimer of the inheritance by the heir(s) or if the heirs areunknown, the probate court must, if necessary, take appropriate steps to safeguardthe estate (‘Sicherung des Nachlasses’): § 1960(i) BGB. In particular, it can appoint anestate guardian (‘Nachlaßpfleger’): § 1960(ii) BGB. 345If the proper heirs are not located within a reasonable period, the probate courtmust confirm that there are no heirs, apart from the State (‘Fiskus’): § 1964(i) BGB.There is then a presumption that the state is statutory heir: § 1964(ii) BGB.95

CHAPTER XIXI PRIVATE LAW: BGB COMPANY LAW AND THECOMMERCIAL CODE (HGB) 1A CONTEXT AND DEFINITIONS1 The German Commercial Code (‘Handelsgesetzbuch’ or HGB) of 10.5.1897 cameinto force with the BGB on 1.1.1900. It contains the special law (‘Sonderrecht’) of aparticular professional class (‘Berufsstand’), namely of the ‘Kaufmann’ (businessman;trader).A person can conduct his business (‘Gewerbe’) 2 either alone (in which case, if he isa ‘Kaufmann’, as a so-called ‘Einzelkaufmann’ (sole trader)) or together with othersas a ‘Gesellschaft’ (company).A ‘Gesellschaft’ can take one of the following main forms: 3– a ‘Gesellschaft des bürgerlichen Rechts’ (GbR=‘BGB-Gesellschaft’: civil lawcompany or BGB-company, ie, partnership; §§ 705–740 BGB); 4– an ‘offene Handelsgesellschaft’ (OHG: open trading company; §§ 105–160 HGB);– a ‘Kommanditgesellschaft’ (KG: limited partnership; §§ 161–177a HGB);– a ‘Gesellschaft mit beschränkter Haftung’ (GmbH: company with limited liability);– an ‘Aktiengesellschaft’ (AG: public limited company).The last four are also known as ‘Handelsgesellschaften’ (commercial/trading companies),although only the OHG and KG are dealt with in the HGB (§§ 105–177).For the OHG and KG, the HGB builds on the primary provisions for the ‘BGB-Gesellschaft’ contained in §§ 705–740 BGB (§§ 105(ii) and 161(ii) HGB). Separatestatutes govern the GmbH and AG (the GmbHG and AktG). 52 At this point, it is important to draw attention to the fundamental difference betweenthe terms ‘Gesellschaft’ (company, society) and ‘Gemeinschaft’ (community). 6The term ‘Gesellschaft’ is a concept of private law. It is a sub-category of the term‘Gemeinschaft’, which is a much less formal relationship. Thus, in the case of a‘Gemeinschaft nach Bruchteilen’, every member can require that it be dissolved atany time: § 749(i) BGB. 7A ‘Gesellschaft’ is established by legal transaction (‘Rechtsgeschäft’)—ie, byagreement—for a specific purpose (‘Zweck’). A ‘Gemeinschaft’, on the other hand,can arise by statute (eg, §§ 947–948 BGB)—ie, independently of the intention ofthe parties—and does not need to have a particular goal (eg, administration of anasset, married life (‘die eheliche Lebemgemeinschaft’)). 8 Moreover, a ‘Gemeinschaft’can exist in the form of a public corporation (‘Körperschaft des öffentlichen Rechts’). 9The term ‘Verband’ (association, federation) refers to any vehicle for theadvancement of joint interests (‘zur Förderung gemeinsamer Interessen’). In its wide97

The German Legal System and Legal Languagesense, it incorporates ‘Gesellschaft’, ‘Gemeinschaft’ and ‘Verein’. It is a sub-term ofthe less technical ‘umbrella’ term ‘Vereinigung’ (association, group). 10‘Verbände’ properly so-called are to be found in private and public law. They covernot only representative bodies in trade and industry (eg, employers’ organisationsand trade unions), but also political parties, consumer protection andenvironmental pressure groups and lobbyists (‘Interessenvertreter’).To be distinguished from a ‘Verband’ is a ‘Kammer’ (chamber), which is anorganisation established under public law to represent a particular profession. 113 The ‘BGB-Gesellschaft’ (and the OHG and KG) is a so-called ‘Gesamthandsgemeinschaft’(a joint community), the assets of which (‘Gesellschaftsvermögen’) are the joint property(‘Gesamthandseigentum’ /‘Gesamthandsvermögen’) of the members (‘Gesellschafter’) andcan only be disposed of jointly (‘gemeinschaftlich’; §§ 718(i) and 719(i) BGB). 12Other ‘Gesamthandsgemeinschaften’ are the ‘Gütergemeinschaft’ (community of propertybetween spouses) and the ‘Erbengemeinschaft’ (community between heirs). 13The ‘Gesamthandsgemeinschaft’ is (the exception and is) to be distinguished from the(principal) ‘Gemeinschaft nach Bruchteilen’ (a community by shares; §§ 741–758 BGB),where each ‘Teilhaber’ (shareholder) can dispose of his ‘Anteil’ ((ideal) share) in theasset(s) of the ‘Gemeinschaft’; the asset(s) as a whole can, however, only be disposedof jointly: § 747 BGB). 14The ‘Gesamthandsgemeinschaft’ is also to be strictly distinguished from the ‘juristischePerson’ (artificial/juristic person) or ‘Körperschaft’ (corporate body), of which the‘Verein’ (club (incorporated) association) is the prototype (§§ 21–79 BGB). 15Unlike the ‘Gesamthandsgemeinschaft’, the ‘juristische Person’ or ‘Körperschaft’– is a ‘Rechtssubjekt’ and, once registered, ‘rechtsfähig’ (ie, has separate legalpersonality);– acts through its ‘Organe’ (organs, eg, its ‘Vorstand’ (board of directors)) forwhose damaging acts it is liable (§ 31 BGB);– can be non-capitalised (‘Verein’) or capitalised (a ‘Kapitalgesellschaft’ (stockcorporation), eg, a GmbH or AG). 164 As opposed to a ‘juristische Person’, the ‘BGB-Gesellschaft’, OHG and KG are alsoexamples of a ‘Personengesellschaft’ (a personal company), 17 which is characterisedby the personal liability (‘persönliche Haftung’) and personal direction/involvement(‘Selbstorganschaft’) of its ‘Gesellschafter’ /‘Mitglieder’ (members). In a ‘juristischePerson’, the executive organs and the members do not have to be identical(‘Drittorganschaft’ is permitted).An OHG is based on the unlimited liability (‘unbeschränkte Haftung’) of all its members(§ 105(i) HGB), while a KG has two types of member: the member(s) with unlimitedliability (the ‘Komplementär(en)’) and the member(s) whose liability is limited to theamount of a particular investment (the ‘Kommanditist(en)’: § 161(i) HGB). 18In turn, a ‘Gesellschaft’ can itself be a member of another ‘Gesellschaft’. Thus, a‘juristische Person’ (eg, a GmbH) can be a member of an OHG or the ‘Komplementär’of a KG (so in the ‘GmbH & Co KG’). 1998

The German Legal System and Legal Languagecare as they would exercise in their own affairs (‘diligentia quam in suis’): § 708BGB. The test is subjective.§ 708 BGB therefore protects against liability for slight negligence (‘leichteFahrlässigkeit’), but does not release members of a ‘BGB-Gesellschaft’ from liabilityfor gross negligence (‘grobe Fahrlässigkeit’): § 277 BGB.§ 708 BGB is dispositive and can be derogated from by agreement.2 The members of a ‘BGB-Gesellschaft’ are entitled to conduct the business of thecompany jointly (‘gemeinschaftlich’). Each transaction normally requires theunanimous agreement of all members (‘Einstimmigkeitsprinzip’): § 709(i) BGB.However, the company agreement can provide for majority decisions(‘Mehrheitsprinzip’) or for a transfer of management to one or more members(‘Einzelgeschäftsführung’): § 710 BGB.If management is so transferred, the relevant members also have the power torepresent the ‘BGB-Gesellschaft’ towards third parties (‘Vertretungsmacht’), unless thecompany agreement otherwise provides: § 714 BGB. 25The position in the case of an OHG is somewhat different: usual acts of management(‘gewöhnliche Handlungen’) can be undertaken by any member in the absence of anobjection (‘Widerspruch’) from another: §§ 115(i), 116(i) HGB. Each member also hasauthority to bind the OHG externally, unless otherwise specified in the companyagreement: § 125(i) HGB. If this authority is exceeded, §§ 177ff BGB apply.3 The members of a ‘BGB-Gesellschaft’ and an OHG are ‘Gesamthänder’, ie, they arepersonally liable as joint debtors (‘Gesamtschuldner’), if they assume contractualobligations on behalf of the company (§§ 427, 431 BGB).However, whilst the members of a ‘BGB-Gesellschaft’ are liable together because,technically, they each owe performance, the personal liability (‘persönlicheHaftung’) of members of an OHG is treated by the HGB as being based on(accessory to) the primary obligation of the company: § 128 HGB. Legally, ‘Schuld’and ‘Haftung’ are separated.In a ‘BGB-Gesellschaft’ or OHG, limitation of liability (‘Haftungsbeschränkung’) to particularassets is, theoretically, possible, ie, by express agreement with the other contracting partyor by a restriction on the power of representation in the company agreement. 26C THE HGB IN DETAIL1 IntroductionThe HGB is divided into five Books:Book I (§§ 1–104): ‘Handelsstand’ (classification/trading status) 27Book II (§§ 105–237): ‘Handelsgesellschaften’ (non-capitalised commercial companies)Book III (§§ 238–339): ‘Handelsbücher’ (bookkeeping)Book IV (§§ 343–460): ‘Handelsgeschäfte’ (commercial transactions) 28Book V (§§ 476–905): ‘Seehandel’ (sea trade) 29100

Chapter XI: Private Law: BGB Company Law and The Commercial Code (HGB)2 Book I (§§ 1–104 HGB): ‘Handelsstand’Book I is divided into eight Sections:1: ‘Kaufleute’ (businessmen; §§ 1–7).2: ‘Handelsregister’ (commercial / trade register; §§ 8–16).3: ‘Handelsfirma’ (trade firm; §§ 17–37).4: (Repealed).5: ‘Prokura’ and ‘Handlungsvollmacht’ (procura and authority to trade; §§ 48–58).6: ‘Handlungsgehilfen’ and ‘Handlungslehrlinge’ (trading assistants and apprentices;§§ 59–83).7: ‘Handelsvertreter’ (commercial / mercantile agents; §§ 84–92c).8: ‘Handelsmakler’ ((trade) broker; §§ 93–104).(a) Section 1 (§§ 1–7 HGB) 30A person, who engages in one of the basic trading activities (‘Grundhandelsgewerben’)listed in § l(ii) HGB, is a so-called ‘Mußkaufmann’ (compulsory businessman), whetheror not he is registered. Depending on the extent of his business activities, the‘Mußkaufmann’ can be either a ‘Vollkaufmann’ or ‘Minderkaufmann’ (full or lesserbusinessman). Various provisions of the HGB are inapplicable to the ‘Minderkaufmann’(eg, firm registration, bookkeeping, grant of procura; § 4(i)).A trading company, whether or not capitalised, is a so-called ‘Formkaufmann’(businessman by reason of its form; § 6 HGB).By § 2 HGB, a so-called ‘Sollkaufmann’ is a person, who does not fall within § l(ii),but the type and extent of whose activities require a properly organised business (‘dessenUnternehmen nach Art und Umfang einen kaufmännisch eingerichteten Geschäftsbetrieberfordert’), eg, a builder or hotelier). A ‘Sollkaufmann’ becomes a ‘Kaufmann’ byregistration, which he is obliged to procure. 31(b) Sections 2 and 3 (§§ 8–37 HGB) 32The name under which a ‘Vollkaufmann’ engages in commercial activities is known asthe ‘Firma’ (firm) and must be registered in the ‘Handelsregister’ (commercial/traderegister), which is kept at the ‘Amtsgericht’ (district court) (§§ 8, 17 and 29 HGB).(c) Section 5 (§§ 48–58 HGB 33The non-independent representatives and assistants (‘unselbstständige Vertreter undHilfspersonen’) of a ‘Kaufmann’ are dealt with in §§ 48–83 HGB.The widest power of representation (‘Vertretungsmacht’) that can be granted by a‘Vollkaufmann’ is the ‘Prokura’, which enables the procurist effectively to undertakeany transactions, which a (not the!) trading activity (‘Handelsgewerbe’) involves. 34 Thegrant of procura (‘Erteilung der Prokura’) must be registered and is unlimited(‘unbeschränkt’) as far as third parties are concerned (§§ 49(i), 50(i) and 53(i) HGB). 35101

The German Legal System and Legal LanguageA ‘Kaufmann’ can, instead, grant a so-called ‘Handlungsvollmacht’ (trading power ofattorney), which is presumed to be limited to those transactions, which are usual(‘gewöhnlich’) for that type of ‘Handelsgewerbe’ (§ 54 HGB).Whereas the extent of a procura is mandatory (‘zwingend’), restrictions having noeffect on third parties, (internal) limits on a ‘Handlungsvollmacht’ are possible and onlybind a third party, if he knew or ought to have known of them: § 54(iii) HGB. 36Similarly, a third party is protected when dealing with an employee in a shop orstore. The employee is deemed authorised to undertake such sales and receipts as areusual in such a place: § 56 HGB. A ‘Scheinvollmacht’ (apparent authority) is treated asexisting, based on the position (‘Stellung’) of the employee. The principal is liable forthe ‘Rechtsschein’ (legal appearance) which has been created. 37(d) Section 6 (§§ 59–83 HGB) 38The staff (‘Personal’) of a ‘Kaufmann’ are his ‘Handlungsgehilfen’ (trading assistants),commonly referred to as ‘kaufmännische Angestellte’ (commercial employees; § 59 HGB).An ‘Auszubildender’ is a trainee.Competition by employees during and after employment(i)§ 60(i) HGB lays down a statutory prohibition of competition (‘gesetzlichesWettbewerbsverbot’) by a ‘Handlungsgehilfe’ (trading assistant) during the period ofemployment. Without the principal’s consent, such a person cannot engage inany (other) trading activity or do business in the same branch of trade(‘Handelszweig’) as that of the principal.In the event of breach, § 61 (i) HGB gives the employer (principal) two remedies:– the employer can claim damages; or– the employer can instead demand that any transaction(s) undertaken by theemployee for the employee’s own account be treated as entered into for theaccount of the principal or that any fees earned by the employee in transactionsfor third parties be handed over or assigned to the employer.The employer’s claims under § 61(i) HGB become statute-barred three monthsafter the employer becomes aware of the relevant transaction, otherwise (ie, inthe absence of knowledge on the part of the employer) five years after conclusionof the transaction: § 61(ii) HGB.(ii) Clauses restraining competition by commercial employees after the end of theiremployment (restrictive covenants) were originally freely negotiable.The forerunner of the HGB, the ‘Allgemeines Deutsches Handelsgesetzbuch’ (ADHGB;General German Commercial Code), which was gradually implementedthroughout Germany after 1861, contained no provisions in this respect.The current rules in the HGB concerning contractual prohibitions againstcompetition by former commercial employees (‘Wettbewerbsverbote’/‘Konkurrenzktauseln’; §§ 74ff HGB) were originally inserted into the HGB in 1897102

Chapter XI: Private Law: BGB Company Law and The Commercial Code (HGB)and were subsequently amended in 1914. They have since been extended byanalogy to all employees.The rules are, in essence, protective norms (‘Schutznormen’), which significantlylimit the possibility of oppressive clauses (‘drückende Klauseln’) in the interest ofthe freedom of the employee.Thus, a post-contractual prohibition (‘nachvertragliches Wettbewerbsverbot’) is onlyvalid and binding, if:– the prohibition is in writing;– the prohibition is contained in a document signed by the employer and handedto the employee;– the prohibition serves a justified business interest of the employer (‘berechtigtesgeschäftliches Interesse’);– the employer agrees to pay compensation to the employee for the duration ofthe prohibition (‘Karenzentschädigung’) of an amount of not less than half ofthe employee’s last earnings;– taking into account the compensation agreed to be paid, the length,geographical extent or object of the prohibition does not unduly hamper theemployee’s prospects of advancement;– the prohibition does not last for more than two years after the end of the employment;(§§ 74, 74a(i) HGB).If the employee’s earnings are variable, the amount of compensation has to beassessed according to the average remuneration during the last three years or forsuch (shorter) period as the contractual remuneration clause applied (§ 74b(ii) HGB).Once the prohibition takes effect and compensation is due, sums which the employeeearns elsewhere (or which in bad faith he fails to earn) can be set off against thecompensation payable so far as the other earnings, together with the compensation,exceed the last contractual earnings by more than 10% or, if the employee was forcedto move home due to the prohibition, by more than 25% (§ 74c (i) HGB).By § 75 HGB, a restrictive covenant loses its effect if:– the employee terminates his employment due to the employer’s conduct andwithin one month of termination states in writing that he does not considerhimself bound by the prohibition; or– the employer terminates the employment, unless the person of the employeeprovides significant grounds (‘erheblicher Anlaß’) to do so or unless the employeragrees to continue to pay the employee’s last full salary for the duration of theprohibition.Moreover, before termination of the employment, an employer can declare inwriting that he (unilaterally) waives his rights under the restrictive covenant, inwhich case the employer is released from his obligation to pay compensation afterthe expiry of a year from the declaration: § 75a HGB. The employee, on the otherhand, is immediately free, but remains bound by the statutory prohibition againstcompetition during the remaining period of employment.103

The German Legal System and Legal Language(e) Sections 7 and 8 (§§ 84–104 HGB) 39The ‘Handelsvertreter’ (commercial / mercantile agent) is an independent (ie, selfemployed)‘Hilfsperson’ of a ‘Kaufmann’. 40As opposed to the ‘Handelsmakler’ (a broker (§ 93 HGB) eg, insurance- orstockbroker), 41 the ‘Handelsvertreter’ is constantly (‘ständig’) engaged in the referral(‘Vermittlung’) or conclusion (‘Abschluß’) of business to or for another entrepreneur(‘Unternehmer’): § 84(i) HGB. The ‘Handelsvertreter’ acts as agent for his principal(‘Geschäftsherr’), unlike the commissioneer (‘Kommissionär’: § 383 HGB), who acts inhis own name (‘im eigenen Namen’). 42A ‘Handelsvertreter’ or ‘Kommissionär’ receives commission (‘Provision’; §§ 87 and396 HGB). A ‘Handelsmakler’ receives a fee (‘Maklerlohn’ / ‘Courtage’).The ‘Handelsvertreter’, ‘Handelsmakler’ and ‘Kommissionär’ are all ‘Kaufleute’ (§ 1(ii)Nos 6 and 7 HGB). 433 Book II (§§ 105–237 HGB): ‘Handelsgesellschaften’(a) ContentBook II is divided into three Sections:1 ‘Offene Handelsgesellschaft’ (open trading company; §§ 105–160). 442 ‘Kommanditgesellschaft’ (limited partnership; §§ 161–177a). 453 ‘Stille Gesellschaft’ (silent partnership; §§ 230–237). 46Section 1 contains 6 Titles:(b) Section 1 (§§ 105–160 HGB) 471 ‘Errichtung der Gesellschaft’ (formation of the company; §§ 105–108).2 ‘Rechtsverhältnis der Gesellschafter untereinander’ (legal relationship of the membersamongst each other; §§ 109–122).3 ‘Rechtsverhältnis der Gesellschafter zu Dritten’ (legal relationship of the memberstowards third parties; §§ 123–130b).4 ‘Auflösung der Gesellschaft und Ausscheiden von Gesellschaftern’ (termination(dissolution) of the company and departure of members; §§ 131–144).5 ‘Liquidation der Gesellschaft’ (liquidation of the company; §§ 145–158).6 ‘Verjährung’ (limitation period; §§ 159–160).(i) Title 1 (§§ 105–108 HGB)§ 105(i) defines the OHG as a company whose purpose (‘Zweck’) is directed to theengagement in (‘Betrieb’) a trading activity (‘Handelsgewerbe’) under a joint firm (name;‘Firma’), the liability of its members towards company creditors being unlimited(‘unbeschränkt’). The OHG is the trading version of the ‘BGB-Gesellschaft’ (civil lawcompany/partnership); thus, unless stated to the contrary in Section 1, the provisions104

Chapter XI: Private Law: BGB Company Law and The Commercial Code (HGB)of the BGB regarding the ‘Gesellschaft’ (§§ 705–740 BGB) additionally apply to theOHG (§ 105(ii)).By § 106(i) a notification (‘Anmeldung’) to register an OHG must be made to the(district) court (‘Amtsgericht’) for the area in which it has its registered address (‘Sitz’).Any change in its ‘Firma’ (firm name), ‘Sitz’ or the entry of a new member into thecompany must also be notified (§ 107). 48(ii) Title 2 (§§ 109–122 HGB)§ 109 HGB contains the basic rule that, in the first instance (‘zunächst’), the (internal)legal relationship of the ‘Gesellschafter’ (members) of an OHG amongst each other isgoverned by the ‘Gesellschaftsvertrag’ (company agreement) and that §§ 110–122 onlyapply in so far as the ‘Gesellschaftsvertrag’ does not otherwise provide. The companyagreement, therefore, has priority (‘Vorrang’).§§ 110–122 contain provisions dealing with:– compensation for expenditure and losses incurred by a member (‘Ersatz fürAufwendungen und Verluste’; §§ 110–111);– restraint of competition by a member (‘Wettbewerbsverbot’; §§ 112–113);– the members’ right of management (‘Geschäftsführungsbefugnis’), its extent(‘Umfang’) and withdrawal (‘Entziehung’) by the court (§§ 114–117).By § 115(i), a member is entitled to act alone, a veto from another member only havinginternal effect. 49The company agreement can require the members to act together and with mutualconsent, but not in a case of urgency (‘Gefahr im Verzug’; § 115(ii)).§ 116 provides that, unlike the members’ very extensive external power to representthe OHG (‘Vertretungsmacht’; laid down in § 126), their ‘Geschäftsführungsbefugnis’ onlyentitles them to engage in usual trading activities (‘Handlungen, die der gewöhnlicheBetrieb des Handelsgewerbes der Gesellschaft mit sich bringt’). Anything beyond that requiresa resolution (‘Beschluß’) of all members (§ 116(ii)):– the members’ right of control (‘Kontrollrecht’; § 118);– the passing of resolutions (‘Beschlüsse’; § 119). No particular form is required andmajority resolutions can be permitted by the company agreement;– the establishment and division of profit and loss (‘Gewinn und Verlust’; §§ 120–122).(iii) Title 3 (§§ 123–130b HGB)The HGB sharply divides the legal relationship between the members of an OHGinternally (‘nach innen’; §§ 109–122) from their relationship to third parties (externally(‘nach außen’; §§ 123–130b).For the protection (‘Schutz’) of its business partners, §§ 123–130b contain essentiallycompulsory provisions dealing with:– the time of effective creation of the OHG (‘Wirksamkeit’; § 123);– the legal status of the OHG and enforcement against its property (§ 124);105

The German Legal System and Legal Language– the members’ power to represent the OHG (‘Vertretungsmacht’; §§ 125–125a), itsextent (‘Umfang’; § 126) and its withdrawal by the court (‘Entziehung’; § 127);– the personal liability (‘persönliche Haftung’) of the members of the OHG towardscreditors (§§ 128–129a) and the liability of new members following entry (‘Eintritt’;§ 130);– the duty to apply for the opening of bankruptcy or composition proceedings inthe event of the insolvency of an OHG having no human members (§§ 130a-130b).Towards third parties, the OHG becomes effective (‘wirksam’) from the moment ofregistration in the ‘Handelsregister’ or from the time it commences business, if thistakes place before registration (§ 123(i) and (ii)).Like the ‘BGB-Gesellschaft’ (civil law company), an OHG is not ‘rechtsfähig’, ie, it hasno separate legal personality. Thus, creditors can only sue some or all of the membersof an OHG, if they wish. However, an OHG is ‘parteifähig’, ie, it can also sue and besued under its own (firm) name: § 124(i) HGB. 50Where a ‘BGB-Gesellschaft’ is involved, on the other hand, the members must all besued, otherwise enforcement in the assets of the company (‘Gesellschaftsvermögen’) isnot possible: § 736 ZPO. 51(iv) Title 4 (§§ 131–144 HGB)§ 131 sets out various grounds for the termination (‘Auflösung’) of an OHG, eg,commencement of insolvency or bankruptcy proceedings, death, notice (‘Kündigung’)or court decision (so-called ‘Auflösungsklage’: § 133).A member can only apply for termination by court decision, if an important reasonexists (‘wenn ein wchtiger Grund vorliegt’), eg, if another member is guilty of a breach ofa fundamental obligation of his under the company agreement (whether deliberatelyor through his gross negligence) or if the performance of such an obligation becomesimpossible (§ 133(i) and (ii)).Instead of applying to the court for termination of the OHG, the remaining memberscan apply to the court for the exclusion (‘Ausschließung’) of a member if an importantreason, as laid down in § 133, exists (§ 140). The company agreement can itself providefor such exclusion in certain circumstances (so-called ‘Hinauskündigungsklausel’).The company agreement can provide for an OHG to be continued among theremaining members on departure (‘Ausscheiden’) of a member (so-called‘Fortsetzungsklausel’: § 138) or with the heirs of a deceased member (so-called‘Nachfolgeklausel’: § 139). A departing member is entitled to a pay-out (‘Abfindung’) onthe same basis as is laid down in the BGB for the composition (‘Auseinandersetzung’)between the members of a ‘BGB-Gesllschaft’. 52Within three months of knowledge of his inheritance, an heir has a right to requestthat the other members allow him to remain in the company as a limited partner(‘Kommanditist’) or to declare his departure (§ 139).The termination of an OHG and the departure of a member must be notified to thetrade registry (§ 143).106

Chapter XI: Private Law: BGB Company Law and The Commercial Code (HGB)(v) Title 5 (§§ 145–158 HGB)Unless the members agree a different form of ‘Auseinandersetzung’ or insolvencyproceedings are commenced, the liquidation (‘Liquidation’) of an OHG follows itstermination (‘Auflösung’; § 145(i)). The liquidation procedure is set out in §§ 146–155HGB. After completion of the liquidation, the liquidators have to notify the extinctionof the firm (‘Erlöschen der Firma’) to the trade registry (§ 157(i)).(vi) Title 6 (§§ 159–160 HGB)By § 159 HGB, claims against a former member for company obligations expire fiveyears after the termination of the OHG or the departure of the member unless theclaim against the company is subject to a shorter period of limitation. The five yearperiod begins with the end of the day on which the termination or departure isregistered in the trade register or, if later, from the time at which the claim against thecompany becomes due (‘fällig’).(c) Section 2 (§§ 161–177a HGB) 53Section 2 of Book II (§§ 161–177a HGB) deals with the ‘Kommanditgesellschaft’ (limitedpartnership). It contains– a definition of the KG and declaration that the OHG provisions of the HGB findsupplementary application, except as otherwise provided in Section 2 (§ 161);– a paragraph dealing with trade registry notification and publication of the entry(§ 162);– certain special norms regarding the relationship of the members amongst eachother (in particular the position of the ‘Kommanditist’ (limited partner)), whichonly apply in the absence of alternative provisions in the company agreement (§§163–169);– a paragraph forbidding a ‘Kommanditist’ from representing the KG externally (§ 170);– provisions dealing with the liability (‘Haftung’) of the ‘Kommanditist’ to creditorsof the KG (§§ 171–176);– a paragraph stating that the death of a ‘Kommanditist’ does not lead to thetermination of a KG (§ 177); and– a paragraph regarding obligations to provide details on business letters and theduty of application on insolvency (§ 177a).(d) Section 3 (§§ 230–237 HGB)Section 3 deals with the ‘stille Gesellschaft’ (silent partnership; §§ 230–237).4 Book III (§§ 238–339 HGB): ‘Handelsbücher’ 54Book III is divided into three Sections:1: ‘Vorschriften für alle Kaufleute’ (provisions for all businessmen; §§ 238–263).2: ‘Ergänzende Vorschriften für Kapitalgesellschaften (Aktiengesellschaften,Kommanditgesellschaften auf Aktien und Gesellschaften mit beschränkter Haftung)’107

The German Legal System and Legal Language(supplementary provisions for capitalised companies (public companies,partnerships limited by shares and limited companies); §§ 264–335).3: ‘Ergänzende Vorschriften für eingetragene Genossenschaften’ (supplementary provisionsfor registered cooperative societies; §§ 336–339).5 Book IV (§§ 343–460 HGB): ‘Handelsgeschäfte’ 55Book IV is divided into 7 Sections:1 ‘Allgemeine Vorschriften’ (general provisions; §§ 343–372). 56 This Section containsthe general provisions relating to ‘Handelsgeschäfte’.‘Handelsgeschäfte’ are defined in § 343(i) HGB as all business belonging to the tradingactivity of a ‘Kaufmann’ (‘alle Geschäfte…die zum Betriebe seines Handelsgewerbegehören’).By § 344(i), in the event of doubt it is (rebuttably) presumed that a ‘Rechtsgeschäft’concluded by a ‘Kaufmann’ is a ‘Handelsgeschäft’. Moreover, by § 344(ii), it is(irrebuttably) presumed that a ‘Handelsgeschäft’ is involved, if a ‘Kaufmann’ signs a‘Schuldschein’ (IOU), unless indicated to the contrary in the ‘Schuldschein’. 57§ 345 provides that the provisions on ‘Handelsgeschäfte’ in Book IV HGB also applyto transactions where only one party is a ‘Kaufmann’. However, there are variousexceptions. Thus, in so-called ‘beiderseitigen Handelsgeschäften’ (ie, where each partyis a ‘Kaufmann’):– account must be taken of commercial customs and usages (‘Handelsbräuche’):§ 346; 58– the statutory interest rate is 5% per annum: § 352(i); 59– interest on contractual claims can already be demanded from the due date ofpayment (‘Fälligkeit’): § 353; 60– a ‘Kaufmann’ with a due contractual claim against another ‘Kaufmann’ has aright to retain and satisfy himself from movables or securities belonging tothe other party in his possession: §§ 369–372.The HGB also increases the protection of persons dealing with a ‘Kaufmann’,whatever their status:– by § 347(i), the duty of care (‘Sorgfaltspflicht’) of a ‘Kaufmann’ is stricter than in§276(i)BGB;– by § 348, a contractual penalty (‘Vertragsstrafe’) promised by a ‘Kaufmann’cannot be reduced; 61– by § 349, a ‘Kaufmann’, who gives a guarantee (‘Bürgschaft’), cannot requirethe creditor to sue the debtor first;– by § 350, a guarantee, acknowledgement of debt (‘Schuldanerkenntnis’) orpromise (‘Schuldversprechen’) given by a ‘Kaufmann’ does not require aparticular form;– by § 366(i), where a ‘Kaufmann’ disposes of a movable not belonging to him,the other party can acquire ownership, if he (the other party) is in good faith108

Chapter XI: Private Law: BGB Company Law and The Commercial Code (HGB)regarding the ‘Kaufmann’s entitlement to undertake the transaction (his‘Verfügungsbefugnis’): he does not need to regard the ‘Kaufmann’ as the owner. 622 ‘Handelskauf’ (trade purchase; §§ 373–382). 633 ‘Kommissionsgeschäft’ (commissioneer business; §§ 383–406). 644 ‘Speditionsgeschäft’ (forwarding agency business; §§ 407–415). 655 ‘Lagergeschäft’ (storage business; §§ 416–424). 666 ‘Frachtgeschäft’ (freight business; §§ 425–452). 677 ‘Beförderung von Gütern und Personen auf den Eisenbahnen des öffentlichen Verkehrs’(transport of goods and persons by public railways; §§ 453–460). 68Sections 2 to 7 deal with individual types of ‘Handelsgeschäfte’.§§ 373–382 HGB (which are dispositive!) amend the provisions of the BGB regardingsale of goods in the interests of clarity and speed of trade.Thus, for example, a trader, who purchases goods (‘Waren’) from another trader,must examine them and notify any apparent faults (‘Mängel’) without delay(‘unverzüglich’) after delivery, otherwise the goods are regarded as approved and thepurchaser loses his guarantee rights (‘Gewährleistungsansprüche’; §§ 377(i) and 377(ii)). 69Where, however, one of the parties is not a ‘Kaufmann’, the ordinary sale of goodslaw of the BGB applies and claims only become statute-barred after six months (§ 477BGB). 70NOTE: Sections 4–7 have been amended and reorganised by the‘Transportrechtsreformgesetz’ (TRG) dated 25.6.1998. Now, ‘Frachtgeschäft’ is dealt withas Section 4 (§§ 407–452d) ‘spe…’ follows as s 5 (§§ 453–466). Finally, ‘Lagergescaht’ iscontinued in Section 6 (§§ 467–475). The former s 7 has been deleted.109

CHAPTER XIIXII THE PRIVATE LIMITED COMPANY (GMBH)A INTRODUCTIONDespite its name, a private limited company (GmbII), like a public limited company(AG), is technically not a ‘Gesellschaft’ (company) in the narrow sense of the CivilCode (§ 705ff BGB), but a special form of ‘Verein’ (association), ie, it is a juristic person(‘juristische Person’) or corporate body (‘Körperschaft’). Thus, in so far as there are gapsin the relevant statute (‘GmbH-Gesetz’ (GmbHG)) the provisions in the BGB concerningincorporated associations (‘rechtsfähige Vereine’) can be of supplementary application. 1B ESTABLISHMENTBefore incorporation (ie, registration (‘Eintragung’) in the commercial register(‘Handelsregister’) of its seat (‘Sitz’)), a GmbH does not exist: § 11(i) GmbHG.One distinguishes the following stages (‘Stufen’) in the establishment (‘Entstehung’/ ‘Gründung’) of a GmbH: 21 Before the company agreement (‘Gesellschaftsvertrag’) is notarially documented (§ 2GmbHG), the promoters (‘Gründer’) comprise a so-called ‘Vorgründungsgesellschaft’(preformation company), ie, a civil law partnership (‘BGB-Gesellschaft’) or, if a tradingactivity is engaged in under a firm name, an open trading company (OHG).Towards third parties, the promoters are personally liable, as joint debtors (§ 427BGB) without limitation, for all obligations of the ‘Vorgründungsgesellschaft’. If acontract is concluded without authority on behalf of the ‘Vorgründungsgesellschaft’,the person acting is liable as an unauthorised agent (‘Vertreter ohneVertretungsmacht’; § 179 BGB). 32 After notarial documentation of the company agreement (ie, formal creation(‘Errichtung’) of the GmbH), but before incorporation, the interim unit is referredto as a ‘Vorgesellschaft’ (preliminary company). It is a legal entity (‘Rechtsgebilde’)‘sui generis’, governed by the same provisions as the future juristic person, in sofar as they do not specifically require separate legal personality.A ‘Vorgesellschaft’ is represented by its director(s); it can enter into contracts andcan acquire property (often the suffix ‘iG’ (‘in Gründung’; in formation) is used).However, legally, the assets of a ‘Vorgesellschaft’ (‘Gesellschaftsvermögen’) belong tothe promoters jointly (‘gemeinschaftlich’). The ‘Vorgesellschaft’ constitutes a‘Gesamthandsgemeinschaft’ (joint community). 4Thus, the promoters are personally liable as joint debtors up to the amount oftheir respective contribution (‘Einlage’) for all obligations incurred in the name ofthe ‘Vorgesellschaft’ (so-called ‘Gründerhaftung’). Moreover, anyone acting (asdirector) on behalf of the future company is personally liable: § 11(ii) GmbHG (socalled‘Handelndenhaftung’). 5111

The German Legal System and Legal Language3 On registration (‘Eintragung’) of the GmbH, all assets and liabilities of the‘Vorgesellschaft’ pass to the GmbH and all personal liability ceases, except to theextent that there is a difference between the basic capital (‘Stammkapital’)—consisting of the relevant basic contribution(s) (‘Stammeinlage(n)’; § 5 GmbHG)—and the value of the company’s assets at the moment of incorporation. In such acase, the members (‘Gesellschafter’) are liable to the company for any shortfall (socalled‘Differenzhaftung’); if there is a shortfall in the value of a contribution inkind (‘Sacheinlage’), it must be made up in money: § 9 GmbHG. 6C ‘STAMMKAPITAL’, ‘STAMMEINLAGE’ AND ‘GESCHÄFTSANTEIL’ 7The basic capital 8 of a GmbH is referred to as the ‘Stammkapital’. By § 5(i) GmbHG, the‘Stammkapital’ must amount to at least 25,000 Euro. 9The ‘Stammkapital’ is divided into (ie, made up of) basic contributions(‘Stammeinlagen’) from the members. The ‘Stammeinlage’ of each member must amountto at least 100 Euro. ‘Stammeinlagen’ do not have to be equal, but they must be divisibleby 100 and their total must correspond to the total of the ‘Stammkapital’: § 5(iii) GmbHG.The total amount of all ‘Stammeinlagen’ paid up (‘eingezahlt’) must amount to atleast 12,500 Euro before a GmbH can be notified for registration: § 7(ii) GmbHG. A‘Stammeinlage’ can be made in money (‘Bareinlage’) or can take the form of a contributionin kind (‘Sacheinlage’). 10The share (membership) of a person in the assets of a GmbH (‘Gesellschaftsvermögen’)is referred to as the ‘Geschäftsanteil’ (share in the business). Its size (not its value orprice!) is determined by the relative amount of the relevant member’s ‘Stammeinlage’:§ 14 GmbHG. 11In principle, a ‘Geschäftsanteil’ can be freely disposed of or can pass by way ofsuccession. Disposal (‘Veräußerung’) is effected (abstraction principle!) by an obligationaltransaction (ie, a contract of purchase/sale (‘Kaufvertrag’)) and a disposition/transfer(‘Verfügung’ /‘Übertragung’) by way of assignment (‘Abtretung’). Both transactions haveto be notarially documented: § 15(iii) and (iv) GmbHG.By the provisions of the company agreement, disposal of a ‘Geschäftsanteil’ can bemade dependent on the approval of the company: § 15(v) GmbHG. Moreover, disposalof part of a ‘Geschäftsanteil’ is only possible with the company’s written approval: §17(i) and (ii) GmbHG.It is a cardinal principle that the ‘Stammkapital’ must be preserved (‘Grundsatz derKapitalerhaltung’). Thus, the assets of a GmbH cannot be paid out to the members, ifthe ‘Stammkapital’ would thereby be diminished: § 30(i) GmbHG.D ORGANS 12(i)Although a personal company (‘Personengesellschaft’) has no separate legalpersonality, a GmbH, once registered, is ‘rechtsfähig’, ie, it has the capacity to be anindependent carrier of rights and obligations. A GmbH can acquire ownershipand other real rights over land and can sue and be sued: § 13(i) GmbHG.112

Chapter XII: The Private Limited Company (Gmbh)However, like other juristic persons, a GmbH is not itself capable of entering intoa legal transaction (‘Rechtsgeschäft’)—ie, it is not ‘geschäftsfähig’—nor is it evencapable of acting (‘handlungsfähig’) alone.For this reason, a GmbH has two principal organs: the totality of its members(‘Gesamtheit der Gesellschafter’) and one or more directors (‘Geschäftsführer’).The totality of the members constitutes the highest organ (‘oberstes Organ’) ofa GmbH.(ii) The members are competent to decide on much of the most important business of aGmbH by way of resolutions (‘Beschlüsse’) in meetings (‘Versammlungen’). Their rightsare governed principally by the terms of the company agreement (‘Gesellschaftsvertrag’).Subject thereto, the functions of the members are set out in § 46 GmbHG.In a GmbH, the majority (‘Mehrheit’) of the votes cast suffices for the passing of aresolution of the members (‘Gesellschafterbeschluss’): § 47(i) GmbHG. This contrastswith the position in a personal company (eg, a ‘BGB-Gesellschaft’ or an OHG),where, in principle, unanimity (‘Einstimmigkeit’) is required, unless the companyagreement otherwise provides: § 709(i) BGB, § 119(i) HGB.E DIRECTORS (‘GESCHÄFTSFÜHRER’)(i) Every GmbH must have one or more directors (‘Geschäftsführer’): § 6(i) GmbHG.Directors must be natural persons with full legal capacity: § 6(ii), 1st sentenceGmbHG. They do not have to be members: § 6(iii) GmbHG.The directors are the statutory representatives (‘gesetzliche Vertreter’) of the company(§35 GmbHG).(ii) Directors are appointed either in the company agreement (‘Gesellschaftsvertrag’) or bya resolution (‘Beschluss’) of the members (‘Gesellschafter’): § 6(iii), 2nd sentence GmbHG.Two specific restrictions on appointment of directors are contained in § 6(ii), 2ndand 3rd sentences GmbHG. Thus, a person, who has been convicted of certainbankruptcy offences (‘Konkursstraftaten’), cannot act as a director of a GmbH forfive years from the date the judgment becomes legally effective; nor can someonewho is subject to a judicial or administrative decision prohibiting the exercise of aparticular profession act as a director of a company engaged in the same businesswhile the prohibition is in force.(iii) It is important to realise that the formal (company law) appointment (‘Bestellung’)of a director is to be kept strictly distinct from his or her (internal) contractualengagement (‘Anstellung’), which is governed by the norms of the BGB concerningcontracts of service (‘Dienstverträge’; § 611ff BGB).Thus, while the appointment of a director is normally 13 revocable (‘widerruflich’)at any time—one speaks of ‘Abberufung’—termination (‘Kündigung’) of thedirector’s underlying service contract (‘Anstellungsvertrag’) must be effected withnotice (§ 622 BGB) or summarily for an important reason (§ 626 BGB).113

The German Legal System and Legal LanguageA director usually receives a fixed salary (‘Gehalt’) and a share of profit (‘Tantieme’)by way of remuneration (‘Vergütung’), but is not strictly an employee(‘Arbeitnehmer’) for the purposes of employment law. 14(iv) As in the case of other forms of company (‘Gesellschaft’), for a proper understandingof the position of a director of a GmbH one must distinguish the management ofthe business of the company (‘Geschäftsführung’) from its representation towardsthird parties (‘Vertretung’), ie, the so-called ‘Innenverhältnis’ (internal relationship)and the ‘Aussenverhältnis’ (external relationship). In principle, both areas of activityfall within the competence of a director.When conducting the affairs of a GmbH, a ‘Geschäftsführer’ must—in so far as hisrelationship to the company itself and its members is concerned (ie, internally)—abide by the terms of the company agreement (‘Gesellschaftsvertrag’) and his servicecontract and is subject to control by resolutions of the members: § 37(i) GmbHG.In particular, the members can give a ‘Geschäftsführer’ binding directions(‘Weisungen’).However, towards third parties (ie, externally), any legal transactions expresslyor impliedly entered into by a ‘Geschäftsführer’ in the name of a GmbH bind theGmbH: § 36 GmbHG. Internal restrictions on a director’s power of representationhave no legal effect: § 37(ii) GmbHG. 15In particular, the distinction between the internal and external relationship isrelevant when the question of a director’s personal liability (‘Haftung’) arises. Thus,the bases for claims (‘Anspruchsgrundlagen’) can be different according to whetherthe claimant is the company, members or third parties. 16(v) After every change in the members of the company or in the extent of theirshareholding, the directors must file a signed list of members (‘Gesellschafterliste’)at the commercial register, stating the current members’ full names, dates of birth,places of residence and contributions: § 40(i) GmbHG. 17114

CHAPTER XIIIXIII CIVIL PROCEDUREA THE ‘ZIVILPROZEßORDNUNG’ (ZPO)German civil procedure (‘Zivilprozeß’) is based on the ‘Zivilprozeßordnung’ (ZPO; CivilProcedure Order/Code of Civil Procedure) of 30.1.1877, as re-enacted on 12.9.1950and variously amended since that date.The ZPO is divided into 10 Books:Book I ‘Allgemeine Vorschriften’ (general provisions; §§ 1–252).Book II ‘Verfahren im ersten Rechtszuge’ (first instance proceedings; §§ 253–510b).Book III ‘Rechtsmittel’ (legal remedies / appeals; §§ 511–577).Book IV ‘Wiederaufnahme des Verfahrens’ (resumption of proceedings; §§ 578–591).Book V ‘Urkunden- und Wechselprozeß’ (procedure in the case of documents andbills of exchange; §§ 592–605a).Book VI ‘Familien-, Kindschaft- und Unterhaltssachen’ (family, children andmaintenance matters; §§ 606–644). 1Book VII ‘Mahnverfahren’ (default notice procedure; §§ 688–703d).Book VIII ‘Zwangsvollstreckung’ (enforcement; §§ 704–945).Book IX ‘Aufgebotsverfahren’ (claims notification procedure; §§ 946–1024).Book X ‘Schiedsrichterliches Verfahren’ (arbitration proceedings; §§ 1025–1048).B THE MAXIMS OF CIVIL PROCEDURE 2Civil procedure is governed by certain basic principles or maxims (‘Grundsätze’):1 ‘Grundrecht des rechtlichen Gehörs’ (the basic right to be heard). The parties areentitled under the Basic Law to be given an opportunity to be heard in theproceedings (Article 103(i) GG). 32 ‘Verhandlungsgrundsatz’ (‘Beibringungsgrundsatz’). It is for the parties to proceedingsto introduce facts (‘Tatsachen’) and applications (‘Anträge’). The opposite of thisprinciple is the so-called ‘Untersuchungsgrundsatz’ or ‘Inquisitionsprinzip’ (examinationmaxim or inquisition principle), which applies, for example, in criminal andadministrative proceedings. 4The ‘Verhandlungsgrundsatz’ is restricted by:(a) § 138 ZPO: the parties’ factual statements must be complete (‘vollständig’) andtruthful (‘wahrheitsgemäß’); 5(b) § 139 ZPO: the judicial duty to clarify and ask questions (‘die richterlicheAufklärungs- und Fragepflicht’). 6115

The German Legal System and Legal Language3 ‘Dispositionsgrundsatz’ (‘Verfügungsgrundsatz’; disposition principle). Theproceedings are at the disposition of the parties; they can settle or acknowledgeclaims, make or withdraw applications. The opposite of this principle is the‘Offizialmaxime’ (official principle), which dominates in criminal procedure. 74 ‘Mündlichkeitsgrundsatz’ (oral principle). The ‘Verhandlung’ (hearing) must be oral.However, by §§ 128(ii) and 128(iii) ZPO, written proceedings are possible in certaincases, eg, if both parties agree.5 ‘Unmittelbarkeit und Öffentlichkeit’ (directness and publicity). Only those judges,who are present at the oral hearing, can pass judgment (§ 309 ZPO). With certainexceptions, the hearing must take place in public (§ 169 ‘Gerichtsverfassungsgesetz’(GVG): Constitution of the Courts Law). 86 ‘Beschleunigung und Konzentration des Verfahrens’ (acceleration and concentrationof the proceedings). The dispute must usually be dealt with in one comprehensivelyprepared hearing (‘in einem umfassend vorbereiteten Termin’), the so-called‘Haupttermin’ (main hearing), which must take place as early as possible (§§ 272(i)and 272(iii)).7 ‘Freie Beweiswürdigung’ (free assessment of evidence). The court must decide as tothe truth or otherwise of the facts presented to it according to its own free conviction(‘nach freier Überzeugung’) and only those rules of evidence (‘Beweisregeln’) laiddown by statute bind it (§§ 286(i) and 286(ii)).To convince the court, absolute certainty is not required (‘absolute Gewissheit ist nichterforderlich’); it suffices to establish that the fact in question is almost certainly true (ie,virtual certainty (‘eine an Sicherheit grenzende Wahrscheinlichkeit’)) or is beyond reasonabledoubt (‘jenseits vernünftigen Zweifels’), ie, that it possesses such a degree of probabilityas to silence reasonable doubts (‘einen so hohen Grad von Wahrscheinlichkeit, daßvernünftige Zweifel schweigen’). 9In civil proceedings, the burden of allegation (‘Behauptungslast’ /‘Darlegungslast’)and the burden of proof (‘Beweislast’) are of pivotal importance. 10One should be aware of the following:C POINTS TO NOTEABCThere is a basic distinction between the so-called ‘Erkenntnisverfahren’ (judgmentproceedings), in which the court reaches its decision (‘Entscheidung’)—usually an‘(End-)Urteil’ ((final) judgment; § 300 ZPO)—and the ‘Vollstreckungsverfahren’(enforcement proceedings; dealt with in Book VIII), in which enforcement(‘Zwangsvollstreckung’) takes place. 11Judgment proceedings are the subject of Books II to IV of the ZPO, while specialtypes of proceedings (‘besondere Prozeßarten’) are dealt with in Books V-VII, IX and X.While the issue of proceedings (‘Klageerhebung’) and the lodging of any appeal(‘Rechtsmitteleinlegung’) are in the hands of the parties (‘Parteibetrieb’), the court isresponsible for the progress of the case (‘Fortschritt des Verfahrens’) and the conductof the proceedings (‘Prozeßleitung’): so-called ‘Amtsbetrieb’. 12116

Chapter XIII: Civil ProcedureDThus, service of pleadings and court decisions is normally a matter for the courtto carry out of its own motion (‘von Amts wegen’; § 270 ZPO). However, servicecan also be effected between lawyers direct, unless, at the same time, the partybeing served has to be notified of a direction from the court: § 198(i) ZPO. 13A court can decide not only by means of an ‘Urteil’, but also in the form of a ‘Beschluß’(order) or ‘Verfügung’ (direction). These are normally for decisions during theproceedings. The form of appeal against a ‘Beschluß’ is the ‘Beschwerde’ (complaint). 14E After conclusion of the oral hearing, the ‘Urteil’ is pronounced (‘verkündet’; § 310ZPO). The court is then bound by its decision (§ 318), which becomes ‘formellrechtskräftig’ when it can no longer be challenged (‘angefochten’) by a ‘Rechtsmittel’(legal remedy/appeal). The ‘formelle Rechtskraft’ of an ‘Urteil’ is a condition of itsso-called ‘materielle Rechtskraft’, whereby the inner content of the decision on theclaim becomes binding on the parties and the court: ‘res judicata’. The matter indispute (‘Streitgegenstand’) or procedural claim (‘prozessualer Anspruch’) cannot bedecided upon again (§ 322(i) ZPO). 15F Despite the fundamental oral principle (§ 128(i) ZPO), an oral hearing (‘mündlicheVerhandlung’) is not always necessary to deal with a particular matter (eg, for a‘Beschluß’). An oral hearing is then at the discretion of the court (‘freigestellt’) 16GHIIf an oral hearing is necessary to deal with a particular matter, the court must, ofits own motion (‘von Amts wegen’), set a hearing date (‘Termin’; § 216 ZPO) andissue a summons to attend (‘Ladung’; § 214 ZPO). 17By Articles 97(i) and 20(iii) GG, the judiciary is independent and only bound bystatute and law. 18Previous decisions in other cases (‘Präjudizien’: precedents) are not binding on thecourts. This principle applies with certain exceptions, eg, among the supremecourts where the interest in maintaining unified decisions prevails. 19The ZPO proceeds on the basis that, regardless of any defects (‘Mängel’), judgmentsnormally remain effective (‘wirksam’). The proper means of challenging them isby lodging a ‘Rechtsmittel’ (legal remedy). 20 Exceptionally, however, the annulment(‘Aufhebung’/‘Kassation’) of a judgment, which has legal effect (‘Rechtskraft’), ispossible by way of a ‘Wiederaufnahme des Verfahrens’ (re-opening of the proceedings)on the ground of certain procedural or substantive errors. This can only be soughtby way of a separate action. 21Instead of commencing proceedings by writ (‘Klage’), an application (‘Antrag’)can be made to the plaintiff’s local ‘Amtsgericht’ (district court) 22 for the issue of a‘Mahnbescheid’ (default notice) where a specific amount is due in Euros or GermanMarks (the so-called ‘Mahnverfahren’ (default (warning) procedure)). 23The defendant has two weeks from service (‘Zustellung’) of the ‘Mahnbescheid’ topay or dispute the claim. In the event of an objection (‘Widerspruch’) from thedefendant, the matter is passed to the appropriate court on application (§ 696(i)ZPO). Otherwise, a so-called ‘Vollstreckungsbescheid’ (enforcement notice) can beissued (§ 699). However, a further two weeks are available to the defendant to lodgean ‘Einspruch’ (objection) against the ‘Vollstreckungsbescheid’ (§§ 338 and 700 ZPO). 24117

The German Legal System and Legal LanguageD THE ZPO IN DETAIL 251 Book I (§§ 1–252 ZPO): General Provisions(a) ContentBook I of the ZPO (‘Allgemeine Vorschriften’; §§ 1–252) is divided into three Sections:1: ‘Gerichte’ (courts; §§ 1–49).2: ‘Parteien’ (parties; §§ 50–127a).3: ‘Verfahren’ (proceedings; §§ 128–252).(b) Section 1 (§§ 1–49 ZPO)Section 1 contains four Titles:1: ‘Sachliche Zuständigkeit der Gerichte und Wertvorschriften’ (substantive jurisdictionand value provisions; §§ 1–11).2: ‘Gerichtsstand’ (local jurisdiction; §§ 12–37).3: ‘Vereinbarung über die Zuständigkeit der Gerichte’ (agreement as to jurisdiction; §§38–40).4: ‘Ausschließung und Ablehnung der Gerichtspersonen’ (exclusion of and objection tocourt personnel; §§ 41–49).(c) Section 2 (§§ 50–127a ZPO)Section 2 contains seven Titles:1: ‘Parteifähigkeit und Prozeßfähigkeit’ (capacity to be a party and to take steps in theproceedings; §§ 50–58).2: ‘Streitgenossenschaft’ (joinder of parties; §§ 59–63).3: ‘Beteiligung Dritter am Rechtsstreit’ (involvement of third parties in proceedings;§§ 64–77).4: ‘Prozeßbevollmächtigte und Beistände’ (authorised persons in proceedings and parties’assistants; §§ 78–90).5: ‘Prozeßkosten’ (costs; §§ 91–107).6: ‘Sicherheitsleistung’ (security for costs; §§ 108–113).7: ‘Prozeßkostenhilfe und Prozeßkostenvorschuß’ (legal aid and payment on account ofcosts; §§ 114–127a). 26(d) Section 3 (§§ 128–252 ZPO)Section 3 contains five Titles:1: ‘Mündliche Verhandlung’ (oral hearing; §§ 128–165).2: ‘Verfahren bei Zustellungen’ (procedure for service of documents; §§ 166–213a).3: ‘Ladungen, Termine und Fristen’ (summonses to attend, hearing dates and time limits;§§ 214–229).118

Chapter XIII: Civil Procedure4: ‘Folgen der Versäumung. Wiedereinsetzung in den vorigen Stand’ (consequences offailure to observe time limits. Reinstitution of the previous position. §§ 230–238).5: ‘Unterbrechung und Aussetzung des Verfahrens’ (interruption and suspension of theproceedings; §§ 239–252).(e) Section 1 in detail (§§ 1–49 ZPO) 27It is important to note that the GVG (and not the ZPO) governs the substantive(factual) jurisdiction (‘sachliche Zuständigkeit’) of the courts (§ 1 ZPO). The ZPOonly deals with the local jurisdiction of the courts (‘örtliche Zuständigkeit’ or‘Gerichtsstand’: §§ 12–37 ZPO). 28 Courts without statutory ‘Zuständigkeit’ areforbidden: Article 101(i) GG.Thus, by § 71 (i) GVG, the ‘Zivilkammer’ (civil chamber) of the ‘Landgericht’ (countycourt (LG)) has jurisdiction (ie, is ‘zuständig’) in first instance in all civil disputes,which are not within the jurisdiction of the ‘Amtsgericht’ (district court (AG)).In the ‘Amtsgericht’ civil matters are normally dealt with by a single judge(‘Einzelrichter’) sitting alone: § 22(iv) GVG.In criminal proceedings such a judge is referred to as a ‘Strafrichter’: § 25 GVG. 29With various exceptions, non-contentious business in the ‘Amtsgericht’ is usuallywithin the competence of a ‘Rechtspfleger’ (legal executive), who, unlike the judge, is acivil servant (‘Beamter’) and does not enjoy the same degree of independence(‘Unabhängigkeit’). 30The ‘Amtsgericht’ has (substantive) jurisdiction, for example:– in disputes concerning monetary claims (‘vermögensrechtliche Ansprüche’) wherethe value (‘Streitwert’) does not exceed DM 10.000 (§ 23 No 1 GVG);– in disputes between landlord and tenant or regarding rented property, regardlessof value (§ 23 No. 2 (a) GVG);– in disputes regarding parenthood (‘Kindschaft’) and maintenance (‘Unterhalt’) (§23a GVG);– in family matters (‘Familiensachen’), which term includes matrimonial matters(‘Ehesachen’) and various other proceedings (§ 23b GVG); 31– in default notice and enforcement proceedings (§§ 689(i) and 764(i) ZPO). 32The ‘Streitwert’ of a dispute is relevant both for the ‘Zuständigkeit’ of the court—the socalled‘Zuständigkeitsstreitwert’, which is dealt with in §§ 2–9 ZPO—and for the purposeof court fees and costs—the so-called ‘Gebührenstreitwert’ or ‘Kostenstreitwert’, which isdealt with in §§ 12–34 of the ‘Gerichtskostengesetz’ (GKG: Court Fees Law). 33Regardless of the ‘Streitwert’, the ‘Landgericht’ has exclusive jurisdiction over stateliability claims, ie, where it is alleged that a judge or civil servant has acted beyond hispowers (‘seine amtlichen Befugnisse überschritten’) or has failed to perform his duties(‘seine Amtspflichten unterlassen’): § 71(ii) No 2 GVG. 34The ‘Kammer für Handelssachen’ (chamber for commercial matters) at the‘Landgericht’ deals on application, inter alia, with claims between ‘Kaufleute’, actionsbetween members of a ‘Handelsgesellschaft’ and trade mark and unfair competitionmatters (§ 95 GVG).119

The German Legal System and Legal LanguageThe jurisdiction of the ‘Oberlandesgericht’ (county court of appeal (OLG)) and the‘Bundesgerichtshof’ (Federal Supreme Court (BGH)) in civil matters is laid down in§§ 119 and 133 GVG. An appeal (‘Rechtsmittel’) to the former is known as a ‘Berufung’,while an appeal (on a point of law) to the latter is a ‘Revision’. 35(f) Section 2 in detail (§§ 50–127a ZPO)(i) Title 1 (§§ 50–58 ZPO) 36A party to civil proceedings is ‘eine Partei’. 37The ZPO distinguishes between the capacity to be a ‘Partei’—so-called‘Parteifähigkeit’—and the capacity to take steps in the proceedings (‘Prozeßhandlungen’)—so-called ‘Prozeßfähigkeit’. ‘Parteifähigkeit’ and ‘Prozeßfähigkeit’ are both preconditionsfor being able to take steps in the proceedings (‘Prozeßhandlungsvoraussetzungen’) andpreconditions for a judgment (so-called ‘Sachurteilsvoraussetzungen’; also referred toas ‘Prozeßvoraussetzungen’, ‘Zulässigkeitsvoraussetzungen’ or ‘Verfahrensvoraussetzungen’).‘Prozeßhandlungen’ 38‘Prozeßhandlungen’ (steps in the proceedings) can be taken by the court (‘gerichtlicheHandlungen’) or by the parties (‘Parteihandlungen’). Only the latter are dealt with here.A distinction is drawn between ‘Parteihandlungen’, which require assistance from thecourt or which seek to influence the court’s decision (so-called ‘Erwirkungshandlungen’)and those which have direct procedural effects (so-called ‘Bewirkungshandlungen’). 39Whether a particular act is classified as a ‘Prozeßhandlung’, rather than a ‘Rechtsgeschäft’(legal transaction), is important, because ‘Prozeßhandlungen’ only have effects in regardto the proceedings and within its context, not beyond (‘Sie entfalten ihre Wirkungen nur inbezug auf den Prozeß und allein in seinem Rahmen, nicht darüber hinaus’). 40In particular:1 ‘Prozeßhandlungen’ are only governed by procedural and not substantive law.However, the principle of ‘Treu und Glauben’ (trust and good faith) must still beobserved by the parties.2 ‘Rechtsgeschäfte’ only have procedural significance, in so far as they are asserted inthe proceedings (‘im Prozeß geltend gemacht’).3 ‘Prozeßhandlungen’ can often be freely withdrawn, corrected or supplemented, butnot, if the other party has acquired a particular legal position (‘eine bestimmteRechtsstellung’).4 ‘Prozeßhandlungen’ must be undertaken unconditionally and without reservation(‘unbedingt und vorbehaltlos’), ie, it is not permissible that they are dependent onevents outside the proceedings. 415 The reinterpretation (‘Umdeutung’) or cure (‘Heilung’) of ‘Prozeßhandlungen’, whichare faulty (‘fehlerhaft’), is usually possible.The concept of cure (‘Heilung’) of procedural mistakes can be a trap for the unwary.Thus, § 295(i) ZPO provides that a party loses his right to complain of theinfringement of a procedural provision (eg, relating to the taking of evidence120

Chapter XIII: Civil Procedure(‘Beweisaufnahme’)) or of one concerning the form of a ‘Prozesshandlung’, if the partywaives compliance with the relevant provision or fails to raise an objection (‘Rüge’)regarding the procedural defect (‘Verfahrensmangel’) before the end of the next oralhearing, at which the party appears and knew or should have known of the defect.The omission to make an objection (‘Unterlassen einer Rüge’) at the hearing leads to theloss of the right to complain (‘Verlust des Rügerechts’), which, in turn, ‘cures’ theprocedural defect.However, by § 295(ii) ZPO a procedural defect is only curable (‘heilbar’) due to thefailure to raise an objection, if the defect is one, which can be effectively waived(‘verzichtbar’), ie, certain (significant) procedural defects are incurable (‘unheilbar’). 42‘Prozeßvoraussetzungen’It is important to note here that, in all jurisdictional branches, the relevant‘Prozeßvoraussetzungen’ are checked by the court itself (‘von Amts wegen’) as a preliminarypoint. Their fulfillment means that the action is ‘zulässig’ (admissible). 43‘Prozeßvoraussetzungen’ can be grouped according to whether they relate to theparties, the court or the object of the action (‘Streitgegenstand’) 44 and include, for example:– the question of the parties being ‘parteifähig’ and ‘prozeßfähig’ and having theright to conduct the action (‘Prozeßführungsbefugnis’ or ‘Prozeßführungsrecht’); 45– the question of the ‘Rechtsweg’ (legal route, ie, court) chosen for the dispute being‘zulässig’ (used here in the sense of ‘permissible’); 46– the question of the jurisdiction (‘Zuständigkeit’) of the court in the proceedings,both substantive and local; 47– the question of the ‘Streitsache’ (matter in dispute) not already being sub judice(‘rechtshängig’) and not being the subject of a previous decision finally bindingbetween the parties (‘materiell rechtskräftig’);– the question of the plaintiff having a need for legal protection (‘Rechtsschutzbedürfnis’or ‘Rechtsschutzinteresse’);– the question of the writ having been correctly issued (‘Ordnungsmäßigkeit derKlageerhebung’), ie, by the correct (authorised) person and with the correct content.By § 50 ZPO, a person is ‘parteifähig’ if he is ‘rechtsfähig’, ie, any person, natural orlegal, who is capable of being a carrier of rights and obligations. 48 On the other hand,a person is only ‘prozeßfähig’ so far as he can bind himself by a ‘Vertrag’ (contract; § 52),ie, so far as he is ‘geschäftsfähig’.Unlike a natural person, a legal person is not itself ‘geschäftsfähig’, but acts throughits legal representatives (‘gesetzliche Vertreter’) and is, therefore, technically‘prozeßunfähig’. Any procedural fault on the part of a legal representative (which termincludes, inter alia, parents of minors 49 and company representatives) is equated withthat of the party itself (§ 51(ii)).(ii) Title 2 (§§ 59–63 ZPO) 50Parties can sue or be sued jointly (‘gemeinschaftlich’) and are then known as‘Streitgenossen’.121

The German Legal System and Legal LanguageIn the case of (normal) so-called ‘einfache Streitgenossenschaft’ (simple joinder ofparties), the ‘Streitgenossen’ are, for procedural purposes, treated individually (‘alseinzelne’, eg, accident victims), whereas in the case of so-called ‘notwendigeStreitgenossenschaft’ (necessary joinder of parties) only a united decision (‘einheitlicheEntscheidung’) by the court is possible. The members of a ‘Gesamthandsgemeinschaft’are ‘notwendige Streitgenossen’ and the presence at a hearing or observation of a timelimit by one of them is effective for all (§§ 61 and 62(i)).(iii) Title 3 (§§ 64–77 ZPO) 51A third party can become involved in proceedings in the following ways:– by means of so-called ‘Hauptintervention’ (direct intervention) where the third partyhimself claims the thing or right in dispute (§ 64);– by means of so-called ‘Nebenintervention’ or ‘Streithilfe’ (assistance to one of theparties in the dispute) where the third party has a legal interest (‘rechtliches Interesse’)in the success of one of the main parties (‘Hauptparteien’) (§ 66(i)).The third party (‘Nebenintervenient’ (intervener)) must take the proceedings as hefinds them at the time of his accession (‘Beitritt’): § 67. He is entitled to use means ofattack and defence (so-called ‘Angriffs- und Verteidigungsmittel’) 52 and generally totake all steps in the proceedings (‘Prozeßhandlungen’) so long as the means used andsteps taken do not contradict those of the main party he is assisting. Thus, the thirdparty can plead matters in support of or by way of objection to the action, but hecannot extend, amend or withdraw the ‘Klage’ nor can he acknowledge the ‘Klage’or lodge a counterclaim (‘Widerklage’).The court’s decision is binding for the purpose of any subsequent proceedingsbetween the ‘Hauptpartei’ and the ‘Nebenintervenient’ (so-called ‘Interventionswirkung’)and the latter only has a limited right of complaint if he alleges that the ‘Hauptpartei’has improperly conducted the action (§ 68);– by means of so-called ‘Streitverkündung’ (notification of dispute/third party notice)where one of the parties to the dispute believes (‘glaubt’) that, in the event of anoutcome unfavourable to him, he can make a claim for guarantee or indemnityagainst a third party (‘einen Anspruch auf Gewährleistung oder Schadloshaltung gegeneinen Dritten’) or fears (‘besorgt’) a claim from a third party (§ 72(i)).If the third party accedes to the party giving the notice (the ‘Streitverkünder’), hehas the position of a ‘Nebenintervenient’ and can, in his own interest, assist in theaction; otherwise, the proceedings continue without regard to him. However,whether or not the third party accedes to the ‘Streitverkünder’, the so-called‘Interventionswirkung’ 53 takes effect between them (§ 74(iii));– where the third party alleges that he is the rightful creditor (‘Gläubigerstreit’: disputebetween creditors; § 75) or the defendant alleges that he is in possession of a ‘Sache’not for the plaintiff, but for a third party (‘Urheberbenennung’; § 76).(iv) Title 4 (§§ 78–90 ZPO) 54Generally speaking, parties can either conduct their legal proceedings themselves,give any person, who is ‘prozeßfähig’, written authority (‘schriftliche Vollmacht’ /122

Chapter XIII: Civil Procedure‘Prozeßvollmacht’) to take steps in the proceedings (‘Prozeßhandlungen’) on their behalfas a ‘Bevollmächtigte’ (authorised person) or allow such a person to appear with themas an assistant (‘Beistand’): a so-called ‘Parteiprozeß’ (party action; §§ 79 and 90 ZPO).However, before certain courts and in certain matters, legal representation(‘Vertretung durch Anwälte’) is required (‘geboten’), in which case the lawyer instructedmust be admitted (‘zugelassen’) at the court involved: a so-called ‘Anwaltsprozeß’(lawyers’ action). For example, in civil cases before a ‘Landgericht’ (county court) or ahigher court, as well as in family matters (‘Familiensachen’), appropriate lawyers haveto be instructed (‘Anwaltszwang’): § 78 ZPO. 55These provisions have to be read in conjunction with § 157 ZPO, which, in principle,restricts the right of representation at oral hearings to members of a ‘Rechtsanwaltskammer’(RAK; Lawyers’ Chamber), the purpose being to uphold standards.Thus, except for members of an RAK:(a) § 157(i) ZPO contains an absolute prohibition on representation (‘Vertretungsverbot’)at the oral hearing by persons, who on an independent, professional basis andregularly deal with legal affairs for others. Civil servants, employed persons orthose, who occasionally handle legal matters for third parties, are not preventedfrom appearing.(b) § 157(ii) ZPO gives the court a discretionary power to forbid/ stop a party or aparty’s representative from making (further) submissions, if the person concernedlacks the ability to present the case properly (‘die Fähigkeit zum geeigneten Vortrag’).The term ‘Vollmacht’When considering the term ‘Vollmacht’ (authority/power of attorney), it is importantto realise that it is a technical term of the German law of agency (‘Vertretung’) set outin §§ 164–181 BGB. 56The agent or representative of a person is referred to as a ‘Stellvertreter’ or ‘Vertreter’and must fulfil two requirements before he can be regarded as such:– he must have ‘Vertretungsmacht’ (power to represent / authority); and– he must act ‘im Namen des Vertretenen’ (in the name of the person represented) or,as is usually said, ‘im fremdem Namen’ (in someone else’s name).A ‘Vollmacht’ is defined in § 166(ii) BGB as ‘eine durch Rechtsgeschäft erteilteVertretungsmacht’ (a power of representation granted by ‘Rechtsgeschäft’ (legaltransaction)). A ‘Vollmacht’ is, therefore, a power of representation granted by meansof a ‘Willenserklärung’ / on a voluntary basis, as opposed to a power of representationgranted by statute, ie, the (‘gesetzliche’) ‘Vertretungsmacht’ ((statutory) authority) of a‘gesetzlicher Vertreter ’ (statutory representative). 57German law distinguishes strictly between:(a) the so-called ‘Innenverhältnis’ (internal relationship) between the grantor of a‘Vollmacht’ (the ‘Vollmachtgeber’) and the grantee / authorised person/attorney(‘Bevollmächtigte’); and(b) the so-called ‘Aussenverhältnis’ (external relationship) between the ‘Bevollmächtigte’and third parties.123

The German Legal System and Legal LanguageIt is vital to understand that a ‘Vollmacht’ only has effect ‘im Aussenverhältnis’, ie,externally and is completely independent from the (underlying) internal legalrelationship (usually a contract). Thus, a breach of any internal (contractual) restrictionsdoes not affect the validity of (external) acts under the ‘Vollmacht’.The extent (‘Umfang’) of a ‘Vollmacht’ in proceedings (‘Prozeßvollmacht’) is laid downin § 81 ZPO (ie, by statute) and a limitation (‘Beschränkung’) thereof is only validexternally insofar as it relates to the resolution of the action by means of a settlement(‘Vergleich’), a renunciation of the matter in dispute (‘Verzichtsleistung auf denStreitgegenstand’ or an acknowledgement of the other party’s claim (‘Anerkennung desvon dem Gegner geltend gemachten Anspruch’): § 83(i). Internal limitations on the‘Bevollmächtigter’ are, however, always possible. 58The ‘Prozeßhandlungen’ of a ‘Prozeßbevollmächtigter’ are just as binding as if they hadbeen taken by the party/‘Vollmachtgeber’ himself (the ‘Bevollmächtigter’ is the latter’salter ego) 59 and any ‘Verschulden’ (fault) on the part of the ‘Bevollmächtigten’ is equatedwith that of the ‘Vollmachtgeber’: § 85. 60A person who purports to take steps in proceedings without a ‘Vollmacht’ is referredto as a ‘vollmachtloser Vertreter’ or ‘Vertreter ohne Vertretungsmacht’ (unauthorised agent/representative). There is said to be a ‘Mangel der Vollmacht’ (defect in the ‘Vollmacht’). 61The court is only obliged to check whether a ‘Vollmacht’ exists on objection by theother party, in which case the ‘Vollmacht’ must be lodged at the court (§§ 88 and 80(i)). 62Other relevant termsIt remains necessary to clarify and distinguish the following terms:– ‘Prozeßführungsbefugnis’ or ‘Prozeßführungsrecht’ (permission (or right) to conduct anaction (in one’s own name); locus standi). Unlike a ‘Vollmacht’, which is a preconditionfor being able to take steps in the proceedings (‘Prozeßhandlungsvoraussetzung’), the‘Prozeßführungsbefugnis’ is a precondition of the admissibility of the proceedings (a‘Prozeßvoraussetzung’). Its absence results in the action being rejected as ‘unzulässig’(inadmissible).The ‘Prozeßführungsbefugnis’ is to be distinguished from the active or passivelegitimation (‘Sachlegitimation’) of the person whose right or liability is alleged,the lack of which results in the action being dismissed as ‘unbegründet’ (unfounded).The ‘Prozeßführungsbefugnis’ usually belongs to the person actively or passivelylegitimated (‘sachlich legitimiert’), but it can be transferred to someone who has no‘Sachlegitimation’ (so-called ‘Prozeßstandschaft’, where a person is a party toproceedings in his own name although he is not the owner of the right or liabilityinvolved).– ‘Postulationsfähigkeit’. This is the capacity of a person to appear before a particularcourt and take steps in the proceedings (right of audience). Thus, it is a‘Prozeßhandlungsvoraussetzung’ and, where ‘Anwaltszwang’ prevails, is restrictedto appropriate lawyers.124

Chapter XIII: Civil Procedure(v) Titles 5 to 7 (§§ 91–127a ZPO)Within Title 5 (§§ 91–107) two separate matters should be distinguished:– in §§ 91–101, the court’s decision on costs (‘Kostenentscheidung’), ie, the questionof the parties’ liability for costs (‘Kostenhaftung’); and– in §§ 103–107, the procedure for the fixing of costs (‘Kostenfestsetzung’), whichtakes place after the hearing, ie, the question of the actual amount of costs due.The basic rule is that the unsuccessful party has a ‘Kostenpflicht’, ie, a duty to pay thecosts of the dispute (‘Kosten des Rechtsstreits’—both ‘gerichtlich’ (ie, court fees) and‘außergerichtlich’ (non-court costs)), in so far as they were ‘notwendig (necessary) forthe purpose of the case: § 91 (i), 1st sentence ZPO. 63‘Kostenfestsetzung’ enables the successful party to realise its claim for repayment(‘Kostenerstattungsanspruch’).If the court decides that each side should bear its own costs, the costs are referred toas being ‘gegeneinander aufgehoben’ (cancelling each other out).(g) Section 3 in detail (§§ 128–252 ZPO)(i) Title 1 (§§ 128–165 ZPO)Apart from the fundamental oral principle (‘Grundsatz der Mündlichkeit’; § 128(i) ZPO),this Title contains provisions regarding:(a) (‘vorbereitende’) ‘Schriftsätze’ ((preparatory) pleadings), ie, content, enclosures, timelimits and additional copies (§§ 129–133). 64 Such pleadings are compulsory wherelawyers are involved (§ 78 ZPO).(b) Deposit and discovery of documents referred to in the pleadings (§§ 134–135).(c) The course of the oral hearing (‘Gang der mündlichen Verhandlung’) and the duties(‘Pflichten’) of the parties and the presiding judge (‘Vorsitzender’): §§ 136–140. 65 $Inparticular:– the parties must give a full and truthful account of the facts (they have a‘Wahrheitspflicht’; § 138(i)); 66– the parties’ submissions (‘die Vorträge der Parteien’)—ie, all facts (‘Tatsachen’) andobjections (‘Einwendungen’) asserted—must be substantiated (‘substantiiert’); 67– each party must declare its position regarding facts (‘Tatsachen’) alleged bythe other party (§ 138(ii). Facts are deemed to be admitted unless objected to(‘bestritten’) and a declaration of ignorance (‘Erklärung mit Nichtwissen’) is onlypermissible in certain circumstances: §§ 138(iii) and (iv);– in restriction of the ‘Verhandlungsgrundsatz’ and in modification of the‘Dispositionsgntndsatz’, 68 the presiding judge has a duty to work towards theparties giving a full account of all significant facts and making appropriateapplications (‘sachdienliche Anträge’) to the court 69For example, the judge can:– require the parties to clarify (‘erläutern’) or supplement (‘ergänzen’) their submissions;125

The German Legal System and Legal Language– make suggestions (‘Anregungen’);– discuss the facts and law with the parties;– ask questions (as can other members of the court); and– express any reservations (‘Bedenken’) regarding matters which have to be checkedby the court (eg, whether the action is admissible): § 139. 70(d) The various ‘Anordnungen’ (directions) that can be given by the court, eg, thepersonal appearance (‘persönliches Erscheinen’) of the parties, the presentation(‘Vorlegung’) of documents (‘Urkunden’) and files (‘Akten’), the suspension (stay)of the proceedings (‘Aussetzung des Verfahrens’): §§ 141–155. 71(e) The protocol of the hearing (‘Verhandlungsprotokoll’) that must be kept: §§ 159–165.(ii) Title 2 (§§ 166–213a ZPO)This Title is sub-divided into two blocks:III‘Zustellung auf Betreiben der Parteien’ (service at the instance of (and on and between)the parties): §§ 166–207;‘Zustellungen von Amts wegen’ (service by the court; also called ‘Amtsbetrieb’ (officialconduct (of service)): §§ 208–213a).By § 208 ZPO, §§ 166–207 have corresponding application to ‘Zustellungen von Amtswegen’, except in so far as §§ 209–213a ZPO otherwise provide.In criminal proceedings, the civil provisions regarding service apply: § 37(i) StPO.However, service by administrative and other public authorities is governed by special(federal and state) laws (‘Verwaltungszustellungsgesetze’).It is important to understand that ‘Zustellung (service) can relate to an ‘Ausfertigung’(ie, the official copy of an official document, eg, a court decision) or to an ordinarywritten item (‘Schriftstück’), eg, a writ (‘Klage’). Whilst the former merely needs to behanded over, service of the latter consists of delivery of a certified copy (‘beglaubigteAbschrift’): § 170(i) ZPO. 72Service at the instance of the parties is usually carried out by the court bailiff(‘Gerichtsvollzieher’: § 166 ZPO), by post (§§ 193–197 ZPO), between lawyers (‘von Anwaltzu Anwalt’: § 198(i) ZPO) or by the ‘Geschäftsstelle’ (business office of the court: § 211 ZPO).Service can be effected at any place, at which the person to be served is found: § 180ZPO. For private persons, this is normally their home (‘Wohnung’). In the case ofbusiness persons, it is their place of business (‘Geschäftslokal’) 73Service at nighttime, on Sundays and public holidays requires the permission of ajudge: §188(i) ZPO.The instructing party must receive a certificate of service (‘Zustellungsurkunde’: §§190–192 ZPO), unless service is effected between lawyers, in which case a written,dated and signed acknowledgement of receipt (‘Empfangsbekenntnis’) suffices to proveservice: §198(ii)ZPO.A party not resident in Germany, who has not yet appointed a ‘Prozeßbevollmächtigter’resident either at the place of the ‘Prozeßgericht’ (the court due to hear the case) or in thearea of the relevant ‘Amtsgericht’, must name a person authorised to accept service(‘Zustellungsbevollmächtigter’), who is resident in that place or area: §174(ii)ZPO.126

Chapter XIII: Civil ProcedureUntil such a person is named, service is regarded as effected at the time of postingto the party’s home address (‘Wohnort’), even if the item is returned as undeliverable(‘unbestellbar’): § 175(i) ZPO.If the aim of service of a ‘Schriftstück’ by the court is to safeguard a time limit (‘Frist’)or to interrupt a limitation period, the desired effect sets in retrospectively(‘rückwirkend’) from the time of lodging (‘Einreichung’) at the court, provided that serviceis effected shortly (‘demnächst’): § 270(iii) ZPO.The same applies in the case of an application for a ‘Mahnbescheid’ (default notice):§ 693(ii) ZPO. 74(iii) Title 3 (§§ 214–229 ZPO)To be noted here is that:– a distinction is drawn between normal time limits (‘Fristen’), time limits set by ajudge (‘richterliche Fristen’), time limits set by statute (‘gesetzliche Fristen’) 75 and socalled‘Notfristen’ (time limits specified as such in the ZPO).‘Notfristen’ run at all times and cannot be shortened in any event, while the otherscan in certain circumstances be shortened or extended (§§ 223–224);– on application, a ‘Termin’ (hearing (date)) can be changed or postponed (‘vertagt’)on significant grounds (‘aus erheblichen Gründen’): § 227(i). Where a case is notpostponed and neither party appears or makes submissions, the court can eitherdecide the matter on the basis of the file (‘nach Aktenlage’) or direct the resting(‘Ruhen’) of the proceedings: § 251 a.(iv) Title 4 (§§ 230–238 ZPO) 76To be distinguished are the following terms:– a ‘Versäumung’, 77 which refers to a party’s failure to observe (miss) the time limitfor or to carry out a ‘Prozeßhandlung’ (step in the proceedings) and generally leadsto the party being excluded (‘ausgeschlossen’) with the ‘Prozeßhandlung’; 78and– a ‘Versäumnis’, 79 which refers to a party’s failure to attend a ‘Termin’ (‘Nichterscheinen’)or to make submissions at a ‘Termin’ (‘Nichtverhandeln’), 80and leads to a possible ‘Versäumnisurteil’ (judgment in default) against him (§§ 330and 331). A defendant who fails to notify his intention to defend (‘Verteidigungsabsicht’)is also open to this risk: § 331(iii). 81(v) Title 5 (§§ 239–252 ZPO)‘Unterbrechung’ is the interruption of proceedings ipso iure, for example due to the‘Prozeßunfähigkeit’ of a party, his death or that of his ‘gesetzlicher Vertreter’. Where, however,a party becomes ‘prozeßunfähig’ or he or his ‘gesetzlicher Vertreter’ dies and the party isrepresented in the action (by a ‘Prozeßbevollmächtigter’), it is only possible to achieve thesuspension of the proceedings (‘Aussetzung des Verfahrens’) on application (§ 246). 82127

The German Legal System and Legal LanguageTime limits commence anew (‘von neuem’) after any interruption or suspension(§ 249).Proceedings can not only be interrupted or suspended, but can merely rest. Thus, ifboth parties so apply and the court considers it expedient (‘zweckmäßig’) due to pendingnegotiations for a settlement or for other important reasons, a ‘Ruhen des Verfahrens’(resting of the proceedings) can be ordered (§ 251). 832 Book II (§§ 253–510b ZPO): Proceedings at 1st Instance(a) ContentBook II of the ZPO (‘Verfahren im ersten Rechtszuge’; §§ 253–510b) is divided into twoSections:1: ‘Verfahren vor den Landgerichten’ (proceedings before the County Courts; §§ 253–494).2: ‘Verfahren vor den Amtsgerichten’ (proceedings before the District Courts; §§ 495–510b).First instance proceedings can be commenced at an ‘Amtsgericht’ or a ‘Landgericht’ byplaint/writ (‘Klage’). In the absence of any special provisions in Book I, §§ 496–510b orin provisions regarding the constitution of the ‘Amtsgerichte’, the proceedings in bothcases are governed by Book II, Section 1 (§§ 253–494; § 495).(b) Section 1 (§§ 253–494 ZPO): In the ‘Landgericht’Section 1 contains 12 Titles:1 ‘Verfahren bis zum Urteil’ (proceedings up to judgment; §§ 253–299a).2 ‘Urteil’ (judgment; §§ 300–329).3 ‘Versäumnisurteil’ (judgment in default; §§ 330–347).4 ‘Verfahren vor dem Einzelrichter’ (proceedings before a single judge; §§ 348–350).5 ‘Allgemeine Vorschriften über die Beweisaufnahme’ (general provisions regarding thetaking of evidence; §§ 355–370).6 ‘Beweis durch Augenschein’ (evidence by inspection; §§ 371–372a).7 ‘Zeugenbeweis’ (witness evidence; §§ 373–401).8 ‘Beweis durch Sachverständige’ (expert evidence; §§ 402–414).9 ‘Beweis durch Urkunden’ (documentary evidence; §§ 415–444).10 ‘Beweis durch Parteivernehmung’ (evidence by examination of the parties; §§ 445–455).11 ‘Abnahme von Eiden und Bekräftigungen’ (the taking of oaths and affirmations; §§478–484).12 ‘Sicherung des Beweises’ (securing of evidence; §§ 485–494). 84128

Chapter XIII: Civil Procedure(c) Section 1, Title 1 (§§ 253–299a ZPO)(i) Issue and service of a ‘Klage’ 85The issue (‘Erhebung’) of a ‘Klage’ requires two acts:– the lodging (‘Einreichung’) of a particular form of pleading (‘Schriftsatz’)—the‘Klageschrift’ (statement of claim)—at the court; 86and– the service (‘Zustellung’) of the ‘Klageschrift’ on the defendant (§ 253(i) ZPO).The correct description of the parties (‘Bezeichnung der Parteien’) is a vital componentof the ‘Klageschrift’: § 253(ii) No. 1 ZPO. The parties must be individualised, ie, theymust be named, their address (‘Anschrift’) must be stated and their status (‘Stellung’)in the action clarified: § 130 No 1 ZPO. 87When a matter is before the court, it is referred to as being ‘anhängig’ (pending). Theproceedings become ‘rechtsängig’ (sub judice) once they are served on the other party.The relevant provisions regarding the procedure of service are contained in:– § 270(i) ZPO, whereby service is usually undertaken by the court (‘von Amts wegen’);– § 271 ZPO, whereby service must be carried out ‘unverzüglich’ (forthwith) togetherwith a direction to the defendant to appoint an appropriate lawyer, if he intends todefend himself, and to state via his lawyer (ie, in cases before a ‘Landgericht’), withina time limit of at least two weeks after service, whether there are any reasons whythe ‘Zivilkammer’ should not transfer the matter to a single judge (‘Einzelrichter’), ie,if the case involves particular factual or legal difficulties or is of fundamentalsignificance: § 348(i);– §§ 208–213a ZPO (together with § 170 ZPO), whereby the ‘Geschäftsstelle’ (businessoffice) of the court is responsible for service of a ‘beglaubigte Abschrift’ (certifiedcopy) of the ‘Klageschrift’ by means of its ‘Übergabe’ (handing-over) by a courtbailiff (‘Gerichtsvollzieher’) 88 or through the post (§§ 170 and 211). 89A certificate of service (‘Zustellungsurkunde’) must be returned to the ‘Geschäftsstelle’although, where the person to be served is a lawyer, notary, court bailiff, authorityor public corporation, a written, dated and signed ‘Empfangsbekenntnis’(acknowledgement of receipt) suffices to prove service (§§ 212 and 212a). 90Where a person has been appointed as a ‘Bevollmächtigter’, he must be served (§§173–178); and– § 65(i) GKG, whereby in civil actions the ‘Klage’ can only be served after prepayment(‘Vorauszahlung’) of the court’s fee (‘Gebühr’) and disbursements (‘Auslagen’). 91A ‘Rechtsanwalt’ can ask his client for a fair payment on account of costs(‘Kostenvorschuß’): § 17 BRAGO. 92(ii) Types of ‘Klage’ 93A ‘Klage’ is customarily distinguished according to whether it is a:– ‘Leistungsklage’, whereby an enforceable judgment requiring a ‘Tun, Unterlassen129

The German Legal System and Legal Languageoder Dulden’ (act, omission or sufferance=a ‘Leistung’) from the defendant is sought(eg, payment of a debt; restraint of conduct).– ‘Gestaltungsklage’, whereby a judgment is sought reshaping a legal situation onthe basis of particular legal provisions (eg, divorce, company dissolution). Thejudgment brings about an automatic rearrangement (‘Umgestaltung’) of the positionand requires no enforcement.– ‘Feststellungsklage’, whereby a judgment establishing/declaring the existence ornon-existence of a legal relationship (‘das Bestehen oder Nichtbestehen einesRechtsverhältnisses’: § 256(i) ZPO) is sought.A ‘Feststellungsklage’ can be brought to establish/declare absolute rights (eg, ownership,succession, family status, patent or copyrights) and is also useful in accident cases toestablish a claim for liability only (‘dem Grunde nach’) when a figure for damages is notyet available. 94(iii) The ‘Streitgegenstand’ 95(a) The controversial concept of the ‘Streitgegenstand’ (object of the action) is not useddirectly as such in the ZPO. However, § 253(ii) No 2 ZPO states that the necessarycontent of a ‘Klageschrift’ must include ‘the specific statement of the object andground of the claim raised, as well as a specific application’ (to the court). 96Accordingly, the term ‘Streitgegenstand’ is generally regarded as having the meaningof a procedural as opposed to a merely material ‘Anspruch’ and as consisting oftwo elements:– a particular ‘Klageantrag’ (application to the court) in the ‘Klage’)’, and– a particular ‘Klagegrund’ (factual basis for the ‘Klage’ /cause of action).When the plaintiff’s ‘Klageantrag’ is justified by the ‘Klagegrund’, the ‘Klage’ isreferred to as being ‘schlüssig’ (apparently well founded/conclusive). 97Whether or not the plaintiff’s ‘Klage’ (and the ‘Anspru(e)ch(e)’ (claim(s)) madetherein) is ultimately actually well founded (‘begründet’) is for the court to decide, 98following the defendant’s response (his so-called ‘Einlassung’) and any necessarytaking of evidence (‘Beweisaufnahme’). 99The concept of the ‘Streitgegenstand’ is of relevance when the question is raised:– whether the same matter is already sub judice (‘anderweitig rechtshängig’);– whether an amendment of the writ (‘Klageänderung’) has taken place; 100– whether a court judgment has become finally (and not merely formally)binding on the parties (‘materiell rechtskräftig’),and the court has to consider whether the ‘new’ ‘Streitgegenstand’ is identical(‘gleich’), in which case it must be rejected, or is an ‘anderer’ (different)‘Streitgegenstand’, which is permissible. 101(b) A plaintiff is free to make numerous procedural claims against the same defendantin the same action, even if they are based on different grounds, provided the relevantclaims all fall within the jurisdiction of the court and are all governed by the same130

Chapter XIII: Civil Proceduretype of proceedings: § 260 ZPO (so-called ‘objektive Klagenhäufung’ (objectivecumulation of claims)). 102 The consequence of ‘objektive Klagenhäufung is that thereis a joinder (‘Verbindung’) of the claims. The claims are heard together (‘gemeinsameVerhandlung’), but remain independent and can each be the subject of a partialjudgment (‘Teilurteil’; § 301 ZPO).$By § 145 ZPO, the court can require the claims tobe pursued in separate actions or can, by analogy with § 146 ZPO, deal with themseparately (‘Trennung’).$‘Objektive Klagenhäufung’ is to be distinguished from:– the situation where various plaintiffs or defendants are parties to an action(so-called ‘subjektive Klagenhäufung’ (subjective cumulation of claims), ie,‘Streitgenossenschaft’); 103– the making of numerous claims on an alternative basis (‘Alternativanträge’),ie, leaving the choice to the court. This is generally not allowed;– the situation where one and the same claim is made on various (factual)grounds (‘mehrere Klagegründe’). The court must then examine each ground,to see if it can support the claim. By this is not meant the basing of a claim onseveral ‘Anspruchsgrundlagen’, which is unobjectionable;– the making of cumulative claims, subject to an internal procedural condition(so-called ‘eventuelle Klagenhäufung’ (eventual cumulation of claims)), ie, the(common) situation where an auxiliary application (‘Hilfsantrag’) is made forthe event that (‘für den Fall, daß…’) the main application (‘Hauptantrag’) fails.This type of eventual application (‘Eventualantrag’) is permitted. 104The so-called ‘Stufenklage’ (step action; § 254 ZPO) is a special form of actionwhereby various claims are joined in the same proceedings and are placed beforethe court for consideration in successive stages, ie, consideration of a subsequentclaim depends on the previous one being successful. 105(iv) After the ‘Klage’ is lodged 106The presiding judge (‘Vorsitzender’) has two means to progress the matter once thewrit has been lodged. He can either (§ 272(ii)):(a) set a so-called ‘frühen ersten Termin (zur mündlichen Verhandlung)’ (initial oralhearing) not less than two weeks after service (§§ 275 and 274(iii)).To prepare the initial oral hearing, the presiding judge can require the defendantto lodge a (written) defence (‘Klageerwiderung’) within at least two weeks: §§ 275(i)and 277(iii).If the matter can be disposed of (‘erledigt’) at the initial oral hearing (eg, in the event ofa settlement (§§ 279, 794(i) No 1 ZPO), an acknowledgment of the daim (§ 307(i) ZPO)or a judgment in default (§§ 330, 331(i) ZPO) or if a final judgment is possible (§ 300(i)ZPO)), the proceedings then terminate. Otherwise, the court must give such directionsas are still required to prepare the main hearing (‘Haupttermin’): § 275(ii) ZPO;or(b)initiate the so-called ‘schriftliches Vorverfahren’ (preliminary written procedure),which the presiding judge must do, if he does not set an initial oral hearing. In131

The German Legal System and Legal Languagethe event of a ‘schriftliches Vorverfahren’, the presiding judge must (together withservice of the writ) require the defendant (‘Beklagte’):– to notify the court (within a ‘Notfrist’ of two weeks) in writing if he intends todefend (‘wenn er sich…verteidigen wolle’); and– (within at least two further weeks) to lodge his (written) defence(‘Klageerwiderung’): § 276(i). 107It must be drawn to the defendant’s attention that:– if he intends to defend himself, he must appoint an appropriate lawyer (ifnecessary): § 271 (ii). In a ‘schriftliches Vorverfahren’, only such a lawyer cannotify the court of the intention to defend (§ 276(ii));– (in the event of a ‘schriftliches Vorverfahren’) a failure (‘Versäumung’) by thedefendant to notify his intention to defend within the ‘Notfrist’ can lead to ajudgment in default against him (§§ 276(ii) and 331(iii)); 108– the defence must be lodged by an appropriate lawyer (if necessary) and that,if the time limit set is missed, the defence can be rejected as out of time(‘verspätet’) (§§ 277(ii) and 296(i)).The court can require the plaintiff to give his written comments on the defencewithin at least two weeks (a so-called ‘Replik’): §§ 275(iv), 276(iii) and 277(iv).(v) The court’s preparation for the hearing 109Whether an initial oral hearing (‘früher erster Termin’) is set or the main hearing(‘Haupttermin’) is to take place, the court must:– at all stages of the proceedings work towards the parties making their submissionsin good time and fully (‘rechtzeitig und vollständig’); and– take necessary preparatory measures (‘erforderliche vorbereitende Maßnahmen’) ingood time (‘rechtzeitig’), eg, require the parties to supplement or explain (pointsin) their pleadings, obtain official information and summon witnesses and experts(§ 273; so-called ‘prozeßleitende Verfügungen’).In other words, the court is responsible to ensure that a case progresses without unduedelay and to issue appropriate interlocutory orders as early as possible.Moreover, throughout the proceedings, the court must be intent on a friendlysettlement of the dispute or of specific points: § 279(i) ZPO.In particular, unless an attempt at settlement (Güteversuch’) is clearly hopeless (§278(ii) ZPO), the court must—as from 1.1.2002—schedule a date for negotiation(‘Gütetermin’) before the main hearing at first instance is held.(vi) The hearing 110Once a hearing date is set (‘bestimmt’) by the court, the parties (and any witnesses andexperts) are summoned to attend by means of a ‘Ladung’: § 274(i).The period between service of the ‘Ladung’ and the date of the hearing (the‘Ladungsfrist’) amounts to at least one week where lawyers are instructed, otherwiseat least three days: § 217.132

Chapter XIII: Civil ProcedureThe period between service of the writ and an oral hearing is the so-called‘Einlassungsfrist’ (period for engagement) and must amount to at least two weeks: §274(iii)ZPO. 111The main hearing (‘Haupttermin’) proceeds as follows: 1121 the matter is announced (‘Aufruf der Sache’: § 220(i);2 the persons present are established (‘Feststellung der Anwesenheit’); 1133 the court leads the parties into a consideration of the subject-matter (facts) of thecase (‘Sachverhalt’), both non-contentious and contentious (‘Sach- und Streitstand’:§ 278(i)); 1144 the parties are given a preliminary opportunity to be heard (‘Anhörung der Parteien’),so that the facts of the case can be clarified (‘Aufklärung des Sachverhalts’); 1155 the parties make their applications (‘Anträge’) to the court with (or without)reference to the pleadings (= ‘Stellung der Anträge’: §§ 137(i) and 297(ii)); 1166 the parties’ submissions (‘die Vorträge der Parteien’) on the facts and law are made,usually merely by reference to the pleadings (§ 137(ii) and (iii));7 if necessary, the court orders the taking of evidence (‘Beweisaufnahme’) by meansof a ‘Beweisbeschluß’ (§ 278(ii), 1st sentence and § 284); 1178 both the evidence and (again) the non-contentious and contentious subject-matteris considered (§ 285 and § 278(ii), 2nd sentence); 1189 the lawyer for each party makes final representations (the ‘Plädoyer’);10 the court reaches its decision (‘Entscheidung’): either in the form of an ‘Urteil’ or‘Beschluß’.The parties must not delay the proceedings (which they have a duty to further(‘Prozeßförderungspflicht’)). Thus:– if the parties do not submit or notify their ‘Angriffs- und Verteidigungsmittel’ (eg,facts, allegations, objections, evidence) 119 within a ‘Frist’ (deadline) set by the courtor otherwise in time (‘rechtzeitig’); or– if an objection from the defendant to the admissibility of the ‘Klage’ (a so-called‘Rüge’) is not raised in time,the relevant ‘Angriffs- und Verteidigungsmittel’ or ‘Rüge’ stands at risk of being rejectedby the court as ‘verspätet’ (too late/out of time): §§ 282(i)-(iii)) and 296(i)-(iii).In particular, an ‘Angriffs- und Verteidigungsmittel’, which is presented late(‘verspätet vorgebracht’), can be rejected, if, according to the free conviction of thecourt, its admission would delay the disposal of the dispute (‘die Erledigung desRechtsstreits’) and the delay is due to gross negligence (‘grobe Nachlässigkeit’): §296(ii) ZPO 120However, in keeping with Article 103(i) GG and in extension of § 139 ZPO, if thecourt realises that a party has clearly overlooked (‘erkennbar übersehen’) or has regardedas insignificant (‘unerheblich’) a legal aspect (‘rechtlicher Gesichtspunkt’) upon whichthe court intends to base its decision, it must first give the party an opportunity to beheard (‘Gelegenheit zur Äußerung’) thereon unless merely a collateral claim(‘Nebenforderung’) is concerned: § 278(iii) ZPO.133

The German Legal System and Legal LanguageThus, the court is not permitted to reach a decision by surprise (‘Überraschungsentscheidung’)without drawing attention beforehand to a legal consideration which is significant(‘entscheidungserheblich’).An infringement of § 278(iii) ZPO can justify the reopening of the hearing(‘Wiedereröffnung der Verhandlung’; § 156 ZPO) or a constitutional complaint. 121Alternatively, as from 1.1.2002, a newly inserted § 321a ZPO is intended to providea means of challenge, if a judgment at first instance is consequent on the infringmentof a party’s right to be heard and no appeal is otherwise possible.The party affected can lodge an objection (at the same court!) against theinfringement of his right to be heard (‘Rüge der Gehörsverletzung’ or ‘Gehörsrüge’) withintwo weeks of the judgment being served, on the ground that the denial of a hearingwas significant for the court’s decision (‘entscheidungserheblich’). In other words, it mustbe shown that, had a proper hearing been granted to the party concerned, it is possiblethat the court would have reached a different decision more favourable to the party.If the ‘Gehörsrüge’ is upheld, the original decision has to be quashed and the oralhearing resumed. The court’s decision on the ‘Gehörsrüge’ is final.(vii) Conduct of the proceedings and closure of the hearing 122The conduct of the proceedings (‘Prozeßleitung’) is in the hands of the presiding judge(‘Vorsitzender’): § 136(i) ZPO.In particular, at the (main) oral hearing (‘mündliche Verhandlung’), the presidingjudge:– is entitled to grant and withdraw the right to speak: § 136(ii) ZPO;– is responsible to see to it that the case is exhaustively aired (‘erschöpfend erörtert’)and to ensure that any necessary further session (‘Sitzung’) is set downimmediately: § 136(iii) ZPO. The new hearing date (‘Termin’) must be scheduledto take place as shortly as possible thereafter: § 278(iv) ZPO.The presiding judge closes the oral hearing when full discussion of the matter has, inthe view of the court, taken place: § 136(iv) ZPO.Closure of the oral hearing (‘Verhandlungsschluss’) is very significant, because, afterthe oral hearing is terminated, submission of ‘Angriffs- und Verteidigungsmittel’ is nolonger possible (absolute preclusion): § 296a ZPO. 123Further, once the case is ripe for final decision (‘zur Endentscheidung reif’), the courthas to proceed to pass final judgment (‘Endurteil’): § 300(i) ZPO. Judgment must bepronouced either directly following the close of the oral hearing or on a date forpronoucement (‘Verkündungstermin’): § 310(i) ZPO. 124(d) Section 2 (§§ 495–510b ZPO): In the ‘Amtsgericht’Unlike the position before the ‘Landgericht’, writs or applications can be made to an‘Amtsgericht’ orally. Moreover, where the ‘Streitwert’ (value in dispute) does not exceedDM 1200, the ‘Amtsgericht’ has discretion to decide upon the form of the proceedingsitself (‘nach billigem Ermessen’ (in accordance with fair discretion)): an oral hearing isonly required if applied for (§§ 495a and 496).134

Chapter XIII: Civil ProcedureIn particular, in the case of a monetary dispute, if:– legal representation is not required;– the amount involved is less than DM 1500 at the time the action is commenced; and– it cannot be expected of a party to appear at court due to great distance or foranother important reason,the court can order that proceedings take place in writing: § 128(iii), 1st sentence ZPO. 125If an ‘Amtsgericht’ has no substantive or local jurisdiction, it must inform thedefendant accordingly, as well as regarding the consequences for the defendant, ifthe defendant makes unqualified oral submissions on the main issue at the hearing:§ 504 ZP0. 126 (e) Alternative settlement of disputesIn the interests of promoting settlement of disputes out of court (‘außergerichtlicheStreitbeilegung’), a new paragraph 15a has been inserted into the Introductory Law tothe Code of Civil Procedure (EGZPO) with effect from 1.1.2000.The ‘Länder’ can, by statute, require that an initial attempt be made to resolve certaintypes of dispute amicably (‘einvernehmlich’), before a ‘Klage’ can be issued. A settlementprocedure (‘Güteverfahren’) must first take place at an approved ‘Gütestelle’.At the time of writing, the new form of mediation (‘Streitschlichtung’) is compulsoryonly in the following types of case:– disputes concerning claims valued at less than DM 1500 (750 Euros);– disputes between neighbours (‘Nachbarschaftsstreitigkeiten’), and– disputes concerning alleged infringements of personal honour (ie, defamationclaims), which arise from circumstances outside press and radio.It does not apply, for example, to– disputes in family matters;– claims, which become contentious following the issue of a default notice;– actions relating to measures of enforcement,nor does it come into play, if the parties do not reside in the same ‘Land’.As from 1.1.2002, every hearing at first instance will have to be preceded by an(obligatory) settlement procedure. If it proves unsuccessful or if a party remains absentfrom the ‘Gütetermin’, the main hearing can take place immediately thereafter.3 Book III (§§ 511–577 ZPO): Remedies 127Book III of the ZPO (‘Rechtsmittel’) (legal remedies/appeals) is divided into threeSections:(a) ‘Berufung’ (§§ 511–544 ZPO) 128In connection with a ‘Berufung’ (general appeal) in civil proceedings, one shouldnote that:135

The German Legal System and Legal Language– a ‘Berufung’ against a final judgment (‘Endurteil’) of the ‘Amtsgericht’ is dealt withby the ‘Landgericht’ and a ‘Berufung’ against a final judgment (at first instance) ofa ‘Landgericht’ by the ‘Oberlandesgericht’ (§§ 511 ZPO, 72 and 119(i) GVG);– appeals against decisions by family courts go directly to the ‘Oberlandesgericht’.Moreover, as from 1.1.2002, that court is competent to handle appeals from an‘Amtsgericht’, if, at the time the case became legally pending at first instance, thegeneral venue of a party was outside Germany or if the ‘Amtsgericht’ appliedforeign law and expressly made reference thereto in its decision;– the general principles governing proceedings before the ‘Landgericht’ (ie, §§ 253–494 ZPO) apply, except as otherwise provided in §§ 511–544 (§ 523 ZPO). Thus,the ‘Berufung’ is a full, second rehearing of the case (§ 525 ZPO).– a ‘Berufung’—as, indeed, every ‘Antrag’ (application) or ‘Rechtsmittel’—must beboth admissible (‘zulässig’) and well-founded (‘begründet’), if it is to succeed. Theserequirements have to be checked by the court of its own motion (‘von Amts wegen’):§ 519b ZPO.In particular, the ‘Berufung’ must, in the first place, be possible (‘statthaft’); it mustbe lodged in the correct form and within the relevant time limit (‘Frist’); and thejudgment, against which the ‘Berufung’ is lodged, must be (legally)disadvantageous (‘nachteilig’) to the appellant, ie, there must be a ‘Beschwer’(grievance/gravamen).– the ‘Berufungssumme’/‘Beschwerdewert’ (appeal value) must exceed DM 1500 (§ 511aZPO). As from 1.1.2002, the threshold value is 600 Euros.After 1.1.2002, if the appeal value is not reached, a ‘Berufung’ is only possible, ifthe court at first instance grants leave to appeal (so-called ‘Zulassungsberufung’).The court’s decision is final (!). However, leave must be granted, if either:(i) the matter has fundamental significance (‘grundsätzliche Bedeutung’); or(ii) a decision by the appellate court is necessary in the interest of the developmentof the law (‘Fortbildung des Rechts’) or so as to secure the uniformity of caselaw(‘Einheitlichkeit der Rechtsprechung’).– the ‘Berufungsfrist’ (time limit for lodging the notice of appeal (‘Berufungsschrift’))is one month from service of the judgment and, at the latest, 5 months after thejudgment was pronounced (the ‘Verkündung’ (pronouncement)): § 516 ZPO;– the appellant (‘Berufungskläger’) has a further month after lodging his‘Berufungsschrift’ to lodge his particulars of appeal (‘Berufungsbegründung’,consisting of an appeal application (‘Berufungsantrag’) and a factual and/orevidential basis for the appeal (‘Berufungsgrund’)), but this period can be extendedon application (§ 519 ZPO); 129 After 1.1.2002, the grounds for an appeal havebeen restricted. It must be shown either that the decision at first instance wasbased on a breach of law (‘Rechtsverletzung’), substantive or procedural, or that adifferent decision is justified, eg, because there is reason to believe that the firstinstance court proceeded on wrong facts or that certain facts were omitted.Under the new rules, the appeal court is bound by facts established at first instance,136

Chapter XIII: Civil Procedurebut only insofar as no concrete indications (‘konkrete Anhaltspunkte’) exist, whichgive rise to doubts regarding the correctness or completeness of the significantfacts ascertained. Thus, there must be definite evidence, if factual errors are beingasserted on appeal:– ‘Angriffs- und Verteidigungsmittel’ and ‘Rügen’ (ie, assertions of fact, defences,evidence, objections) not submitted by the appellant or respondent(‘Berufungsbeklagter’) in time (‘rechtzeitig’) can be rejected: §§ 527–529 ZPO. Inparticular, new submissions (‘neues Vorbringen’) which were not brought forwardat first instance are subject to rejection on appeal unless their admission wouldnot delay disposal of the dispute or the omission to raise them at first instancewas not due to gross negligence (‘grobe Nachlässigkeit’): § 528(ii) ZPO; 130– the judgment at first instance cannot be amended to the detriment of the appellant(‘Verbot der Schlechterstellung’), unless a ‘Berufung’ is also lodged by the other party(so-called ‘Anschlußberufung’): §§ 536, 521 ZPO; 131– as from 1.1.2002, a ‘Berufung’ must be rejected, if the appellate court is convincedthat the appeal has no prospect of success (‘keine Aussicht auf Erfolg’), that it is notof fundamental significance and that a decision by the appellate court is notnecessary in the interest of the development of the law or so as to secure theuniformity of case-law (§ 522(ii) ZPO). The rejection takes the form of a (unanimous)‘Beschluss’, which does not require an oral hearing and cannot be challenged (!).(b) ‘Revision’(§§ 545–566a ZPO) 132A ‘Revision’ is an appeal on a point of law only to the BGH (Federal Supreme Court)following a final judgment on a ‘Berufung’ to an ‘Oberlandesgericht’ (OLG). 133The concentration of appeals on points of law at the BGH serves to secure theuniformity of case-law (‘Einheitlichkeit der Rechtsprechung’).Thus, (before 1.1.2002) a ‘Revision’ can only be lodged (§ 546(i) ZPO):– in disputes concerning monetary claims (‘vermögensrechtliche Ansprüche’), if theamount at stake exceeds DM 60,000 (so-called ‘appeal on value’ (‘Wertrevision’)); 134or– in the case of a dispute involving a lesser amount or a non-monetary claim(‘nichtvermögensrechtlicher Anspruch’), if the OLG grants leave to do so in its judgment(so-called ‘appeal with leave’ (‘Zulassungsrevision’)) on the ground that either:(i) the matter has fundamental significance (‘grundsätzliche Bedeutung’); or(ii) the judgment of the OLG departs from a decision of the BGH or of the‘Gemeinsamer Senat der obersten Gerichtshöfe des Bundes’ (Joint Senate of theSupreme Federal Courts) and is based on such departure.As from 1.1.2002, the possibility of an appeal on value is abolished and the leave ofthe OLG is always required. If a matter is of fundamental significance or a decision bythe appellate court is necessary in the interest of the development of the law or so as tosecure the uniformity of case-law, leave must be granted.137

The German Legal System and Legal LanguageThe BGH is bound by the leave of the OLG (‘Zulassung’). 135The only grounds for a ‘Revision’ are that the decision in question is based on (‘beruhtauf’) a(n) (alleged) breach of federal law or of a provision extending beyond the areaof an ‘Oberlandesgericht’ (§ 549(i)). A breach consists of the non-application or incorrectapplication of a particular legal norm (§ 550).In the seven ‘absolute’ situations set out in § 551 ZPO, a court’s decision is alwaysregarded as being based on a breach of the law. 136The ‘Revision’ must be lodged within one month of service of the OLG’s completejudgment and, at the latest, within 5 months after the pronouncement (‘Verkündung’)of the judgment (§ 552).After the ‘Revisionsschrift’ (notice of appeal; § 553) is lodged, the appellant has anothermonth for the lodging of the particulars of appeal (‘Revisionsbegründung’). The periodcan be extended on application (§ 554(ii)).The general principles governing proceedings before the ‘Landgericht’ (ie, §§ 253–494 ZPO) apply, except as otherwise provided in §§ 545–566a (§ 557 ZPO). In particular:– the BGH must initially check the admissibility (‘Zulässigkeit’) of the appeal: § 554a;– the BGH can only consider those submissions apparent from the statement offacts (‘Tatbestand’) contained in the OLG’s judgment or record of the proceedings.New submissions of facts or evidence are excluded: § 561(i), 1st sentence;– breaches of (substantive) legal norms can always be found by the BGH itself. Thecourt is not limited to those alleged by the parties: § 559(ii), 1st sentence.However, procedural errors (‘Verfahrensmängel’) must be specifically asserted, iftheir examination by the BGH is sought;– assuming that the appeal is admissible, the possible content of the BGH’s judgmentis dealt with in §§ 563–565a ZPO. 137In particular, the BGH must pronounce the annulment (‘Aufhebung’) of the OLG’sdecision, insofar as the BGH considers the appeal well-founded (‘begründet’): § 564ZPO. It must then usually remand the matter for reconsideration to the lower court(‘Zurückverweisung’): § 565 ZPO. 138(c) ‘Beschwerde’ (§§ 567–577 ZPO) 139A ‘Beschwerde’ (complaint) is a form of appeal, which cannot be used against judgments(‘Urteile’) or against decisions of an ‘Oberlandesgericht’, but only in those cases specifiedin the ZPO, in particular against ‘Beschlüsse’ (decisions /orders) and ‘Verfügungen’(directions) (§ 567 ZPO; §§ 72, 119, 133 GVG). 140The ‘Beschwerde must be passed to the next higher court (the ‘Beschwerdegericht’),unless the lower court or its presiding judge consider it to be justified and grant redress(‘Abhilfe’; § 571). 141The ‘einfache Beschwerde’ (simple complaint) is to be distinguished from the ‘sofortigeBeschwerde’ (immediate complaint), which must be lodged within two weeks (§ 577).It used to be the case that, even if a ‘Beschluss’ was (formally) final, a so-called‘exceptional complaint’ (‘Ausnahmebeschwerde’) could still be lodged, if ‘tangibleillegality’ (‘greifbare Gesetzeswidrigkeit’) could be shown.138

Chapter XIII: Civil ProcedureNow, as from 1.1.2002, a special remedy—the so-called ‘Rechtsbeschwerde’ (objectionon legal grounds)—is available to challenge a ‘Beschluss’, if a matter has fundamentalsignificance or a decision by a higher court is necessary in the interest of thedevelopment of the law or so as to secure the uniformity of case-law. The‘Rechtsbeschwerde’ must be lodged within one month and substantiated within onemonth thereafter: § 574 ZPO.4 Book IV (§§ 578–591 ZPO): ‘Wiederaufnahme des Verfahrens’ 142Book IV of the ZPO (‘Wiederaufnahme des Verfahrens’; §§ 578–591) deals with theresumption (reopening) of proceedings after final judgment by means of a so-called‘Nichtigkeitsklage’ (action for nullity in the case of certain procedural errors) or a socalled‘Restitutionsklage’ (action for reinstitution in the case of certain material errors):§§ 579 and 580. 1435 Book V (§§ 592–605a ZPO): ‘Urkunden- und Wechselprozeß’ 144Book V of the ZPO (‘Urkunden- und Wechselprozeß’; §§ 592–605a) provides for particularspeedy forms of action for claims based on documents, bills of exchange or cheques.6 Book VI (§§ 606–644 ZPO): Family Matters 145(a) ContentBook VI of the ZPO (‘Familien-, Kindschafts- und Unterhaltssachen’; §§ 606–644) is dividedinto three Sections:1: ‘Verfahren in Familiensachen’ (proceedings in family matters; §§ 606–638).‘Familiensachen’ are defined in § 23b GVG, which sets out the substantivejurisdiction of the family court. 146Family matters include ‘Ehesachen’ (marriage matters): see below.2: ‘Verfahren in Kindschaftssachen’ (proceedings in parenthood matters; §§ 640–641k).3: ‘Verfahren über den Unterhalt Minderjähriger’ (proceedings regarding themaintenance of minors; §§6411–644).The former Section 4 (§§ 645–687) has been repealed. 147(b) Section 1 (§§ 606–638 ZPO)Section 1 contains four Titles:1: ‘Allgemeine Vorschriften für Ehesachen’ (general provisions for marriage matters;§§60–620g).(i)The term ‘Ehesache’ is a sub-term of the term ‘Familiensache’ (family matter).‘Ehesachen’ are defined in § 606 ZPO as proceedings for:– divorce (‘Scheidung’);139

The German Legal System and Legal Language(ii)– declaration of nullity (‘Nichtigerklärung einer Ehe’);– establishment of the existence or non-existence of a marriage (‘Feststellungdes Bestehens oder Nichtbestehens einer Ehe’); or– establishment of marital life (‘Herstellung des ehelichen Lebens’). In‘Ehesachen’, Book I of the ZPO and the provisions of Book II for firstinstance proceedings before the ‘Landgericht’ (§§ 253–494 ZPO) apply: §608 ZPO.§§ 606–606a ZPO deal with initial questions of (substantive, local andinternational) jurisdiction (‘Zuständigkeit’) regarding ‘Ehesachen’. Thus, § 606 ZPOlays down a hierarchy of jurisdictions, which are all exclusive (‘ausschließlich’).The main ones (in descending order) are as follows:(i) the family court (‘Familiengericht’) for the area in which both spouses havetheir ‘gewöhnlicher Aufenthalt’ (usual residence);(ii) the family court for the area in which one of the spouses usually resides withthe parties’ minor children;(iii) the family court for the area in which the spouses last had their joint usualresidence, if one of the parties still has his or her usual residence there whenthe matter becomes ‘rechtshängig’ (sub judice);(iv) the family court for the area of the defendant’s usual residence or, if that isoutside Germany, that of the plaintiff’s;(v) failing all else, the family court at the ‘Amtsgericht Schoneberg’ in Berlin.§ 606a ZPO sets out the circumstances in which the German courts have (nonexclusive)(international) jurisdiction in cases where one or both of the parties areforeign nationals. 148(iii) §§ 607–619 ZPO contain supplementary provisions regarding, for example,– the need for a specific procedural power of attorney (‘Prozeßvollmacht’): § 609ZPO;– the right of a claimant to make new submissions before the close of the oralhearing: § 611 ZPO;– the personal attendance of the spouses and their right to be heard: § 613 ZPO;– stay of proceedings: § 614 ZPO;– rejection of late submissions: § 615 ZPO;– the ability of the court to order the taking of evidence on its own initiative(‘von Amts wegen’) and to take facts into consideration other than thosepresented to it by the parties: § 616 ZPO.In particular, the court can take into account facts, which favour the marriage(‘ehefreundliche Tatsachen’), despite the other spouse’s resistance: § 616(ii) ZPO.However, extraordinary circumstances within the meaning of § 1568 BGB mustbe specifically argued by die spouse opposing the divorce: § 616(iii) ZPO.(iv) §§ 620–620g ZPO contain special procedural provisions enabling the court to issue‘einstweilige Anordnungen’ (temporary orders) once an ‘Ehesache’ is pending or anapplication for legal aid has been lodged. 149140

Chapter XIII: Civil ProcedureThere must be an urgent need for legal protection (‘dringendesRechtsschutzbedürfnis’) and an application must be made (§ 620a (ii) ZPO). Theorder must have a basis in substantive German law (or foreign law, where theEGBGB so directs).There does not have to be an oral hearing (§ 620a (i) ZPO), but an application fora (renewed) oral hearing is possible if a decision is initially reached without one(§ 620b(ii) ZPO).Although application for amendment (‘Abänderung’) of an order can be made (§620b(i) ZPO) and a ruling (‘Regelung’) concerning the custody of a joint child or achild’s return to a spouse can be challenged by immediate complaint (‘sofortigeBeschwerde’), orders are generally unchallengeable (‘unanfechtbar’; § 620c, 1st and2nd sentences ZPO).It is, therefore, crucial that the submissions in the application are conclusive (‘schlüssig’)and credible (‘glaubhft’). 150 The following orders can, for example, be made: 151(a) § 620 Nos 1 to 4 ZPO—a temporary order concerning children (eg, for custodyor maintenance).(b) § 620 No 5 ZPO—a temporary order to regulate spousal separation (eg, fornon-molestation).(c) § 620 No 6 ZPO—a temporary order for maintenance in favour of a spouse. Suchan order only provides minimum or emergency maintenance (‘Notunterhalt’) andis not retrospective. Unless it is limited in time (‘befristet’), the order continues inforce until the matter is otherwise finally resolved: § 620f ZPO.A separate action for maintenance (‘Unterhaltsklage’)—eg, during separation,under § 1361 BGB—remains possible and may be necessary, if arrears exist orthe matter is too complex to be dealt with summarily.In an action under § 1361 BGB, such maintenance as is appropriate (‘angemessen’)according to the circumstances of the spouses (‘eheliche Lebensverhältnisse’) canbe claimed for the period since separation. The claimant must be in need(‘bedürftig’)—ie, unable to maintain himself (or herself) from his (or her) income(‘Einkommen’) or assets (‘Vermögen’)—and the other spouse must be able to pay(‘leistungsfähig’). A claimant, who is out of work, must only take up employment,if this can be expected of him according to his personal circumstances and theeconomic circumstances of both spouses: § 1361 (ii) BGB.(d) § 620 Nos 7 and 8 ZPO—a temporary order relating to the use of the matrimonialhome and contents.(e) § 620 No 9 ZPO—a temporary order for an advance of the costs of theproceedings (‘Prozeßkostenvorschuss’). 152Temporary orders remain effective until the issue in question is otherwise resolved(‘anderweitig geregelt’) or the marriage matter is dismissed or withdrawn: § 620fZPO. Thus, temporary orders can continue in force beyond and despite the‘Rechtskraft’ of a divorce.141

The German Legal System and Legal Language2 ‘Verfahren in anderen Familiensachen’ (proceedings in other family matters; §§ 621–621f).(i)‘Ehesachen’ are to be distinguished from other family matters (‘andereFamiliensachen’). These are listed in § 621 (i) ZPO:– parental care / custody (‘elterliche Sorge’);– access (‘Umgang’) by the parent not having custody;– release (‘Herausgabe’) of a child to the other parent;– maintenance (‘Unterhalt’) of a child;– maintenance of a spouse (‘Ehegattenunterhalt’);– the ‘Versorgungsausgleich’ (equalization of pension and disability expectancies);– regulation of rights to the marital home and contents;– claims under marital property law (‘Güterrecht’);– applications under §§ 1382 and 1383 BGB (ie, for a ‘Stundung’ (respite) ofor ‘Anrechnung’ (set-off) against the ‘Ausgleichsforderung’ (balancing claim)normally due on divorce under § 1378(i) BGB).If an ‘Ehesache’ is or was pending at first instance, that court has exclusivejurisdiction: § 621 (ii), 1st sentence ZPO. Moreover, if an ‘Ehesache’ becomespending, the court at first instance must transfer the (other family) matter to thecourt of the ‘Ehesache’. § 621 (iii) ZPO. In other words, there is a concentration ofthe proceedings at the court of the ‘Ehesache’.(ii) In the absence of an ‘Ehesache’, (local) jurisdiction and procedure in other (isolated)family matters is governed partly by the ZPO and partly by the FGG, depending onthe type of matter involved. The position is complex. Local jurisdiction is determinedby the ‘general provisions’ (§ 621(ii), 2nd sentence ZPO), eg, for maintenance claims§ 12ff ZPO, for custody § 36 FGG, for marital property § 45 FGG.Procedure in isolated family matters is governed by the FGG and the HausratsVO,insofar as the ZPO or GVG do not contain special provisions: § 621 a ZPO. Inmaintenance and marital property disputes, the ZPO applies. 153(iii) The key to the success of a maintenance and/or marital property claim is theprovision of information (‘Auskunft’) regarding the income (‘Einkommen’) andassets (‘Vermögen’) of the other party.For the purpose of a maintenance claim (‘Unterhaltsanspruch’), the basic(substantive) provision is § 1605 BGB, which is of corresponding application:– during separation: § 1361(iv), 4th sentence BGB; and– after divorce: § 1580 BGB. § 1605(i) BGB provides that direct relatives (‘Verwandtein gerader Linie’) must, on demand, provide each other with informationregarding their income and assets in so far as it is necessary to establish a claimto maintenance or a maintenance obligation. Income must, on request, beevidenced by vouchers (‘Belege’). Moreover, if there is reason to believe thatassets are not properly revealed, an assurance in lieu of oath can be demanded.It is very important that the demand (‘Aufforderung’) for information—andany necessary application (‘Antrag’) to the court—exactly specifies:142

Chapter XIII: Civil Procedure– the period (‘Zeitraum’), for which information regarding income is sought; 154and– the reference dates (‘Stichtage’), as at which information regarding assets issoughtUnder the usual German marital property regime (the ‘Zugewinngemeinschaft’(community based on gain) § 1363ff BGB), these reference dates are: the dateof the marriage and the date of service of any divorce petition; otherwise, thedate, at which the parties’ property status ends (‘Beendigung des Güterstandes’):§ 1384 BGB. Following a petition for divorce or other termination of thespouses’ property status, each spouse must (on demand) give the otherinformation regarding his or her final assets (‘Endvermögen’): § 1379 BGB.The gain (‘Zugewinn’), which must be equalized (‘ausgeglichen’) between them,is the excess of the final assets over the initial assets (‘Anfangsvermögen’): § 1373BGB. 155Unless a schedule (‘Verzeichnis’) of their respective initial assets was concludedjointly (‘gemeinsam’) by the spouses, it is presumed, unless proved to the contrarythat the final assets of a spouse represent his or her gain: § 1377(iii) BGB.However, assets which a spouse acquires during the marriage by way ofsuccession, gift or dowry (‘Ausstattung’) are left out of account when calculatingthe gain. They are added to the initial assets: § 1374(ii) BGB. The value of suchadditions to the initial assets is assessed at the time of acquisition: § 1376(i)BGB. Similarly, if a spouse engages in manipulation by means ofdisproportionate gifts, squandering of assets or other deliberate acts to thedisadvantage of the other spouse, such ‘reductions in wealth’(‘Vermögensminderungen’) increase the final assets, unless the relevant acts tookplace more than ten years before the end of the spouses’ property status or wereundertaken with the consent of the other spouse: § 1375(ii) and (iii) BGB.The value of such ‘reductions’ is assessed at the time they occurred: § 1376(ii) BGB.Further, transfers in money’s worth (‘Zuwendungen’), which were received bya spouse from the other ‘inter vivos’ in advance on the basis that they shouldbe set off against the donee’s claim to equalization (‘Ausgleichsforderung’), mustbe taken into account when calculating that person’s claim (‘Anrechnung vonVorausempfängen’). In particular, there is a presumption that set-off wasintended in the case of unusually large transfers (ie, those which exceed thevalue of such occasional gifts (‘Gelegenheitsgeschenke’) as are normal accordingto the circumstances of the spouses): § 1380(i) BGB.(iv) Although maintenance (also during separation) can be the subject of anagreement between the spouses (‘Unterhaltsvertrag’), a waiver of maintenancefor the future (whilst the marriage is in existence) is not possible: § 1614 BGB.Moreover, past maintenance obligations (arrears) can normally only be claimedfrom the time the debtor is placed in delay (‘Verzug’; § 284 BGB) or the claimbecomes legally pending (‘rechtshängig’): § 1613(i) BGB. 156(v) A step-action (‘Stufenklage’, § 254 ZPO) is appropriate, if, following the143

The German Legal System and Legal Languageprovision of information, it is desired to make an application for payment inthe same proceedings. 1573 ‘Scheidungs- und Folgesachen’ (divorce and ancillary matters;§§ 622–630). §§ 622–630 ZPO contain special procedural rules for divorce andancillary matters. Precondition for a divorce (‘Scheidung’) is the failure/breakdownof the marriage (‘Scheitern/Zerrüttung der Ehe’): § 1565(i), 1st sentence BGB.(a) Proceedings for divorce are commenced by the lodging of a written application(‘Antragsschrift’), the parties being referred to as ‘Antragsteller’ (petitioner) and‘Antragsgegner’ (respondent). The application has to specify (§ 622 ZPO):– whether there are minor children of the family;– whether there is a suggested arrangement regarding custody; and– whether other family matters are pending.The provisions regarding the ‘Klageschrift’ (§ 253 ZPO) are of correspondingapplication. By § 630 ZPO, where a divorce after one year’s separation (‘Trennung’)with mutual consent (a so-called ‘einverständliche Scheidung’ under § 1566(i) BGB)is sought, the divorce petition must also include:– a statement that the other spouse will consent or make a similar application;– the spouses’ agreed proposed arrangements regarding custody and access totheir children; 158– the spouses’ agreement (‘Einigung’) regarding maintenance and rights to themarital home and contents. 159A spouse can only obtain a divorce against the wishes of the other– before three years’ separation, if, on the basis of an objective assessment andprognosis, the court concludes that the marital community(‘Lebensgemeinschaft’) between the spouses no longer exists and that there isno chance/prospect of its resumption (‘Wiederherstellung’) by the spouses (ie,such a resumption is ‘aussichtslos’): § 1565(i), 2nd sentence BGB; or– after three years’ separation, at which time the irretrievable breakdown(‘unheilbare Zerrüttung’) of the marriage is irrefutably presumed (‘unwiderlegbarverermutet’): § 1566(ii) BGB.Divorce before one year’s separation is only possible, if, for reasons which lie inthe person of the respondent, the continuation of the marriage would representan unacceptable hardship (‘unzumutbare Härte’) for the applicant: § 1565(ii) BGB. 160By § 1568 BGB, the so-called ‘hardship clause’, despite the fact that a marriage hasfailed (‘gescheitert ist’), a divorce can be prevented:– if and so long as for special reasons (‘besondere Gründe’) it is exceptionallynecessary (‘ausnahmsweise notwendig’) to uphold the marriage in the interestof minor children of the family; or– if and so long as because of extraordinary circumstances (‘außergewöhnlicheUmstände’) a divorce would involve such serious hardship (‘schwere Härte’)for the respondent as to make it appear exceptionally necessary to uphold themarriage, even after taking into account the concerns of the petitioner.144

Chapter XIII: Civil Procedure(b) Where proceedings for divorce are pending, the matters listed in § 621 (i)ZPO are referred to as ancillary matters ((‘Scheidungs-’) ‘Folgesachen’), ie, theyare matters regarding which one of the parties requires a decision in the eventof divorce (‘für den Fall der Scheidung’): § 623(i) ZPO (eg, post-maritalmaintenance (‘nachehelicher Unterhalt’)). Apart from issues of custody over ajoint child and the settlement of pension expectancies (‘Versorgungsausgleich’)—which form part of an official ‘Amtsverbund’ (§ 623(iii) ZPO)—applicationsconcerning ancillary matters are at the disposition of the parties. They can bemade individually or in the form of a step-action (‘Stufenklage’; § 254 ZPO). 161Provided an application regarding an ancillary matter (‘Verbundantrag’) ispending at court (‘anhängig’) before the end of the oral hearing at first instance,it must be heard at the same time as, and together with, the divorce application(in a composite ‘Verbund’): § 623(ii) ZPO.Either of the parties can apply for separation (‘Abtrennung’) of ancillary mattersrelating to children or spousal maintenance, which are then detached(‘herausgelöst’) from the ‘Verbund’ and continue as isolated family mattersoutside the ‘Verbund’ (‘außerhalb des Verbundes’). The separation of otherancillary matters is only possible in certain circumstances: § 628 ZPO. 162 Thereis (only) a joint decision (in the form of an ‘Urteil’), if the divorce petition(‘Scheidungsantrag’) is granted (‘stattgegeben’): § 629(i) ZPO. Ancillary mattersbecome irrelevant (‘gegenstandslos’), if the divorce petition is rejected, althoughthe right to pursue them as isolated family matters can be reserved onapplication: § 629(iii) ZPO.Once a declaration of divorce (‘Scheidungsausspruch’) is ‘rechtskräftig’ (ie, hasfinal legal force), a decision regarding an ancillary matter also becomeseffective: § 629d ZPO.4 ‘Verfahren auf Nichtigerklärung und auf Feststellung des Bestehens oder Nichtbestehenseiner Ehe’ (proceedings for declaration of nullity and for establishment of theexistence or non-existence of a marriage; §§ 631–638).5 The rules on costs in marriage matters (eg, where there is a composite decisionregarding divorce and ancillary matters) are set out in § 93a ZPO.(c) Section 3 (§§ 6411–644 ZPO)Section 3 contains two Titles:Title 1:Title 2:‘Vereinfachtes Verfahren zur Abänderung von Unterhaltstiteln’ (simplifiedproceedings for the alteration of maintenance judgments; §§ 641–641t).‘Verfahren über den Regelunterhalt nichtehelicher Kinder’ (proceedingsregarding ‘standard’ maintenance for illegitimate children; §§ 642–644).145

The German Legal System and Legal Language– when provisional enforceability ends; liability of the plaintiff: § 717; Provisionalenforceability lapses, insofar as the relevant judgment or declaration ofprovisional enforceability is quashed or amended by another judgment: §717(i).In those circumstances, a plaintiff must compensate the defendant, if the latterhas suffered damage due to the enforcement of the judgment or because of ameasure taken (‘Leistung’) by the defendant to avoid such enforcement: § 717(ii);– preventive enforcement (‘Sicherungsvollstreckung’): § 720a (750(iii)).Enforcement of a judgment dependent on the lodging of security by the creditorcan only begin, if the deposit of security is evidenced by a public or publicly certifieddocument and it has been served on the debtor: § 751(ii). However, preventiveenforcement of a money judgment can begin without security being lodged,provided the judgment and enforcement clause have been served at least 2 weeksbefore: § 750(iii). The creditor can only undertake distraint (‘Pfändung’), but cannotsatisfy himself by realisation (‘Verwertung’): § 720a(i).Preventive enforcement is, therefore, a means of safeguarding a creditor’s positionsimilar to that of an ‘Arrest’ (§ 930ff ZPO).(v) Application for a period to give up possession of residential premises(Räumungsfrist für Wohnraum’): § 721 (794a).(vi) Enforcement of foreign judgments: §§ 722–723. 171(vii) The ‘enforcement duplicate’ (‘vollstreckbare Ausfertigung’) of the judgment andenforcement clause (‘Vollstreckungsklausel’): §§ 724–734. These are normally issuedby the document officer of the court (‘Urkundsbeamter der Geschäftsstelle’): §§ 724(ii)and 725. 172 Usually, only one ‘vollstreckbare Ausfertigung’ can be issued: § 733.(viii) Enforcement in the assets of particular persons (eg, unregistered associations,partnerships, married and deceased persons): §§ 735–745, 747–749, 778–785.(ix) Commencement of enforcement: title (‘Titel’), clause (‘Klausel’), specification ofthe parties (‘Parteibezeichnung’), service (‘Zustellung’) and fulfillment of otherconditions: §§ 750–751.(x) The ‘enforcement organs’ (‘Vollstreckungsorgane’): §§ 753–765, 802. The mainenforcement organs are the bailiff (‘Gerichtsvollzieher’) and the enforcement court(‘Vollstreckungsgericht’). 173Exclusive jurisdiction lies with the district court (‘Amtsgericht’), in whose area aparticular act of enforcement is to be /has been undertaken: § 764.(xi) Legal remedies during enforcement (‘Rechtsbehelfe in der Zwangsvollstreckung’):§§ 766–777, 793 ZPO, 11 RPflG. 174Where an objection (‘Einwendung’) is (to be) raised:– against the manner (‘Art und Weise’) of enforcement (ie, against an act ormeasure of enforcement (‘Vollstreckungsakt’ / ‘-maßnahme’) by the enforcementcourt or a bailiff (‘Gerichtsvollzieher’) or regarding the procedure to be observed148

Chapter XIII: Civil Procedureby the latter), the remedy is the so-called ‘Vollstreckungserinnerung’(enforcement reminder) to (the judge in) the enforcement court: § 766 ZPO.It is available so long as the relevant enforcement (measure) is still taking place.To be strictly distinguished is the (‘befristete’) ‘Erinnerung’ against a decision by a‘Rechtspfleger’ under § 11 RPflG, which (initially) goes back to the ‘Rechtspfleger’. 175A decision by the judge under § 766 can be (further) challenged by animmediate complaint (‘sofortige Beschwerde’): § 793;– against the enforcement title (‘Vollstreckungstitel’) (ie, against the (material)claim (‘Anspruch’) itself, as established by the court hearing the case(‘Prozeßgericht’)), the remedy is the so-called ‘Vollstreckungsgegen-’ or‘Vollstreckungsabwehrklage’ (enforcement counter- or resistance action) to thecourt hearing the case at first instance: § 767(i). It is only available, if thegrounds upon which the objection is based arose after the end of the last oralhearing and the debtor was (genuinely) not in a position to raise it during theproceedings: § 767(ii) and (iii);– against the grant of the enforcement clause (‘Erteilung der Vollstreckungsklausel’),the remedy (for the debtor) is an action along the lines of the‘Vollstreckungsgegenklage’ (§ 768) or an ‘Erinnerung’ (reminder; § 732).Similarly, the creditor can bring an action for grant of the enforcement clause (§731) or lodge a complaint (‘Beschwerde’) § 567). Both the ‘Prozeßgericht’ and the‘Vollstreckungsgericht’ can make temporary orders (‘einstweilige Anordnungen’)directing temporary suspension (‘einstweilige Einstellung’) of enforcement orcontinuation only against deposit of security (‘Fortsetzung gegen Sicherheitsleistung’):§§ 766(i), 2nd sentence, 732(ii), 769(i) and (ii).Temporary suspension can be ordered with or without security, although theformer is the rule: § 707(i), 2nd sentence.Temporary orders are of practical importance, because mere issue of a‘Vollstreckungsgegenklage’ does not stop enforcement taking place. However,where §§ 767 and 768 are concerned, the enforcement court only has jurisdictionin ‘urgent cases’.To be distinguished from temporary suspension is final suspension (or limitation)of enforcement, which must be ordered (§ 775), if, for example:– the judgment to be enforced has been quashed on appeal;– an application under § 766 or § 767 has been successful; or– the creditor has been satisfied after pronouncement of the judgment to beenforced.Suspension of enforcement does not affect measures already taken. These canonly be quashed by means of an order of annulment (‘Aufhebungsanordnung’): §§769(i) and 776.(xii) Costs of enforcement and help from other authorities: §§ 788–792.149

The German Legal System and Legal Language(c) Section 2 (§§ 803–882a ZPO)(i) What can be enforcedSection 2 details the procedure of enforcement of titles directed to the payment ofmoney claims (‘Geldforderungen’). To be strictly distinguished therefrom is enforcementof claims to the release of things (‘Herausgabe von Sachen’) or to the undertaking ofactions or omissions (‘Handlungen oder Unterlassungen’), dealt with in Section 3.(ii) ContentSection 2 contains four Titles:1: ‘Zwangsvollstreckung in das bewegliche Vermögen’ (enforcement in movable assets;§§ 803–863).2: ‘Zwangsvollstreckung in das unbewegliche Vermögen’ (enforcement in immovableassets; §§ 864–371).3: ‘Verteilungsverfahren’ (distribution procedure; §§ 872–882).4: ‘Zwangsvollstreckung gegen juristische Personen des öffentlichen Rechts’ (enforcementagainst public corporations; § 882a).(iii) Against what can be enforcedTitles 1 and 2 of Section 2 distinguish the manner of enforcement in movable andimmovable assets. The object of enforcement is dependent on the wording of the titleto be enforced (‘Vollstreckungstitel’), although enforcement usually extends to thedebtor’s total assets (‘das gesamte Vermögen’) 176Against which particular assets a creditor chooses to enforce is up to him. 177Enforcement against assets of the ‘Bund’, a ‘Land’ or other public corporations orinstitutions is, however, subject to restrictions: § 882a.(iv) ‘Das bewegliche Vermögen’: movable assetsTitle 1 (enforcement in movable assets) is divided into three Parts:I: General provisions: §§ 803–807.II: Enforcement in corporeal things (‘körperliche Sachen’): §§ 808–827.III: Enforcement in claims (‘Forderungen’) and other valuable rights (‘andereVermögensrechte’): §§ 828–863.The term ‘bewegliches Vermögen’ (movable assets), accordingly, includes claims andother valuable rights belonging to the debtor. He may, for example, have money claims(‘Geldforderungen’, eg, debts or income) or claims to release of a ‘Sache’(‘Herausgabeansprüche’), against which claims the creditor can enforce. 178(v) ‘Pfändung’ and ‘Verwertung’§ 803(i) states that enforcement in movable assets takes place by way of ‘Pfändung’(distraint). It is a form of compulsory seizure (‘Beschlagnahme’). 179The following points should be noted:150

Chapter XIII: Civil Procedure– the term ‘Pfändung’ is used with regard to ‘körperliche Sachen’, ‘Forderungen’ and‘andere Vermögensrechte’ (ie, throughout Title 1);– while the ‘Pfändung’ of ‘körperliche Sachen’ is undertaken by the ‘Gerichtsvollzieher’(court bailiff), it is the ‘Amtsgericht’ (district court) acting as enforcement court(‘Vollstreckungsgericht’), which deals with the ‘Pfändung’ of the debtor’s claimsand other valuable rights. 180The responsible officer in the court is the ‘Rechtspfleger’ (§ 20 No 17 RPflG).Applications for enforcement by court bailiff can be made in writing or orally.They are distributed to the appropriate ‘Gerichtsvollzieher’ by the‘Gerichtsvollzieherver-teilungsstelle’ (bailiffs’ distribution office) of the relevant‘Amtsgericht’.Possession of the ‘vollstreckbare Ausfertigung’ (enforcement duplicate) empowersthe bailiff to carry out acts of enforcement, to receive the relevant ‘Leistung’ fromthe debtor and to give a receipt (‘Quittung’): § 755 ZPO.A search of premises can be undertaken by the bailiff (§ 758 ZPO), but, in accordancewith the constitution (Article 13(ii) GG), a search order from a judge(‘Durchsuchungsanordnung’) is always required if access is refused, unless there is‘Gefahr in Verzug’, ie, delay would endanger the purpose of the search; 181– enforcement involves not merely ‘Pfändung’, but also, as a further stage, the‘Verwertung’ (realisation) of the movable asset. The manner of realisation isdistinguished according to whether ‘Sachen’ or ‘Forderungen’ are involved. 182With regard to ‘körperliche Sachen’, ‘Pfändung’ involves the court bailiff taking theminto possession: § 808(i) ZPO.Those ‘Sachen’ not being money, valuables or securities must be left in the custody(‘Gewahrsam’) of the debtor, insofar as satisfaction of the creditor is not endangered.The ‘Pfändung’ of such items is then only effective, if it is made visible, for example, bymeans of the application of seals (‘Siegel’): § 808(ii) ZPO.The effect of ‘Pfändung’ is that the creditor acquires a public law distraint lien(‘Pfändungspfandrecht’) over the relevant item: § 804(i) ZPO. A prior lien takesprecedence over a later one: § 804(iii) ZPO.In principle, ‘Pfändung’ takes place regardless of ownership. 183However, if a third party asserts that he has a (contrary) right preventing disposal(‘ein die Veräußerung hinderndes Recht’) (eg, that he is the rightful owner), he can lodgea so-called ‘Drittwiderspruchsklage’ (third party objection writ) at the court, in whosearea enforcement took place: § 771 (i) ZPO. The tenor of the judgment is thatenforcement in the relevant ‘Sache’ (not only a movable) or ‘Vermögenswert’ is declared‘unzulässig’ (ie, is disallowed).While the purpose of § 771 is the protection of a substantive right by means of a‘Klage’—as under §§ 767 and 768 ZPO (all referred to as ‘prozessuale Gestaltungsklagen’)-the ‘Vollstreckungserinnerung’ under § 766 ZPO involves a complaint against aninfringement of the manner or procedure (‘Art und Weise’/‘Verfahren’) of enforcement,ie, against an enforcement measure. The remedies can be pursued concurrently. 184151

The German Legal System and Legal LanguageThe court order for ‘Pfändung’ of a debtor’s money claims (‘Geldforderungen’) isreferred to as a ‘Pfändungsbeschluß’ (attachment order). The ‘Pfändungsbeschluß’ mustbe served on the third party debtor (‘Drittschuldner’) by the creditor: § 829(ii) ZPO.By § 840(i) ZPO, the ‘Drittschuldner’ can be required to inform the creditor withintwo weeks of service of the ‘Pfändungsbeschluß’:– whether and to what extent he acknowledges the claim as well-founded and isprepared to make payment;– whether there are other persons who assert rights to the claim and, if so, which; and– whether the claim has already been distrained against by other creditors and, ifso, in respect of which demands.If the ‘Drittschuldner’ fails to make the necessary declarations, he is liable to the creditorfor any loss.By § 845 ZPO, as soon as a creditor holds an enforceable judgment (‘vollstreckbarerSchuldtitel’), he can ask the court bailiff to serve a notification (‘Benachrichtigung’) of animminent ‘Pfändung’ on the third party debtor. This so-called ‘Pfändungsankündigung’/‘Vorpfändung (predestraint (warning)) has the effect of a seizure (‘Arrest’) under § 930ZPO, provided ‘Pfändung’ of the claim follows within one month of service.(vi) ‘Das unbewegliche Vermögen’: immovable assetsA creditor can choose between three means of enforcement in a piece of land (‘Grundstück’):– registration in the land register of a ‘Sicherungshypothek’ (security mortgage) 185 foran amount of more than DM 1.500;– ‘Zwangsversteigerung’ (compulsory sale by auction);– ‘Zwangsverwaltung’ (compulsory administration). 186‘Zwangsversteigerung’ and ‘Zwangsverwaltung’ are dealt with in the ‘Gesetz über dieZwangsversteigerung und Zwangsverwaltung (ZVG) of 24.3.1897. 187(vii) The ‘Verteilungsverfahren’This is a court procedure for the distribution amongst creditors of an amount of moneyinsufficient to satisfy all of them following enforcement in the debtor’s movable assets.(d) Section 3 (§§ 883–398 ZPO) 188Section 3 details the manner of enforcement necessary to compel a debtor, for example:– to release movables or give possession of immovables (‘Herausgabe’): §§ 883–886ZPO; or– to undertake acts or omissions (‘Handlungen oder Unterlassungen’) or to tolerate aparticular action (‘Duldung’): §§ 887–890 ZPO.Acts are classified according to whether they can be undertaken by a third party(‘vertretbare Handlungen’; § 887 ZPO) or not (‘unvertretbare Handlungen’) § 888 ZPO). 189If a debtor fails to undertake a ‘vertretbare Handlung’, he can be made to bear the costof substituted action (‘Ersatzvornahme’). An ‘unvertretbare Handlung’ solely dependent152

Chapter XIII: Civil Procedureon the will of the debtor can, on application, be enforced by a compulsory fine(‘Zwangsgeld’) of up to DM 50.000 or by imprisonment (‘Zwangshaft’) of up to six months.Actions for restraining orders (‘Unterlassungsklagen’) and for orders to tolerateparticular action (‘Duldungsklagen’) can, on application, be enforced by a compulsoryfine (‘Ordnungsgeld’) of up to DM 500.000 for each infringement or by imprisonment(‘Ordnungshaft’) of up to six months and not more than two years in total: § 890 ZPO. 190The debtor must be heard before the court reaches a decision under §§ 887–890.§ 889 ZPO relates to the making of an assurance in lieu of oath (‘eidesstattlicheVersicherung’) pursuant to an obligation under civil law (eg, §§ 259, 260 BGB).Jurisdiction lies with the ‘Amtsgericht’ (District Court)—acting as enforcement court—for the debtor’s domicile (‘Wohnsitz’) or place of residence (‘Aufenthaltsort’) in Germany,failing which for the area of the (procedural) court of first instance. If the debtor doesnot appear or refuses to give the assurance, the same sanction is available as forenforcement of an ‘unvertretbare Handlung’.The ‘eidesstattliche Versicherung’ under civil law is to be strictly distinguished fromits procedural use in the ZPO to substantiate an assertion of fact (‘Glaubhaftmachung’;§ 294 ZPO), to support an application (eg, for an injunction §§ 936, 920(ii) ZPO) or asa means of facilitating enforcement (§§ 807, 883 ZPO). 191(e) Section 4 (§§ 899–915 ZPO) 192§§ 899–915 ZPO detail the procedure where an application is made by a creditor under§ 807 or § 883 ZPO for disclosure of assets (‘Vermögensoffenbarung’) by a debtor.By § 807 ZPO in conjunction with § 900 ZPO, if, where a claim for payment ofmoney (‘Geldforderung’) is involved, a creditor cannot obtain complete satisfaction(‘vollständige Befriedigung’) by means of ‘Pfändung’—either because enforcement isfruitless (‘fruchtlos’) or hopeless (‘aussichtslos’)—the creditor can apply for the debtorto submit a list of assets (‘Vermögensverzeichnis’) and to provide an assurance of meansin lieu of oath (‘eidesstattliche Offenbarungsversicherung’). 193A creditor can make a similar application under § 883 ZPO, if (a) particularmovable(s) to be released is/are not found by the bailiff. The debtor must confirmthat he does not know the whereabouts of the movable(s).By § 899 ZPO, the application must be made to the ‘Amtsgericht’ (District Court), actingas enforcement court, for the domicile (‘Wohnsitz’; § 13 ZPO) of the debtor or, failing that,of his place of residence (‘Aufenthaltsort’) or last ‘Wohnsitz’ in Germany (§ 16 ZPO).Normally, the bailiff sets a date for the giving of the assurance of means (‘Termin zurAbgabe der eidesstattlichen Versicherung’). The debtor is summoned to attend the hearingby a ‘Ladung’ (summons) and the creditor must be informed.Instead, the bailiff can require the assurance to be given immediately (‘sofort’) assoon as the preconditions of § 807 ZPO are fulfilled, unless there are objections fromthe creditor or the debtor, in which case a hearing must take place: § 900(ii) ZPO.The bailiff can postpone the date for the giving of the assurance, if the debtor crediblyasserts that he will satisfy the creditor within six months. A final extension of up totwo months is possible, if the debtor proves that he has satisfied at least three-quartersof the claim: § 900(iii) ZPO.153

The German Legal System and Legal LanguageThe court can also dismiss an application for the giving of an assurance, if, at thehearing before the bailiff, the debtor makes a well founded objection (‘begründeterWiderspruch’) against his liability to provide it: § 900(iv) ZPO.If the debtor does not appear or without reason refuses to give the assurance, arrest(‘Haft’) and up to 6 months imprisonment can be ordered: §§ 901, 913 ZPO.The enforcement court maintains a (black) list of debtors, who have given theassurance or against whom arrest has been ordered (‘Schuldnerverzeichnis’). The list isopen to public inspection. Once the creditor has been satisfied, or 3 years have passedsince the end of the year of registration (‘Eintragung’), the debtor can apply for hisname to be erased (‘Löschung’; §§ 915, 915a ZPO).Within the first three years after the assurance is given, no further assurance can bedemanded, unless the debtor has meantime acquired assets or has lost his employment:§ 903 ZPO.(f) Section 5 (§§ 916–945 ZPO) 194(i) The purpose of an ‘Arrest’ (seizure) is limited to securing the enforcement of amoney claim (‘Geldforderung’) or of an ‘Anspruch’ that can lead to a money claim:§ 916(i) ZPO.Other (individual) claims or the keeping of the peace (‘Rechtsfrieden’) can be thesubject of an injunction (‘einstweilige Verfügung’; §§ 935, 940 ZPO), which is a similarform of securing measure (‘Sicherungsmittel’).Thus, § 936 ZPO declares the provisions in the ZPO regarding a seizure order andthe relevant procedure correspondingly applicable to that for an injunction, exceptas modified in subsequent paragraphs.(ii) The normal target of an ‘Arrest’ is a movable or immovable asset. Such an ‘Arrest’is referred to as a ‘dinglicher Arrest’ (real seizure; § 917 ZPO), in contrast to a personal‘Arrest’ (§ 918 ZPO), which is a very exceptional remedy.A ‘dinglicher Arrest’ is possible, if there are reasonable grounds for concern that,unless it is ordered, enforcement of the relevant judgment would be thwarted orrendered significantly more difficult: § 917(i) ZPO.An ‘Arrest’ in movable assets is effected by way of distraint (‘Pfändung’) and thesame principles apply: § 930(i) ZPO.(iii) An application for a seizure order (‘Arrestbefehl’) can be made to the court havingjurisdiction in the main matter in dispute (‘Gericht der Hauptsache’) or to the‘Amtsgericht’ for the district, in which the intended object of the ‘Arrest’ is located:§ 919 ZPO. Both courts are referred to as the ‘Arrestgericht’.The applicant must give details of the claim to be secured by the order (the‘Arrestanspruch’) and substantiate the facts forming the basis for the order (the‘Arrestgrund’): § 920(ii) ZPO. The court can reach a decision without an oral hearingand can require security to be lodged before an order is made, whether or not theapplicant has shown a credible case: § 921 ZPO.154

Chapter XIII: Civil ProcedureIf no main matter is (yet) pending, the ‘Amtsgericht’, which grants a seizure orderto a party can, on application, order the party to lodge a proper writ (‘Klage’)within a specified period, failing which the ‘Arrest’ can be quashed: § 926 ZPO.(iv) Implementation of a seizure order must take place within one month after it ispronounced (in the form of an ‘Urteil’) or (if it is issued in the form of a ‘Beschluss’)within one month of its service on the applicant: § 929(ii) ZPO.9 Book IX (§§ 946–1024 ZPO): The ‘Aufgebotsverfahren’ 195Book IX of the ZPO (‘Aufgebotsverfahren’; §§ 946–1024) sets out the procedure for theissue of court notices requesting the notification of claims or rights where their exclusionis sought, eg, in the case of estate creditors (§§ 989ff).10 Book X (§§ 1025–1048 ZPO): Arbitration 196Book X of the ZPO (‘Schiedsrichterliches Verfahren’; §§ 1025–1048) deals with theprocedure for arbitration pursuant to an arbitration agreement (‘Schiedsvertrag’).155

CHAPTER XIVXIV ADMINISTRATIVE LAWA INTRODUCTIONThe administration of federal laws is largely in the hands of the ‘Länder’ andadministration by the ‘Bund’ (‘bundeseigene Verwaltung’) is the exception (Articles 83and 86 GG). Federal ministeries normally have no ‘Verwaltungsunterbau’ (administrativesub-construction). 1Thus, by Article 87ff GG, the federal ministeries only have authorities (‘Behörden’)beneath them in certain limited areas (eg, the ‘Auswärtiger Dienst’ (service of the ForeignOffice (‘Auswärtiges Amt’)), the authorities responsible for federal finances and taxes(‘Bundesfinanzverwaltung’; Article 108 GG), national rivers (‘Bundeswasserstraßen’; Article89 GG), the ‘Bundesgrenzschutz’ (Federal Border Guard), the ‘Bundeskriminalamt’ (FederalOffice of Criminal Investigation), the federal military administration(‘Bundeswehrverwaltung’; Article 87b GG) and the air traffic authorities(‘Luftverkehrsverwaltung’, Article 87d GG).Before their conversion into public limited companies, the ‘Bundespost’ (FederalPost Office) and the ‘Bundesbahn (Federal Railway) were both administered by the‘Bund’. Now, however, only the latter remains under direct federal administrationand services must be provided in private law form: Article 87e GG.Administrative law in Germany is complicated by the existence of a hierarchy ofnumerous legal sources (‘Rechtsquellen’) for the activities of the executive (‘Verwaltung’)on federal, state and local level, not to speak of European Community and publicinternational law (‘Recht der Europäischen Gemeinschaft und Völkerrecht’): 21 ‘Das Grundgesetz’ (Basic Law)/ ‘Verfassung des Landes’ (state constitution);2 (‘Einfache’) ‘Gesetze’ ((simple) statutes);3 ‘Rechtsverordnungen’ (statutory instruments);4 ‘Satzungen’ (bye-laws) of the ‘öffentlich-rechtlichen Körperschaften’ (publiccorporations);5 ‘Gewohnheitsrecht’ (customary law);6 ‘Allgemeine Grundsätze des Verwaltungsrechts’ (general principles of administrativelaw);7 ‘Verwaltungsvorschriften’ ((internal) administrative regulations).Federal law always prevails over state law (Article 31 GG). 31 IntroductionB THE ‘VERWALTUNGSVERFAHRENSGESETZ’ 4The two main statutes at federal level regarding general administrative law are the‘Verwaltungsverfahrensgesetz’ (VwVfG: Administrative Procedure Law) and the‘Verwaltungsgerichtsordnung’ (VwGO: Administrative Courts Order).157

The German Legal System and Legal LanguageBefore the VwVfG came into force on 1.1.1977, the general principles ofadministrative law were largely unwritten. The VwVfG basically applies to theadministrative activity (‘Verwaltungstätigkeit’) of federal authorities (‘Bundesbehörden’;§ l(i)). Where federal law is carried out (‘ausgeführt’) by state and local authorities (asis the usual case), the federal VwVfG is displaced by the VwVfGesetze of the ‘Länder’,which are practically mirror images of the VwVfG (§ l(iii) VwVfG).The VwVfG does not apply where the activity of the executive is in the form ofprivate law (‘Verwaltungsprivatrecht’) nor, for example, to the activities of the taxauthorities (‘Finanzbehörden’, where the ‘Abgabenordnung’ (AO) 1977 applies), to thearea of criminal prosecutions and minor offences (where the StPO and the OWiGapply) nor to the foreign activities of the ‘Bund’ (§ 2). 52 ContentThe VwVfG is divided into eight Parts of which the first six are as follows:Teil I: ‘Anwendungsbereich, örtliche Zuständigkeit, Amtshilfe’ (application, localjurisdiction, official assistance; §§ 1–8).Teil II: ‘Allgemeine Vorschriften über das Verwaltungsverfahren’ (general provisionsregarding administrative proceedings; §§ 9–34).Teil III: ‘Verwaltungsakt’ (administrative act; §§ 35–53).Teil IV: ‘Öffentlich-rechtlicher Vertrag’ (public contract; §§ 54–62).Teil V: ‘Besondere Verfahrensarten’ (special types of administrative proceedings;§§63–78).Teil VI: ‘Rechtsbehelfsverfahren’ (remedy proceedings; §§ 79–80). 63 The ‘Verwaltungsverfahren’ 7The VwVfG applies to ‘Verwaltungsverfahren’ (administrative proceedings), which isdefined by § 9 as the activity (‘Tätigkeit’) of a ‘Behörde’ (authority), which– has external effect (‘Wirkung nach aussen’); and– is directed either (a) to the examination of the conditions for, the preparation andissue of a ‘Verwaltungsakt’ (VA: administrative act; the large majority of cases) or(b) to the conclusion of an ‘öffentlich-rechtlicher Vertrag’ (public contract).A ‘Behörde’ is defined for the purpose of the VwVfG as every ‘Stelle’ (point), whichundertakes functions of public administration (§ l(iv)).A ‘Verwaltungsverfahren’ can be and is, as a rule, conducted informally (‘formlos’; § 10). 8Formal proceedings can, however, be required by statute, in which case certainsupplementary provisions apply (§§ 63–71).The parties to (and conduct of) a ‘Verwaltungsverfahren’ are dealt with in §§ 11–30VwVfG.158

Chapter XIV: Administrative LawThe relevant ‘Behörde’ has discretion whether and when to conduct the‘Verwaltungsverfahren’ and investigates the facts itself (§§ 22, 1st sentence and 24(i)).The parties are referred to as ‘Beteiligte’ (persons involved) and have rights to:– information (Auskunft’) as to their rights and duties (§ 25);– a hearing (‘Anhörung’; § 28); 9– inspection of the file(s) (‘Akteneinsicht’; § 29); 10– secrecy (‘Geheimhaltung’; § 30).C THE ‘VERWALTUNGSAKT’ (VA) 111 DefinitionThe important concept of the ‘Verwaltungsakt’ is defined in § 35, 1st sentence VwVfGand consists of the following elements: 12(a) ‘jede Verfügung, Entscheidung oder andere hoheitliche Maßnahme’ (every direction,decision or other official measure);(b) ‘von einer Behörde’ (by an authority);(c) ‘zur Einzelfallregelung auf dem Gebiet des öffentlichen Rechts’ (to regulate an individualcase in the area of public law); 13(d) ‘mit unmittelbarer Rechtswirkung nach aussen’ (with direct external legal effect).Where a VA is addressed to a particular or distinguishable group of persons(‘Personenkreis’) or relates to the public quality of a ‘Sache’ or its use by the generalpublic, it is known as an ‘Allgemeinverfügung’ (general direction; § 35, 2nd sentence).An example of an ‘Allgemeinverfügung’ is the so-called ‘dinglicher Verwaltungsakt’,which is directed to the adoption/dedication (‘Widmung’) of property (eg, a road) asan ‘öffentliche Sache’ (public thing), ie, for a public purpose (‘Zweck’). 14A ‘Justizverwaltungsakt’ is a VA emanating from a judicial authority (‘Justizbehörde’)in the field of judicial administration (‘Justizverwaltung’). 152 ContentThe content of a VA must be sufficiently specific (‘hinreichend bestimmt’). It can beissued orally, in writing or in other form, but, if in writing, reasons (‘Gründe’) must begiven. 16A VA can be supplemented or limited by a so-called ‘Nebenbestimmung’ (collateralprovision), eg, a ‘Bedingung’ (condition) or ‘Auflage’ (requirement). 17A VA can also:– be provisional (‘vorläufig’);– be promised. The promise (‘Zusage’/‘Zusicherung’) must be in writing; 18– cover preliminary matters only (eg, building approvals). It is then referred to as a‘Vorbescheid’).159

The German Legal System and Legal Language3 Validity and LegalityA VA becomes ‘wirksam’ (effective/valid) on its ‘Bekanntgabe’ (notification) to the personto whom it is directed or who is affected by it and remains valid for so long and in sofar as it is not withdrawn, revoked, otherwise (i.e. judicially) quashed or settled bylapse of time or otherwise. 19Exceptionally, however, a VA can be ‘nichtig’ (void ab initio), in which case it is‘unwirksam’. 20A VA is presumed valid, but the executive is bound by Article 20(iii) GG to act inaccordance with law (the principle of the ‘Rechtmäßigkeit der Verwaltung’ (Vorbehalt desGesetzes’)). 21A VA, which is not ‘rechtmäßig’ (legal), is, therefore, ‘rechtswidrig’ (illegal) or ‘fehlerhaft’(faulty). Once it has been challenged (‘angefochten’), it can be rescinded (‘aufgehoben’)by the (administrative) court; until then, the VA is known as being ‘anfechtbar’(challengable) or ‘aufhebbar’ (voidable). 22With certain exceptions, a ‘Widerspruch’ (formal objection) and ‘Anfechtungsklage’(writ of challenge) against a VA have suspensive effect (‘aufschiebende Wirkung’): §80(i) VwGO. 23Accordingly, whether or not a VA is ‘wirksam’ (valid) is a strictly separate questionfrom that of its ‘Rechtmäßigkeit’ (legality). 24The criteria for establishing the legality of a VA are:– formal: was the issuing ‘Behörde’ ‘zuständig’ (competent)? Did it conduct the correctprocedure (‘Verfahren’)? Was the VA issued in the correct form?;– material: did the ‘Behörde’ observe the general principles of administrative lawand, in accordance with the principle of the ‘Rechtmäßigkeit der Verwaltung, act onthe basis of and properly apply a valid norm? 254 ‘Bestandskraft’, ‘Rücknahme’ and ‘Widerruf’A VA becomes ‘bestandskräftig’ (finally binding) when it can no longer be challenged.The parallel of the concept of ‘Bestandskraft’ is, in civil procedure, the concept of the‘Rechtskraft’ (legal force) of a judgment (‘Urteil’). 26However, unlike the position after judgment in a civil case, the ‘Rücknahme’(withdrawal) and ‘Widerruf’ (revocation) of a VA or the ‘Wiederaufgreifen des Verfahrens’(reconsideration of the proceedings) by the ‘Behörde’ are possible in certaincircumstances. 275 Types 28Administrative acts (VAs) are distinguished according to whether they:– are ‘befehlend’ (require or forbid particular action, eg, a police order (‘polizeilicheVerfügung’), a notice for the payment of fees (‘Gebührenbescheid’) or taxes(‘Steuerbescheid’));160

Chapter XIV: Administrative Law– are ‘rechtsgestaltend’ (create or amend a particular legal relationship, eg,naturalisation (‘Einbürgerung’), appointment to an office (‘Ernennung’));– are ‘feststellend’ (effect a declaration as to particular circumstances, eg, as to status(eg, citizenship (‘Staatsangehörigkeit’)) or rights);– are ‘begünstigend’ (favourable/advantageous, eg, grant of a permission (‘Erlaubnis’)or (trading) licence (‘Konzession’));– are ‘belastend’ (burdensome/disadvantageous, eg, refusal or revocation/withdrawal of a permission or licence);– are ‘Verwaltungsakte mit Drittwirkung’ (have effect on third parties, eg, buildingconsent (‘Baugenehmigung’)).6 Grant of an ‘Erlaubnis’ or ‘Genehmigung’A particular example of a ‘rechtsgestaltende’ and ‘begünstigende’ VA is the (grant(‘Erteilung’) of an) ‘Erlaubnis’ (permission), 29 the usual basis for which is a ‘Verbot mitErlaubnisvorbehalt’ ((preventive) prohibition with the right to grant an ‘Erlaubnis’reserved).The question here is not whether there is an ‘Ermächtigungsgrundlage’ for the actionof the executive, but whether there is an ‘Anspruchsgrundlage’ (legal basis) for thecitizen’s claim, ie, is there an ‘Anspruch auf Erlaß des begünstigenden Verwaltungsakts’? 30The ‘Erlaubnis’ is to be distinguished from the so-called ‘Ausnahmebewilligung’,‘Dispens’ or ‘Befreiung’, which grants the applicant an exception from the normal(repressive) prohibition of particular conduct.The grant of an ‘Erlaubnis’ can either be ‘gebunden’ (compulsory: where terms suchas ‘muß’ or ‘ist zu (erteilen)’ are used) or ‘frei’ (free, ie, the authority has ‘Ermessen’(discretion): where terms such as ‘kann’ or ‘darf’ are used).Decisions of a ‘Behörde’ on the basis of ‘Ermessen’ (‘Ermessensentscheidungen’) can beexamined by the administrative court:– if the exercise of the ‘Ermessen’ exceeds the ‘gesetzlichen Grenzen’ (statutory limits;‘Ermessensüberschreitung’);– if the ‘Ermessen’ is not (fully) exercised (‘Ermessensnichtgebrauch’ /‘Ermessensunterschreitung’); or– if its exercise is abused (‘Ermessensmißbrauch’), ie, the authority does not act inconformity with the purpose of the norm (‘Normzweck’). 31‘Ermessen’ must be exercised ‘pflichtgemäß’ (in accordance with (legal) obligation) and‘fehlerfrei’ (free of faults). 32It is important to contrast ‘Ermessen’, which is part of the consequence (‘Rechtsfolge’)of a norm and can only be controlled by the administrative court in certaincircumstances, 33 with the concept of the ‘unbestimmter Rechtsbegriff’ (indefinite legalterm), which is part of the norm itself, part of its ‘Tatbestand’. The interpretation by a‘Behörde’ of an ‘unbestimmter Rechtsbegriff’ can always be fully re-examined by the court,except where the ‘Behörde’ has so-called ‘Beurteilungsspielraum’ (room for judgment). 34161

The German Legal System and Legal LanguageA ‘Bekörde’ can sometimes be compelled (‘verpflichtet’) to take action in the event ofa reduction of its ‘Ermessen’ to zero (‘Ermessensreduzierung auf Null’) where there is aparticularly intensive threat to individual interests. 35Similarly, there is no room for free decision (‘Entscheidungsspielraum’), if the relevantprovision is an empowering norm (‘Befugnisnorm’) rather than one granting discretion(‘Ermessensvorschrift’). One should not always assume that an authority has discretion,even if the provision in question is one in which the word ‘can’ is used(‘Kannbestimmung’). 36162

CHAPTER XVADMINISTRATIVE PROCEDUREA AVAILABLE REMEDIES. THE‘VERWALTUNGSGERICHTSORDNUNG’ (VWGO)The addressee of a ‘Verwaltungsakt’ can defend himself by informal ‘Rechtsbehelfen’(namely by a ‘Gegenvorstellung’ (counter-response), by an ‘Aufsichtsbeschwerde’(complaint to the next higher ‘Behörde’) or even by a parliamentary petition 1 or byformal ‘Rechtsmitteln’ (namely by ‘Widerspruch’ (objection)) and, usually thereafter, byproceedings before the ‘Verwaltungsgericht’ (VG: administrative court)). 2Administrative court procedure is governed by the (federal)‘Verwaltungsgerichtsordnung’ (VwGO: Administrative Court Order) of 21.1.1960. Thereare three instances: the VG, the ‘Oberverwaltungsgericht’ (OVG; administrative court ofappeal) 3 and, on the federal level, the ‘Bundesverwaltungsgericht’ (BVerwG; FederalAdministrative Court) in Berlin. Legal representation by a ‘Rechtsanwalt’ is onlycompulsory before the BVerwG. 4The OVG is not only ‘zuständig’ (competent) on an appeal (‘Berufung’) from the VG,but also for the so-called ‘Normkontrollverfahren’ (norm control procedure), 5 in which,on application, the OVG can examine the validity of norms below a ‘Landesgesetz’(state statute), eg, local building plans (‘Bebauungspläne’), which are passed by the‘Gemeinden’ in the form of ‘Satzungen’ (bye-laws). 6B TYPES OF WRITThe main types of ‘Klage’ (writ) issued at the VG are:– the ‘Gestaltungsklagen’ (actions to (re)organise a legal relationship, eg, the‘Anfechtungsklage’ (directed to the ‘Aufhebung’ (annulment or quashing) of a VA));– the ‘Leistungsklagen’ (actions claiming a ‘Leistung’ (performance), eg, the‘Verpflichtungsklage’ (directed to the ‘Erlaß’ (issue) of a VA)); and– the ‘Feststellungsklagen’ (actions to establish / declare a particular right or legalrelationship; a special example is the so-called ‘Fortsetzungsfeststellungsklage’ (anaction to establish/declare that, after the event, a particular VA was illegal). 7C PRELIMINARY REQUIREMENTSBefore an ‘Anfechtungsklage’ or ‘Verpflichtungsklage’ can be lodged, it is usuallynecessary for a ‘Widerspruchsverfahren’ /‘Vorverfahren’ (objection proceedings/preliminary proceedings) to have been conducted (on initiation by the complainant)and for a so-called ‘Widerspruchsbescheid’ (objection notice, normally from the nexthigher ‘Behörde’) to have been issued. 8163

The German Legal System and Legal LanguageThe ‘Widerspruchsverfahren’ is no judicial proceeding, but part of the‘Verwaltungsverfahren’, ie, dealt with internally by the ‘Widerspruchsbehörde’, whichexamines not only the ‘Rechtmäßigkeit’ (legality) of the VA (as does the VG), but also its‘Zweckmäßigkeit’ (expediency). 9The general clause § 40(i) VwGO grants access to the administrative court(‘Verwaltungsrechtsweg’) in all public law disputes of a non-constitutional nature, solong as jurisdiction is not expressly granted to another court by federal (or state) law. 10The conduct of the ‘Widerspruchsverfahren’ and the availability of the‘Verwaltungsrechtsweg’ under § 40(i) are only two of the preliminary requirements(conditions) for the admissibility (‘Zulässigkeit’) of a ‘Klage’ to the VG. 11The ‘Kläger’ (plaintiff) must also:– claim (at least the possibility) that he is injured in his (subjective) rights (‘in seinenRechten verletzt’) by the VA, its refusal or the failure to grant it, ie, he must have socalled‘Klagebefugnis’ (authority to sue; ‘locus standi’); a popular action(‘Popularklage’) is thereby excluded; 12– choose the correct type of ‘Klage’ (‘Klageart’);– lodge his ‘Klage’ in the correct form and within the appropriate time limit (‘Frist’;usually one month from service of the ‘Widerspruchsbescheid’). 13The question of the ‘Zulässigkeit’ of a ‘Klage’ must be strictly separated from the questionwhether it is well founded (its ‘Begründetheit’). An ‘Anfechtungsklage’ or‘Verpflichtungsklage’ is only ‘begründet’ (well founded), if the VA (or, in the case of a‘Verpflichtungsklage’, its refusal or the failure to grant it) is illegal (‘rechtswidrig’) andthe plaintiff is thereby injured in his rights (‘in seinen Rechten verletz’). 14The protection of the administrative court is not only available against VAs, butalso against pure administrative action (‘schlichtes Verwaltungshandeln’) in the form ofso-called ‘Realakte’ (real acts). Stoppage (‘Unterlassung’) or disposal (‘(Folgen-)Beseitigung’) can be claimed. 15D THE HEARING IN THE ADMINISTRATIVE COURT 16As in criminal procedure, the ‘Untersuchungsgrundsatz’ (inquisition maxim) appliesbefore theVG. 17The court is responsible for the investigation of the facts of the matter (‘Ermittlungdes Sachverhalts’) itself.Thus, the court can require such evidence (‘Beweismittel’) to be introduced into theproceedings as it considers necessary and is not bound / restricted by the parties’submissions (‘Vorbringen’) or by the form of their applications (‘Fassung der Anträge’).However, the ‘Verfügungsgrundsatz’ still applies in administrative proceedings (ie,the subject matter of the hearing remains at the disposal of the (private) parties) andthe court cannot go beyond (or alter) what is sought by the application or ‘Klage’ (the‘Klagebegehren’ or ‘Klageziel’). 18164

Chapter XV: Administrative ProcedureThe other maxims of civil procedure also apply, eg, the right to be heard, the publicityof the hearing and the concentration principle.As in civil procedure (§ 299 ZPO), the parties are entitled to inspect the court’s file(‘Gerichtsakte’) and can take copies: § 100 VwGO.The ‘Untersuchungsgrundsatz’ is supplemented by the principle of the free assessmentof evidence (‘Grundsatz der freien Beweiswürdigung’). In particular, the court must reachits own (free) conviction from the total result of the proceedings (‘Gesamtergebnis desVerfahrens’): § 108(i) VwGO. Moreover, the court can only base its decision on suchfacts and evidence upon which the parties were given an opportunity to comment: §108(ii) VwGO.In contrast to civil procedure, the parties to administrative proceedings have nosubjective burden of proof. However, this is subject to an important exceptiondeveloped by the courts along the lines of civil procedure to deal with the situationwhere there is a ‘non liquet’, ie, a fact remains in doubt/cannot be proven. In such acase, the objective burden of proof has to be ascertained according to the substantivelaw. The so-called favourable norm principle (‘Normbegünstigungsprinzip’) is applied,ie, the party seeking to derive a (favourable) legal position or right from particularfacts (‘rechtsbegründende Tatsachen’) must prove them. In other words, if an uncertaintycannot be resolved in a party’s favour, that party bears the consequences, unless statuteotherwise provides. In the absence of an express provision regarding the burden ofproof, the court takes into account the purpose and wording of the relevant norm and,in particular, policy considerations (including constitutional aspects). 19The administrative court can decide by way of:– an ‘Urteil’ (judgment; § 107 VwGO; the normal situation); or– a ‘Beschluß’ (decision; § 122 VwGO).An oral hearing is usually required for an ‘Urteil’, but not for a ‘Beschluß’: §101(iii) VwGO.Another form of decision is the ‘Gerichtsbescheid’ (court notice), which is (only)available in first instance proceedings, if the court is of the opinion that the matterdoes not reveal any particular difficulties of a factual or legal nature and the facts areclear: § 84(i) VwGO.A ‘Gerichtsbescheid’ has the same effect as an ‘Urteil’. It does not require an oralhearing, but there must be a prior ‘Anhörung’ (hearing) of the parties.However, if an application for an (ordinary) oral hearing is made ‘rechtzeitig’ (intime; ie, within one month after service), the ‘Gerichtsbescheid’ is deemed not to havebeen issued: § 84(iii) VwGO.165

CHAPTER XVIXVI CRIMINAL LAWA INTRODUCTIONGerman criminal law is governed by the ‘Strafgesetzbuch’ (StGB: Criminal Code) of15.5.1871, variously reformed, amended and reissued. Criminal offences are alsocontained in numerous collateral statutes (‘Nebengesetze’). 1The StGB is divided into two ‘Teile’ (parts): 21 The ‘Allgemeiner Teil’ (AT: General Part; §§ 1-79b), in turn divided into five‘Abschnitte’ (Sections). The AT contains general provisions and principles for alloffences (‘Straftaten’ or ‘Delikte’).2 The ‘Besonderer Teil’ (BT: Special Part; §§ 80–358), in turn divided into 29 ‘Abschnitte’.The BT contains a catalogue of individual ‘Straftaten’ and their permissiblepunishment.The StGB is based on the principle (‘Grundsatz’) that an act (‘Tat’ or ‘Handlung’) canonly be punished, if its punishability (‘Strafbarkeit’) is fixed by statute (‘gesetzlichbestimmt’) before the act is committed, ie, there can be no crime (or punishment) without(written) law: ‘nullum crimen (nulla poena) sine lege (scripta)’. 3This principle of legality (‘Gesetzlichkeitsprinzip’) is laid down in § 1 StGB, whichrepeats Article 103(ii) GG, and means that:1 the conditions for (‘Voraussetzungen’) and consequences (‘Rechtsfolgen’) of offencesmust be defined (‘bestimmt’) by the legislature as exactly as possible(‘Bestimmtheitsgrundsatz’);2 the retrospective application of offences to acts committed before the offence existedis forbidden (‘Rückwirkungsverbot’); 4 and3 an act cannot be punished by analogy to a particular offence (‘Analogieverbot’). 5The strict binding of the legislature and judiciary to statute (‘Bindung an das Gesetz’)reduces the risk of legal uncertainty (‘Rechtsunsicherheit’), in the interest of the protectionof the individual against arbitrary state rule (‘Staatswillkür’). 6B TYPES OF OFFENCE 7The offences (‘Straftaten’) of the StGB are divided into two categories (§ 12):1 ‘Verbrechen’ (felonies), being those offences attracting a minimum punishment ofone year’s imprisonment (‘Freiheitsstrafe’);2 ‘Vergehen’ (misdemeanours), being those offences attracting a minimumpunishment of a lesser period of imprisonment or a fine (‘Geldstrafe’).167

The German Legal System and Legal LanguageThe main importance of the distinction is that an attempted ‘Verbrechen’ is alwayspunishable, whereas an attempted ‘Vergehen’ only if expressly provided for. 8Lesser offences have been removed from the StGB and decriminalised(‘entkriminalisiert’). They are termed ‘Ordnungswidrigkeiten’ (minor offences) and arepunishable (merely) by a so-called ‘Geldbuße’ (fine). 9The basis for an understanding of the BT is the concept of ‘Rechtsgüterschutz’(protection of ‘Rechtsgüter’, ie, assets of social (literally, legal) importance). It is a centralprinciple that the function of criminal law is to protect ‘Rechtsgüter’ against injury(‘Verletzung’) or threat (‘Gefährdung’).The BT contains three main groups of offences categorised according to the relevant‘Rechtsgut’ protected: 101 offences against the state 11 and community values (‘Gemeinschaftswerte’); 122 offences against the person; 133 offences against property (‘Eigentum’ and ‘Vermögen’). 14C ELEMENTS OF AN OFFENCE 15The construction of norms in German criminal law follows the usual pattern of:– ‘Tatbestand’ (content); and– ‘Rechtsfolge’ (legal consequence). 16However, an act, which can be subsumed (‘subsumiert’) under a ‘(Straf-)Tatbestand’ isnot of itself punishable. Independently of fulfilling the ‘Tatbestand’, the act must alsobe ‘rechtswidrig’ (illegal) and ‘schuldhaft’ (blameworthy). These three elements of‘Tatbestandsmäßigkeit’ (‘Tatbestandserfüllung’), ‘Rechtswidrigkeit’ and ‘Schuld’ form thecrux of German criminal legal theory. The existence of a ‘Straftat’ depends on thefulfillment of each of these elements. 17In English criminal law, the equivalent categories are, broadly, ‘actus reus’, illegalityand ‘mens rea’ (viz defences).1 ‘Tatbestandsmäßigkeit’ of the ‘Handlung’(a) When an act is ‘tatbestandsmäßig’To be ‘tatbestandsmäßig’, an act must:– be a ‘Handlung’ (ie, ‘vom Willen getragenes menschliches Verhalten’: human conductcarried by (free) will); 18– fall within the catalogue of criminal offences in the BT or in a ‘Nebengesetz’ (collaterallaw);– fulfill all the ‘Merkmale’ (elements) of the ‘Tatbestand’. 19A ‘Handlung’ can be punishable either according to the activity (‘Tätigkeit’), which isdescribed as forbidden—a so-called ‘schlichtes Tätigkeitsdelikt’—or according to the result(‘Erfolg’) caused (‘verursacht’) by it—a so-called ‘Erfolgsdelikt’. 20168

Chapter XVI: Criminal LawIn the latter case, there has to be a causal link between the ‘Handlung’ and the ‘Erfolg’.By the dominant theory of causation (‘Kausalität’)—the so-called ‘Äquivalenztheorie’(equivalence theory) 21 —every condition without which the ‘Erfolg’ would fall away 22is regarded as (equivalent/) causal for the ‘Erfolg’.(b) Crimes by omissionA ‘Tatbestand’ can be fulfilled not only by a ‘Handlung’ (giving rise to a so-called‘Begehungsdelikt’ (crime by active conduct/crime of commission)), but also by an‘Unterlassung’ (omission), which is regarded as the equivalent of a ‘Handlung’.It is important to note here that a German criminal norm may be one of two types:either a norm, which requires certain action to be carried out (a so-called ‘Gebotsnorm’)—a failure to act/omission being punishable as such—or, more usually, a norm, whichforbids certain action or injury to a particular ‘Rechtsgut’ (a so-called ‘Verbotsnorm’).The breach of a ‘Gebotsnorm’ by omission is called an ‘echtes Unterlassungsdelikt’(genuine crime by omission), while the breach of a ‘Verbotsnorm’ by omission is referredto as an ‘unechtes Unterlassungsdelikt’ (artificial/qualified crime by omission).An ‘unechtes Unterlassungsdelikt’ is only punishable, if:– the ‘Erfolg’ in a ‘Tatbestand’ has arisen;– the ‘Täter’ (perpetrator) omitted to prevent the ‘Erfolg’, although it was possiblefor him to do so;– the ‘Täter’ had a special legal duty to act, a so-called ‘Garantenpflicht’. 23A ‘Garantenpflicht’ can arise in various (unwritten) circumstances, for example:– ‘aus Rechtssatz’ (when it is provided for by law);– ‘aus Rechtsgeschäft’ (when a ‘Schutzpflicht’ (duty of protection) is assumed by‘Vertrag’ (contract));– ‘aus vorangegangenem Tun’ (when it flows from prior conduct); or– ‘aus einer Lebensbeziehung’ (when a close personal relationship exists). 24An ‘Unterlassungstäter’ (perpetrator of an artificial/qualified crime by omission) ispunishable, as if he had fulfilled the ‘Tatbestand’ of a ‘Begehungsdelikt’, but thepunishment (‘Strafe’) can be reduced. 25(c) Acts by persons representing othersBy § 14 StGb, if acts are committed on behalf of others by persons in a position ofauthority and a statute requires the existence of certain circumstances or the possessionof special personal attributes (‘besondere persönliche Merkmale’) as a precondition ofpunishability and such circumstances or special personal attributes pertain to, or, asappropriate, are possessed by the person represented, but not the person acting, thenthe statutory provisions also apply to die person acting.In other words, § 14 StGB extends the net of potential criminal liability to personsacting vicariously for others, eg, the organs of a company, persons instructed to performparticular duties for die owner of a business. Even if the person represented does not169

The German Legal System and Legal Languageact as such, those more directly involved lower down the chain can be the subject ofpunishment.2 ‘Rechtswidrigkeit’ of the ‘Handlung’(a) When a ‘Handlung’ is ‘rechtswidrig’The mere fact that a ‘Handlung’ fulfills the ‘Tatbestand’ of a criminal norm does not, ofitself, make the ‘Handlung’ ‘rechtswidrig’ (illegal) or, to use English legal terminology,turn it into an ‘actus reus’ (criminal act). However, unless the ‘Handlung’ is justified(‘gerechtfertigt’) by another norm or principle, the fulfillment of the ‘Tatbestand’ is, as arule, regarded as indicating the illegality of the ‘Handlung’: ‘die Tatbestandserfüllungindiziert die Rechtsuridrigkeit’.(b) ‘Rechtfertigungsgründe’ 26Whether or not a person has acted illegally is dependent on a further consideration:the (non-)existence and (non-)fulfillment of so-called ‘Rechtfertigungsgründe’ (justifyingreasons). ‘Rechtfertigungsgründe’ supplement (‘ergänzen’) the ‘Tatbestand’; they are socalled‘negative Tatbestandsmerkmale’ (negative elements of a ‘Tatbestand’) and can beboth written (eg, in the StGB, StPO or BGB) and unwritten. 27The most important ‘Rechtfertigungsgründe’ in practice are:– ‘Einwilligung’: consent (volenti non fit inuiria); 28– ‘ mutmaßliche Einwilligung’: presumed consent; 29– ‘Notwehr’: self-defence; 30– ‘defensiver Notstand’: defensive emergency; 31– ‘aggressiver Notstand’: offensive emergency; 32– ‘rechtfertigender Notstand’: justifying emergency; 33– ‘Ausübung von Dienstrechten oder Ausführung von rechtmäßigen Befehlen’: exercise ofofficial rights or implementation of legal orders; 34– ‘Wahrnehmung berechtigter Interessen’: pursuit of just interests; 35– ‘soziale Adäquanz’: social adequacy; 36– ‘sonstige Eingriffsrechte’: other intervention rights. 373 ‘Schuld’(a) Meaning of ‘Schuld’Although it is dear that a ‘Handlung’ is not a ‘Straftat’ and is not punishable withoutthe ‘Schuld’ (blame/guilt) of the ‘Täter’ (perpetrator), the concept of ‘Schuld’ (‘culpa’)itself is far from simple or clear. It does not fully equate to the similar, but narrower,English legal term ‘mens rea’ (guilty mind).The dominant ‘normative’ definition of ‘Schuld’ regards ‘Schuld’ as such arelationship (‘Beziehung’) of the ‘Täter’ to his ‘Tat’ as can, on evaluation, be deemed170

Chapter XVI: Criminal Law‘vorwerfbar’ (reproachable), ie, a reprehensible attitude /frame of mind on the part ofthe ‘Täter’ (towards the law) (‘verwerfliche (Rechts-)gesinnung’). 38(b) ‘Schuldfähigkeit’In the normal case, the ‘Täter’ is assumed to be ‘schuldfähig’ (capable of blame). However,children (‘Kinder’) under 14 are ‘schuldunfähig’ 39 and youths between 14 and 18(‘Jugendliche’) are ‘schuldfähig’ depending on their moral and intellectual development. 40Those between the age of majority (18) and 21 are referred to as ‘Heranwachsende’(young persons) and can be treated as ‘Jugendliche’ or as ‘Erwachsene’ (adults) dependingon the circumstances.The absence or reduction in ‘Schuldfähigkeit’ due to physical or emotional defects isdealt with in §§ 20 and 21 StGB. 41Usually, capacity is assessed at the time an offence is committed (‘bei Begehung derTat’). However, a special exception is the principle of ‘actio libera in causa’ (an act free inorigin): the blame /responsibility of a person is brought forward (‘vorverlegt’) to thetime of his prior conduct (‘actio praecedens’), if he freely put himself into a condition ofincapacity, foreseeing that he would commit a particular offence in that state. The‘Täter’ is punishable because he set in motion a course of events culminating in thecommission of an offence. 42 (c) Forms of ‘Schuld’ 43‘Schuld’ can arise in two forms:– ‘Vorsatz’ (intent), the usual form of ‘Schuld’, known as ‘Vorsatzschuld’;– ‘Fahrlässigkeit’ (negligence).Acts (‘Handlungen’) are usually only punishable, if they are committed with ‘Vorsatz’(‘vorsätzliches Handeln’), ie, wilfully. The law must expressly say so, if negligent conduct(‘fahrlässiges Handeln’) is punishable. 44‘Vorsatz’ may be defined as the knowledge of and desire for those (objective andsubjective) circumstances /elements, which belong to the ‘Tat’: ‘das Wissen und Wollender Tatumstände/Tatbestandsmerkmale, die zum gesetzlichen Tatbestand gehören’. The ‘Täter’need not know the statutory details of the offence, provided, as a layman, he hasevaluated his conduct as wrong (so-called ‘Parallelwertung in der Laiensphäre’). 45‘Vorsatz’ is classified as either: 46– ‘dolus directus’ (‘unmittelbarer Vorsatz’). This is the usual form of ‘Vorsatz’: the ‘Täter’knows that he is committing an offence and wants to do so. It is to be distinguishedfrom ‘Absicht’ (pure intention), which requires more than just ‘Wissen und Wollender Tatumstände’, ie, where the particular ‘Erfolg’ itself is the prime motive of the‘Täter’; 47– ‘dolus eventualis’ (‘bedingter (eventual) Vorsatz’; the ‘Täter’ does not want to commitan offence, but, for the purpose of his ‘Handlung’, takes such a possibility intoaccount (‘nimmt die Möglichkeit in Kauf’). 48171

The German Legal System and Legal LanguageIt is to be distinguished from ‘bewußte Fahrlässigkeit’ (conscious negligence), where the‘Täter’ hopes that things will go well and relies on (‘vertraut auf’) the possible offencenot occurring. 49‘Fahrlässigkeit’ is the exceptional form of ‘Schuld’. It can be ‘bewußt’ (conscious) or‘unbewußt’ (unconscious), ‘leicht’ (slight) or ‘grob’ (gross). 50A person is ‘fahrlässig’, if he fails to act with care (‘Sorgfalt’), despite the fact that,due to his personal abilities and qualities, he is in a position (‘in der Lage’) to know thathe should do so and that he can avoid the (foreseeable) ‘Erfolg’; he has the capacity of‘Wissenkönnen und Vermeidenkönnen’. 51(d) Exclusion of ‘Schuld’‘Schuld’ can be excluded if a (written or unwritten) ‘Schuldausschließungsgrund’ (groundfor exclusion of ‘Schuld’) exists. 52Thus, if the ‘Täter’ is unaware of one of the ‘Tatumstände’ (§ 16(i) StGB: so-called‘Tatumstands-’ or ‘Tatbestandsirrtum’), his ‘Vorsatz’ and, therefore, unless there is‘Fahrlässigkeit’ on his part, his ‘Schuld’ is excluded. 53The same applies, if the ‘Täter’ mistakenly believes that his ‘Handlung’ is justifiedby a ‘Rechtfertigungsgrund’ (so-called ‘Putativrechtfertigung’). 54A ‘Putativ-’ or ‘Wahndelikt’ describes the non-punishable conduct of a ‘Täter’, whobelieves he is committing an offence, which, in fact, does not exist. 55Where there is a change in the course of events (‘Abweichung im Kausalverlauf’)leading to the ‘Erfolg’, the ‘Handlung’ of the ‘Täter’ remains ‘vorsätzlich’, unless thechange is significant (‘erheblich’; aberratio ictus). However, an error ‘in obiecto’ or ‘inpersona’ has no effect on the ‘Vorsatz’ of the ‘Täter’. 56If the ‘Täter’ had no ‘Unrechtsbewußtsein’ (consciousness of the illegality of hisconduct), 57 ‘Schuld’ can be excluded. ‘Unrechtsbewußtsein’ is not, however, an elementof ‘Vorsatz’: it goes to the question of ‘Schuld’.If a ‘Täter’ has no ‘Unrechtsbewußtsein’ due to an avoidable mistake (eg, he could beexpected to inform himself about the illegality), his punishment can be reduced, 58 buthe has still acted ‘vorsätzlich’. ‘Schuld’ is only excluded, if the mistake was unavoidable.Both types of mistake (avoidable and unavoidable) are cases of so-called ‘Verbotsirrtum’(§ 17 StGB).The ‘Schuld’ of a ‘Täter’ can also be excluded, if, in an immediate emergency, inwhich he has no other choice, a person commits an illegal act in order to ward off adanger to the life, limb or freedom of himself or persons near to him; he acts without‘Schuld’ (§ 35(i) StGB; so-called ‘entschuldigender Notstand’). If he acts mistakenly (socalled‘Putativnotstand’), he is only punishable, if his mistake (‘Irrtum’) was avoidable(‘vermeidbar’), but his punishment can be reduced (§ 35(ii) StGB). 59To be distinguished from ‘Rechtfertigungsgründe’ and ‘Schuldausschließungsgründe’,the presence of either of which excludes the existence of a ‘Straftat’, 60 are the‘Strafausschließungs-’ or ‘Strafaufhebungsgründe’, which exclude or lift the possibility of‘Strafe’ (punishment). 61172

Chapter XVI: Criminal LawD CONSEQUENCES OF AN OFFENCE 62The ‘Rechtsfolgen der Tat’ (legal consequences of the offence) are dealt with in the thirdSection of the AT (§§ 38–76a StGB).‘Strafen’§§ 38–44 StGB set out the possible ‘Strafen’ (punishments), which can be imposed(‘verhängt’). To be distinguished is the ‘Hauptstrafe’ (a main punishment, which can beimposed by itself) and the ‘Nebenstrafe’ (an accessory punishment). 63‘Hauptstrafen’ are the ‘Freiheitsstrafe’ (imprisonment) 64 and the ‘Geldstrafe’ (fine). 65The ‘Freiheitsstrafe’ can be either ‘lebenslang’ (a life sentence) or ‘zeitig’ (for a particularperiod between one month and 15 years). 66The ‘Geldstrafe’ is the appropriate punishment for less serious crimes and is imposedin (a minimum of five and maximum of 360) ‘Tagessätzen’ (daily rates) of between DM2 and DM 10,000. 67A ‘Freiheitsstrafe’ of less than six months is only imposed in exceptional cases(‘Ausnahmefällen’), if essential (‘unerläßlich’) as an ‘ultima ratio’ (final measure) to impressthe ‘Täter’ (‘zur Einwirkung auf den Täter’) or to defend the legal system (‘zur Verteidigungder Rechtsordnung’). 68A ‘Geldstrafe’ is the preferred punishment in practice.Where a ‘Freiheitsstrafe’ imposed does not exceed one year, suspension of the sentenceis possible for between two and five years (‘Strafaussetzung zur Bewährung’). 69The suspension of the rest of a ‘zeitiger’ or ‘lebenslanger’ ‘Freiheitsstrafe’ is also possiblewhere at least two-thirds of the sentence (or, as appropriate, 15 years) has been served. 70Where a ‘Geldstrafe’ of not more than 180 ‘Tagessätze’ has been imposed, the courtcan, under certain circumstances (eg, first offence), merely issue a warning and fix thepunishment, but reserve actual sentence for a probationary period (‘Bewährungszeit’)of between one and three years (‘Verwarnung mit Strafvorbehalt’). 71The court can also disregard imposing a ‘Strafe’ altogether, if the consequences ofthe ‘Tat’ for the ‘Täter’ are so severe as to make the imposition of punishment obviouslywrong (‘offensichtlich verfehlt’): so-called ‘Absehen von Strafe’. 72The type and extent of the appropriate ‘Strafe’ is dependent on the ‘Schuld’ of the‘Täter’: the ‘Strafe’ must be ‘schuldangemessen’ (appropriate to (the) ‘Schud’). 73‘Maßregeln der Besserung und Sicherung’Regardless of his ‘Schuld’, a ‘Täter’ may pose a danger to society or require particularattention. This is the domain of the so-called ‘Maßregeln der Besserung und Sicherung’(measures of improvement and security). 74The German criminal legal system is, therefore, ‘zweispurig’ (two-tracked): a ‘Täter’can be sentenced to a ‘Strafe’ and/or to a ‘Maßregel’. 75The ‘Maßregel’ must be proportionate (‘verhältnismäßig’). 76The possible ‘Maßregel’ are:173

The German Legal System and Legal Language– placement in a psychiatric hospital; 77– placement in a rejection institution (‘Entziehungsanstalt’); 78– placement in secure custody (‘Sicherungsverwahrung’); 79– supervision of conduct (‘Führungsaufsicht’); 80– withdrawal of driving licence (‘Entziehung der Fahrerlaubnis’); 81– occupational ban (‘Berufsverbot’); 82Apart from the above, the court can also order other ‘Maßnahmen’, ie, ‘Verfall’ (forfeitureof a pecuniary advantage), ‘Einziehung’ (confiscation of ‘Gegenstände’) and‘Unbrauchbarmachung’ (neutralisation (rendering useless) of associated equipment). 83174

CHAPTER XVIIXVII CRIMINAL PROCEDURE 1A INTRODUCTIONPresent day German criminal procedure is a mixture between an accusatorial and aninquisitorial system. 2This was not always so. Until the reforms of the 19th century, an inquisitorialapproach prevailed. 3Today, German criminal procedure is governed by the ‘Strafprozeßordnung’ (StPO:Criminal Procedure Order) of 1.2.1877, variously amended and reissued. The StPO issupplemented by the provisions of the GVG concerning the criminal courts (§ 1 StPO)and the ‘Staatsanwaltschaft’ (public prosecutor’s office). 4The StPO is divided into seven Books:Book I: ‘Allgemeine Vorschriften’ (general provisions; §§ 1–150).Book II: ‘Verfahren im ersten Rechtszug’ (proceedings at first instance; §§ 151–295).Book III: ‘Rechtsmittel’ (legal remedies / appeals; §§ 296–358).Book IV: ‘Wiederaufnahme eines Verfahrens’ (reopening of proceedings; §§ 359–373a).Book V: ‘Beteiligung des Verletzten am Verfahren’ (involvement of the injured partyin the proceedings; §§ 374–406h).Book VI: ‘Besondere Arten des Verfahrens’ (special types of proceedings; §§ 407–448).Book VII:‘Strafvollstreckung und Kosten des Verfahrens’ (enforcement of punishmentand costs of the proceedings; §§ 449–473).German criminal procedure is dominated by various maxims or principles(‘Grundsätze’), of which the following should initially be noted:– the ‘Anklagegrundsatz’ (accusation principle): no judicial investigation (‘gerichtlicheUntersuchung’) of a criminal matter can take place without an ‘(öffentliche) Klage’((public) complaint/indictment); 5– the ‘Unschuldsvermutung’ (presumption of innocence): a person charged with acriminal offence is presumed to be innocent until proven guilty;– the ‘Ermittlungsgrundsatz’ (inquisition principle): the court examines (inquires into)the facts of the matter itself; and– the right to a fair hearing (‘Anspruch auf ein faires Verfahren’). 6The parameters of the court’s investigation are set by the ‘Klage’, ie, the court can onlyinvestigate and decide upon the alleged offence and person(s) accused in the ‘Klage’:§ 155(i)StPO.Unlike the position in civil proceedings, the applications contained in the ‘Klage’are not binding on the court § 155(ii) StPO.175

The German Legal System and Legal LanguageThe general public can notify the authorities (the court, the ‘Staatsanwaltschaft’ orthe police) of a ‘Straftat’ in two ways, 7 namely either:– by means of a ‘(Straf-)Anzeige’ (notice of an offence), which anyone can file(‘erstatten’), orally or in writing (‘mündlich oder schriftlich’); or– by means of a ‘(Straf-)Antrag’ (application for prosecution), which can only belodged by a ‘Verletzten’ (injured party) within three months of his ‘Kenntnis’(knowledge) of the ‘Tat’ and the identity of the ‘Täter’. 8Although prosecution (‘Strafverfolgung’) is usually undertaken (officially) by the state,certain offences must (and others can) be prosecuted on application (so-called‘Antragsdelikte’). 9A ‘Strafantrag’ must be lodged in writing. 10Prosecution may be statute-barred due to lapse of time (so-called‘Verfolgungsverjährung’). 11B THE ‘STAATSANWALTSCHAFT’ 12The ‘Staatsanwaltschaft’ (state attorney’s office) is the competent prosecution authority(‘Anklagebehörde’) and possesses a so-called ‘Anklagemonopol’ (prosecution monopoly). 13A ‘Privatklage’ (private prosecution) is possible, however, in certain (less serious)cases of, for example, libel, personal injury, trespass and damage to property wherethe ‘Staatsanwaltschaft’ does not consider prosecution as being in the public interest(‘im öffentlichen Interesse’). 14The ‘Staatsanwaltschaft’ is independent from the courts 15 and has a hierarchicalstructure.Depending on the court to which they are attached, 16 state attornies are variouslydescribed as:– ‘Amtsanwälte’ (district public prosecutors) (AG);– ‘Staatsanwälte’ (state prosecutors) (AG and LG);– ‘Oberstaatsanwälte’ (senior state prosecutors) (LG);– ‘Generalstaatsanwälte’ (general state prosecutors) (OLG); and– ‘Bundesanwälte’ (federal prosecutors) (BGH).The most senior officer at the BGH is the ‘Generalbundesanwalt’ (general federalprosecutor).The officers of the ‘Staatsanwaltschaft’ are civil servants (‘Beamte’) and have a dutyto obey the directions of their superiors: § 146 GVG. Supervision (‘Dienstaufsicht’) isexercised by the federal and state justice ministries (§ 147 GVG), but the limits ofpolitical influence over prosecuting authorities remain unclear. 17The ‘Staatsanwaltschaft’ is obliged to intervene (‘einzuschreiten’) with regard to all‘Straftaten’ capable of prosecution, so far as ‘zureichende tatsächliche Anhaltspunkte’(sufficient factual clues) exist 18 (the so-called ‘Legalitätsgrundsatz’ (legality principle),176

Chapter XVII: Criminal Procedureas opposed to the ‘Opportunitätsgrundsatz’ (opportunity principle), whereby, in certaincases, the ‘Staatsanwaltschaft’ has a discretion not to pursue the matter). 19As soon as the ‘Staatsanwaltschaft’ receives notice (‘Kenntnis’) of a suspected ‘Straftat’whether by ‘Anzeige’ or in another manner, it must investigate the facts (‘den Sachverhalterforschen’) in order to decide whether to lodge a ‘Klage’ (the so-called ‘Ermittlungsverfahren’(investigation procedure) or ‘Vorverfahren’ (preliminary procedure)). 20In doing so, the ‘Staatsanwaltschaft’ must take into account not only incriminating,but also exonerating circumstances. 21The ‘Staatsanwaltschaft’ can require ‘Auskunft’ (information) from all publicauthorities (‘öffentlichen Behörden’) and either itself conduct enquiries of any kind(‘Ermittlungen jeder Art’) or arrange for the police to do so. 22The ‘Staatsanwaltschaft’ can apply to the local ‘Amtsgericht’ (District Court), if itconsiders that a particular ‘richterliche Untersuchungshandlung’ (judicially orderedinvestigative act) is necessary (‘erforderlich’) 23 eg, a ‘(körperliche) Untersuchung’ ((bodily)search), 24 ‘Beschlagnahme’ (seizure), 25 ‘Durchsuchung’ (search (of premises or persons)),or, subject to the issue of a ‘Haftbefehl’ (arrest warrant), ‘Untersuchungshaft’ (remand in(investigative) custody). 26 C THE ‘VERTEIDIGER’ 27ABCA suspect is entitled to avail himself of the assistance (‘Beistand’) of a defender(‘Verteidiger’) at every stage of the proceedings: § 137(i) StPO.He can choose up to three ‘Verteidiger’: § 137(i), 2nd sentence StPO.Moreover, during the main proceedings, the spouse or statutory representative ofthe accused has a right to be heard as a ‘Beistand’ (assistant): § 149 StPO. 28A suspect basically has freedom of choice regarding his ‘Verteidiger’, althoughonly a ‘Rechtsanwalt’ admitted at a German court or a teacher of law at a Germanuniversity can be chosen without the permission of the court § 138 StPO.In certain cases, a ‘Verteidiger’ must be excluded: §§ 138a-d StPO.To be distinguished from free selection of a defender (‘Wahlverteidigung’) isappointment (‘Bestellung’) of a compulsory defender (‘Pflichtverteidiger’) by thepresiding judge: §§ 141ff StPO.The ‘Pflichtverteidiger’ is selected by the judge from a list of ‘Rechtsanwälte’, althoughthe lawyer desired by the suspect is usually accepted: § 142(i) StPO. The lawyerappointed must accept the brief: § 49(i) BRAO.An appointment must be withdrawn, if another ‘Verteidiger’ is freely selected: §143 StPO.In certain circumstances, the participation of a (freely selected or appointed)defender is necessary (‘notwendig’): § 140(i) StPO. Necessary defence entails thepresence of a ‘Verteidiger’ throughout the main proceedings: § 145 StPO.177

The German Legal System and Legal LanguageIn other cases, the presiding judge must appoint a ‘Verteidiger’, if the latter’sparticipation is apparently required by:– the seriousness of the offence; or– the difficulty of the facts or law involved; or– if it is clear that the suspect cannot defend himselfDEF(§ 140(ii) StPO). 29A suspect can also apply for appointment of a ‘Verteidiger’, if ‘Untersuchungshaft’(investigative custody) has lasted for at least three months: § 117(iv) StPO.A ‘Verteidiger’ cannot, at the same time, represent more than one person accusedof the same offence: § 146, 1st sentence StPO.Apart from his general duties of conduct (eg, not to mislead the authorities(‘Wahrheitspflicht’) and (towards his client) to maintain silence (‘Schweigepflicht’)),a ‘Verteidiger’ has the following main rights and duties in the preliminary procedure(‘Vorverfahren’):– ‘Anwesenheitsrecht’ (right to be present). During an examination of the suspectby the ‘Staatsanwaltschaft’ or the judge a ‘Verteidiger’ has a (statutory) right tobe present: § 168c (i) StPO.– ‘Akteneinsicht’ (right to inspect the file): § 147 StPO. 30– ‘Verkehr mit dem Beschuldigten’ (communication with the suspect): § 148 StPO. 31A ‘Verteidiger’ also has a right to refuse to give evidence (‘Zeugnisverweigerungsrecht’)regarding anything, which is revealed to him by the suspect or which the‘Verteidiger’ learns of in his professional capacity: § 53(i) No 2 StPO.D THE POLICE 32It is also 33 a function of the police to investigate ‘Straftaten’ (not merely on instructionby the ‘Staatsanwaltschaft’) and take all immediately necessary steps (‘alle keinen Aufschubgestattenden Anordnungen’) to prevent the obscuring of the matter (‘die Verdunkelungder Sache zu verhüten’). 34The police must then pass its file to the ‘Staatsanwaltschaft’ without delay or, if itseems that ‘richterliche Untersuchungshandlungen’ need to be carried out speedily, directto the ‘Amtsgericht’ (district court). 35Without the decision of a judge, the police itself has no right to detain a person incustody (ie, cause a deprivation of freedom (‘Freiheitsentziehung’)) longer than untilthe end of the day following the person’s seizure (‘Ergreifung’; Article 104(ii) GG).A person suspected of an offence must be brought before the judge (the ‘Vorführungvor den Richter’) at the latest the day after his ‘vorläufige Festnahme’ (provisional arrest;Article 104(iii) GG). 36In the absence of a pre-existing arrest warrant (‘Haftbefehl’), presentation ofthe suspect takes place at the ‘Amtsgericht’ for the area in which he is arrested (§128(i) StPO). 37178

Chapter XVII: Criminal ProcedureThe judge must forthwith (‘unverzüglich’) either issue an arrest warrant or placementorder (‘Unterbringungsbefehl’) or otherwise release the suspect (Article 104(iii), 2ndsentence GG and § 128(ii) StPO). 38E ACTION FOLLOWING INVESTIGATIONIf the of the ‘Staatsanwaltschaft’ (or police) provide sufficient cause (‘genügender Anlaß’),the ‘Staatsanwaltschaft’ can apply to the competent court by means of an ‘Anklageschrift’(=‘Anklage’=‘Klage’ (bill of indictment)) for the opening of the main proceedings(‘Eröffnung des Hauptverfahrens’). 39Otherwise, it must terminate the investigation (‘Einstellung des Verfahrens’). 40Alternatively, the ‘Staatsanwaltschaft’ can apply for the issue of a ‘Strafbefehl’(punishment order) where a ‘Vergehen’ is involved and a main hearing is not considerednecessary. 41Before a ‘Klage’ is lodged, the suspect is known as the ‘Beschuldigter’. Thereafter(and before the main proceedings are opened) he is referred to as the ‘Angeschuldigter’(person charged). 42If, from the results of the preparatory investigation, the ‘Angeschuldigter’ appearssufficiently suspect of a ‘Straftat’ (‘einer Straftat hinreichend verdächtig’), the competentcourt decides to open the ‘Hauptverfahren’. 43The decision (which cannot be challenged by the accused, who is then referred toas the ‘Angeklagter’ (person indicted)) 44 is known as the ‘Eröffnungsbeschluß’. 45Once the ‘Hauptverfahren’ is opened, the ‘Klage’ cannot be withdrawn. 46If the court rejects the application for ‘Eröffnung’ from the ‘Staatsanwaltschaft’ orpasses the matter to a lower court, the ‘Staatsanwaltschaft’ can raise immediate objection(‘sofortige Beschwerde’). 47The ‘Angeklagter’ must be notified at least one week before the ‘Hauptverhandlung’(main hearing (date)) by a ‘Ladung’ (notice to attend). 48The ‘Hauptverhandlung’ is dealt with in Section 6 of Book II (§§ 226–275) StPO.F ‘HAUPTVERHANDLUNGSHAFT’Provided a ‘Hauptverhandlung’ begins within one week, a person caught in the act(‘auf frischer Tat’) can be taken into ‘Hauptverhandlungshaft’ (main hearing custody), ifa ‘Vergehen’ is involved, ie, the maximum possible punishment is one year’simprisonmentThere must be a risk, on the basis of particular facts (‘bestimmte Tatsachen’), that theperson held would otherwise stay away from the ‘Hauptverhandlung’. 49179

The German Legal System and Legal LanguageG THE MAIN PROCEEDINGS AND THEREAFTER (BOOK II (SECTION 6)—BOOK IV STPO) 50H INVOLVEMENT OF THE INJURED PARTY (BOOK V STPO) 51Book V (§§ 374–406h) is divided into four Sections:1: ‘Privatklage’ (private prosecution; §§ 374–394).By § 380(i) StPO, it is a condition precedent to a private prosecution for trespass(‘Hausfriedensbruch’), insult (‘Beleidigung’), infringement of the right of secrecy ofcorrespondence (‘Briefgeheimnis’), personal injury (‘Körperverletzung’), threateningbehaviour (‘Drohung’) and damage to property (‘Sachbeschädigung’) that an attemptat conciliation (‘Sühneversuch’) first be undertaken before an official arbitrator(‘Schiedsmann’). 522: ‘Nebenklage’ (collateral prosecution; §§ 395–402).3: ‘Entschädigung des Verletzten’ (compensation for the injured party; §§ 403–406c).4: ‘Sonstige Befugnisse des Verletzten’ (other powers of the injured party; §§ 406d-406h).I SPECIAL TYPES OF PROCEEDINGS (BOOK VI STPO) 53Book VI (§§ 407–448) is divided into four Sections:1: ‘Verfahren bei Strafbefehlen’ (procedure in the case of punishment orders; §§ 407–412). 542: ‘Sicherungsverfahren’ (security proceedings; §§ 413–416).3: ‘Verfahren bei Einziehungen und Vermögensbeschlagnahmen’ (procedure in the case offorfeiture and seizure of assets; §§ 430–443).4: ‘Verfahren bei Festsetzung von Geldbußen gegen juristische Personen undPersonenvereinigungen’ (procedure in the case of fines being set against juristicpersons and associations; § 444).J ENFORCEMENT OF PUNISHMENT AND COSTS OF THEPROCEEDINGS (BOOK VII STPO) 55Book VII (§§ 449–473) is divided into two Sections:1: ‘Strafvollstreckung’ (enforcement of punishment; §§ 449–463d).2: ‘Kosten des Verfahrens’ (costs of the proceedings; §§ 464–473).180

CHAPTER XVIIIXVIII EMPLOYMENT LAWA INTRODUCTIONThe three main fields of German employment law are ‘Arbeitsvertragsrecht’ (individualemployment contract law), ‘kollektives Arbeitsrecht’ (collective employment law) and‘Arbeitsschutzrecht’ (work protection law). The latter two largely developed after 1900,due to the fact that the BGB only concerned itself with ‘Dienstvertragsrecht’ (law relatingto contracts of service). 1An employment relationship (‘Arbeitsverhältnis’) is usually based on a contract ofemployment (‘Arbeitsvertrag’) between an ‘Arbeitgeber’ (employer) and an ‘Arbeitnehmer’(employee). A characteristic feature of a contract of employment is that an employeeis personally/socially dependent (‘abhängig’), ie, he is subject to direction by hisemployer (‘weisungsgebunden’). Persons who are self-employed (‘selbständig’) are notemployees, nor are persons, who provide independent services of a higher, commercialnature (§ 675 BGB). 2An employment relationship gives rise to various rights and duties. Thus, forexample, an ‘Arbeitgeber’ (employer) has (largely statutory) duties of protection(‘Schutzpflichten’) and a duty of care (‘Fürsorgepflicht’) towards the employee. 3B FORM AND TERMINATION OF A CONTRACT OF EMPLOYMENT 41 An ‘Arbeitsvertrag’ requires no particular form and can end by:– ‘Zeitablauf’ (effluxion of time);– ‘Tod des Arbeitnehmers’ (death of the employee);– ‘Aufhebungsvertrag’ (annulment agreement); 5 or– ‘Kündigung’ (termination). 6Like any other ‘Rechtsgeschäft’, an ‘Arbeitsvertrag’ can also be void by operation oflaw (‘nichtig’) or challengable (‘anfechtbar’) on the grounds laid down in the BGB. 72 ‘Kündigung’ is a remedy available to each party to an employment relationship. Itcan be either ‘ordentlich’ (in proper form)—ie, ‘befristet’ (with notice)—or‘außerordentlich’ (summary)—ie, ‘fristlos aus wichtigem Grund’ (without notice foran important reason). 8In both cases, a ‘Kündigung’ has to be in writing to be effective: § 623 BGB. 9By § 626(ii) BGB, a ‘Kündigung aus wichtigem Grund’ must be declared within twoweeks of knowledge of the facts (upon which the ‘important reason’ is based).These facts must be such that, in all the circumstances of the case, it would beunacceptable (‘unzumutbar’) for the terminating party, if the employment181

The German Legal System and Legal Languagerelationship were to continue until expiry of the notice period (‘Kündigungsfrist’)or until the agreed contractual termination date: § 626(i) BGB.However, no important reason is required for the termination of a relationshipinvolving the provision of services of a higher nature (‘Dienste höherer Art’) by aself-employed person holding a position of trust (‘Vertrauensstellung’), eg, a doctor,lawyer or accountant: § 627(i) BGB. An employee must, usually, receive a priorwarning (‘Abmahnung’) before dismissal. 10 The ‘befristete Kündigung’ is the usualmeans of terminating 11 an ‘Arbeitsverhältnis’ with no specific date of expiry (‘aufeine unbestimmte Zeit geschlossen’). For such contracts of employment, the applicable‘Kündigungsfristen’ (notice periods) are laid down in § 622 BGB.Thus, the normal minimum notice period is 4 weeks to the 15th or to the end of acalendar month, both for workers (‘Arbeiter’) and for employees (‘Angestellte’): §622(i) BGB. Once an ‘Arbeitsverhältnis’ has lasted for two years or more, the‘Kündigungsfristen’ for termination by an employer increase in stages, up to amaximum of seven months to the end of a calendar month in the case of 20 years’employment: § 622(ii) BGB. During a trial (employment) period (‘Probezeit’) of upto six months, the notice period is reduced to two weeks: § 622(iii) BGB. Tariffagreements can contain different provisions and longer notice periods are possibleby individual agreement, although the period for termination by an employeecannot be longer than that for an employer. 123 If an employee has been employed for at least 6 months, he is protected against‘Kündigung’ by the ‘Kündigungsschutzgesetz’ (KSchG; Employment Protection Law)of 10.8.1951 provided at least five (other) persons are (usually) employed in therelevant business. 13§ 1(i) KSchG declares that an ‘(ordentliche) Kündigung’ which is ‘sozialungerechtfertigt’ (socially unjustified) is ‘rechtsunwirksam’ (of no legal effect). A‘Kündigung’ is ‘sozial ungerechtfertigt’, if it is not based on (‘bedingt durch’) reasonsin the person or conduct of the employee (‘Gründe in der Person oder in dem Verhaltendes Arbeitnehmers’) or on urgent requirements of the business (‘dringende betrieblicheErfordernisse’: the so-called ‘betriebsbedingte Kündigung’): § 1(ii), 1st sentenceKSchG. 14 When selecting employees for ‘Kündigung’ due to ‘dringende betrieblicheErfordernisse’, the employer must still give sufficient consideration (‘ausreichendeRücksicht’) to social aspects (‘soziale Gesichtspunkte’), otherwise the dismissal issocially unjustified. 15If an employee considers his ‘Kündigung’ as socially unjustified, he can lodge an‘Einspruch’ (objection) within one week at the ‘Betriebsrat’ (works council), whichcan then attempt to reach a ‘Verständigung’ (understanding) with the employer. 16If this remains unsuccessful, the employee must within three weeks of his receiptof the ‘Kündigung’ issue a ‘Klage’ at the ‘Arbeitsgericht’ (employment court) for adeclaration (‘Feststellung’) that the ‘Arbeitsverhältnis’ was not dissolved by the‘Kündigung’ (a so-called ‘Kündigungsschutzklage’): § 4(i) KSchG. 17 The ‘Kündigung’becomes effective, if no ‘Klage’ is issued. 18Even if the ‘Arbeitsgericht’ concludes that the ‘Arbeitsverhältnis’ was not dissolved182

Chapter XVIII: Employment Lawby the ‘Kündigung’, the employee (or employer) can apply to the court to dissolvethe ‘Arbeitsverhältnis’ and order the employer to pay an appropriate settlement(‘eine angemessene Abfindung’). 194 An employer’s bankruptcy is governed by the ‘Insolvenzordnung’ (InsO; InsolvencyOrder) of 5.10.1994 (in force since 1.1.1999). 20 It contains provisions facilitatingtermination of contracts of employment (‘Kündigungserleichterungen’). Thus, by §80(i) InsO, the employer’s assets pass to the ‘Insolvenzverwalter’ (insolvencyadministrator), who assumes the employer’s rights and duties. A mandatory,shortened notice period of three months to the end of a calender month applies (§113(i) InsO). However, an employee’s statutory rights to protection against‘Kündigung’ are unaffected (ie, they are ‘insolvenzfest’ (insolvency-proof)).The transfer of a business (‘Betriebsübergang’) is no justification for a ‘Kündigung’(§ 613a (iv) BGB), but the new owner can carry out any necessary changes(‘Betriebsänderungen’; § 111ff BetrVG) for the purpose of the reconstruction(‘Sanierung’) of the business. 215 On termination of a contract of employment, an employer must, on request, supplya reference (‘Zeugnis’) regarding an employee’s conduct and performance duringhis employment: § 630 BGB.C THE ‘BETRIEB’ AND ‘BETRIEBSRAT’ 22The ‘Betriebsrat’ (works council) is the elected representative of the employees of a‘Betrieb’ and is the most important institution of the constitution of a ‘Betrieb’(‘Betriebsverfassung’). The applicable law is the ‘Betriebsverfassungsgesetz’ of 15.1.1972(BetrVG). 23The equivalent of the ‘Betriebsrat’ in the public sector is the ‘Personalrat’; the applicablelaws being the ‘Personaluertretungsgesetze’ of the ‘Bund’ and the ‘Länder’. 24The term ‘Betrieb’ is to be distinguished from the wider term ‘Unternehmen’(enterprise) Both describe an organisational business unit and are used interchangeablyin daily speech. However, while an ‘Unternehmen’ refers to a ‘business’ in the generalsense, a ‘Betrieb’ is technically the individual (operational) business unit, the direct(place of) work/business. An ‘Unternehmen’ can consist of various ‘Betriebe’. 25The involvement (‘Beteiligung’) of employees in a ‘Betrieb’ is commonly referred toas ‘betriebliche Mitbestimmung’, while their involvement in the organs of an‘Unternehmen’ as ‘Mitbestimmung in den Unternehmensorganen’. 26A ‘Betriebsrat’ can be elected in all ‘Betrieben’ with at least five permanent‘Arbeitnehmer’. Usually, only employees, who have belonged to the ‘Betrieb’ for sixmonths, are capable of election (‘wählbar’). 27The number of members of a ‘Betriebsrat’ is dependent on the total number of adultemployees in the ‘Betrieb’. 28The BetrVG does not apply to ‘leitende Angestellte’ (leading employees) 29 nor to socalled‘Tendenzbetriebe’, ie, businesses, which directly and predominantly serve political,confessional, charitable, educational, scientific or artistic provisions or purposes ofreporting or the expression of opinion. 30183

The German Legal System and Legal LanguageD COOPERATION BETWEEN EMPLOYER AND ‘BETRIEBSRAT’ 31By § 2(i) BetrVG, employer and ‘Betriebsrat’ must work together in confidence and incooperation with the trade unions (‘Gewerkschaften’) and employer associations(‘Arbeitgebervereinigungen’) for the benefit of the employees and the ‘Betrieb’ (the‘Grundsatz der vertrauensvollen Zusammenarbeit’ (confidential cooperation principle)).The employer and ‘Betriebsrat’ are ‘Betriebspartner’ (business partners). Thus:(a) they must negotiate regarding contentious questions with the serious desire (‘mitdem ernsten Willen’) to reach an agreement (‘Einigung’) and must make suggestions(‘Vorschläge’) to settle differences of opinion (‘Meinungsverschiedenheiten’); 32(b) they are not entitled to take any measures of industrial action (‘Maßnahmen desArbeitskampfes’). However, industrial action between ‘tariffähigen Parteien’ (partiescapable of reaching a tariff agreement (‘Tarifvertrag’), ie, trade unions and employerorganisations) is still possible; 33(c) they must desist from actions, which interfere with the course of work or thepeace of the ‘Betrieb’ (‘Betätigungen…aurai aie der Arbeitsablauf oder der Frieden desBetriebs beeinträchtigt werden’: the so-called ‘Pflicht zur Wahrung des Betriebsfriedens’or ‘Friedenspflicht’; 34(d) they must desist from any party-political action (‘jede parteipolitische Betätigung’)in the ‘Betrieb’. 35Employer and ‘Betriebsrat’ can cooperate in various forms. They can reach a written‘Betriebsvereinbarung’ (business agreement) 36 or merely settle the matter by oral consent(‘betriebliche Einigung’, ‘Betriebsabsprache’ or ‘Regelungsabrede’).Differences of opinion (‘Meinungsverschiedenheiten’) can be referred to an internalstanding or ad hoc ‘Einigungsstelle’ ((compulsory) conciliation body), usually on theapplication or with the approval of both parties. 37It consists of equal numbers of representatives from each side, with an impartialchairman. 38The decision (‘Spruch’) of the ‘Einigungsstelle’ is usually only suggestive in nature,but can in certain cases replace the agreement between employer and ‘Betriebsrat’ andis then binding. 39 E THE RIGHTS OF THE ‘BETRIEBSRAT’ 40The ‘Betriebsrat’ has rights of involvement (‘Beteiligung’) and cooperation (‘Mitwirkung’)in three main areas: in social, personnel and commercial matters (‘sozialen, personellenund wirtschaftlichen Angelegenheiten’). Such rights are commonly classified, in ascendingorder of intensity, as including:– an ‘Informationsrecht’ (information right), ie, the ‘Unterrichtung’ of the ‘Betriebsrat’is required;– a ‘Mitspracherecht’ (right of consultation), ie, the ‘Anhörung’ or ‘Beratung’ of the‘Betriebsrat’ is required;184

Chapter XVIII: Employment Law– a ‘Widerspruchsrecht’ (right of objection) of the ‘Betriebsrat’ (typically in cases of‘personellen Einzelmaßnahmen’ (measures regarding individual members of staff);– a ‘Mitbestimmungsrecht’ or ‘betriebliche Mitbestimmung’ in the narrow sense (rightof co-decision), ie, the positive ‘Zustimmung’ (approval) of the ‘Betriebsrat’ isrequired.The ‘Mitbestimmungsrecht’ is the strongest right of the ‘Betriebsrat’ and exists, forexample, in social matters (ie, broadly in the field of collective working conditions) inthe absence of a provision in a statute or tariff agreement. 41The rights of the ‘Betriebsrat’ in commercial matters are set out in §§ 106–113 BetrVG.Most important here is the right of the ‘Betriebsrat’ (in a ‘Betrieb’ consisting of morethan 20 employees) to be informed regarding any planned ‘Betriebsänderung’ (changein the ‘Betrieb’), which could involve significant disadvantages (‘wesentliche Nachteile’)for staff. The ‘Betriebsrat’ is then entitled to negotiate regarding the practicalities andconclude a so-called ‘Interessenausgleich’ (settlement of interests) and a ‘Sozialplan’ (socialplan) for those affected.The rights of the ‘Betriebsrat’ in personnel matters are set out in §§ 92–105 BetrVG:1 In a ‘Betrieb’ with more than 20 adult employees, the ‘Betriebsrat’ can, for example,on certain grounds refuse its approval to a recruitment (‘Einstellung’) or transfer(‘Versetzung’): it has a ‘Widerspruchsrecht’ (right of objection). 422 The ‘Betriebsrat’ must be heard before any dismissal (‘Kündigung’) by the employer.A dismissal declared without such hearing (‘Anhörung’) is ineffective(‘unwirksam’). 43The ‘Betriebsrat’ can inform the employer of its doubts (‘Bedenken’) regarding anordinary dismissal within one week and regarding an extraordinary dismissal withinthree days. 44Further, it has a right of objection (‘Widerspruchsrecht’) on certain grounds againstan ordinary dismissal within the same period. 45In the event of a valid objection from the ‘Betriebsrat’ and a ‘Kündigungsschutzklage’from the employee (within 3 weeks), the employee has a right to continue to beemployed (‘Recht auf Weiterbeschäftigung’) on unchanged terms until conclusion of thedispute. 46Apart from ‘Mitwirkung’ by the ‘Betriebsrat’, the individual employee also has rightsto be informed and heard (‘Unterrichtungs- und Anhörungsrechte’) and to lodge acomplaint (Beschwerderecht’). 47F ‘MITBESTIMMUNG’ IN LARGE ‘UNTERNEHMEN’ 48There are special provisions in the BetrVG 1952 for ‘Mitbestimmung’ in the‘Aufsichtsräten’ (supervisory boards) of ‘Unternehmen’ (enterprises) with more than500 employees. 49The ‘Mitbestimmungsgesetz’ 1976 applies to ‘Unternehmen’ having more than 2000employees.185

The German Legal System and Legal LanguageG THE COALITIONS 50Collective employment law deals not only with organisational questions and rights to‘Mitbestimmung’ (BetrVG and ‘Mitbestimmungsgesetz’), but also with the relationshipbetween trade unions (‘Gewerkschaften’) and employer associations(‘Arbeitgeberverbände’), each of which is referred to as a ‘Koalition’ (coalition). Theimportance of coalitions in German employment law lies in the fact that only they canconclude a ‘Tarifvertrag’ (tariff agreement) and engage in an ‘Arbeitskampf’ (industrialaction). 51Tariff agreements are governed by the ‘Tarifvertragsgesetz’ (TVG) of 25.8.1969. Atariff agreement can contain a normative and contractual part. 52Measures of industrial action (‘Kampfmaßnahmen’) during the currency of a tariffagreement constitute a breach of the ‘Friedenspflicht’—which forms part of thecontractual part of the agreement—and can give rise to a claim for damages. 53H ‘ARBEITSSCHUTZRECHT’ 54Various statutory provisions govern safety at work in Germany and give protectionagainst accident (‘Unfallschutz’) and protection of health (‘Gesundheitsschutz’). Theyare part of the field of employment law known as ‘Arbeitsschutzrecht’ (work protectionlaw) and are of a compulsory, public law nature (‘öffentlich-rechtlich’). 55The observance of the norms of ‘Arbeitsschutzrecht’ is subject to state control by the‘Gewerbeaufsichtsbehörden’ (business (trade) supervisory authorities) either alone or inconjunction with the police authorities of the relevant ‘Bundesland’ (federal state). The‘Berufigenossenschaften’ (occupational cooperatives) also have rights of supervision.Provisions of ‘Arbeitsschutzrecht’ include:– § 120a of the ‘Gewerbeordnung’ (GewO; Business (Trade) Order). This provisionobliges ‘Gewerbeunternehmer’ (business (trade) enterprises) to take such steps asare necessary to maintain ‘Betriebssicherheit’ (safety at the workplace). Thus, forexample, they must provide and maintain work-rooms, equipment, machines andtools in such a way and generally see to it that employees are protected againstdangers to life and health as far as the nature of the business permits.– § 120d GewO.The appropriate authorities are empowered to issue ‘(ordnungsbehördliche)Verfügungen’ ((official) directions) ordering such measures as are necessary andappear practicable to be carried out.By way of enforcement, the authorities can resort to various ‘Zwangsmittel’ (compulsorymeasures), 56 which must usually first be threatened (‘angedroht’) in writing. 57Orders from the authorities are administrative law sanctions, which, in the firstinstance, fall within the jurisdiction of the administrative courts.Additionally, however, a deliberate or negligent contravention of an enforceableorder (‘vollziehbare Anordnung’) from the ‘Gewerbeaufsichtsbehörde’ constitutes aminor offence (‘Ordnungswidrigkeit’). 58186

Chapter XVIII: Employment LawA fine of up to DM 10,000 can be imposed. 59– § 9 of the ‘Gesetz über Ordnungswidrigkeiten’ (OWiG; Minor Offences Law).Organs (representatives) of a company, statutory representatives or persons instructedto direct a business by the owner can also themselves be the subject of regress.– § 618(i) of the ‘Bürgerliches Gesetzbuch’ (BGB; Civil Code). This provision containsa private law obligation to take measures similar to those mentioned in § 120aGewO to protect the life and health of persons, who have contracted to providetheir services under a ‘Dienstvertrag’ (contract of service). 60The person entitled to the services (the ‘Dienstberechtigter’) has a non-excludableduty of protection (‘Schutzpflicht’) and care (‘Fürsorgepflicht’). 61A blameworthy, so-called ‘positive’ breach of contract (‘positive Vertragsverletzung’)by the ‘Dienstberechtigter’ can give rise to a claim for damages (‘Schadensersatz’). 62– The ‘Verordnung über Arbeitsstätten’ (‘Arbeitsstättenverordnung’; ArbStättVO; (WorkPlaces Order).The ArbStättVO of 20.3.1975 is a ‘Rechtsverordnung’ passed in accordance with §120e GewO. It contains comprehensive rules regarding the state of work places. §53(i) ArbStättVO provides that an employer must maintain the work place andensure that defects, which are established, are rectified, if possible forthwith. Ifthis cannot be done at once in the case of defects involving immediate danger, therelevant work must be discontinued.§ 53(ii) ArbStättVO provides (inter alia) that security installations for the preventionor removal of dangers must be regularly examined and tested.– § 5 and § 6 of the ‘Arbeitssicherheitsgesetz’ (ASiG; Work Safety Law).These provisions oblige an employer to appoint qualified work safety personnel(‘Fachkräfte für Arbeitssicherheit’) and set out their functions.– § 708 of the ‘Reichsverskherungsordnung’ (RVO; Imperial Insurance Order). The‘Berufsgenossenschaft’ can issue regulations for the prevention of accidents(‘Unfallverhütungsvorschriften’).– § 714(i) RVO.If, on an inspection by officials of a ‘Berufsgenossenschaft’, defects are discoveredestablishing an immediate threat of danger (‘eine unmittelbar drohende Gefahr’), theycan make immediately enforceable orders for the removal of the danger. Finescan be imposed.– § 719 RVO.This provides (inter alia) that in enterprises with more than 20 employees one ormore safety officers (‘Sicherheitsbeauftragte’) must be appointed.I ACCIDENTS AT WORKIn the early part of the 20th century, inspired by § 242 BGB, increased importance wasattached to employees’ and employers’ respective duties of loyalty (‘Treuepflichten’)187

The German Legal System and Legal Languageand care (‘Fürsorgepflichten’). Today, one is more inclined to speak of an employer’sbusiness risk (‘Betriebsrisiko’).In the particular context of an employment relationship, one considered it to be justand reasonable that an employee, who is usually the commercially ‘weaker’ party,should not always be open to unlimited liability for breaches of duty (under theprinciple of PVV or tort). An employee should not be liable for every carelessness orinadvertence (‘Unachtsamkeit’).A particular case-law development here, which is still of great practical relevance,has, therefore, been the concept of work, which is prone to cause damage(‘schadensgeneigte Arbeit’), ie, activities which, by their nature, involve typical risks.According to the doctrine of ‘schadensgeneigte Arbeit’, employees engaged in thissort of work are entitled to indemnification (‘Freistellung’) against claims / relief from(personal) liability (‘Haftungserleichterung’), if their unintentional acts cause loss to theemployer or third parties. Depending on the particular circumstances and the degreeof blame (‘Grad des Verschuldens’) 63 on the part of the employee, there is a shifting ofliability (‘Schadensverlagerung’) for accidents at work (‘Arbeitsunfälle’/‘Betriebsunfälle’)onto the employer/third parties and, via insurance, onto the community at large. 64Furthermore, by § 636 RVO, the employer himself is not liable for personal injuries(‘Personenschäden’) sustained by an employee due to an (unintentional) accident atwork, unless the accident is caused deliberately (‘vorsätzlich’) by the employer or if itarises in the course of the employer’s ‘Teilnahme am allgemeinen Verkehr’ (participationin general traffic), ie, outside the business. Apart from these exceptions, an employee,who suffers personal injury, only has social insurance claims against the‘Berufsgenossenschaft’. He cannot claim damages directly against the employer. 65The employer’s limitation of liability (‘Haftungsbeschränkung’) also applies vis à visa colleague of the employee at work, who is injured by the employee in the course ofhis employment (‘betriebliche Tätigkeit’): § 637(i) RVO.The ‘Reichsversicherungsordnung’ (RVO) of 19.7.1911 consolidated various socialinsurance laws introduced during the Bismarck era, which laid the basis for theserules. It came into force on 1.1.1912 and has occasionally been amended since. It isplanned to incorporate the law concerning liability for accidents at work in Part VII ofthe ‘Sozialgesetzbuch’ (Social Code).188

CHAPTER XIXXIX BUSINESS LAW (‘WIRTSCHAFTSRECHT’) 1A INTRODUCTION1 ‘Wirtschaftsrecht’ is business or commercial law in a general, wide sense, ie, lawgoverning, directing and promoting business activity. The term embraces a diverserange of areas of law, 2 some traditionally private and others of a public law nature,for example:– commercial law (‘Handelsrecht’); 3– company law (‘Gesellschaftsrecht’); 4– business law in the narrow sense (‘Gewerberecht’); 5– employment law (‘Arbeitsrecht’); 6– law of banking (‘Bankrecht’); 7– business protection (‘gewerblicher Rechtsschutz’), ie, trade mark and patent law(‘Warenzeichen- und Patentrecht’) and law relating to industrial and otherregistered designs (‘Gebrauchs- und Geschmacksmuster’); 8– competition law (‘Wettbewerbsrecht’). 9‘Wirtschaftsrecht’ includes the law relating to the various trade, industrial,professional and specialist organisations (associations and chambers (‘Verbändeund Kammern’)) active in the German economy. 10In a broad, international sense, ‘Wirtschaftsrecht’ also extends to the law of theEEC (‘europäische Wirtschaftsgemeinschaft’ (EWG)). 112 ‘Wirtschaftsrecht’ is not the only principal term (‘Oberbegriff’) in German businesslaw. Of even more fundamental importance is the term ‘Gewerbe’, which is a subcategoryof the term ‘Beruf’ (occupation). A ‘Gewerbe’ customarily means aparticular (type of) business in the objective sense. 12The term ‘Gewerbe’ is central to numerous areas of German law, private and public,but it has no common or, indeed, formal definition. Its elements are usually statedas being:– any legal, outwardly visible (‘nach außen erkennbare’), independent activity(‘selbständige Tätigkeit’);– undertaken for a certain duration (‘auf eine gewisse Dauer angelegt’);– with a view to profit (‘mit Gewinnerzielungsabsicht’).For historical reasons, the extraction of natural produce from the land (so-called‘Urproduktion’) 13 and the exercise of a free profession (‘freier Beruf’)—the nature ofwhich is regarded as being highly personal (‘höchstpersönlich’)—are notconsidered to be ‘Gewerben’. 14More specifically, one speaks of a ‘Gewerbebetrieb’, 15 which means an exercised/189

The German Legal System and Legal Languageoperated business and incorporates trade (‘Handel’), industry (‘Industrie’),handicraft (‘Handwerk’) and transport (‘Verkehr’). 16The ‘Gewerbeordnung’ (GewO) 17 classifies every ‘Gewerbe’ as either a so-called‘stehendes Gewerbe’ (general business) or a ‘Reisegewerbe’ (travelling business), andcontains special provisions for trade fairs (‘Messen’), exhibitions (‘Austellungen’)and markets (‘Märkte’).For a ‘stehendes Gewerbe’, there is a general duty of notification (‘Anzeige-’ or‘Anmeldepflicht’) to the local ‘Gewerbeaufsichtsamt’ (office of business supervision).Moreover, in the public interest, many types of ‘Gewerbe’ require specific approval(‘Genehmigung’), permission (‘Erlaubnis’) or surveillance (‘Überwachung’). 18In particular, the grant of a business permit (‘Gewerbeerlaubnis’) can depend onpersonal factors—eg, evidence of ability (‘Befähigungsnachweis’) or reliability(‘Zuverlässigkeit’)—and/or on business aspects (‘sachliche Gesichtspunkte’). Thegeneral freedom to exercise a ‘Gewerbe’ (‘Grundsatz der Gewerbefreiheit’; laid downin § 1 GewO) is, therefore, extensively qualified. 193 Two other terms, also descriptive of areas of business law, are:– ‘Wirtschaftsverfassungsrecht’; 20 and– ‘Wirtschaftsverwaltungsrecht’, 21in which, respectively, constitutional provisions play a role and in which the activityof the executive predominates (eg, building law (‘Baurecht’), cartell law(‘Kartellrecht’), environmental law (‘Umweltrecht’), tax law (‘Steuerrecht’) and thelaw relating to public subsidies (‘Subventionen’) 22The common factor in ‘Wirtschaftsverfassungrecht’ and ‘Wirtschaftsverwaltungsrecht’is that they form part of public law (‘öffentliches Recht’). The designations reflectthe increasing interest of the state in the running/regulation and supervision ofthe economy (‘Wirtschaftslenkung’/‘Wirtschaftsaufsicht’) and the growing impact(‘Einschlag’) of public law provisions. 234 The law relating to commercial (‘white-collar’) crime (‘Wirtschaftsstrafrecht’) is,strictly speaking, part of criminal law. 24In the face of increasingly sophisticated criminal methods, there is a growingtendency to ‘commercialise’ criminal law as an instrument of control (indirectintervention). Thus, auditors (‘Abschlussprüfer’), board members (‘Vorstände’ /‘Aufsichtsräte’) and companies are often targets for criminal investigation. 25B LAW OF SECURITIES (‘WERTPAPIERRECHT’) 26Securities (‘Wertpapiere’) take a prominent role in the daily world of business andfinance. It is, therefore, important to be familiar with the basic terminology. However,it is an area of law bristling with complex distinctions.Initially, it should be understood that one is not dealing here with securities in thesense of (real or personal) means of securing obligations (‘Sicherheiten’), but with asubject, which, in English law, is treated under the heading of ‘Negotiable Instruments’.190

Chapter XIX: Business Law (‘Wirtschaftsrecht’)What is a ‘Wertpapier’?A ‘Wertpapier’ is customarily defined as a document (‘Urkunde’) which comprises orconfirms a private law right, possession and presentation (‘Vorlegung’) of the documentbeing a precondition for the exercise (‘Geltendmachung’) of the right. 27The underlying rationale is the desire, by documentation of a right (‘Verbriefungeines Rechts’), to facilitate its use in commercial transactions (‘Verkehrsfähigkeit’) andmake it as transferable as a (corporeal) thing (‘Sache’). 28 The type of right, which canbe documented, can be contractual (‘schuldrechtlich’) in origin (eg, a bill of exchange(‘Wechsel’)); it can derive from the law of property (eg, a mortgage); or it can be a rightof membership (‘Mitgliedschaftsrecht’; eg, a share in a public company (‘Aktie’)).Where a contractual claim/right (‘Forderung’) is involved, documentation in theform of a ‘Wertpapier’ serves various purposes: 29– it facilitates fulfilment by the debtor of his obligation;– it represents evidence of the creditor’s entitlement (‘Berechtigung’); 30– it protects the position of an assignee (‘Zessionar’) of the claim against a transactionundertaken with the assignor/old creditor (‘Zedent’); 31– it protects the position of a bona fide transferee (‘gutgläubiger Erwerber’) of theclaim.‘Wertpapiere’ can be classified as follows, according to the person entitled to therelevant right: 32– bearer securities (‘Inhaberpapiere’), eg, bearer bonds (‘Inhaberschuldverschreibungen’;§§ 793–808a BGB). 33‘Inhaberpapiere’ are transferable like movables and a transfer (‘Übereignung’) of thedocument operates to transfer the underlying ‘Forderung’ as well. ‘Bona fide’acquisition of both is possible, even if an ‘Inhaberpapier’ has been stolen or hasotherwise gone astray (‘abhanden gekommen’): § 935(ii) BGB. One says: ‘Das Rechtaus dem Papier folgt dem Recht am Papier’ (the right to the document, rather than theright documented, is decisive);– order securities (‘Orderpapiere’).‘Orderpapiere’ offer a greater degree of safety. They combine the ease of negotiabilityof ‘Inhaberpapiere’ with the benefits of naming the person entitled to exercise theright documented, by means of a clause enabling that right to be exercised eitherby the person named or at his order (‘Orderklausel’).A transfer of an ‘Orderpapier’ requires not only a transfer of the document itself (asin the case of an ‘Inhaberpapier’), but also that an indorsement (‘Indossament’) fromthe previous holder appears on the document.The categories of possible ‘Orderpapiere’ are limited by statute. Some securities(so-called ‘geborene Orderpapiere’) are automatically regarded as ‘Orderpapiere’,whether or not they contain the order clause (eg, bills of exchange and cheques).Others (so-called ‘gekorene Orderpapiere’) are only considered to be ‘Orderpapiere’,if they contain the clause; otherwise they are regarded as ‘Rektapapiere’. 34191

The German Legal System and Legal LanguageBearer shares in a public company (‘Inhaberaktien’) are bearer securities. However,despite their title, shares issued in the name of a particular person (‘Namensaktien’)are treated as ‘(geborene) Orderpapiere’, not as ‘Namenspapiere’; 35– securities, which document a right belonging only to a specifically named person(‘Rektapapiere’ or ‘Namenspapiere’).Examples of ‘Rektapapiere’ are mortgage and land charge certificates (‘HypothekenundGrundschuldbriefe’), the civil law documentary instruction (‘Anweisung’; §§783–792 BGB) and the so-called ‘qualified legitimatory documents’ (‘qualifizierteLegitimationspapiere’; § 808 BGB) eg, savings books (‘Sparbücher’). 36Whereas bearer and order securities require a disposal (‘Verfügung’) of thedocument itself according to property law principles, in the case of a ‘Rektapapier’the owner of the documented right is the person properly entitled: § 952 BGB. Anadditional disposal of the document itself is not required for a valid transfer(‘Übertragung’) of the right; the right can be transferred without the document(merely) by assignment (§ 398 BGB). One says: ‘Das Recht am Papier folgt dem Rechtaus dem Papier’ (the right documented, rather than the right to the document, isdecisive or, to put it another way, the ‘Forderung’, rather than the document itself,is in the forefront). 37The dominant view is that the term ‘Wertpapier’ is to be understood in a widesense to include ‘Rektapapiere’. 38‘Wertpapiere’ can further be distinguished according to whether:– they are means of payment (‘Zahlungsmittel’), viz, cheques. Banknotes (‘Banknoten’)are not ‘Wertpapiere’. They are legal tender (‘gesetzliche Zahlungsmittel’), butdocument no (extraneous) right;– they are means of obtaining credit (‘Kreditmittel’), viz, bills of exchange;– they are means of raising capital (‘Kapitalaufbringung’) and of investment(‘Kapitalanlage’), ie, so-called ‘Effekten’ (‘Wertpapiere’ in the banking sense (stock)).Examples are shares (‘Aktien’) and bearer bonds (‘Inhaberschuldverschreibungen’),such as government bonds (‘(öffentliche) Anleihen’) and bond certificates(‘Pfandbriefe’) issued by mortgage banks (‘Hypothekenbanken’).The common feature of ‘Effekten’ is that they are issued in large quantities and areusually taken into collective deposit (‘Sammelverwahrung’) by banks. The individualcustomer is not entitled to particular ‘Wertpapiere’, but has a share in joint ownership(‘Miteigentum nach Bruchteilen’); 39– they are means of facilitating trade with goods in circulation (‘Güterumlauf’) bydocumenting rights to them, eg, a storage certificate (‘Lagerschein’) and a bill oflading (‘Konnossement’). Both of these are so-called ‘Traditionspapiere’, ie, theyrepresent the goods, their delivery having the same effect as physical delivery ofthe goods themselves. 40Documents, which merely evidence a private right (eg, an IOU (‘Schuldschein’))–‘Beweisurkunden’—and simple legitimatory documents (‘einfache Legitimationspapiere’)—ie, those where the right involved can be proved otherwise than by presentation—(eg,192

Chapter XIX: Business Law (‘Wirtschaftsrecht’)a cloakroom ticket (‘Garderobenmarke’), luggage receipt (‘Gepäckschein’) or repair docket(‘Reparaturschein’)), are not ‘Wertpapiere’. Nor are so-called bearer signs (‘Inhaberzeichen’),ie, cards (‘Karten’), stamps (‘Marken’) or tickets, which enable the holder to demandperformance from the issuer (‘Aussteller’), even if the holder is not the person actuallyentitled to do so: §§ 807, 793(i), 2nd sentence BGB. 41193

CHAPTER XXXX PRIVATE INTERNATIONAL LAWA THE EGBGBThe German rules governing conflicts of laws (private international law) are set out inArticles 3–38 of the Introductory Law to the Civil Code (the ‘Einführungsgesetz zumBGB’ (EGBGB)). They specify the applicable legal system (law) where a case has aconnection to the law of a foreign state (Article 3(i), 1st sentence).Articles 3–38 are contained in Part I (general provisions) of the EGBGB and aredivided into five Sections:1: References (‘Verweisungen’): Articles 3–6.2: Law of natural persons and legal transactions (‘Recht der natürlichen Personen undRechtsgeschäfte’): Articles 7–12.3: Family law: Articles 13–24.4: Law of succession: Articles 25–26.5: Law of obligations: Articles 27–38. 1B POINTS TO NOTEIt is important initially to note the following:(i) German private international law was reformed with effect from 1.9.1986. Whereevents/matters are concerned, which were concluded before that date(‘abgeschlossene Vorgänge’), the previous German rules remain applicable: Article220(i) EGBGB.(ii) By Article 3(ii) EGBGB, such provisions of agreements of international public law(ie, international treaties and conventions) as have been transformed into (national)German law take precedence over the provisions of the EGBGB.(iii) Articles 3–38 EGBGB comprise a collection of (national) collision norms(‘Kollisionsnormen’), which assist in ascertaining the relevant applicable law.(iv) The applicable or governing law (‘lex causae’) must be strictly distinguished fromthe law of the forum (‘lex fori’), ie, the law of the place in which the matter isheard. The applicable law (choice of law) is a matter of substance and is not to beconfused with questions of procedure (eg, admissibility of evidence, types ofremedy available). 2(v) In order to determine the appropriate collision norm in a particular case, the legalissue involved must first be categorised. This is the process of characterisation(‘Qualifikation’). 3(vi) The link between the relevant category/collision norm and the applicable law isthe province of the connecting factors (‘Anknüpfungspunkte’), eg, citizenship(‘Staatsangehörigkeit’), habitual or usual residence (‘gewöhnlicher Aufenthalt’), theplace of commission of a tort (‘lex loci delicti’) or the location of property (‘situs’). 4195

The German Legal System and Legal Language(vii) There is a fundamental distinction between the substantive legal provisions(‘Sachvorschriften’) of a legal system and the system (‘die Rechtsordnung’) as awhole (which includes its rules of international private law). The EGBGB can(and does) contain references (‘Verweisungen’) to either. 5Whenever the EGBGB states that a matter is to be determined (alone) accordingto the ‘Sachvorschriften’ of a (foreign) legal system—eg, maintenance under Article18(i) EGBGB—there is no reference to that system’s rules of private internationallaw (Article 3(i), 2nd sentence). 6(viii) A reference in the EGBGB to the law (‘Recht’) of another state is (normally) alsoa reference to that (other) state’s rules of private international law, which,therefore, have to be examined for a possible ‘renvoi’ (‘Rückverweisung’) toGerman law (Article 4(i)). 7C PERSONAL AND FAMILY MATTERSIn fundamental contrast to the law of common law countries—in which the legalconcept of ‘domicile’ holds sway—it is a consistent thread of German privateinternational law that nationality (‘Staatsangehörigkeit’) is the principal connecting factorto establish the applicable law in matters relating to natural persons (Section 2 (Articles7–10 EGBGB)), in matters of family law (Section 3 (Articles 13–24 EGBGB)) andsuccession (Section 4 (Articles 25–26 EGBGB)). 8Indeed, where a person has more than one nationality, but is also a German, thatstatus takes precedence (Article 5(i), 2nd sentence).In the interest of precision, German private international law avoids the difficultiesassociated with establishing domicile (viz, proof of intention (‘animus’)) and, instead,places prime importance on a distinguishing element bestowed by the state (ie,citizenship) or, alternatively, the factual reality of usual residence (‘gewöhnlicherAufenthalt’). 9Thus, for example, by Article 14(i) EGBGB, the general effects of marriage (‘dieallgemeinen Wirkungen der Ehe’) are governed:1 by the law of the state to which both spouses belong (‘angehören’) or last belonged,if one of them still belongs to that state; otherwise2 by the law of the state in which both spouses have, or last had, their usual residence,if one of them still has his or her usual residence there; or finally3 by the law of the state with which the spouses are otherwise jointly most closelyconnected (‘am engsten verbunden’). 10In the case of marital property, however, the law to be applied is that, which governedthe general effects of marriage at the time of conclusion of the marriage (‘bei derEheschließung’): Article 15(i) EGBGB. 11Although under German private international law a person’s domicile (‘Wohnsitz’)is not decisive in order to establish the applicable law, it is important for the purposes196

Chapter XX: Private International Lawof civil procedure (§ 13 ZPO) and in international conventions (eg, the BrusselsConvention (EuGVÜ)).D THE LAW OF OBLIGATIONSSection 5 (Articles 27–38 EGBGB) deals both with the position regarding contractualand non-contractual obligations (eg, tort).1 Contractual ObligationsThe position regarding the law applicable to contractual relationships (‘Vertragsstatut’) 12is, broadly, as follows:By Article 27(i), 1st sentence EGBGB, the parties are free to choose the law applicableto their contract. The choice can be express or, if implication is possible with sufficientcertainty, can be implied from the terms of the contract or the circumstances of thecase: Article 27(i), 2nd sentence. 13Irrespective of the parties’ choice, if the (rest of the) facts point to the law of oneparticular state, that state’s mandatory pro visions/rules (‘zwngende Bestimmungen’)remain unaffected (ie, must still be applied): Article 27(iii) EGBGB. 14In the absence of a choice, the contract is governed by the law of the state withwhich it has the closest connections (‘engste Verbindungen’): Article 28(i), 1st sentenceEGBGB.By Article 28(ii), 1st sentence, it is presumed that the contract has the closestconnections to the state in which:– the party having to undertake the characteristic (act of) performance required bythe contract (‘die charakteristische Leistung’) usually resides; or– if a company, association or juristic person is involved, its centre of administration(‘Hauptverwaltung’) is situated. 15Contracts with private consumers in another state (‘Verbraucherverträge’) are subjectto special rules: Article 29. 16By Article 30(ii) EGBGB, in the absence of a particular choice of law, contracts ofemployment and employment relationships are governed either:1 by the law of the state in which the employee usually undertakes his work inperformance of the contract, even if he is sent temporarily to another state; or2 in so far as the employee does not usually perform his duties in one and the samestate, by the law of the state in which the employing branch is situated.If, however, it appears from the totality of the circumstances that the contract ofemployment or employment relationship has closer connections to another state, thelaw of that state applies. 17By Article 32(i) EGBGB, the abovementioned applicable law is, in particular, decisiveregarding (inter alia):– interpretation of the contract;197

The German Legal System and Legal Language– performance of contractual obligations; and– consequences of full or partial non-performance of those obligations.By Article 32(ii) EGBGB, in considering the manner of performance and the steps tobe taken by a plaintiff in the event of faulty performance, account is to be taken of thelaw of the state in which performance takes place. 18In the field of contractual obligations, a reference to the law of a particular state isto the substantive provisions of that law (only): Article 35(i) EGBGB. There can,therefore, be no ‘renvoi’.If the formation (‘Zustandekommen’) or material validity (‘Wirksamkeit’) (not form!) 19of a contract or one of its provisions is in dispute, the question must be dealt withaccording to the law, which would apply, if the contract or the provision were valid(the ‘putative applicable law’): Article 31(i) EGBGB.However, by Article 31(ii) EGBGB, where the question of consent to the contract(‘Zustimmung’) is in issue and it transpires from the circumstances that it would not bejustified (‘nicht gerechtfertigt’) to apply the putative law in the evaluation of the party’sconduct, that party can rely on the law of his or her habitual residence (‘gewöhnlicherAufenthalt’). 202 Questions of Jurisdiction (‘Zuständigkeit’)When considering the provisions of the EGBGB, it is important, as a preliminaryquestion, to bear in mind the interplay with the jurisdictional provisions of the ZPO.(a) Special venuesFor the purpose of contractual disputes, the court for the place of performance(‘Erfüllungsort’/‘Leistungsort’) has (special) local jurisdiction: § 29 ZPO. 21When parties in different countries of the European Union are involved, the placeof performance is also decisive to establish which court has (international) jurisdiction:Article 5 No 1 EuGVÜ.(b) AgreementsBy § 29(ii) ZPO, an agreement regarding the place of performance only establishes acourt’s jurisdiction (‘Zuständigkeit’), if the parties are (full) businessmen (‘Kaufleute’).Moreover, in civil matters, an agreement regarding jurisdiction(‘Gerichtsstandsvereinbarung’, ‘Prorogation’) is, in general, forbidden, unless it is madeexpressly and in writing after the dispute commences or is only meant to apply, ifproblems locating the defendant arise: § 38(iii) ZPO.However, the parties can agree upon a competent court of first instance: 22– if they are ‘Kaufleute’: § 38(i) ZPO (this is in line with § 29(ii) ZPO); or– if one of the parties has no general venue in Germany (§§ 13–17 ZPO), providedthe agreement is at least confirmed in writing: § 38(ii) ZPO.198

Chapter XX: Private International LawIn the latter case, for the selection of a court within Germany itself, an existing Germangeneral or special venue takes precedence.Where parties in different countries of the European Union are involved, anagreement between the parties regarding (exclusive) jurisdiction (choice of jurisdiction)is possible under Article 17 EuGVÜ. However, to be effective, it must at least beconfirmed in writing or, in matters of international commerce, it must accord with(international) trade custom (‘Handelsbrauch’): Article 17(i), 2nd sentence EuGVÜ. 233 Non-Contractual ObligationsAs for the position regarding non-contractual obligations (eg, tort), the EGBGB onlydeals with torts committed by a German outside Germany. In such cases, the liabilityof the perpetrator cannot extend beyond the maximum laid down by German law:Article 38 EGBGB. 24Torts committed in Germany, whether by Germans or other persons, fall to be dealtwith according to German law, if a plaintiff choses to bring proceedings before theGerman courts. 25Supplementary provisions are now contained in the ‘Gesetz zum InternationalenPrivatrecht für außervertragliche Schuldverhältnisse und für Sachen’ of 21.5.1999. 26E PROOF OF FOREIGN LAWIn civil proceedings, the court is normally bound by a strict procedure for the takingof evidence (‘Beweisaufnahme’; §§ 355–484 ZPO) and only certain types of evidence(‘Beweismittel’) are permitted: the principle of ‘Strengbeweis’ (strict evidence). 27However, by § 293 ZPO proof of such foreign law (‘ausländisches Recht’) as isunknown to the court is one area 28 in which the judge has a free hand and is notlimited to information supplied by the parties: the principle of ‘Freibeweis’ (freeevidence). 29The court conducts the investigation (‘Ermittlung’) of its own motion (‘von Amtswegen’), the aim being the establishment (‘Feststellung’) of the relevant foreign law asit is actually applied abroad.The court can, for example, arrange for information to be requested under theEuropean Convention concerning Evidence of Foreign Law of 7.6.1968. 30An appeal on a point of law (‘Revision’) is possible (under § 549(i) ZPO), if § 293ZPO or the rules of German private international law are breached. 31199

CHAPTER XXIXXI INTERNATIONAL LEGAL COOPERATIONA INTRODUCTIONCooperation in legal affairs is termed ‘Rechtshilfe’. It can be national or international(‘zwschenstaatlich’). 1The conduct and provision of (international) legal assistance with foreign countries(‘Rechtshilfeverkehr mit dem Ausland’) is a matter of ‘Justizverwaltung’ (judicialadministration) and falls within the jurisdiction of the ‘Länder’. 2In civil procedure, 3 international ‘Rechtshilfe’ primarily refers to cooperation in thetaking of (administrative) measures in the forefront of, or during, legal proceedings(eg, service of documents (‘Zustellung’) or the taking of evidence abroad(‘Beweisaufnahme im Ausland’)).International ‘Rechtshilfe’ also extends to questions of the recognition andenforcement (‘Anerkennung und Vollstreckung’) of foreign court decisions(‘Entscheidungen’) or arbitration awards (‘Schiedssprüche’). 4More broadly, international ‘Rechtshilfe’ can be understood in a further,‘interventionist’ sense. The aim of ensuring effective legal protection (‘Rechtsschutz’)abroad can require the establishment of (alternative) procedures for facilitating therealisation (‘Durchsetzung’) of substantive legal claims. 5For these purposes, there is a complex web of provisions in the ZPO and internationaltreaties (‘Staatsverträge’). The latter can, in turn, be multilateral (eg, the well knownHague Conventions) or bilateral/special (‘Sonderverträge’). Moreover, quite apartfrom—and superimposed on—these, are conventions (‘Übereinkommen’) or measuresenacted on the level of the Council of Europe, the European Union and the UnitedNations. 6Thus, in any one case, research can involve a multitude of legal sources.B SOURCES OF LAWIt is important to keep the sources of law relating to international civil procedure distinct:(i)The provisions relating to international procedure contained in the ZPO:§§ 110–113 (lodging of security by foreigners (‘Sicherheitsleistung durch Ausländer’));§§ 199–202 (service of documents abroad (‘Zustellung im Ausland’)); 7§ 328 (recognition of foreign judgments (‘Anerkennung ausländischer Urteile’)); 8§§ 363–364 (taking of evidence abroad (‘Beweisaufnahme im Ausland’)); 9§§ 722–723 (enforcement of foreign judgments (‘Vollstreckung ausländischer Urteile’)); 10§ 791 (enforcement of German judgments abroad).201

The German Legal System and Legal Language(ii) Bilateral treaties.(iii) The various Hague Conventions. 11(iv) Those Conventions emanating from supra-national organisations (eg, the UnitedNations and the European Union). 12 Relevant provisions in (ii) to (iv) supercedethe ZPO as special law (‘Sonderrecht’), so far as they are ratified.(v) National implementing statutes (‘Ausführungsgesetze’). 13C EXTRADITION (‘AUSLIEFERUNG’) 14‘Auslieferung’ (ie, extradition at the request of a foreign state) is a particular form ofinternational legal cooperation in criminal matters. In principle, it is not possible againstGermans. 15‘Auslieferung’ is usually regulated by international treaties, 16 although procedure inGermany is governed by national law. 17Extradition requires reciprocity (‘Gegenseitigkeit’) between the requesting and therequested state. The question is: in the reverse situation, would the requesting statealso order it?Certain other requirements must also be fulfilled:(i) ‘Auslieferung’ can only be sought for a specific offence (the ‘Grundsatz der Spezialität’(principle of speciality)).(ii) ‘Auslieferung’ must be permissible (‘zulässig’) according to the nature of the allegedoffence. In particular, it is not available for a ‘political’ offence, nor if the proposedprosecution is based on race, religion, nationality or political views.(iii) The alleged offence must be punishable with imprisonment of a maximum of atleast one year under both the law of the requesting and of the requested state (the‘Grundsatz der identischen Norm’ (identical norm principle)). 18(iv) The alleged offence must (still) be subject to prosecution (‘verfolgbar’) in both states.(v) ‘Auslieferung’ must be authorised (‘bewilligt’) by the justice authorities of the relevant‘Land’ or by the Federal Government.‘Auslieferung’ must be distinguished from ‘Ausweisung’ (deportation) and from‘Abschiebung’ (physical removal) under the ‘Ausländergesetz’ (AuslG; Law regardingForeigners) or under the ‘Asylverfahrensgesetz’ (AsylVfG; Law on Asylum Procedure). 19202

CHAPTER XXIIXXII THE LEGAL PROFESSION AND COURT SYSTEM 1A THE JUDGES 2The position of judges in Germany is governed by the ‘Deutsches Richtergesetz’ (DRiG:German Judges Law) of 8.9.1961, which is divided into four Parts:Part I: The office of judge in the ‘Bund’ and in the ‘Länder’ (§§ 1-45a).Part II: Judges in service of the ‘Bund’ (§§ 46–70).Part III: Judges in service of a ‘Land’ (§§ 71–84).Part IV: Transitional and final provisions (§§ 85–126).Judges can be either ‘Berufsrichter’ (professional judges) or ‘ehrenamtliche Richter’(honorary (lay) judges). 3Where honorary judges take part in criminal matters, they are referred to as ‘Schöffe’. 4Civil matters are practically only dealt with by ‘Berufsrichter’. However, in the‘Handelskammer’ (chamber for commercial matters) in the ‘Landgericht’, a ‘Berufsrichter’presides with two honorary ‘Handelsrichter’ (commercial judges).In accordance with Article 101(i), 2nd sentence GG (‘Grundsatz des gesetzlichenRichters’), ‘ehrenamtliche Richter’ (honorary judges) can only take part in a court hearing,if and as permitted by statute. 5They are selected on the basis of lists (‘Vorschlagslisten’) 6 and enjoy similarindependence to that of the ‘Berufsrichter’. 7While they cannot preside over the hearing, 8 they basically have the same rights asa ‘Berufsrichter’. 9The capacity to be a judge (‘Befähigung zum Richteramt’) in the ‘Bund’ and in everyGerman ‘Land’ is acquired simultaneously with qualification as a ‘Rechtsanwalt’ bypassing the first state examination (‘erste Staatsprüfung’), serving a ‘Vorbereitungsdienst’(preparatory period of service) of two and a half years as ‘Referendar’, 10 and then passingthe second state examination (‘zweite Staatsprüfun’). 11Professors of law at a German university can be judges. 12In his position as a judge (‘Richterverhältnis’), a judge stands in the service of the‘Bund’ or a ‘Land’; 13 he is not a ‘Beamter’ (civil servant).The appointment (‘Ernennung’) of a judge is usually for life (‘auf Lebenszeit’), althoughan appointment for a particular period or on probation (‘auf Probe’) is possible. 14Judges in the supreme federal courts (‘Bundesrichter’) are appointed by the‘Bundespräsident’ on the recommendation of the Federal Minister of Justice or othercompetent Minister together with a ‘Richterwahlausschuß’ (judicial selection council). 15Judges in the ‘Länder’ are usually appointed merely by the competent Minister ofthe relevant ‘Land’.203

The German Legal System and Legal LanguageIn the ‘Bundesverfassungsgericht’ (Federal Constitutional Court), the 16 judges arechosen as to half by the ‘Bundesrat’ and half by the ‘Bundestag’. 16Judges are independent (‘unabhängig’) and only subject to the law (‘nur dem Gesetzunterworfen’). 17The transfer or removal (‘Versetzung’ /‘Amtsenthebung’) of a judge without hisagreement is only possible in certain limited cases. 18Supervisory and disciplinary measures are subject to final decision by a‘Dienstgericht’. 19 B THE ‘RECHTSPFLEGER’ 20In order to relieve the judges, certain judicial business is transacted by civil servants(‘Beamte’) known as ‘Rechtspfleger’ (legal executives). §§ 3, 20–24a and 29–31 of the‘Rechtspflegergesetz’ of 5.11.1969 (RPflG) transfer to the ‘Rechtspfleger’ various types ofbusiness (so-called ‘übertragene Geschäfte’), for example:– matters concerning ‘Vereine’ (‘Vereinssachen’);– land register matters (‘Grundbuchsachen’) and proceedings for ‘Zwangsversteigerung’and ‘Zwangsverwaltung’;– the ‘Verteilungsverfahren’ (distribution procedure); 21– guardianship, family and care matters (‘Vormundschafts-, Familien- undBetreuungssachen’);*– probate and division matters (‘Nachlaß- und Teilungsssachen’) and official custodyof wills and ‘Erbverträgen’;*– commercial matters (‘Handelssachen’);*– bankruptcy and composition proceedings (‘Konkurs- und Vergleichsverfahren’);*– default notice procedure (‘Mahnverfahren’);– enforcement of judgments (‘Zwangsvollstreckung’); and– fixing of costs (‘Kostenfestsetzung’). 22Certain of the above matters 23 are subject to exceptions, which are reserved to be dealtwith by the judge (‘dem Richter vorbehaltene Geschäfte’). 24A ‘Rechtspfleger’ is not empowered to administer an oath, to threaten or order aperson’s detention (with certain exceptions) or to decide on an application to amenda decision taken by a clerk of the ‘Geschäftsstelle’ (business office) of the court. 25Moreover, only a judge can order a search of premises. 26The ‘Rechtspfleger’ must submit a matter to the judge:– if he wishes to deviate from an opinion of the judge of which he is aware;– if the conduct of the matter gives rise to legal difficulties;– if foreign law is involved; or– if a close connection with a matter to be dealt with by a judge makes the submissionexpedient. 27204

Chapter XXII: The Legal Profession and Court SystemThe appropriate legal remedy against the decision of a ‘Rechtspfleger’ is the ‘Erinnerung’(reminder). 28The ‘Rechtspfleger’ has power to correct his decision; otherwise, he must lay the‘Erinnerung’ before the judge. If the judge takes no action, he must in turn pass it to thenext competent court (a so-called ‘Durchgriffserinnerung’ (piercing ‘Erinnerungr’)). 291 The ‘Gerichtsbarkeiten’ 31C THE COURT SYSTEM 30The German judicature or judicial power (‘rechtsprechende Gewalt’) is divided intovarious branches (‘Zweige’), known as ‘Gerichtsbarkeiten’ (jurisdictions). The types of‘Gerichtsbarkeit’ are:– the ‘ordentliche Gerichtsbarkeit’ (ordinary jurisdiction);– the ‘besondere Gerichtsbarkeit’ (special jurisdiction);– the ‘Verwaltungsgerichtsbarkeit’ (administrative jurisdiction); and– the ‘Verfassungsgerichtsbarkeit’ (constitutional jurisdiction).2 The ‘ordentliche Gerichtsbarkeit’ 32The ‘ordentliche Gerichtsbarkeit’ comprises civil and criminal matters and the so-called‘freiwillige Gerichtsbarkeit’ (voluntary jurisdiction) in non-contentious civil matters.A particular example of the ‘freiwillige Gerichtsbarkeit’ is the activity of the‘Amtsgericht’ as the court responsible for guardianship, probate and trade and landregister matters.The basic statute governing the ‘freiwillige Gerichtsbarkeit’ is the ‘Gesetz über dieAngelegenheiten der freiwilligen Gerichtsbarkeit’ (FGG) of 17.5.1898. 33Where a matter of ‘freiwillige Gerichtsbarkeit’ is involved, the court is responsible forundertaking the necessary investigations itself (‘von Amts wegen’).A decision in a matter of ‘freiwillige Gerichtsbarkeit’ is pronounced not as an ‘Urteil’(judgment), but in the form of a ‘Beschluß’ or ‘Verfügung’ (order or direction) and thehearing is not open to the public. An oral hearing is at the discretion of the court. 34The ‘ordentliche Gerichtsbarkeit’ itself is dealt with in the ‘Gerichtsverfassungsgesetz’(GVG) of 27.1.1877.Apart from the ‘Bundesgerichtshof’ (BGH; Supreme Federal Court) in Karlsruhe, allother courts of the ‘ordentliche Gerichtsbarkeit’ (the ‘ordentliche Gerichte’) are courts ofthe ‘Lände’. The hierarchy is as follows: 35– the ‘Amtsgericht’ (district court AG);– the ‘Landgerich’ (county court: LG);– the ‘Oberlandesgericht’ (county court of appeal: OLG);– the ‘Bundesgerichtshof’ (Federal Supreme Court: BGH).205

The German Legal System and Legal LanguageWith the exception of the ‘Amtsgericht’ all the above are, when sitting, collegial courts(‘Kollegialgerichte’), ie, are composed of more than one judge.In Bavaria, above the OLG an ‘Oberstes Landesgerich’ (supreme county court) exists. 36The competence (‘Zuständigkeit’) of the ‘ordentliche Gerichte’ is laid down in § 13GVG, whereby all civil disputes and criminal matters (‘alle bürgerlichenRechtsstreitigkeiten und Strafsachen’) belong before the ‘ordentliche Gerichte’. 373 The ‘besondere Gerichtsbarkeit’Article 101(ii) GG provides that courts for special subject areas (‘besondere Sachgebiete’)can only be formed by statute (‘Gesetz’) The main example of such ‘besondere Gerichte’ 38are the ‘Arbeitsgerichte’ (employment courts), where the hierarchy is as follows:– the‘Arbeitsgericht’ (employment court (ArbG));– the‘Landesarbeitsgericht’ (county employment court (LAG)); and– the‘Bundesarbeitsgericht’ (Federal Employment Court (BAG)); in Erfurt). 39Special federal courts exist for patent and disciplinary matters. 40To be distinguished from the ‘besondere Gerichte’ are ‘Ausnahmegerichte’ (exceptionalcourts for particular cases); these are forbidden by Article 101(i) GG and § 16, 1stsentence GVG.4 The ‘Verwaltungsgerichtsbarkeit’The ‘Verwaltungsgerichtsbarkeit’ comprises three main areas:– the‘allgemeine Verwaltungsgerichtsbarkeit’ (general administrative jurisdiction, ie,the jurisdiction of the‘Verwaltungsgerichte’ (administrative courts));– the‘Sozialgerichtsbarkeit’ (the jurisdiction of the social (security) courts);– the‘Finanzgerichtsbarkeit’ (the jurisdiction of the finance courts).Apart from the ‘Finanzgerichtsbarkeit’ (which comprises only two instances—the‘Finanzgericht’ and the ‘Bundesfinanzhof’ (BFH; Federal Finance Court in Munich)), thecourt hierarchy of the administrative and social (security) courts is three-tiered: 41respectively:– the‘Verwaltungsgericht’ (VG);– the‘Oberverwaltungsgericht’ (OVG); 42– the‘Bundesverwaltungsgericht’ (BVerwG (in Berlin));and– the‘Sozialgericht’ (SG);– the‘Landessozialgericht’ (LSG);– the‘Bundessozialgericht’ (BSG; in Kassel).The competence of and procedure before the abovementioned administrative, socialand finance courts is, respectively, dealt with by the ‘Verwaltungsgerichtsordnung’(VwGO), the ‘Sozialgenchtsgesetz’ (SGG) and the ‘Finanzgerichtsordnung’ (FGO). 43206

Chapter XXII: The Legal Profession and Court System5 ‘Rechtspflege’ 44The term ‘Gerichtsbarkeit’ is used not only in an organisational sense to refer to itsvarious branches, but also in a functional sense as meaning the exercise of theadministration of justice (‘die Ausübung der Rechtspflege’).‘Rechtspflege’ is not only the domain of the judiciary (the activity of which is referredto as ‘Rechtsprechung’), 45 but includes:– the ‘freiwillige Gerichtsbarkeit’ (voluntary jurisdiction in non-contentious civilmatters); 46– the activity of the ‘Staatsanwalt’ (public prosecutor); 47– the enforcement of judgments (‘Zwangsvollstreckung’); 48– the grant of legal advice (‘Rechtsberatung’) under the ‘Beratungshilfegesetz’ (BerHG)of 18.6.1980;– the activities of the ‘Notar’ (notary) and the ‘Rechtsanwalt’ (lawyer). 49Another type of activity is ‘Justizverwaltung’.6 ‘Justizverwaltung’The term ‘Justiz’ (judicature) covers both ‘Rechtspflege’ and so-called ‘Justizverwaltung’(judicial administration). In everyday speech, it is also used to refer to the judicialpower (‘rechtsprechende Gewalt’/‘Rechtsprechung’).‘Justizverwaltung’ covers a mixed-bag of residual activities not falling within‘Rechtspflege’ proper, qualified according to the character of the work involved. Thus,it includes, for example, (official) supervision of conduct in service (‘Dienstaufsicht’)and (international) assistance in legal affairs (‘Rechtshilfe’). 50‘Justizverwaltung’ is primarily the responsibility of the ‘Länder’—the hierarchy ofthe ‘Justizverwaltung’ and the conduct of ‘Dienstaufsicht’ is laid down in §§ 13–18 of the‘Verordnung zur einheitlichen Regelung der Gerichtsverfassung’ (GVVO) of 20.3.1935.Administrative acts issued by judicial authorities (‘Justizbehörden’) not in the fieldof ‘Rechtspflege’ (ie, not, for example, contentious court decisions), but by way of‘Justizverwaltung’, are referred to as ‘Justizverwaltungsakte’ (judicial acts of anadministrative nature).For this purpose, judicial authorities include the various Justice Ministeries (federaland state), the courts of the ‘ordentliche Gerichtsbarkeit’, the ‘Staatsanwalt’, the police,the ‘Notar’ and the prison authorities (‘Strafoollzugsbehörden’). 511 sIntroductionD THE ‘RECHTSANWALT’ 52The law relating to German lawyers (‘Rechtsanwälte’) is set out in the‘Bundesrechtsanwaltsordnung’ (BRAO; Federal Lawyers’ Ordinance) of 1.8.1959, asamended by the ‘Gesetz zur Neuordnung des Berufrechts der Rechtsanwälte und der207

The German Legal System and Legal LanguagePatentanwälte’ (Law to Revise the Professional Rules Governing Lawyers and PatentLawyers) of 2.9.1994.BRAO is divided into 12 Parts, of which the following are the most important:Part I: The status of the ‘Rechtsanwalt’ (§§ 1–3).Part II: The admission (‘Zulassung’) of the ‘Rechtsanwalt’ (§§ 4–42).Part III: The rights (‘Rechte’) and duties (‘Pflichten’) of the ‘Rechtsanwalt’(§§ 43–59b).Part IV: The ‘Rechtsanwaltskammern’ (Lawyers’ Chambers) (§§ 60–91).Parts V–VII:Part VIII:Disciplinary provisions (‘ehrengerichtliche Vorschriften’) (§§ 92–161a).The ‘Rechtsanwälte’ at the ‘Bundesgerichtshof’ (Federal Supreme Court)(§§ 162–174).Part IX: The ‘Bundesrechtsanwaltskammer’ (Federal Lawyers’ Chamber) (§§175–191).2 Status of the ‘Rechtsanwalt’By § 1 BRAO, the ‘Rechtsanwalt’ is an independent organ of the administration ofjustice (‘ein unabhängiges Organ der Rechtspflege’).The ‘Rechtsanwalt’ exercises a free profession (‘übt einen freien Beruf aus’) and is nota trader (‘seine Tätigkeit ist kein Gewerbe’). 53He is the appointed independent adviser and representative in all legal matters(‘der berufene unabhängige Berater und Vertreter in allen Rechtsangelegenheiten’). 54Within the framework of the relevant legal provisions, everyone has the right to beadvised and represented by a lawyer of his choice (‘durch einen Rechtsanwalt seinerWahl’). 553 Admission as a ‘Rechtsanwalt’The provisions concerning admission (‘Zulassung’) as a ‘Rechtsanwalt’ are set out in §§4–42 BRAO.By § 4 BRAO, admission is dependent on the acquisition of the ‘Befähigung zumRichteramt’ (capacity to be a judge), fulfilment of the preconditions for admission asspecified in the ‘Gesetz über die Tätigkeit europäischer Rechtsanwälte in Deutschland’(EuRAG; Law regarding the Activity of European Lawyers in Germany) of 9.3.2000 orthe passing of the aptitude test (‘Eignungsprüfung’) for lawyers from other EU countriesprovided for in that Law. 56The ‘Rechtsanwalt’ enjoys professional freedom of movement (‘Freizügigkeit’) withinGermany, 57 but must be admitted at a particular court (‘bei einem bestimmten Gericht’)of the ‘ordentliche Gerichtsbarkeit’. 58Admission is granted (‘erteilt’) on application (‘auf Antrag’) to the Justice Ministryof the relevant ‘Land’. 59A ‘Rechtsanwalt’ must maintain his office (‘Kanzlei’) within the area (‘Bezirk’) of the‘Oberlandesgericht’ of his admission 60 and, if admitted at an OLG, cannot be admittedat another court. 61208

Chapter XXII: The Legal Profession and Court SystemUsually, therefore, a ‘Rechtsanwalt’ is admitted either at an ‘Amtsgericht’ and/or‘Landgericht’ or at an OLG (the so-called principle of single admission(‘Singularzulassung’)), although, in nine ‘Länder’ (Baden-Württemberg, Bavaria, Berlin,Bremen, Hamburg, Saarland, Sachsen, Sachsen-Anhalt and Thüringen), the‘Rechtsanwalt’ is entitled to simultaneous admission (‘Simultanzulassung’) at the OLGafter five years’ admission at a court of first instance. 62Admission as a ‘Rechtsanwalt’ at the ‘Bundesgerichtshof’ (Federal Supreme Court) isdependent on selection by a ‘Wahlausschuß’ on the basis of ‘Vorschlagslisten’ (lists).Admission to the BGH restricts practice to that court, the other supreme federal courtsand the ‘Bundesverfassungsgericht’ (Federal Constitutional Court). 634 Relationship of the ‘Rechtsanwalt’ to his Client 64The relationship of the ‘Rechtsanwalt’ to his client (‘Mandant’ or ‘Auftraggeber’) is a socalled‘Geschäftsbesorgungsvertrag’ within § 675 BGB (an agreement of instruction forreward (‘entgeltlich’), as opposed to a mere ‘Auftrag’ ((contract of) instruction withoutpayment).If a ‘Rechtsanwalt’ does not wish to accept instructions, he must notify his refusal(‘Ablehnung’) forthwith. 65In certain circumstances, he is forbidden from acting, eg, where he would breachhis professional duties or in cases of (current or previous) conflicting involvement inthe same matter. 66Where a ‘Rechtsanwalt’ is in continuous employment (‘in einem ständigenDienstverhältnis’) for an employer (in the private sector)—a so-called ‘Syndikusanwalt’—he cannot represent that employer before a court in his capacity as ‘Rechtsanwalt’. 67A ‘Rechtsanwalt’ can be appointed as a compulsory defence lawyer(‘Pflichtverteidiger’). 68A ‘Rechtsanwalt’ can decline to hand out his file (‘Handakte’) until his fees (‘Gebühren’)and disbursements (‘Auslagen’) are paid; he must usually retain his file for five yearsafter completion of the retainer. 69A ‘Rechtsanwalt’ must maintain professional liability insurance(‘Berufshaftpflichtversicherung’) for a minimum amount of DM 500,000.A client’s claim for damages against the ‘Rechtsanwalt’ out of their contractualrelationship becomes statute-barred (‘verjährt’) at the latest three years after the end ofthe retainer. 705 Rights and Duties of the ‘Rechtsanwalt’§§ 43–59b BRAO deal with the rights and duties (‘Rechte und Pflichten’) of the‘Rechtsanwalt’. Of particular importance is § 43 BRAO:§ 43 Allgemeine Berufspflicht. Der Rechtsanwalt hat seinen Beruf gewissenhaftauszuüben. Er hat sich innerhalb und ausserhalb des Berufes der Achtung unddes Vertrauens, welche die Stellung des Rechtsanwalts erfordert, würdig zuerweisen.209

The German Legal System and Legal Language§ 43 General professional duty. The ‘Rechtsanwalt’ must exercise his professionconscientiously. Both within and outside the profession, he must showhimself to be worthy of the respect aznd trust which the position of‘Rechtsanwalt’ demands.The ‘Gesetz zur Neuordnung des Berufsrechts der Rechtsanwälte’ of 2.9.1994 brought aboutsignificant changes to the law concerning the regulation of professional conduct(‘Berufsordnungsrecht’).In particular, three new sub-paragraphs (§§ 43a-c) were added to § 43.§ 43a BRAO lays down six basic professional duties (‘Grundpflichten’):– the duty to maintain professional independence (‘Pflicht zur Wahrung der beruflichenUnabhängigkeit’);– the duty of secrecy/silence (‘Pflicht zur Verschwiegenheit’/‘Schweigepflichf’) regardinganything of which the ‘Rechtsanwalt’ becomes aware in the exercise of his profession(‘anlässlich seiner Berufsausübung’);– the duty to be relevant (‘Sachlichkeitsgebot’), ie, not to make insulting or degradingremarks or consciously to disseminate untrue statements;– the duty not to represent conflicting interests (‘Verbot der Vertretung widerstreitendenInteressen’); 71– the duty to take appropriate care of assets entrusted to the ‘Rechtsanwalt’ (‘Pflichtzur erforderlichen Sorgfalt bei der Behandlung der ihm anvertrauten Vermögenswerte’)and to pass on monies not belonging to him (‘fremde Gelder’) to the person entitledor to pay them into a client’s account (‘Anderkonto’); and– the duty of continuing education (‘Fortbildungspflicht’).§ 43b BRAO deals with the question of lawyers’ publicity (‘Werbung’). The provisionsupplements § 43, from which a prohibition of publicity (‘Werbeverbot’) is, in principle,derived. § 43b permits publicity only insofar as it informs factually (‘sachlich’) in formand content regarding the lawyer’s professional activity (ie, ‘Informationswerbung’)and is not directed to the obtaining of instructions in a particular case. 72§ 43c BRAO enables a ‘Rechtsanwalt’ to apply to the local ‘Rechtsanwaltskammer’for designation as a specialist lawyer (‘Fachanwalt’) in (not more than two of) thefollowing fields: administrative law, criminal law, employment law, family law, sociallaw, tax law.The ‘Gesetz zur Neuordnung des Berufsrechts der Rechtsanwälte’ also set in train anextension of the right of audience (‘Postulationsfähigkeit’) of ‘Rechtsanwälte’, which hasresulted in the abolition of the ‘localisation principle’ (§ 78 ZPO). 73Previously, the detailed rules of professional conduct (‘Standesrecht’) had beencontained in ‘Richtlinien’ (Directives) of the Federal Lawyers’ Chamber(‘Bundesrechtsanwaltskammer’ (BRAK)) issued on 21.6.1973.However, following a decision of the BVerfG on 14.7.1987, the ‘Richtlinien’ wereconsidered unconstitutional. They have now been discarded and replaced by a‘Berufsordnung’ (BerufsO; professional code).The ‘Berufsordnung’ (BORA) was passed on 29.11.1996 by a newly established‘Satzungsversammlung’ (rule-making assembly) of BRAK and came into force on210

Chapter XXII: The Legal Profession and Court System11.3.1997, together with a ‘Fachanwaltsordnung’ (specialist lawyers’ code), which detailsthe requirements and procedure for becoming a specialist lawyer (‘Fachanwalt’) .74The ‘Berufsordnung’ supplements §§ 43a-c BRAO and concretises the rights andduties of a ‘Rechtsanwalt’. 75 It distinguishes general duties (§§ 2–5 BerufsO) and specialduties (§§ 6–33 BerufsO). Thus, for example, a ‘Rechtsanwalt’s duties when handling abrief (‘Mandat’) are set out in §§ 11–18 BerufsO. The ‘Rechtsanwalt’ must inform hisclient promptly (‘unverzüglich’) regarding all developments and items ofcorrespondence, which are significant (‘wesentlich’): § 11. A ‘Rechtsanwalt’ must nottake up contact directly with the other side in circumvention of that party’s lawyer(‘Umgehung des Gegenanwalts’): § 12.7 76If a ‘Rechtsanwalt’ receives a file for inspection from a court or authority(‘Akteneinsicht’), he or she must ensure that unauthorized persons do not obtainknowledge of its contents: § 19.In the case of cross-border activity (‘grenzüberschreitende Tätigkeit’) within theEuropean Union, the CCBE Code of Conduct for Lawyers in the European Communitydated 28.11.1998 has precedence (‘Vorrang’): § 29 BerufsO. The ‘Berufsordnung’ is (only)displaced in the event of a clash. 77Apart from possible disciplinary consequences for breaches of the rules ofprofessional conduct contained in BRAO and the ‘Berufsordnung’, certain conduct bya ‘Rechtsanwalt’ is also penalised by the criminal law:– breach of the duty of professional secrecy (‘Verletzung der beruflichenGeheimhdtungspflicht’; § 203 StGB);– overcharging (‘Gebührenüberhebung’; § 352 StGB); and– party disloyalty, ie, acting for both sides in a matter in breach of trust (‘Parteiverrat’;§ 356StGB). 78Independently of the statutory rules, within the framework of a retainer(‘Anwaltsvertrag’) a ‘Rechtsanwalt’ is subject to various implied contractual duties ofcare (‘Sorgfaltspflichten’), which have been laid down by case-law. They include:– the duty to provide advice and information (‘Beratungs- und Informationspflicht’);– the duty to clarify/explain/warn (‘Aufklärungspflicht’); 79– the duty to carefully check the law (‘Pflicht zur sorgfältigen Rechtsprüfung’);– the duty to choose the safest route in the interest of the client (‘Pflicht zur Wahl dessichersten Weges’);– the duty to follow the instructions of the client (‘Pflicht zur Befolgung der Weisungendes Mandanten’); and– the duty to handle the matter quickly (‘Pflicht zur zügigen Bearbeitung’). 806 The ‘Rechtsaniualtskammer’The ‘Rechtsanwälte’ admitted in the ‘Bezirk’ (area) of an OLG comprise a‘Rechtsanwaltskammer’ (RAK; Lawyers’ Chamber). 81211

The German Legal System and Legal LanguageThe RAK is a public corporation (‘Körperschaft des öffentlichen Rechts’) and issupervised in the observance of law and its rules and in the performance of its dutiesby the ministry of justice of the respective ‘Land’. 82Its organs are the ‘Vorstand’ (board, elected by the ‘Kammerversammlung’ (chamberassembly)) and the ‘Präsidium’ (elected by the ‘Vorstand’). 83The ‘Rechtsanwälte’ admitted at the BGH comprise a separate RAK. 84The Lawyers’ Chambers are united in a ‘Bundesrechtsanwaltskammer’ (BRAK; basedin Berlin), which is supervised by the Federal Minister of Justice. 85Its organs are the ‘Präsidium’, the ‘Satzungsversammlung’ (rule making assembly)and the ‘Hauptversammlung’ (main assembly), where each RAK is represented by itspresident. 86Each RAK is responsible for the professional supervision of its members(‘Berufsaufsicht’).7 Complaints 87Complaints (‘Beschwerden’) against ‘Rechtsanwälte’ are allocated by the ‘Vorstand’ ofthe relevant RAK to various departments (‘Abteilungen’).Where minor breaches of professional rules are involved (or anticipated), the‘Vorstand’ can, in ascending order of severity:– supply information (‘Auskunft’), give advice (‘Rat’) or issue a recommendation(‘Empfehlung’);– issue a (disapproving) caution (‘(mißbilligende) Bekhrung’); or– issue a reprimand (‘Rüge’). 88Alternatively, if the case is more serious, the ‘Vorstand’ can apply 89 to the ‘Staatsanwalt’(State Attorney) to initiate proceedings at a special lawyers’ court/court of honour(‘Anwaltsgericht’/‘Ehrengericht’)—consisting of three lawyers—which has power– to issue a warning (‘Warnung’);– to give a direction (‘Verweis’);– to impose a fine (‘Geldbuße’) of up to DM 50,000;– to impose an occupational ban (‘Berufsverbot’) in certain fields for between oneand five years; or– to make an order of exclusion from the bar (‘Ausschliessung’; ‘striking-off’). If suchan order is expected, a provisional occupational ban is possible. 90The main hearing is held in private: § 135 BRAO.The imposition of a sanction (‘ehrengerichtliche Maßnahme’) is dependent on ablameworthy breach of duty (‘schuldhafte Pflichtverletzung’) by the ‘Rechtsanwalt’,which can be based on intentional or negligent conduct, both inside and outside theprofession.In the latter case (‘außerberufliches Verhalten’), the relevant conduct must, accordingto the circumstances, be especially suited to impair the respect and trust (‘Achtung undVertrauen’) required for lawyers’ work or for the reputation of the legal profession212

Chapter XXII: The Legal Profession and Court System(‘Ansehen der Rechtsanwaltschaft’) in a significant way: § 113(ii) BRAO. In other words,the conduct involved must be so contemptible (‘verächtlich’; normally because it isillegal or threatened with a fine) that it is in the public interest that an ‘Anwaltsgericht’should intervene.With the exception of a breach of duty justifying an occupational ban or exclusionfrom the bar, sanctions in respect of a breach are no longer possible five years after thealleged breach (ie, they are then statute-barred): § 115, 1st sentence BRAO.Moreover, where a punishment or equivalent measure has already been imposedon a ‘Rechtsanwalt’ by another court or authority, an ‘Anwaltsgericht’ must refrainfrom action with respect to the same conduct (‘wegen desselben Verhaltens’) unless adisciplinary sanction against the ‘Rechtsanwalt’ is additionally necessary to ensurethe fulfillment of his duties and to safeguard the reputation of the legal profession:§ 115b BRAO.Proceedings in an ‘Anwaltsgericht’ must be stayed, if a criminal prosecution for thesame conduct is commenced: § 118(i) BRAO. However, proceedings in an‘Anwaltsgericht’ are still possible, if the ‘Rechtsanwalt’ is acquitted: § 118(ii) BRAO.Appeals against judgments are to an ‘Anwaltsgerichtshof’ (a division of the OLG)and, thereafter, to a specialist senate of the BGH (‘Senat für Anwaltssachen’).Admission matters (‘Zulassungssachen’) must initially go to the ‘Anwaltsgerichtshof’.A ‘Rechtsanwalt’, who desires to draw a colleague’s attention to a breach ofprofessional duty, must (first) do so in confidence (‘vertraulich’), unless the client’s orthe ‘Rechtsanwalt’s own interests demand a different reaction: § 25 BerufsO.8 Legal Fees(a) Basis of calculationGerman lawyers’ fees (‘Gebühren’) are governed by the ‘Bundesgebührenordnung fürRechtsanwälte’ (BRAGO) of 26.7.1957. Except as otherwise provided in BRAGO, theyare calculated according to the value of the matter (‘Gegenstandswert’). 91In civil court proceedings and preparatory work therefore (‘vorgerichtliche Tätigket’),the ‘Gegenstandswert’ follows the value established for court fee purposes (referred toas the ‘Streitwert’). 92To assess the court fee value, the applicable provisions are §§ 12–34 of the‘Gerichtskostengesetz’ (GKG: Court Fees Law), which refer to §§ 3–9 ZPO.In the absence of an applicable valuation provision in the GKG or ZPO, the‘Gegenstandswert’ follows (for valuation purposes only) the so-called ‘Geschäftswert’(business value), which is the principle for calculation of court and notary costs innon-contentious civil matters (under the ‘Kostenordnung’ (KostO), also of 26.7.1957). 93If, in turn, the provisions of the KostO do not assist and BRAGO does not contain amore special provision, the ‘Gegenstandswert’ is to be calculated by the ‘Rechtsanwalt’according to fair discretion (‘nach billigem Ermessen’). In the absence of sufficient factualpoints of reference for an estimate (‘Anhaltspunkte für eine Schätzung’) or if non-pecuniarymatters (‘nicht vermögensrechtliche Gegenstände’) are involved, the value of the matter213

The German Legal System and Legal Languagecan be assessed by the lawyer at DM 8,000 (or at more or less, according to thecircumstances), but not at more than DM 1 million: § 8(ii), 2nd sentence BRAGO.Thus, the value of the matter in civil matters is referred to:– in matters where the GKG or ZPO contain an applicable valuation provision, as‘Streitwert’. The actual scale fees of lawyers are set out in § 11(i) BRAGO and in the‘Gebührentabelle’ (fee table) annexed and the fees of the court in § 11(ii) GKG andin the ‘Gebührentabelle’ (fee table) annexed;– in matters where the KostO applies, as ‘Geschäftswert’. The actual scale fees of thecourt in matters of ‘freiwillige Gerichtsbarkeit’ (voluntary jurisdiction) and the feesof notaries are set out in § 32 KostO and in the ‘Gebührentabelle’ annexed. The feesof lawyers in cases where the KostO applies are based on the ‘Geschäftswert’, butare due in accordance with the BRAGO fee table.Each individual fee is referred to as ‘eine (volle) Gebühr’ (one (full) fee). It is dividedinto tenths (‘Zehntel’).(b) Civil proceedings and non-contentious mattersIn (contentious) civil proceedings, the fees of a ‘Rechtsanwalt’ can be made up of one ormore of several full ‘Gebühren’: 941 a ‘Prozeßgebühr’ (procedure fee) for dealing with the matter generally;2 a ‘Verhandlungsgebühr’ (hearing fee) for the oral hearing;3 a ‘Beweisgebühr’ (evidence fee) if evidence is taken;4 an ‘Erörterungsgebühr’ for merely raising the matter, eg, where an attempt to reacha settlement is made. This fee and the ‘Verhandlungsgebühr’ are mutually exclusive.In other (non-contentious) civil matters—ie, non-court activity (‘außergerichtlicheTätigkeit’)—a ‘Rechtsanwalt’ can claim 5–10 ‘Zehntel’ of the following ‘Gebühren’: 951 a ‘Geschäftsgebühr’ (business fee) for dealing with the matter generally; 962 a ‘Besprechungsgebühr’ (discussion fee) for being involved in certain activities; 973 a ‘Beweisaufnahmegebühr’ (taking of evidence fee) for being involved in the takingof evidence required by a court or authority.(c) Other proceedingsThe fees before administrative and finance courts follow those for civil proceedings. 98All administrative proceedings preliminary to court proceedings count as onematter. 99In criminal and social security proceedings ‘Rahmengebühren’ (see (e) below) apply,scaled according to the court involved and the length of the hearing. In criminal matters,fees are differentiated according to whether the defence lawyer is privately selectedor appointed by the court. 100Where proceedings at an employment court regarding termination of anemployment contract are concerned, the value of the matter for fee purposes is 25% ofthe employee’s annual salary: § 12(vii) ArbGG.214

Chapter XXII: The Legal Profession and Court System(d) Level of feesThe fees set out in BRAGO are minimum fees. A ‘Rechtsanwalt’ can (only) demand (ie,enforce) higher fees, if this is agreed in writing. 101An ‘Erfolgshonorar’ (fee based on the success of the matter) or ‘quota litis’ (proportionof any amount recovered) is not permitted. 102Fees can be left to be established at the discretion of the board of the RAK 103 or can,on application by the ‘Rechtsanwalt’ or the client, be set by the court. 104The ‘Gebühren’ compensate a ‘Rechtsanwalt’ for the whole of his activity in a particularmatter and can only be claimed once in the same matter. In court proceedings, feescan be claimed in every instance. 105The fees set out in § 11(i) BRAGO increase in the event of an appeal (‘Berufung’ or‘Revision’). 106For verbal or written advice (‘Rat’) or (brief) information (‘Auskunft’) unconnectedto another chargeable activity, the ‘Rechtsanwalt’ can charge (in civil matters) betweenone-tenth and ten-tenths of a full ‘Gebühr’ and, where the matter relates to a fine orcriminal matter, between DM 25 and DM 335.The fee for a first consultation (‘Erstberatung’) is limited to not more than DM 350. 107For simple letters (‘einfache Schreiben’), the ‘Rechtsanwalt’ is only entitled to twotenthsof a fall ‘Gebühr’. 108For the completion of a written opinion with legal reasoning (‘Gutachten mitjuristischer Begründung’), the ‘Rechtsanwalt’ is entitled to a fair fee (‘eine angemesseneGebühr’) and the criteria for ‘Rahmengebühren’ (see (e) below) apply. 109(e) Framework feesThe fees set out in BRAGO can be merely banded (so-called ‘Rahmengebühren’(framework fees)). 110In that case, the fee within the appropriate band is calculated by the ‘Rechtsanwalt’‘nach billigem Ermessen’ (at his fair discretion) on consideration of all the circumstances,in particular:– the importance of the matter (‘die Bedeutung der Angelegenheit’);– the extent and difficulty of the work involved (‘der Umfang und die Schwierigkeitder anwaltlichen Tätigkeit’); and– the capital (‘Vermögen’) and income (‘Einkommen’) of the client.(f) Legal assistance and legal aidWhere no court proceedings are pending, the provision of assisted legal advice andrepresentation (‘Beratungshilfe’) to persons with a low income is governed by the‘Beratungshilfegesetz’ (BerHG). Lower ‘Gebühren’ apply. 111Again different scale fees apply where legal aid for court proceedings(‘Prozeßkostenhilfe’) is granted. 112215

The German Legal System and Legal Language(g) Future reformThe complexity of BRAGO has led to demands for a simplification of the law concerninglegal fees.Accordingly, in October 2001, the Federal Ministry of Justice published a draft law,which is intended to replace BRAGO and comes into force in 2003. See: Burhoff inZAP-Aktuell 21/2001, p 1308. The draft law is entitled ‘Rechtsanwaltsvergütungsgesetz’(RVG, Law regarding the Remuneration of Lawyers).The RVG essentially harmonises the fee structure in all (non-criminal) jurisdictionalbranches and recognises the increased importance of lawyers’ extra-court activity(consultation and mediation). Thus, in future, there will be only two possible types offee in court proceedings: a procedure fee (‘Verfahrensgebühr’) and an attendance fee(‘Terminsgebühr’). On the settlement of a dispute out of court, a resolution fee(‘Einigungsgebühr’) is introduced. The former ‘Beweisgebühr’ and ‘Vergleichsgebühr’ aredispensed with. In criminal matters, fees are increased and in proceedings involvingfines (‘Bußgeldverfahren’) remuneration is to reflect the amount of the fine at stake.9 The ‘Partnerschaftsgesellschaft’On 10 June 1994, a ‘Gesetz zur Schaffung von Partnerschaftsgesellschaften’ (in force since1 July 1995) was passed, enabling a ‘Partnerschaftsgesellschaft’ (partnership (company))to be registered at the local ‘Amtsgericht’.The ‘Partnerschaftsgesellschaft’ is a special type of ‘Personengesellschaft ’ for membersof the ‘freie Berufe’ (free professions), such as ‘Rechtsanwälte’.The new law is supplemented by the provisions of the BGB regarding civil lawpartnerships (§§ 705 ff BGB) and contains various references (‘Verweisungen’) to theHGB.As from 1st July 1997, the name of a professional firm with more than one member(a ‘Sozietät’) can only be supplemented by the words ‘and Partners’, if it is organisedas a ‘Partnerschaftsgesellschaft’ or if its (other) legal form is clearly shown by means ofa suffix. 113The ‘Partnerschaftsgesellschaftsgesetz’ (Part GG) is set out, broadly, as follows:§ 1 Definition of the ‘Partnerschaftsgesellschaft’; who can be a partner. 114§ 2 Name of the partnership.§ 3 Partnership agreement (‘Partnerschaftsvertrag’).§ 4 Notification (‘Anmeldung’) for registration.§ 5 Content of the entry in the register.§ 6 Internal relationship (‘Innenverhältnis’) between the partners.By § 6(ii) individual (but not all) partners can be excluded from (internal)management (‘Geschäftsführung’).§ 7 External position (‘Außenverhältnis’) of the partnership.By § 7(i), the partnership (‘Partnerschaftsgesellschaft’) arises (‘entsteht’) onregistration.Beforehand, it is treated as a GbR.216

Chapter XXII: The Legal Profession and Court System§ 7(ii) refers to § 124 HGB, meaning that like the OHG, but unlike the GbR, the‘Partnerschaftsgesellschaft’ is a ‘Rechtssubjekt’ and ‘rechtsfähig’, ie, capable of suingand being sued in its own name. The ‘Partnerschaftsgesellschaft’ is a‘Gesamthandsgemeinschaft’ (joint community), but is approximated (‘angenähert’)to a juristic person.By § 7(iii), each partner has an unlimitable right of representation(‘Vertretungsbefugnis’) in relation to third parties.By § 7 (iv), a ‘Partnerschaftsgesellschaft’ can provide legal advice (‘Rechtsberatung’),provided it acts through admitted ‘Rechtsanwälte’. Moreover, a ‘Partnerschaftsgesellschaft’is ‘postulationsfähig’, ie, it has a right of audience at court.§ 8 Liability (‘Haftung’).Where there is a ‘Partnerschaftsgesellschaft’, § 8(ii) Part GG lays down a statutoryconcentration of liability (‘Haftungskonzentration’) for professional mistakes on thepartner with responsibility for the particular matter.In the case of a civil law partnership (GbR or ‘BGB-Gesellschaft’), on the otherhand, the basic rule is that all partners are personally liable (ie, with their privateassets (‘Privatvermögen’)), as joint debtors, for the obligations of the partnership.However, by § 51a(ii), 2nd sentence BRAO, liability can be concentrated on themember of the firm acting in the matter (also in standard business terms(‘vorformulierte Vertragsbedingungen’)). There must be a signed agreement (§ 51a(ii),3rd sentence BRAO), which can limit the private assets available, but which cannotexclude partnership assets (‘Gesellschaftsvermögen’). 115The limitation of liability (‘Haftungsbeschränkung’) to a maximum amount(‘Höchstbetrag’) is dealt with in § 51a(i) BRAO. Standard business terms can limitliability for simple negligence (‘einfache Fahrlässigkeit’) to DM 2 million, ie, fourtimes the minimum amount of professional liability insurance (currently DM500.000). However, liability for gross negligence (‘grobe Fahrlässigkeit’) can only berestricted up to the abovementioned minimum figure by an individual (negotiated)agreement (‘Vereinbarung im Einzelfall’). In both cases, liability can be limited tohigher amounts, provided appropriate insurance cover exists.§ 9 Termination (‘Auflösung’) of the partnership; departure (‘Ausscheiden’) of a partner.§10 Liquidation and limitation period for claims (‘Verjährung’). 116E THE ‘NOTAR’ 117(i)Notaries are governed by the ‘Bundesnotarordnung’ (BNotO; Federal Notaries’Order) of 24.2.1961. They are appointed by the justice ministeries of the ‘Länder’and hold an independent public office. 118Appointment is subject to a ‘Bedürfnisprüfung’ (test of need), ie, only so manynotaries are appointed as are required for an orderly administration of justice. 119Notaries provide impartial assistance (‘unparteiische Betreuung’) to both sides in thearea of so-called ‘vorsorgende Rechtspflege’ (precautionary administration of justice). 120217

The German Legal System and Legal Language(ii) A ‘Notar’ is competent to undertake the matters set out in §§ 20–24 BNotO. Theprincipal responsibility of the ‘Notar’ is the (public) documentation ((‘öffentliche’)‘Beurkundung’) of various transactions involving declarations of will(‘Willenserklärungen’), such as:– the conclusion of a contract for the sale or purchase of land (§ 313 BGB);– the making of a ‘Schenkungsversprechen’ ((contractual) promise of a gift (forthe future) (§ 518 BGB), other than one conditional on survival after the donor’sdeath (to which the provisions of the BGB regarding ‘Verfügungen von Todeswegen’ (ie, wills, contracts of succession) apply: § 2301 BGB);– the making of an ‘öffentliches Testament’ (public will; § 2232 BGB);– the conclusion of an ‘Erbvertrag’ (estate contract; § 2276 BGB);– the assurance in lieu of oath (‘eidesstattliche Versicherung’) necessary in orderto prove certain particulars required for the grant of an ‘Erbschein’ (certificateof inheritance; § 2356(ii) BGB);– the establishment of a GmbH (limited company) or AG (public company) (§2(i) GmbHG and § 23(i) AktG).(iii) The ‘Beurkundungsgesetz’ (BeurkG) of 28.8.1969 contains the procedural rulesregarding documentation. A ‘Niederschrift’ (written record) of the proceedings mustbe made. The original of the ‘Niederschrift’ is normally kept by the ‘Notar’ andlisted in an annual ‘Urkundenrolle’ (roll of documents). 121The copies (‘Ausfertigungen’) are distributed as required.When undertaking a ‘Beurkundung’, notaries have certain duties (so-called‘Prüfungsund Belehrungspflichten’; §§ 17–21 BeurkG), in particular:– to check the facts and to check that the transaction is legal and accords withthe true will of those involved;– to take care that a person involved is not prejudiced through inexperience;– to advise those involved of the legal effect of the transaction (‘die rechtlicheTragweite des Geschäfts’); and– to ensure that declarations are documented clearly and in no uncertain terms(‘klar und unzweideutig’).(iv) Notaries can also provide certifications (‘Beglaubigungen’) of signatures and copydocuments and certificates (‘Bescheinigungen’) of entries in public registers by meansof a ‘Vermerk’ (note under seal): §§ 39–43 BeurkG. The taking of oaths (‘Eide’) andassurances in lieu of oath (‘eidesstattliche Versicherungen’) by a notary is limited,respectively, to cases requiring this abroad and circumstances in which anallegation of fact or a statement needs to be substantiated to a ‘Behörde’ (authority)or ‘sonstige Dienststelle’ (other public office). 122(v) A breach of the notary’s official duties (‘Amtspflichtverletzung’) can lead to a claimfor damages against him. 123Like the ‘Rechtsanwälte’, the notaries of a particular ‘Bezirk’ (area) comprise a‘Notarkammer’ (Notarie’ Chamber). 124218

Chapter XXII: The Legal Profession and Court System(vi) Notaries’ costs (fees and disbursements) are dealt with in the ‘Kostenordnung’. 125(vii) The ZPO contains certain statutory rules laying down the evidential force(‘Beweiskraft’) to be given to documents (‘Urkunden’): §§ 415–418 ZPO. They extendto public and private documents, as appropriate.The rules are exceptions to the principle of the free assessment of evidence and bindthe court: § 286(ii) ZPO.Thus, a public document (‘öffentliche Urkunde’)—ie, a document concerning adeclaration made in the presence of a public authority (‘öffentliche Behörde’) or a personholding public office (eg, a ‘Notar’) and executed in the prescribed form—providesfull evidence—on a formal level—of the event documented (not, however, as to thesubstantive content of the document, its interpretation or legal significance!): § 415(i)ZPO.If it can be proven that the relevant event was incorrectly documented, such counterevidence(‘Gegenbeweis’) is admissible: § 415(ii) ZPO.Further, a public document attesting to/reporting on the existence/occurrence of aparticular fact/event, which has been personally perceived by a public authority orofficeholder (eg, a certificate, official notification or protocoll)—a so-called‘Zeugnisurkunde’—provides full evidence—on a formal level—of the relevant fact/event: § 418(i) ZPO.The notarial certification of a signature to a private document provides fullevidence—on a formal level—that the statements contained in the relevant documentemanate from the signatory: § 416 ZPO.Here too, however, counter-evidence can be presented, if available, as to thegenuineness (‘Echtheit’) of the document, its content, effect or substantive evidentialvalue. 126219

NOTESPREFACE TO THE THIRD EDITION1 See Preface to the Second Edition, Note 11 B.2 See Preface to the Second Edition, Note 7.3 See the article by Gil Carlos Rodríguez Inglesias in the Frankfurter Allgemeine Zeitung (FAZ) of 3.5.2000: ‘EinEckpfeiler der Integration’. See also Chapter XVI, Note 3 C.PREFACE TO THE SECOND EDITION (WITH CORRECTIONS)1 In Germany, the study of law is referred to as a science (‘Rechtswissenschaft’). The equivalent term in Englishis usually ‘jurisprudence’, although that properly describes legal philosophy.There is still much truth in Kelsen’s Pure Theory of Law in so far as it analyses the (national) German legalorder. However, it would be going too far to describe German law today merely as an objective science,sapped of all ideological, sociological or natural law content.See this Preface, Note 9; Chapter I, Note 17; Chapter XXII, Note 10.2 Notable German jurists engaged in the search for ‘new’ methods since 1945 are Viehweg, Esser, Luhmannand Larenz. See Wesel (JW), Chapter XIII.See also: Kommers, Part I, Chapter 2 (‘Constitutional Interpretation’—‘Background’) and Chapter 4 (‘Judicialversus Legislative Authority’).3 It is perhaps too ideological to claim, as Wesel does, that a precise legal language is the product of greateregoism and social injustice (in Germany). I would submit that one of the main reasons for the more preciseGerman legal language is simply the fact that there are cultural (and linguistic) differences between Germanand English people.Moreover, the German language generally is characterised by a tendency (sometimes overdone) to combinewords, thereby giving rise to a rich (and lengthy) vocabulary.See Wesel (FR), Chapter 1; Coing, Chapter III. See also: this Preface, Note 10; Chapter I, Note 16; Chapter X,Note 62.4 National popular opinion opens the barriers, but also sets the limits to absorption by a particular legalsystem of foreign, ‘supra-national’ or international rules. Moreover, history teaches what can happen, whenlaw is allowed to become a vehicle for oppression or a ‘shroud’ for naked political intervention.Zweigert and Kötz (Chapter 3 VI) point to ‘function’ as the start-point and basis of all comparative law.What then of (national) language? Language is the basis of human understanding and an inextricable elementof society. Despite the occasional ‘conflict of languages’, there is no prospect of their abolition, nor, in practice,is there a way around them.To reduce the importance of language is, ultimately, to ignore its role as a means of communication.See the article by Tony Weir in ZEuP 1995, p 368: ‘Die Sprachen des europäischen Rechts. Eine skeptischeBetrachtung’ and the article by Pierre Pescatore in ZEuP 1998, p 1: ‘Recht in einem mehrsprachigen Raum.See also Notes 10 and 12 in this Preface.5 For a comparative assessment of the development of the European Union, see the article by Martfred Zuleeg(a former German judge of the European Court and Professor at the University of Frankfurt) in Am J CompL 1997, Vol 45, p 505: ‘What holds a nation together? Cohesion and Democracy in the United States ofAmerica and in the European Union’.Zuleeg rightly points out that communication is facilitated by technology. However, culture and humanunderstanding is a much more complex phenomenon (see Note 10, below). Zuleeg is merely scratching thesurface.In another article (‘The European Constitution under constitutional constraints: the German scenario’; EurL Rev 1997, Vol 22, p 19), Zuleeg explores the German Federal Constitutional Court’s thinking on Europeanintegration and reviews its case-law on the subject since 1967. He takes issue with the ‘Maastricht Judgment’of 12.10.1993 and criticizes the ‘strong political credo and will’ of the Reporting Judge in the case, PaulKirchhof, who is also Professor at the University of Heidelberg. In particular, Zuleeg fears a usurpation ofpower by national authorities, ie, a ‘snowball effect’, if a national court were to declare European Communitylaw inapplicable in its territory.221

The German Legal System and Legal LanguageHowever, it is revealing that, in his article, Zuleeg states (p 20): ‘The constitution of the EuropeanCommunity…is rather complex, but it exists.’Herein lies the hidden question: if the constitution is so complex, that only experts understand it, what is tostop, for example, the so-called ‘fundamental principle’ of the European Union (viz. ‘subsidiarity’), wherebydecisions are to be taken ‘as closely as possible to the citizen’ (‘bürgernah’), from eventually becoming adead letter?The answer according to Zuleeg is, presumably: spreading the ‘gospel of cohesion’ among the people ofEurope (ie, the ‘ordinary man in me street’).To this, one might respond: people may have different views on the meaning of ‘democracy’, but the natureof man is the same everywhere: personal freedom and self-interest are often ultimately the decisive factorsand not the supposed common bond of a political or religious doctrine. The following saying springs tomind:‘Der Mensch denkt an sich selbst zuletzt’.Man thinks of himself last.Or should it read:‘Der Mensch denkt an sich, selbst zuletzt’.Man thinks of himself, even finally.6 See the article by Hans-Peter Schneider entitled ‘Grenzen der Rechtsangleichung in Europa’ in the FrankfurterAllgemeine Zeitung (FAZ) of 16.10.2000.7 At the European Council in Nice on 7.12.2000, a ‘European Charter of Basic Rights’ was proclaimed alongthe lines of the European Convention on Human Rights. The Charter was prepared by a ‘convent’ of 62persons under the Chairmanship of the former German President, Roman Herzog. ft is intended as aforerunner of a European Constitution. However, at the moment, the influence of the Charter is limited, asit only applies directly to the institutions and staff of the European Union (Article 51). Thus, there is a schoolof thought that it could prove to be a castle in the air.See the article by Katja Gelinsky entitled ‘Ein Luftschloss?’, in the Frankfurter Allgemeine Zeitung (FAZ) of28.9.1999.See also: the article by Hans-Werner Rengeling in the Frankfurter Allgemeine Zeitung (FAZ) of 21.7.1999:‘Eine Charta der Grundrechte’; Note 12 in this Preface.8 Zweigert and Kötz (Chapter 14 II) praise the Swiss Civil Code as a model for the legal unification of Europe.It is much less concerned with legal certainty than the BGB (‘with its demanding, difficult, and pedantictechniques, its precise, disciplined, and artificial language’) and provides judges with greater freedom ofdecision.In response, one might argue that, on the contrary, the highly sophisticated nature of German law is anecessary corollary to the complexity of human relationships, that it reflects a desire—in Germany—tocreate a legal system of high authority and constant quality (‘gleichbleibende Qualität’) and that, in fact, bybeing as far as possible predictable (‘vorhersehbar’), it gives individual members of society greater flexibility,since it gives less room to the idiosyncracies of others (judges).If one wants to do things thoroughly (‘gründlich’), there is no short-cut.9 Although, for a variety of reasons, the leaders of the member states are currently holding back fromestablishing a (super-)state as such, the European Union’s legal order is increasingly asserting itself. The EUmay not be innately sovereign, but it has organs (institutions) for the creation, declaration and enforcementof law and is, therefore, arguably already a ‘State’ in Kelsen’s sense, except in name (see The Pure Theory ofLaw (1960), translated by Max Knight, pp 286ff).In Germany, the current political debate centres on the need for structural reform of the EU and a moretransparent distribution of power (‘Machtverteilung’) between the EU and the member states. With theexpansion of the EU, it will be important to ensure that the organisation does not become unwieldy andremains capable of acting (‘handlungsfähig’).See the article by Wolfgang Schäuble and Karl Lamers in the Frankfurter Allgemeine Zeitung (FAZ) of 4.5.1999:‘Europa braucht einen Verfassungsvertrag’.The desirability of reforming encrusted structures is also one of the recurring themes with regard to thenational German legal system, so as to satisfy increasing public demand for a quicker and simpler resolutionof disputes, whilst retaining the authority of the State and despite the complexities of a ‘globalised’information society (‘Informationsgesellschaft’).10 A In the Foreword to the first issue of ICLQ in January 1952, Lord Denning referred to ‘the clockworkstatutes of the federalists’ and to Germany’s legal structure as ‘a castle in the air’. His comments revealthat, at that time at least, mere was a deep English suspicion of continental methods.Even today, the alien nature of codified systems often mystifies common lawyers used to a more fluidapproach.See Note 3 in this Preface; Chapter I, Note 13.222

NotesBSee also the powerful article by Pierre Legrand in ICLQ 1996, Vol 45, p 52: ‘European Legal Systemsare not Converging’. Legrand makes the following points:(i) The difference between legal cultures goes much deeper than the legal systems themselves. Alegal system is manifested ‘on the surface’ by rules. However, these reveal little about a givenlegal system and its ‘deep structures’.(ii) In reality, rules encode (historical) experiences; they embody a whole culture/view of the world(‘Weltanschauung’) and a set of values (‘Werte’). Law is a ‘social subsystem’ and cannot be artificiallyseparated from other human sciences. Habits and customs are equally important, a fact oftenforgotten by comparative lawyers. Thus:Law simply cannot be captured by a set of neatly organised rules… ‘The law’ and ‘the rules’ donot coexist… There is much ‘law’ to be tound beyond the rules. By adhering to a ‘law-as-rules’representation of the legal world, much comparative work has effectively become an‘epistemological barrier’ to legal knowledge. In other words, comparative legal studies leadsthe lawyer astray by suggesting that to have knowledge of the law is to have knowledge of therules (and that to have knowledge of the rules is to have knowledge of the law!). In its quest forrationality, foreseeability, certainty, coherence and clarity, much comparative work, therefore,strikes a profoundly anti-humanist note.(iii)The leeal cultures of the common law and civil law systems—their ‘cognitive structure’ orunderlying ‘mentalité’—are irreducibly different, despite their adjacence within the EuropeanCommunity. In Legrand’s view, European legal systems ‘..have not been converging, are notconverging and will not be converging’. Indeed, convergence between them is impossible, notablyon account of the following factors:(a) The reasoning of the common lawyer is empirical and inductive (ie, proceeds from particularfacts), while that of the civil lawyer is abstract and institutional. In other words, to thecommon lawyer, law is a pragmatic craft, rather than a science.(b) The common lawyer disdains systematisation and is more concerned with the resolutionof the concrete problem before him (ie, common law is reactive and not, like the civil law,proactive or protective).(c) Common law ‘rules’ have no coercive effect and are subject to legitimate change by judges(ie, by case-law).(d) To the common lawyer, the facts of legal cases are much more important than concepts orpropositions, ie, legal knowledge emerges not from rules, but from factual situations.(e) Civil lawyers speak as a matter of course of subjective rights, whereas the tradition of thecommon law is that one has no ‘rights’, unless one is protected by a cause of action (asdisclosed by the facts).(f) Common law has its roots in (past) custom and is not the product of a particular time.Because custom is the pre-eminent value underlying the doctrine of precedent, the judgedoes not ‘decide’ for the community; rather, he remembers the community to itself. On theother hand, reliance on custom nurtures a static approach to law.Legrand’s (pessimistic) analysis is that European legal unity is a chimera, ie, all attempts atconvergence between the European legal systems are doomed to fail. Based on our experiencesand knowledge, that may well be so. However, one might equally argue that peace, justice andunderstanding are impossible to achieve. These were, and still are, the real—and even moreimportant—motives behind the European ideal. If we do not accept these, we are deprivingfuture generations of hope and allowing our own (encrusted) views to dictate the future.As Legrand astutely observes, law is a ‘hybrid’ of technical reasoning and political power. Thiswill remain the case, whether or not European legal convergence is achieved.11 A EU legislation is continuing to sprout merrily and is also starting to create uniform rules of civil law andprocedure. Recent examples are:(i)(ii)(iii)The so-called E-Commerce Law, which implements EU Directive 2000/ 31 dated 8.6.2000 andcame into force on 1.8.2001. It modernises the provisions in the BGB and elsewhere concerningthe form of legally-effective acts. See Chapter X, Note 54.The Law regarding Long-Distance Transactions (‘Fernabsatzgesetz’; FernAbsG), which implementsEU Directive 1997/7 and came into force on 30.6.2000. The FernAbsG strengthens the rights ofconsumers in transactions concluded by long-distance means of communication. See the Exposéin Chapter X (after § 515 BGB).The uniform guarantee period (‘Gewährleistungsfrist’) of two years for purchasers of new consumergoods (‘Verbrauchsgüter’), which applies throughout the European Union from 1.1.2002. Apurchaser of such goods is able to daim repair or replacement from the vendor or manufacturer,if a contractual infringement (‘Vertragswidrigkeit’) existed at the time of sale.223

The German Legal System and Legal LanguageBCIn accordance with the relevant EU Directive (1999/44), there is a (rebuttable) presumption infavour of the purchaser that a contractual infringement existed at the time of sale, if theinfringement comes to light within six months thereafter, ie, there is a reversal of the burden ofproof (‘Umkehr der Beweislast’).The guarantee period for second-hand goods is one year.See the reports in the Frankfurter Allgemeine Zeitung (FAZ) of 18.4.1999 and 27.4.1999; Albrecht,ZAP, Fach 25, p 93. Cf the guarantee provisions in the BGB (§§ 459ff).(iv) the EU-wide provisions whereby divorce/nullity decisions and decisions in parental care mattersare reciprocally recognised throughout the EU (EU Regulation 1347/2000). These took effect on1.3.2001. See Chapter XIII, Note 148.(v) the EU-wide provisions laying down a uniform procedure for service of judicial and non-judicialdocuments (EU Regulation 1348/2000). These took effect on 31.5.2000. See Chapter XXI, Note 7.Other proposed measures are:(vi) the establishment of a pan-European procedure for debt recovery. See Chapter XIII, Note 163;(vii) the establishment of a pan-European criminal law system. See (1999) Gazette, 96/11, p 12.On the national level, too, the enactment of proposals to modernise the German law of obligations isimminent (viz the ‘Gesetz zur Modernisierung des Schuldrechts’, which is due to come into force on1.1.2002). See the survey by Henssler in ZAP, Fach 2, pp 291ff.Another significant proposal is the amendment of § 253 BGB and the repeal of § 847 BGB to allowdamages for pain and suffering (‘Schmerzensgeld’) to be awarded generally, ie, also in cases of contractualclaims and strict liability. Cf Chapter X, Note 227.There is currently enthusiasm for legislative reform on a grand scale, but it is naive to think that, byshaking the foundations of German law—like a bull in a china shop—the key, traditional institutionsand mechanisms of the system (eg, the German legal language) will thereby simply be exorcized.More importantly, even if consensus can be reached regarding principles of the law of contract perceivedto be common to certain EU member states, it cannot hope to deal with the innumerable and sometimescontroversial points of detail, which are often decisive in practice. It may be a starting point, but theroad to a European Civil Code will be long and stony.See the articles in the Frankfurter Allgemeine Zeitung (FAZ) of 20.11.2000 (‘Geplante Zivilrechtsreformstößt auf Kritik’), 23.12.2000 (‘Die Schuldrechtsreform hält Schritt mit internationalem Recht’) and 2.7.2001(‘Das BGB vor der Neuordnung’).See also Chapter X, Note 92.With effect from 1.1.2002, civil procedure in Germany is also due for a radical shake-up (viz. the‘Gesetz zur Reform des Zivilprozesses’). The intention is to strengthen hearings at first instance and limitthe possibilities for appeals.Even if the changes succeed in reducing the workload of the judiciary, there is a risk that lawyers willultimately be buried by a mass of detail and lose signt of the larger picture. Ignorance, uncertaintyand more injustice may be the result. In particular, in the fervour to keep up to date, lawyers (and theirclients) will have to be more wary than ever not to fall foul of procedural stumbling-blocks(‘Stolpersteine’), which invariably slow down progress. The slightest upset in the delicate balancebetween ‘transparency’ and confusion can make proceedings unpredictable.See Schneider, ZAP, Fach 13, p 1063; Scneider, ZAP-Kolumne, 23.1.2002, p 67; Chapter XIII D 2 (c) (v)and (vi); Chapter XIII D 2 (e); Chapter XIII D 3.12 The European Union aspires to becoming a lasting legal order. As yet, however, there is (still) no true ‘basicnorm’ for the EU, despite the ‘supra-national’ triumphs since 1945. The ultimate roison-d’etre for the EU (ifit has one at all) can only lie in the defence, rather than the spread, of common interests and values (‘Werte’).These common interests and values—which have eluded so many previous generations—are necessarilysubjective.Even if this (fundamental) criticism is put aside, the EU will have to face questions of substance andcontinually follow a human and individualist approach, if it is to survive as a legal system. Coordination oflaws, ‘purposive’ interpretation, divisions of sovereignty, the establishment of a bureaucracy, reciprocalrecognition of judgments and refinements to the EU’s legal form (viz ‘subsidiarity)—reminiscent or thehierarchical structure (‘Stufenbau’) of Kelsen—are only one, albeit important side of the equation.To put the key issue in the words of the ‘historical’ school—a legal system can only succeed, if it is inharmony with the internal convictions (collective values) of the people to whom it is addressed; it cannot beimposed. Moreover, consensus in international relations is notoriously difficult to achieve.See Chapter I, Notes 10, 13 and 16; Chapter XVI, Note 3 C; Chapter XX, Note 12; Chapter XXI; d’Entrèves,Additional Essay A, IV.224

NotesThe protection of values is also the bedrock of NATO and the Council of Europe. See the articles by JavierSolana entitled ‘Es geht urn die Verteidigung unserer Werte’ and by Leni Fischer entitled ‘Das demokratischeGewissen’ in the Frankfurter Allgemeine Zeitung (FAZ) of, respectively, 24.4.1999 and 5.5.1999.13 See Chapter XIII, Note 18; Chapter XX Note 12.CHAPTER I1 See generally: Dulckeit/Schwarz/ Waldstein; Haft; Honsell; Kaiser (Section I, Chapter 1); Köbler; Laufs;Model/Creifelds/Lichtenberger, Part I B (11–25); Schunck/De Clerck, Part I, Chapter 18; Wesel (JW). Seealso Creifelds under ‘Code civil’, ‘Constitute Criminalis Carolina’, ‘Deutsches Reich’, ‘Grotius’, ‘Heiliges RömischesReich Deutscher Nation’, ‘Historische Rechtsschule’, ‘Jhering’, ‘Naturrecht, ‘Pufendorf’, ‘Reichskammergericht’,‘Reichsverfassung’, ‘Römisches Recht’, ‘Rezeption’, ‘Sachsenspiegel’ and ‘Savigny’.2 See Honsell, § 2 II3 According to a quotation from Gaius in the Institutes (160 AD), the division of law was into ‘ius civile’ (civillaw, ie, the special law of a particular state) and ‘ius gentium’ (law common to all mankind, ie, law observedby all nations (public international law)).Unlike Gaius, who based ‘ius gentium’ on ‘natural reason’, Ulpian distinguished a separate category of ‘iusnaturale’ (natural law) as a form of law belonging to all animals and not peculiar to the human race. Ulpianalso explained the difference between ‘ius privatum’ (private law) and ‘ius publicum’ (public law), a distinctionwhich originated during the Roman Republic and has gradually become more important.See Chapter IX, Note 1; Haft, Part C, 2; Honsell, § 3 II-III; Wesel (JW), Chapter IV.Regarding natural law, see Notes 9 and 10 in this Chapter.4 It was said: ‘Quidquid non agnoscit glossa, non agnoscit curia’ (what is not acknowledged by the gloss is notacknowledged by the court).5 It was said: ‘Nemo bonus iurista nisi bartolista’ (noone is a good jurist, if he does not follow Bartolus).6 In England, where a case-law system (‘Fallrecht’) has dominated since the 13th century, the influence ofRoman law has been limited. The distinction between common law and equity reflects the Roman lawdistinction between ‘ius civile’ and ‘ius honorarium’; under the latter, the magistrate (praetor) was able toapply ‘aequitas’ (fairness) when reaching his decision.See Haft, Part C, 3 and 5; Honsell, § 2 III-IV; Laufs, Chapter III; Wesel (JW), Chapter V; Youngs (CL), Chapter2, Part I, Sections C and D.7 The (first) German Empire is regarded as having been founded with the coronation of Otto I in Rome in 962AD and was first referred to as the Holy Roman Empire (of the German Nation) towards the end of the 15thcentury.The Holy Roman Empire ended in 1806 following the establishment of the ‘Rheinbund’ (Rhein Confederation)between various German principalities having allegiance to France.After the defeat of Napoleon at Waterloo, the ‘Rheinbund’ was superceded by the ‘Deutscher Bund’ (GermanConfederation), which was established at the Congress of Vienna in 1815.The ‘Deutscher Bund’ lasted until 1866, when, following Austria’s defeat by Prussia (under Bismarck) atKöniggrätz, Prussia and the other north German states formed the ‘Norddeutscher Bund” (NorthGermanConfederation).Following Prussia’s victory over France in the war of 1870/71 and the accession of the south German states,the (second) German Empire was proclaimed at Versailles on 18.1.1871. It lasted until the declaration of theWeimar Republic on 9.11.1918.See Creifelds under ‘Rheinbund’, ‘Deutscher Bund’ and ‘Norddeutscher Bund’; Katz, Part II, § 4 VI and § 5 II;Model/Creifelds/Lichtenberger, Part I A (9), I B (12–17).8 See Note 14 in this Chapter; Chapter XVII, Note 3. See also Haft, Part C, 4; Laufs, Chapter IV, 4.9 Natural law (‘ius naturale’/‘Naturrecht’) is effectively a form of law or set of (unwritten) principles based onthe nature of man (‘Natur des Menschen’) and on what is always good and equitable (‘quod semper bonum etaequum est’), in contrast to positive law (statute/‘Gesetz’). The doctrine is intertwined with the search for adefinition of law itself (‘ius’/‘Recht’), bearing in mind its supreme touch-stone, justice (‘iustita’/‘Gerechtigkeit’).According to Cicero, law is ‘right reason in agreement with nature’; it is universal, eternal and immutable(‘De Republica’, III xxii, 33). Or, to quote the famous dictum of Grotius, ‘Natural law retains its validity evenif God does not exist’.However, natural law is not a Roman invention, but originated in Greek philosophy. The Sophist teachingsof the 5th century BC (Protagoras), with their separation of (antithesis between) law and nature and subjective225

The German Legal System and Legal Languageviews of the truth (concentration on man—‘Man is the measure of all things’), were followed by the idealistdoctrines of Plato and Aristotle in the 4th century BC in their writings on justice, law and the state.Subsequently, it was the notion of the Stoics (picked up by Cicero) that natural law and ‘ius gentium’ (lawcommon to all mankind) were the same.See Creifelds under ‘Naturrecht’; Coing, Chapter I, I; d’Entrèves, Chapter 2; Haft, Part F, 2; Honsell, § 4;Wesel (JW), Chapter VI.According to Rousseau, the connecting link between natural law and positive law is the ‘social contract’(‘Gesellschaftsvertrag’). See the following Notes (10 and 11) in this Chapter.10 It was also followed, at the end of the 18th century, in the ‘rationalist’ philosophy of Hegel, although Hegelcompletely reversed previous thinking on natural law. To him, the highest embodiment of ethical life wasthe national State. See Chapter II, Note 1.In England, in the wake of the Civil War (1642–1645), there were conflicting views on the position of thestate. Whilst for Locke (‘Two Treatises on Government’ (1690)) the recognition of human rights (and theirprotection by government) was crucial, Hobbes presented a different view in his work ‘Leviathan’ (1651):protection by the state was necessary for man’s own good, because man’s natural condition was anti-social,wolf-like (‘homo homini lupus’) and belligerent (‘bellum omnium contra ones’). The state was the suprememonster, born of humans’ natural fear. The positive law of the state was justified by its authority and requiredto be obeyed (‘auctoritas non veritasfacit legem’).Hobbes’ theory flourished most successfully in France during the reign of Louis XIV (1661–1715). Indeed, itcan still be said to be the justification for the concept of the unrestricted sovereignty of Parliament in England,where there is no written constitution.However, positive law (ie, according to the imperative definition, a ‘command from a sovereign’ (Austin))is not the only form of law. Natural law can have a ‘radiating effect (‘Ausstrahlungsivirkung’) on the positivelaw of a particular legal system. It serves to underpin me requirement that law should correspond to nature,equity and justice. To use the imagery of d’Entrèves, natural law is the attempt to bridge the chasm betweenis and ought (Hume), between ‘fact’ and ‘value’ (ie, a moral or normative rule). In particular, natural law isthe unwritten source of human rights and (still) performs a vital role whenever it is necessary to justifyresistance against abuses of state power (ie, natural law can establish limits to the normal duty of obediencetowards the state). Unlike positive law, the principles of natural law are ageless.It is important to note here that, in most European languages (but not in English), the Latin word ‘ius’(‘Recht’) can have two meanings, objective and subjective, law and right. Although Hobbes appreciated thatthere was a difference, to him ‘ius’ (which he translated as ‘right’, ie, liberty) was not a precondition for law(‘lex’). Modern civilisation generally takes a different view.See Coing, Chapter I, IV and Chapter V; d’Entrèves, Chapters 4 and 5 and Additional Essay A, III; Haft, PartD, 4 to 6,8; Wesel (FR), Chapter 2 (‘Verfassungen’).See also: Chapter X Note 22.11 In German drama, the classical French theatre of the 17th century was initially the yardstick (Gottsched).However, by the middle of the 18th century, English theatre was considered the more appropriate exampleto follow (Lessing).In France at this time, the philosophy of Rosseau, with its view of man as fundamentally good and itsattacks on social institutions, was gathering hold. According to Rousseau, man should strive proximity tonature and not be guided by reason.Rousseau’s ideas influenced the German authors of the ‘Sturm und Drang’ (storm and stress) movement(Herder, Goethe), who reacted against discipline and modelled their creativity on Shakespeare. Schiller’searly plays were also works of social protest.The French Revolution threw up the problem of freedom and Schiller’s later tragedies focussed on theconflict between human instinct (free will) and moral duty. In German literature, this period (1785–1805) isreferred to as Classicism. In the quest for moral rectitude (or at least a harmonious balance between feelingand reason), art acquired an educational function and the achievement of beauty was considered ofparamount importance.The period of Classicism, with Weimar as its cultural centre, merged into that of Romanticism, which floweredbriefly in the early years of the 19th century (Brentano, Eichendorff, Kleist). Its view of the world was nolonger founded on universal ideals; it was one of personal imagination, of yearning (‘Sehnsucht’). Patrioticand national feeling were stimulated by folk poetry (‘Volkslieder’).Later in the 19th century, the Romantic School lost its appeal and German literature followed the Europeantrend to realism (Balzac, Dickens, Tolstoy), albeit on a more regional level (‘Poetic Realism’), in the particularlyGerman genre of the ‘Novelle’ (Ludwig, Stifter, Storm).12 According to Kant, law is ‘the embodiment of the conditions under which the arbitrary will (‘Willkür’) ofone (person) can be united with that of another according to the general law of freedom’. See Haft, Part D,7; Wesel (FR), Chapter 8.226

Notes13 Regarding these see Haft, Part C, 6 and 7; Laufs, Chapter VI, 1 and 2.Codes (ie, systematic presentation of law according to principles) are typical for continental Europeancountries. By this method, as Savigny taught, legal relationships are allocated to particular legal institutions(‘Rechtsinstitute’)—the ‘system’—which in turn find their expression in (positive) norms.Despite occasional views to the contrary, it remains a characteristic of German law that it is a system designedfor lawyers (‘Juristenrecht’). German law attaches very little importance to judge-made law (‘Richterrecht’)—in marked contrast to the situation in common law countries. This perhaps accounts for the adversarialnature of legal proceedings in England.In Europe as a whole, the extent to which the many diverse legal systems and fundamentally differentcultures (values) can be ‘cross-fertilised’ remains to be seen. Although, at present, it (still) appears doubtful,the establishment of a common legal order via the European Union is not beyond contemplation. It willthen be of paramount importance that the bridge over the culture gap’ is built as stably as possible and thatthe attendant complexities are weathered in a spirit of good will.Certainly, however, Germany’s participation in the European Union (Article 23 GG) will have a vitalisingeffect on legal thought and on the existing approach to the creation and application of law.See ‘Preface to Second Edition’; Chapter I, Note 6; Coing, Chapter III, 16, Chapter III, IV 3 and Chapter VI,VI.14 In the field of criminal law, Feuerbach laid the foundation for modern criminal legislation. He drafted theBavarian Criminal Code of 1813 and coined the phrase ‘Nulla poena sine lege’: there can be no punishmentwithout law, ie, punishability depends on the strict text of criminal legislation, which, therefore, requiresexact drafting.To Feuerbach, the purpose of punishment was general prevention of crime. In contrast, von Liszt later developedthe theory of the special prevention of the particular criminal, for whom the Criminal Code was the ‘MagnaCharta’.See Haft, Part E, 2 and 9; Wesel (JW), Chapter X; Creifelds under ‘Strafzweck’.15 In keeping with the status of the ‘Deutscher Bund’ as a mere ‘Staatenbund’ (confederation of (independent)states), there were numerous regional laws in force in Germany at the time.Although a customs union (‘Zollverein’) was created between German states in 1834, the unification ofGerman law first only really set in with the establishment of the (second) German Empire in 1871 (eg, the‘Strafgesetzbuch’ and ‘Allgemeines Deutsches Handelsgesetzbuch’ (ADHGB) of 1861 and the ‘Zivilprozeßordnung’,‘Strafprozeßordnung’, ‘Gerichtsverfassungsgesetz’ and ‘Konkursordnung’ of 1877).See Köbler, § 7 B I 2 and Laufs, Chapter VII, 316 To Savigny, law, like language, exists from time immemorial. It is the expression of a particular culture andpoint of view (‘Anschauung’).An English forerunner of Savigny on the political level was Edmund Burke, whose ‘Reflections on theFrench Revolution’ (1790) stress the importance of history and national traditions on constitutionaldevelopment see Coing, Chapter IV 3 and 4.Regarding Savigny and the historical school see LB Curzon, SLRY (1998) p 142; Haft, Part E, 1; Laufs,Chapter VII, 2; Wesel (JW), Chapter VII.17 Another critic of ‘Begriffsjurisprudenz’ and positivism was Otto von Gierke (1841–1921), whose‘Genossenschaftstheorie’ stressed the importance to German law of the social (cooperative) component.To the members of the ‘free’ school (Ehrlich, Weber), law depends not on words, but on social acceptanceand social facts (sociology of law). This empirical view (‘living law’) was further developed in the ‘functional’approach of the American realists (Pound).In contrast, it was the positivist Pure Theory of Law of Kelsen that the legal system is based on norms (andultimately on a ‘Grundnorm’) and that these are open to judicial interpretation. That such interpretation canbe ‘unlimited’ was demonstrated by Rüthers in his book ‘Die Unbegrenzte Auslegung’ (1968,5th Edition(1997)) following the perversion of positivism during the Nazi tyranny.Regarding Jhering, von Gierke, Weber and Kelsen, see Haft, Part E, respectively 3, 5, 7 and 8. See also:Creifelds under ‘Gierke, Otto von’ and ‘Weber, Max’; Köbler, § 7 B13; Laufs, Chapter IX 2; Wesel (FR),Chapters 8.Regarding positivism see Creifelds under ‘Rechtspositivismus’; Coing, Chapter I, VIII; d’Entrèves: AdditionalEssays; Haft, Part F, 6. Regarding ‘Begriffsjurisprudenz’ see Creifelds; Haft, Part F, 8; Kommers, Part I, Chapter2 (‘Constitutional Interpretation’—‘Background’). Regarding ‘Interessenjurisprudenz’ see Engisch, ChapterVIII; Haft, Part F, 9.Regarding the ‘free’ school, see Haft Part F, 10; Chapter II Note 23, below. Regarding the perversion of lawunder the Nazis see Laufs, Chapter XI See also Note 10 in this Chapter.The origins of ‘Interessenjurisprudenz’ can be traced to the (English) theory of ‘utilitarianism’ of JeremyBentham: see Coing, Chapter I VI.227

The German Legal System and Legal LanguageCoing (Chapter III, II) points out that the purpose of law is to provide a mechanism for the peaceful resolutionof conflicts of interest (viz ‘Interessenjurisprudenz’) and to satisfy the human desire for legal certainty(‘Rechtssicherheit’) and the maintenance of traditions (viz the historical school/common law).However, Coing makes the valid (and topical) criticism that, when it comes to the realisation of legal rights,the historical school is too idealistic and ignores the real forces at work:– arguments concerning new laws (‘Auseinandersetzungen mn neue Gesetze’);– historical upheavals (‘Umbüche in der Geschicht’); and– the creative contribution of great personalities (‘das schöpfer ische Element großer Persönlichkeiten’).In this connection, Coing draws attention to Jhering’s monograph ‘Der Kampf ums Recht’ (The Struggle forLaw (1872)).18 See Honsell, § 1.CHAPTER II1 At the end of the 19th century, the German jurist Jellinek identified two meanings of the term ‘state’—thelegal (public law/state law) sense and the sociological sense.According to the former, which is still dominant in German state doctrine (‘Staatslehre’), a state is the highestform of territorial corporation (‘Gebietskörperschaft’) and consists of three elements: a state territory(‘Staatsgebiet’), a state people (‘Staatsvolk’) and state power (‘Staatsgewalt’).The latter meaning is well explained by Kommers (Part I, Chapter 2 (‘Structure and Principles’—‘State andMorality’):The German ‘Staat’ and the English ‘state’ are not equivalent terms. ‘Der Staat’ is more than the bodypolitic. It represents, in Kant, the perfect synthesis between individual freedom and the objective authorityof law, and, in Hegel, a moral organism in which individual liberty finds perfect realization in theunified will of the people: not arbitrary will, but rather ‘the power of reason actualizing itself in will’. Inbrief, the ‘Staat’ is considered to be a superior form of human association, a uniting of individuals andsociety in a higher synthesis, a reality ‘in which the individual has and enjoys his freedom, (albeit) oncondition of his recognizing, believing in, and willing that which is common to the whole’.The justification for the state is the subject of various theories (‘Staatstheorien’).See Creifelds under ‘Staat’; Katz, Part II, § 3; Schunck/De Clerck, Part I (Chapters 1–3 and 5–7) and Part II,Section A (Chapter 3).2 The ‘Bund’ and its member states (‘Gliedstaaten’) together form the ‘Gesamtstaat’ (whole state). Each has aduty of friendly cooperation and consideration for the other in the interest of the whole (‘Bundestreue’).If a ‘Land’ does not perform its federal duties (‘Bundespflichten’), the Federal Government can, with theconsent of the ‘Bundesrat’, take the necessary action to secure the loyalty of the ‘Land’ (Article 37 GG:‘Bundeszwang’).See Battis/Gusy, Part A, § 4 1; Baumann (ER), Part IV, § 13 II 2 (a); Creifelds under ‘Bundesstaat’, ‘Bundestreue’and ‘Bundeszwang’; Katz, Part II, § 4; Kommers, Part II, Chapter 3 (‘Territorial Organization’—‘The Natureof German Federalism’; ‘Doctrine of Federal Comity’ (The Television I Case (1961)); Schunck/De Clerck, PartI, Chapters 8 and 9; Youngs (CL), Chapter 1, Part IV 3.Regarding the duty of the authorities of the ‘Bund’ and the ‘Länder’ to give each other legal and officialassistance, see Chapter XXI, Note 1.3 A An essential characteristic of a federal state is the decentralisation (distribution (‘Verteilung’)) of power.The likelihood of a single body becoming omnipotent is thereby reduced.In Germany, the key principle is contained in Article 30 GG:‘Die Ausübung der staatlichen Befugnisse und die Erfüllung der staatlichen Aufgaben ist Sache der Länder,soweit dieses Grundgesetz keine andere Regdung trifft oder zuläßt’.The exercise of state authority and the fulfilment of state functions is a matter for (the responsibilityof) the ‘Länder’, so far as this Basic Law does not make or allow for any other provision.Apart from a ‘horizontal’ separation of powers by means of provisions regarding the respectivecompetences (‘Zuständigkeiten’) of the ‘Bund’ and the ‘Länder’ in the fields of legislation (‘Gesetzgebung’:Articles 70ff GG), administration (‘Verwaltung’: Articles 83ff GG) and judicature (‘Rechtsprechung’:Articles 92ff GG), the Basic Law also achieves a ‘vertical’ separation (balance) of powers between the‘Bund’ and the ‘Länder’ by the vehicle of the ‘Bundesrat’ (Federal Council).228

NotesSee Battis/Gusy, Part A, § 4 1; Creifelds under ‘Bundesrat’; Katz, Part III, § 10 (‘Schaubild 6’ (flowchart6)); Maunz/Zippelius, Section 3, §§ 15–16; Chapters III and V B.B The individual (sovereign) powers exercisable by the ‘Bund’ and the ‘Länder’ are referred to as‘Hoheitsrechte’ or ‘staatliche Befugnisse ’ . See Creifelds under ‘Hoheitsrechte’.C Regarding the transfer of sovereign powers to international organisations (such as the European Union)see Articles 23 and 24 GG; Kommers, Part II, Chapter 3 (‘German Federalism and the European Union’(3.10 The Maastricht Case (1993)). See also Creifelds under ‘Internationale Organisations’.4 See Schunck/ De Clerck, Part II, Section A, Chapter 16; Youngs (CL), Chapter 2, Part IB (I) and (II).5 The immediate precursors of the ‘Grundgeseté were the constitution of the (unified) German Empire of16.4.1871 and the constitution of the Weimar Republic (the ‘Weimare (Reichs-)Verfassung’) of 11.8.1919. Thelatter lasted until the ‘Ermachtigungsgesetz’ (Enablement Law) of 243.1933 empowered Hitler to overrideit.The constitution of the Weimar Republic had, for the first time, enacted (in its second part) a catalogue of‘Grundrechte’ (Basic Rights). However, many of these were ‘leerlaufend’ (ie, had no practical effect) and theywere later suspended by Hitler.At a meeting of the National Assembly in the Paulskirche in Frankfurt am Main in 1848 a catalogue of‘Grundrechte’ had been formulated and a national constitution agreed upon, but they never came into force.See Creifelds under ‘Reichsverfassung’ and ‘Leerlaufende Grundrechte’, Katz, Part H, § 5 II.Regarding the Paulskirche assembly see also: Creifelds under ‘Nationalversammlung’ and Laufs, ChapterVIII, 2.Regarding the federal legislative procedure see, for example: Battis/Gusy, Part A, § 7 III 2; Katz, Part IV, §20III; Chapter VII, Note 3.6 Regarding the exclusive and concurrent legislative powers of the ‘Bund’ and its authority to pass ‘frameworklaws’, see Kommers, Part It, Chapter 3 (‘Division of Powers’—‘National Powers’ and ‘CooperativeFederalism—Framework Laws’).See also Chapter V, Note 6.7 For a review of the relationship between the ‘Bund’ and the ‘Länder’ see Wesel (FR), Chapter 2 (Der Bund unddie Lande’).Wesel points out that in the field of legislation, the ‘Länder’ are merely left with residual areas (‘Restbestande’;eg, police and building law) and that decisions of the (federal) courts of the ‘Bund’ have a significant influenceon the judicature in the courts of die ‘Länder’.Only in the area of administration do the ‘Länder’ remain predominant. See Chapter II C, below; Creifeldsunder ‘Bundesrecht bricht Landesrecht’; Katz, Part IV, § 20 II; Model/Creifelds/Lichtenberger, Part I D n (54–57); and the comments under Article 31 GG and Articles 70–78 GG in the Sourcebook, Chapter 2.However, it should not be forgotten that the ‘Länder’ are states vested with their own sovereign powers. TheFederal Constitutional Court has no authority to review a state government decision, if there is noinfringement of the Basic Law: see Kommers, Part n, Chapter 3 (The Startbahn West Case (1982)).In cultural affairs and education matters (‘Bildungswesen’), the ‘Länder’ have primary authority (‘Kulturhoheit’).Broadcasting also falls outside the jurisdiction of the ‘Bund’. See Creifelds under ‘Kulturhoheit der Länder’;Kommers, Part H, Chapter 3 (3.2 The Television I Case (1961)).8 The ‘executive’ is a term describing one function of a state.In English, the German words ‘Verwaltung’ (a function of state) and ‘Regierung’ (an organ of state) can bothbe translated as ‘government’. However, the terms ‘state’ and ‘government’ are not synonymous.See Note 1 in this Chapter; Creifelds under ‘Regierung’; Schunck/De Clerck, Part I (Chapter 15) and Part H,Section A (Chapter 17).9 For didactic purposes, this sequence is followed in Chapters III and IV.A part of a ‘Behorde’ (or, indeed, a ‘Behorde’ itself) is frequently described as an ‘Amt’ (office). See Bull,Section L § 3 and § 4; Erichsen, Part VII, § 56; Maurer, Part 6, § 21.Regarding the term ‘Verwaltung’, its forms and functions see Bull, Section I, § 1 and § 2 7; Erichsen, Part I, §§1–2; Katz, Part IV, § 21; Maurer, Part 1, § 1.10 Administration by the ‘Länder’ is the norm: see Creifelds under ‘Verwaltungskompetenz’, Chapter V B andChapter XIV A.The authorities (‘Behbrden’) involved in administration by the ‘Bund’ are described in Chapter IV.11 See Creifelds under ‘Mittelbare Staatsverwaltung’; Erichsen, Part VII, § 57; Maurer, Part 6, §§ 22–23; Scholler,§ 2 VI (diagram 2). See also Chapter IV, below.229

The German Legal System and Legal LanguagePublic ‘Körperschaften’, ‘Anstalten’ and ‘Stiftungen’ are all ‘juristische Personen des öffentlichen Rechts’ (juristicpersons of public law). Rehbinder (Chapter II, § 17 III) defines them as follows:– ‘Körperschaften des öffentlichen Rechts’ are ‘Verbände mit Rechtspersönlichkeit’ (associations with legalpersonality);– ‘Anstalten’ are organisationally independent ‘Verwaltungseinheiten’ (administrative units);– ‘Stiftungen’ are ‘mit Rechtspersönlichkeit ausgestattete Vermögensmassen’ (accumulations of assets endowedwith legal personality). They are dedicated to a particular purpose (‘Zweck’).‘Körperschaften des öffentlichen Rechts’ have members (‘Mitglieder’). According to the criteria governingmembership, they can be ‘Gebietskörperschaften’ (territorial corporations; eg, the ‘Gemeinden’ (localcommunities)) or ‘Personalkörperschaften’ (personal corporations; eg, the various professional and commercialchambers (‘Kammern’) and high schools (‘Hochschulen’). See Creifelds under ‘Körperschaften des öffentlichenRechts’ and ‘Selbstoerwaltung’.The ‘Bundesbank’ (Federal Bank (in Frankfurt am Main)) is a ‘bundesunmittelbare juristische Person des öffentlichenRechts’ (a public corporation under the direct control of the ‘Bund’). See Creifelds under ‘Bundesbank’; ChapterIV, Note 2.‘Anstalten’ have users (‘Benutzer’). Depending on their degree of independence, ‘Anstalten’ can have full,partial or no legal capacity ie, they can be ‘(voll)rechtsfahig’ (eg, the radio and television stations (‘RundfunkundFernsehanstalten’); the ‘Bundesanstalt für Arbeit’ (Federal Office of Employment)), ‘teilrechtsfahig’ or‘nichtrechtsfähig’ (eg, schools, hospitals, museums). See Creifelds under ‘Anstalten des öffentlichen Rechts’.Regarding juristic persons of private law see Chapter XIA 3. In private law, apart from the ‘Stiftung’(foundation; §§ 80–88 BGB), the main types of juristic person are all corporately organised and have members.Indirect state administration can also take the form of the secondment (‘Beleihung’) or instruction(‘Beauftragung’) of private persons (natural or juristic). Usually, however, the (initial) decision whether suchpersons wish to participate or undertake public functions is their own. See Maurer, Part 6, § 23 V.12 A related distinction is that between ‘Eingriffsverwaltung’ (intervention administration) and‘Leistungsverwaltung’ (service administration).‘Eingriffsverwaltung’ is a type of ‘hoheitliche Verwaltungstättigkeit’, the prime example being the activity of thepolice.‘Leistungsverwaltung’ today covers wide areas of state supply and support, for example in the field of socialsecurity, health, education and transport. Its common purpose is the provision of services for the welfare ofmembers of the public (‘Daseinsvorsorge’). ‘Leistungsverwaltung’ can be exercised both ‘hoheitlich’ (eg, thegrant of a state benefit) and ‘fiskalisch’ (eg, the grant of a loan).See Chapter VIII, Note 6; Chapter X, Notes 21 and 224; Chapter XVII, Note 32. See also: Creifelds under‘Eingriffsverwaltung’, ‘Fiskus’, ‘Hoheitsaufgaben’, ‘Leistungsverwaltung’ and ‘Verwaltungsprivatrecht’; Erichsen,Part I, § 2 and Part III Section 4 (§§ 31–32); Giemulla/Jaworsky/ Müller-Uri, Book I, Chapter 3 A.In the EU, there is an increasing tendency to regulate the provision of public services on a centralised, pan-European basis. This will have an effect on the structures and institutions of ‘Daseinsvorsorge’ in Germany,which will inevitably have to adapt. However, such issues should not upset the social order in the memberstates,despite occasional unrest in the ‘Länder’.See the report in the Frankfurter Allgemeine Zeitung (FAZ), 27.3.2000 (p 2).13 See Chapter VI, Note 3.14 See Stober, § 6 IV.15 There can be no ‘Flucht in das Privatrech’.The executive is also bound to observe the basic rights, if it acts fiscally. See Battis/Gusy, Part B, § 10 II;Hesse, Part III, Section 1, § 111.A recent example of fiscal activity by the executive is the ‘Postneuordnungsgesetz’ of 14.9.1994, whereby theGerman Federal Post (‘Deutsche Bundespost’) was (organisationally) privatised and split into three separatepublic companies: the ‘Deutsche Post AG’, ‘Deutsche Postbank AG’ and ‘Deutsche Telekom AG’.The assets of these three companies are held by a newly created Federal Institute for Post andTelecommunication (‘ZBundesanstalt für Post und Telekommunikatio’).By the ‘Telekommunikationsgesetz’ (TKG) of 25.7.1996, telecommunication and post services are now regulatedby a new (upper federal) authority, which also remains under the supervision of the relevant Federal Ministry(‘Bundesministerium für Wirtschaft’).See Creifelds under ‘Postwesen und Telekommunikation’, ‘Bundespost’, ‘Postneuordnung’, ‘Post’, ‘Postbank’,‘Telekom’, ‘Telekommunikationsgesetz’ and ‘Regulierungsbehörde für Telekommunikation und Post’.16 See Chapters VII, Note 10, IX A, XIII, Note 46 and XV C; Bull, Section II, § 6 7; Maurer, Part 1, § 1 II 4, § 3 II230

Notes3, § 3 III 4 (d); Part 4, 17 I, Part 6, 23 II 2 (e) and Part 7, 25 VI Erichsen, Part III, 31–32 and Part V, § 44; Schmidt-Aßmann, uv ParII H, 1II; Stober, § 6 V.17 Regarding the judicature see Schunck / De Clerck, Part II, Section A, Chapter 19. See also: Chapter VII,Note 4 and Chapter XXII C18 Article 20(iii) GG describes certain elements of a ‘Rechtsstaat’. However, the term itself (which dates fromthe 19th century) is not defined in the Basic Law and, indeed, is only mentioned in Article 28(i) GG.See Wesel (JW), Chapter DC and Wesel (FR), Chapter 2 (‘Die Staatsfundamentalnorm des Artikels 20’) andChapter 5 (‘Das Privatrecht als Modell’). Wesel points out that the opposite of a ‘Rechtsstaat’ is a ‘Polizeistaat’(police state) and that the primary function of administrative law is the protection of the (assets of the)individual against the state (‘Individual(guter)schutz’).Regarding Articles 20, 28 and 79(iii) GG see the comments under those Articles in the Sourcebook, Chapter 2.See also: Battis/Gusy, Part A, §§ 2–7; Creifelds under ‘Verfassungsänderung’; Erichsen, Part I, § 3 I; Hesse,Part II (§§ 4–8); Katz, Part III, §§ 7–12; Maunz/Zippelius, Section 3, § 13; Youngs (CL), Chapter 1, Parts IIIand VIII.19 Proportionality and legal certainty are two general principles of law, which are recognised by the EuropeanCourt of Justice as a source of Community law.See Hartley, Part II, Chapter 5; Jarass/ Pieroth, Article 20, D IV and V.Hartley points out that the European Court would apply such general principles, even if the EC Treaty didnot exist. This is reminiscent of the famous dictum of Grotius (see Chapter I, Note 9).‘Vertrauensschutz’ is also of particular importance where administrative acts are concerned (for example, inthe field of social security law (‘Sozialrecht’); see the article by Klaus Louven in ZAP 4/99, Fach 18, p 545).20 See Kommers, Part II, Chapter 5 (‘Political Representation and Democracy’).The Basic Law only provides for plebiscites (‘Abstimmungen’ /‘Volksentscheide’) in the case of a new divisionof the federal territory (‘Neugliederung des Bundesgebietes’ (Article 29 GG)). See Wesel (FR), Chapter 2(‘Volksabstimmungen’).Regarding the reorganisation of the former states of Baden and Württemberg in 1952, see Kommers, Part II,Chapter 3 (3.1 The Southwest State Case (1951)).21 Regarding the (wider) term ‘Justiz’ (which also means ‘judicature’) see Chapter XXII C 6.22 This is the ‘horizontal’ separation of powers. See Chapter II, Note 3. The principle of the separation ofpowers was first expounded by Montesquieu in his famous work ‘De l’Esprit des Lois’ (1748).In keeping with Montesquieu, Sieyes later drew a distinction between the constituted organs of state power(‘pouvoirs constitues’) and the people as the ‘pouvoir constituant’, ie, having the power to decide upon theconstitution.In Germany,—despite occasional authoritarian/centralist fixations to the contrary—the rank of theconstitutional organs is (officially) equal. The concept of the ‘supremacy of Parliament’, as in England, isunknown.See Wesel (FR), Chapter 2 (‘Die Rangordnung der drei Staatsgewalten’).23 ‘Law’ includes the Basic Law (see generally Battis/Gusy, Chapter 6 and Chapters VH B and XIV A).The significance of the words ‘und Recht’ in Article 20(iii) GG is that they make dear that the judiciary (andthe executive) must not only apply (positive) norms (‘Gesetze’), but must also observe (overriding) principlesof law (justice). Article 20(iii) represents, on the one hand, a binding of the judiciary (and executive) to thesystem (rules), but also an acknowledgement that no system can be complete (‘vollständig’), no ‘Gesetz’(statute) can cover all eventualities.Thus, where political/legislative excesses are put in question, the courts sometimes fall back on die dichotomybetween ‘Gesetz’ and ‘Recht’ as a ‘safety valve’. Article 20(iii) GG enables a judge, in a particular case, tosolve the problem of gaps in the system (‘Lücken im Gesetz’)—which so occupied the free’ school(Kantorowicz)—by further development of the law (‘richterliche Rechtsfortbildung’).See The Shootings at the Berlin Wall Case (Sourcebook, Chapter 7); the discussion in Wesel (FR), Chapter 8 (atthe end).However, the words ‘Gesetz und Recht’ conceal wider problems:– In what circumstances can a ‘Gesetz’ be treated as invalid (‘ungültig’)?– In what circumstances can gaps (‘Lücken’) in a ‘Gesetz’ be filled / corrected?– What amounts to a (permissible) correction (‘Berichtigung’) of a ‘Gesetz’? When is such a decision illegal(‘contra legem’)?Regarding these questions see Coing, Chapter VI, V; Engisch, Chapters VII and VIII; Kommers, Part II,Chapter 4 (‘Judicial versus Legislative Authority’). See also Chapter XIII, Note 18, below.231

The German Legal System and Legal Language24 Regarding the principle of the ‘Gesetzmäßigkeit der Verwaltung’ see Bull, Section II, § 6 1 to 3; Erichsen, PartI § 3 II 1; Giemulla/Jaworsky/Müller-Uri, Book I Chapter 3 B; Maurer, Part 2, § 6; Chapter VIII, Note 14;Chapter XIV, Notes 21 and 25.Hesse (Part II, § 6 II 1) distinguishes between the ‘Vorrang des Gesetzes’ and the ‘Vorrang der Verfassung’priority of the constitution), both being part of the wider principle of the primacy of law (‘Primat des Rechts’).25 See Model/Creifelds/Lichtenberger, Part I D IV (63); Hesse, Part III, Section 2 (§§ 13–14); Kommers, Part E,Chapter 4; Youngs (CL), Chapter 1, Parts V and VIII.26 Certain fundamental principles regarding the political parties are set out in Article 21 GG.For further information see Creifelds under ‘Parteien’; Hesse, Part II, § 5 II 6; Katz, Part III, § 13, Kommers,Part II, Chapter 5 (‘Political Parties and the Party State’); Maunz/Zippelius, Section 3, § 12; Schunck/DeClerck, Part II, Section A, Chapter 3 VII; the comments under Article 21 GG in the Sourcebook, Chapter 2;Youngs (CL), Chapter 1, Part XV.Regarding the German electoral system, see also: The All Germany Election Case (Sourcebook, Chapter 2);Creifelds under ‘Wahlrecht (öffentliches)’; Katz, Part III, § 14; Kommers, Part II, Chapter 5 (‘Elections andVoting’); Maunz/Zippelius, Section 5, § 31; Youngs (CL), Chapter 1, Part X.27 See Creifelds under ‘Unabhängigkeit des Richters’ and Chapter XXII A.28 See Chapter VIII.29 See Chapter VIII C30 See Hesse, Part III, Section 4 (§ 22); Kommers, Part I, Chapter 2 (‘Structure and Principles’—‘The Nature ofthe Polity’) and Part II, Chapter 5 (‘Militant Democracy’); the comments under Article 21 GG in the Sourcebook,Chapter 2; Chapter XVII, Note 32.For a useful summary of constitutional principles, which are regarded as fundamental in Germany, see §92(ii) StGB.31 Regarding the current international position of the ‘Bund’ and, in particular, the relationship between German,European Community and (other) public international law see Stein, Part IX, §§ 38–39; Katz, Part II, § 6 IV;Articles 23–27 GG; the comments under Article 23 GG in the Sourcebook, Chapter 2; Note 34, below.See also: Kommers, Part II, Chapter 3 (‘German Federalism and the European Union’ (3.10 The MaastrichtCase (1993)) and Part II, Chapter 4 (‘Executive-Legislative Tensions in Foreign and Military Affairs’).32 Regarding competence and procedure in the conclusion of treaties see Seidl-Hohenveldern, Section II, Chapter2 (§§16–17).33 The ‘Zustimmungsgesetz’ is sometimes also called the ‘Ratifizierungsgesetz’ (ratification law): see Battis/Gusy,Part A, § 2 II (42–43). Cf an implementing law (see next Note).34 A In this respect, the position in Germany and England is the same.In theory, for example, the European Convention on Human Rights (‘EuropäischeMenschenrechtskonvention’) of 4.11.1950, the EEC Treaty of 27.3.1957 and the Maastricht Treaty onEuropean Union (‘Maastricht-Vertrag’) of 7.2.1992 could all be repealed. However, there remain vitaldifferences:– In Germany, treaties are incorporated into the German legal order in their original form ie, theyare integrated (‘eingeordnet’) as such in the hierarchy of norms. To use Hartley’s phrase (Chapter7, page 198), there is ‘assent (as distinct from enactment)’. Implementing laws(‘Ausführungsgesetze’) only deal with ancillary matters (eg, questions of procedure) and therebyensure the smooth functioning of the treaty.– In England, treaties only become valid (and applicable) within the (national) legal order in so faras a special, incorporating Act of Parliament permits (sovereignty of Parliament!). Internationalnorms are replaced by national ones.Whatever system is adopted, it is crucial that a treaty is incorporated in its agreed, authentic text andthat the will of its authors is reflected accurately. ‘Linguistic tampering’ must be kept to a minimum.Under the English method, there is additionally always the risk that, quite apart from the treaty itself,the words of the incorporating Act of Parliament can give rise to ambiguity and uncertainty.See Seidl-Hohenveldern, Section II, Chapter 8, § 41 C III; Verdross/Simma, Part III, Chapter 5, Sections1–3.B The English judiciary’s orthodox (‘dualist’) position towards international treaties was stated asrecently as 1990 by Lord Oliver in the House of Lords (The International Tin Council Case [1990] 2 AC418, p 500):A treaty is not part of English law until it has been incorporated into the law by legislation… It isoutside the purview of the court (ie, unenforceable) not only because it is made in the conduct of232

Notesforeign relations, which are a prerogative of the Crown, but also because as a source of rights andobligations, it is irrelevant.C In the United Kingdom, (‘supra-national’) European Community law always prevails until such timeas an ‘intentional and express’ repudiation of the EEC Treaty is passed by Parliament: MacCarthys Ltdv Smith ([1979] 3 All ER 325, p 329, per Lord Denning MR).Moreover, despite the (apparently insurmountable) difficulties in entrenching legislation in Britain,the incorporation or the European Convention on Human Rights into UK law is evidence of a shift ofposition in the United Kingdom towards European legal principles. It is to be welcomed as a furtherstep in assuaging opposition to, and facilitating, European cooperation. Similar ‘tactical’ factors playeda part in the framing of the 10 Amendments to the US Constitution (the US ‘Bill of Rights’) in 1791.See Hartley, Part III, Chapter 8 (‘The National Reaction’); Loveland, Chapters 1, 2 and 14 IV; ChapterXVI, Note 3; Chapter XXI.35 Article 25 GG only grants precedence to the general rules of public international law (ie, those observed bythe majority of states in the world), not supra-national or regional law. For examples, see Jarass/Pieroth,Art. 25,2(b).If a court has any doubt whether a rule of public international law forms part of federal law, it must refer thequestion to the federal constitutional court: Article 100(ii) GG.Regarding the relationship of public international law and national law and the primacy (‘Vorrang’) of theformer (ie, the ‘monism’ / ‘dualism’ debate) see Seidl-Hohenveldern, Section II, Chapter 8 (§§ 40–41); Hartley,Part III, Chapter 7 (‘The First Requirement’); Youngs (CL), Chapter 1, Part VII.CHAPTER III1 See Baumann (ER), Part IV, § 13 II 2; Creifelds under ‘Organe der BRep’, ‘Verfassungsorgane’ and‘Zweikammersystem’; Wesel (FR), Chapter 2 (‘Die Obersten Staatsorgane’); Model/Creifelds/ Lichtenberger,Part I D III (58–62); Hesse, Part III, Section 3 (§§ 15–19); Katz, Part IV, §§ 15–19; Maunz/Zippelius, Section 5,§§ 30–34; Schunck/De Clerck; Part II, Section A, Chapters 11–15.2 In Germany, the Federal Government is appointed by the Federal Parliament (parliamentary democracy).Cf USA (presidential democracy). See Wesel (FR), Chapter 2 (‘Parlamentarische Demokratie’).See also: Creifelds under ‘Gesetzgebende Gewalt’, ‘PräZsidialdemokratie’ and ‘Staatsoberhaupt’; Kommers, PartII, Chapter 5 (‘Parliamentary Democracy’).3 The ‘Bundesrat’ is a (perpetual) organ of the ‘Bund’ (ie, a federal organ) and not a joint organ of the ‘Länder’:see Battis/Gusy, Part A, § 4 2.Unlike the ‘Bundestag’, the ‘Bundesrat’ is not directly elected and has no set term of office.The constitution of the ‘Bundesrat’ is dealt with in Article 51 GG:– the members of the ‘Bundesrat’ are appointed by the governments (not parliaments!) of the ‘Länder’;– each ‘Land’ has a certain number of votes (‘Stimmen’) in the ‘Bundesrat’, depending on the number of itsinhabitants (‘Einiwhner’);– the votes of each ‘Land’ must be cast unanimously (‘einheitlich’).By Article 53 GG, the Federal Government is entitled (and, on request, obliged) to take part in the meetingsof the ‘Bundesrat’ and its committees (‘Ausschüsse’). The Federal Government has a right to be heard at alltimes (‘jederzeit’) and must keep the ‘Bundesrat’ regularly informed regarding its business.Similarly, the Federal Government (and members of the ‘Bundesrat’) also have access to all meetings of the‘Bundestag’ and its committees: Article 43(ii) GG.The rights of involvement of the ‘Bundesrat’ in the federal legislative procedure place the ‘Bundesrat’ in astrong and influential position. See Articles 76–78 GG; Kommers, Part II, Chapter 3 (‘Powers of theBundesrat’—3.8 The Bundesrat Case (1975)); ‘Zustimmungsgesetz’.4 The Federal Assembly is responsible for the election of the Federal President every five years: Article 54GG.5 See Chapter VII C, below; Kommers, Part I, Chapter 1 (‘The Federal Constitutional Court’); Wesel (FR),Chapter 2 (‘Der Hitter der Verfassung’); the comments above Article 93 GG in the Sourcebook, Chapter 2.233

The German Legal System and Legal LanguageCHAPTER IV1 See Katz, Part IV, § 21 V; Chapter II C; Chapter XIV A.2 Eg, the ‘Bundesaufsichtsamt für das Kreditwesen’ (Federal Supervisory Office for the Credit System), the‘Bundesbank’ (Federal Bank), the ‘Bundesanstalt für Arbeit’ (Federal Office of Employment), the‘Bundeskartellamt’ (Federal Cartel Office) and the ‘Kraftfahrt-Bundesamt’ (Federal Motor Vehicle Office).The status of the ‘Bundesbank as a ‘bundesunmittelbare juristische Person des öffentlichen Rechts’ is something ofa misnomer, since it is an independent body and not subject to control/direction by the Federal Governmentin the exercise of its functions. However, the ‘Bundesbank’ must support the general economic policy of theGovernment and it has a duty of consultation. See §§ 12–13 BBankG.A list of the most important ‘Bundesoberbehorden’ was formerly printed as an appendix to the GG in ‘SartoriusI’. They have varying degrees of (legal) independence. See also: Creifelds under ‘Bundesanstalt’,‘Bundesoberbehorden and ‘Mittelbare Staatsverwaltung’.‘Bundesauftragsverwaltung’ is also indirect state administration. See Chapter V, Note 7.3 For the structure of federal authorities see Creifelds under ‘Verwaltungsbehörden’ 1: ‘Bundesbehörden’. Seealso: Katz, Part IV, § 21; Model/Creifelds/Lichtenberger, Part I E (91–110).CHAPTER V1 The steps on the route to reunification between 9.11.1989 and 3.10.1990 are set out chronologically in Katz,Part II, § 6 III.Amongst the various treaties (of public international law) signed during that period, the following shouldbe mentioned here:– the ‘Vertrag über die Schaffung einer Währunvs- Wirtschafts- und Sozialunion’ (Treaty regarding the creationof a currency, economic and social union), the so-called ‘Staatsvertrag’ (State Treaty) of 18.5.1990;– the ‘Vertrag über die Herstellung der Einheit Deutschlands’ (Treaty regarding the establishment of the unityof Germany), the so-called ‘Einigungsvertrag’ (Treaty of Union) of 31.8.1990.The main purpose of the ‘Einigungsvertrag’ was to achieve the harmonisation of law (‘Rechtsangleichung’)between East and West German;– the ‘Vertrag über die Abschließende Regelung in bezug auf Deutschland’ (Treaty of final settlement regardingGermany’), the so-called ‘Two-Plus-Four Treaty’ of 12.9.1990.The Two-Plus-Four Treaty dealt with the public international law aspects of reunification and was signed inMoscow by East and West Germany, the United States, France, the United Kingdom and the Soviet Union.It terminated the rights of the four powers over Germany and thereby superceded the former so-called‘Deutschlandvertrag’ (Germany Treaty) of 26.5.1952 between West Germany and the three allies. The Two-Plus-Four Treaty restored full sovereignty to Germany as a whole (Article 7). See Creifelds under‘Abschließtende Regelung in bezug auf Deutschland’ and ‘Einigungsvertrag’; ChapterII H.2 See Chapter II, Note 20.3 Regarding the constitutions of the ‘Länder ’ , see Schunck / De Clerck, Part II, Section B.4 Despite the homogeneity clause, the ‘Länder’ have a significant degree of procedural flexibility. See Kommers,Part II. Chapter 3 (‘Division of Powers’—‘State Government and the Principle of Homogeneity’ (The StartbahnWest Case (1982)).5 See Chapter VII C.6 The presumption in favour of the competence of the ‘Länder’ also extends to the passing of laws (legislation;Article 70 GG). See Chapter II B.In accordance with the subsidiarity principle (‘Subsidiaritätsprinzip’), the presumption comes into playwhenever, in the subject-area/matter (‘Sachgebiet’ /‘Materie’) concerned, there is no express allocation(‘Zuweisung’) in the Basic Law itself of the relevant function to the ‘Bund’.Even if the ‘Bund’ has (federal) legislative competence, the ‘Länder’ are presumed to remain responsible foradministration. Thus, although the ‘Bund’ has (federal) power to grant the ‘Länder’ financial aid (‘Finanzhilfe’)for particular investments (Article 104a (iv) GG), this cannot impair the freedom of decision of the ‘Länder’regarding the carrying out of their own duties. See Kommers, Part II, Chapter 3 (3.7 The Financial SubsidiesCase (1975)).In certain limited situations, the ‘Bund’ has unwritten (implied) legislative power (‘ungeschriebeneGesetzgebungszuständigkeit’) ie:234

Notes– where there is a substantive connection (‘Sachzusammenhang’) between the matters to be regulated;– where there is a so-called annexe competence (‘Annexkompetenz’); or– because of the (intrinsic) nature of the matter (‘kraft Natur der Sache’).See Chapter II, Note 3; Hesse, Part II, § 7 II; Katz, Part III, § 12 III; Part IV, § 20 II and § 21 II.7 See Chapter II C and Chapter XIV A.Implementation of federal laws ‘im Auftrage des Bundes’ (on instruction by (on behalf of) the ‘Bund’) is dealtwith in Article 85 GG. The supreme federal authorities then have a right of direction (‘Weisungsrecht’) vis àvis the authorities of the ‘Länder’.The ‘Weisungsrecht’ is also of importance in the context of state supervision (‘Staatsaufsicht’) over localauthorities and other public corporations and institutions. See Creifelds under ‘Weisungsrecht’; Chapter VI,Note 11; Kommers, Part II, Chapter 3 (3.5 The Kalkar II Case (1990)).8 See Scholler, § 2 VI (diagrams 6 and 7).9 For further information regarding the ‘Länder’, their respective organs and authorities, see Model/Creifelds/Lichtenberger, Part I, Sections F and G (114–140); Creifelds under ‘Länder’ and under ‘Verwaltungsbehörden’2: ‘Landesbehorden’.CHAPTER VI1 See Creifelds under ‘Kreis’ and ‘Gemeinde’. Scholler (§ 2 II) defines ‘Kreise’ as ‘Zusammenschlüsse der imKreisgebiet bestehenden (kreisangehörigen) Gemeinden’.A ‘Gemeindebezirk’ is part of a ‘Gemeinde’. In England, its counterpart is a borough.See Creifelds under ‘Gemeindebezirk’.The term ‘Gemeindeverband’ (‘Gemeinde’ association) is used to describe a conglomeration of territorialcorporations above ‘Gemeinden’, eg, ‘Kreise’ and so-called ‘Gesamtgemeinden’.See Creifelds under ‘Kommunalverbände’.Cf ‘Zweckverband’. Katz (§ 4 VI) defines the EU (EEC) as a ‘Zweckverband souveräner Nationalstaaten’.See Maurer, Part 6, § 2315; Schmidt-Aßmann, Section I; Stober, § 7 III (c).2 See Creifelds under ‘kreisfreie Städte’.3 They are ‘Landesgesetze’: see Creifelds under ‘Landkreisordnungen’ and ‘Gemeindeordnungen’.4 This institutional autonomy is protected by the right of local authorities to lodge a constitutional complaint(Article 93(i) No 4b GG).5 The state is not allowed to infringe the essence (‘Wesensgehalt’) of communal autonomy—local governmentretains an area of core functions (‘Kernbereich’).See Kommers, Part II, Chapter 3 (‘Local Self-Government’); Stober, § 3 II and IV.Such functions include:– town planning (‘Stadtplanung’);– promotion of the local economy (‘Wirtschaftsförderung’);– Zmaintenance of public savings banks (‘Sparkassen’);– provision of social support (‘Sozialhilfe’);– responsibility for youth welfare (‘Jugendhilfe’);– local transport (‘Verkehr’);– supply of energy (‘Versorgung mit Energie’);– disposal of refuse (‘Entsorgung von Abfall’);– protection of the environment (‘ZUmweltschutz’);– service of local needs in the fields of education (‘Bildung’), culture (‘Kultur’) and sport.See Stober, § 6 II.Private firms in competition with ‘Gemeinden’, which engage in commercial activity (‘wirtschaftlicheBetätigung’), are traditionally in a weak position: see Stober, § 11IV.6 The ‘Gemeinden’ are free to decide upon the form of ‘öffentliche Einrichtungen’. A particular sub-category isthe ‘Anstalt’ (institution).See Stober (§ 6 III), who refers to ‘öffentliche Einrichtungen’ as a key concept (Schlüsselbegriff) of local‘Daseinsvorsorge’.See also Chapter II C.235

The German Legal System and Legal Language7 In reality, however, the functions of the ‘Gemeinden’ (and the ‘Kreise’) are not only voluntary (‘freiwilligeAufgaben’), but often compulsory (‘Pflichtaufgaben’): see Maurer, Part 6, § 23 I 3 and 5 (a).Functions may also be allocated to them: see below.8 See Creifelds under ‘Satzung’ and ‘Satzungsgewalt (-befugnis)’; Erichsen, Part II, § 7 VI; Scholler, § 6; Stober,§ 8. Cf ‘Gesetz’.9 Regarding the possible types of local government constitution in Germany (eg, the ‘NorddeutscheRatsverfassung’, the ‘Süddeutsche Ratsverfassung’ and the ‘Magistratsverfassung’), see Creifelds under‘Gemeindeverfossung’; Stober, § 2.10 See Creifelds under ‘Kreistag’ and ‘Landrat’.11 If functions are allocated to a local authority, the state’s power of supervision extends not only to questionsof the legality (‘Gesetzmäßigkeit’) of particular actions (so-called ‘Rechtsaufsicht’), but also to questions oftheir appropriateness (ie, to the exercise of the local authority’s discretion; so-called ‘Fachaufsicht’).See Creifelds under ‘Staatsaufsicht’; Scholler, § 12; Chapter V, Note 7; Stober, § 12.12 See generally: Creifelds under ‘Kommunen’ and ‘Kommunalrecht’; Maurer, Part 6, § 22 II and § 23 I; Scholler,§ 2 II, § 2 VI (diagrams 6 and 7) and § 3 VI.CHAPTER VII1 Regarding the ‘Grundgesetz’ generally see, for example: Battis/Gusy, § 1 II; Hesse, Part I, § 3; Katz,Part II, § 6; Kommers, Part I, Chapter 2 (‘Structure and Principles’); Wesel (FR), Chapter 2 (‘Das BannerGrundgesetz’); Youngs (CL), Chapter 1.2 These Articles are arranged in the Sourcebook (Chapter 2) as follows:– Article 20.– Political parties (Article 21).– Flag (Article 22).– International relations (Articles 23–27).– The states (Articles 28–31).– External relations (Article 32).– Citizens’ rights (Article 33).– Officials and authorities (Articles 34–36).– Coercion by the ‘Bund’ (Article 37).3 These Articles are arranged in the Sourcebook (Chapter 2) as follows:– Legislative powers and procedure (Articles 70–78).– Altering the constitution (Article 79).– Regulations (Article 80).– Special cases (Articles 80a-81).– Coming into force (Article 82).4 These Articles are arranged in the Sourcebook (Chapter 2) as follows:– The courts (Article 92).– The Federal Constitutional Court (Articles 93–94).– The federal courts (Articles 95–96).– Judges (Articles 97–98).– Constitutional issues (Articles 99–100).– Special courts (Article 101).– Criminal law and the right to be heard (Articles 102–103).– Freedom (Article 104).Regarding the judicature see, for example, Katz, Part IV, § 23; Maunz/Zippelius, Section 5, § 35.5 For a survey of the financial order (‘Finanzordnung’) in Germany see Katz (Part IV, § 22), who describes it asa cornerstone of the federal system (‘Ecksetein des föderativen Systems’); Maunz/Zippelius, Section 6, § 42;Schunck/De Clerck, Part II, Section A, Chapter 20.6 Sections VIIIa (Articles 91a-91b) and Xa (Articles 115a–l) of the Basic Law deal with, respectively, ‘jointmatters’ (‘Gemeinschaftsaufgaben’) in which there is cooperation (‘Mitwirkung’) by the ‘Bund’ and matters ofnational defence (the ‘Verteidigungsfall’ (defence situation)).236

Notes7 Regarding the hierarchy of norms in Germany see Battis/ Gusy, Part A, § 6 II 3; Katz, Part I, § 1 III; ChapterXIV A.Regarding constitutional interpretation, its limits and the principle of ‘verfassungskonforme Auslegung’ seeHesse, Part I, § 2; Katz, Part II, § 5IV; Kommers, Part I, Chapter 2 (‘Constitutional Interpretation’).Regarding (specifically) interpretation of the basic rights see Bleckmann II, § 8; Katz, Part V, § 24 IV.8 Regarding the validity and legality of a VA, see Chapter XIV C 3.Unless and until it is withdrawn, revoked, annulled or has otherwise been dealt with, a VA remains valid,even if it is illegal (§ 43(ii) VwVfG). However, an illegal norm is usually void: see Schwerdtfeger, Part 2, § 5II 3(c).9 Regarding the validity of norms, see generally Schwerdtfeger, Part 5 (§§ 23–28).Regarding the various methods of norm-control, see Section C, below and Maunz/Zippelius, Section 6, § 41IVNorm-control forms part of the broader right of judicial review (the ‘richterliches Prüfungsrecht’). Its historicalantecedent in Germany is constitutional review. See Kommers, Part I, Chapter 1 (‘Origin’).In England, ‘judicial review’ is a particular remedy in administrative law and has no constitutional connotation(although this may change, following incorporation of the European Convention on Human Rights intoEnglish law).10 Whereas access to the administrative courts is available pursuant to a general clause (§ 40(i) VwGO), thecategories of case in which the constitutional courts have jurisdiction are precisely specified(‘Enumerationsprinzip’ (enumeration principle)); a matter not falling within a particular category is ‘unzulässig’(inadmissible).Cf Chapter XV C (Note 10) and see Creifelds under ‘Verfassungsstreitigkeiten’ (a)–(n); Kommers, Part I, Chapter1 (‘Jurisdiction’); Model/Creifelds/Lichtenberger, Part I D IV (72–74).11 In Baden-Württemberg, Bremen, Hessen and Niedersachsen, the constitutional court of the ‘Land’ is calledthe ‘Staatsgerichtshof’. See also Creifelds under ‘Verfassungswidrigkeit von Gesetzen’.12 Another name for the ‘konkrete Normkontrolle’ is the ‘Vorlageverfahren’ (reference procedure). It is a form ofcompulsory judicial review.The court must only refer, if:– it is convinced that the relevant norm is unconstitutional (ie, void or incompatible with the relevantconstitution);– no ‘verfassungskonforme Auslegung’ of the norm is possible (ie, it cannot be interpreted in conformity withthe relevant constitution); and– the validity (‘Gültigkeit’) of the relevant norm is vital to the court’s decision (‘entscheidungserheblich’).If the matter is referred to the constitutional court, the proceedings must be stayed.See Jarass/Pieroth, Article 100, I; Chapter XIII, Note 71.13 The incidental decision of a court is merely binding on the parties: cf § 121 VwGO and § 322 ZPO.A norm below a ‘Landesgesetz’ (state statute) can also be challenged in the OVG under § 47 VwGO (the socallednorm-control procedure (‘Normkontrollverfahren’): see Chapter XV A. If the OVG declares the normvoid, its decision is of general effect (‘allgemein verbindlich’: §47(vi), 2nd sentence VwGO).See Gallwas, Chapter 12 (12.1.3 and 12.1.4).Similarly, to avoid duplication of proceedings (‘Doppelprozess’), courts of all jurisdictions can decide (other,non-constitutional) preliminary questions (‘Vorfragen’)—eg, the interpretation of European Union law—incidentally themselves.See Schmitt Glaeser, Part I, § 2 II C 5; Chapter XIII, Note 70.14 § 90(ii), 2nd sentence BVerfGG contains an exception to the usual requirement of the exhaustion of normallegal channels (‘Erschöpfung des Rechtswegs’):…the Federal Constitutional Court can hear a constitutional complaint immediately, if it is of generalimportance or if a severe and unavoidable disadvantage would accrue to the complainant, if thecomplainant were referred in the first instance to ordinary legal proceedings. See The Investment Aid ActCase (Sourcebook, Chapter 3).15 See Maunz/Zippelius, Section 6, § 41 V; the comments under Article 93 GG in die Sourcebook, Chapter 2.A constitutional complaint is an extraordinary, final and subsidiary legal remedy (‘Rechtsbehelf’). It is not asubstitute for any appellate remedies (‘Rechtsmittel’), which might be available under the relevant proceduralcode.See the article by Holger Zuck in ZAP 8/95, Fach 19, p 305.237

The German Legal System and Legal LanguageWhere a court decision is involved, Zuck recommends that, if it is uncertain whether a particular procedural‘Rechtsmittel’ is absolutely hopeless (‘völlig aussichtslos’) or is clearly inadmissible (‘offensichtlich unzulässig’),one should lodge a constitutional complaint on a precautionary basis (‘vorsorglich’) parallel to the relevantprocedural remedy. If the procedural remedy proves unsuccessful, a further complaint can later DC lodgedagainst that (second) decision.The address of the Federal Constitutional Court is:‘Bundesverfussungsgericht’,Schloßbezirk 3,76133 Karlsruhe.16 A Not every wrong decision by a court or wrong application of the law justifies a constitutional complaint.There must be an element of arbitrariness (‘Willkür’), ie, the court must have fundamentally failed toappreciate or deliberately ignored the importance and influence of the basic rights in the relevantcase.B Before accepting a constitutional complaint for decision, the Federal Constitutional Court conducts apreliminary examination (‘Vorprüfungsverfahren’). Most complaints founder at this hurdle.There are only two grounds for acceptance (§ 93a (ii) BVerfGG): either (a) the complaint concerns amatter of fundamental constitutional importance; or (b) acceptance is expedient in order to give effectto one of the (basic) rights within § 90(i) BVerfGG, eg, the complainant would suffer a particularlyserious disadvantage (besonders schwerer Nachtein), if the court declined to decide the matter. In otherwords, the relevant infringement of basic rights must be weighty (‘gewichtig’) or affect the complainantdetrimentally in an existential manner.See the article by Holger Zuck in ZAP 8/95, Fach 19, p 305.C Where a provision in a statute (‘Gesetz’) requires a particular act of implementation (Vollzugsakt’) bythe executive, a complaint against the statutory provision itself can only be brought before the FederalConstitutional Court exceptionally (‘ausnahmsweise’).The complainant must usually wait for the implementing measure and then—in accordance with thesubsidiarity principle (‘Subsidiaritätsprinzip’)—(first) challenge it in the administrative court, since it isonly at the stage of the implementing act that the complainant can allege that he is directly affected(‘unmittelbar betroffen’) and that the implementing act amounts to an attack (‘Eingriff) on his legalsphere (‘Rechtssphäre’).See Kriele, Fall 19 (the ‘Voikszählung’ (public census) decision of the Federal Constitutional Court of15.12.1983; ‘Aus den Gründen: B’); the decision of the Federal Constitutional Court of 21.6.1996 regarding‘Rechtschreibreform’ (reform of written German) (ZAP-Aktuell, 10.7.1996, p 632).Within the context of the European Community, the subsidiarity principle has been elevated by theMaastricht Treaty on European Union (and subsequently by Article 23 GG) to the level of a bindinglegal principle’. See Kommers, Part II, Chapter 3 (‘German Federalism and the European Union’ (3.10The Maastricht Case (1993)).17 As, for example, in Kriele, Fall 3 (the ‘Lüth/Harlan’ decision of the Federal Constitutional Court of 15.1.1958;also referred to in Chapter VIII, Notes 7 and 12, below).18 As, for example, in Kriele, Fall 4 (the ‘Apotheken’ (chemists) decision of the Federal Constitutional Courtof 11.6.1958). See the comments in connection with that case under Article 12 GG in the Sourcebook,Chapter 3.Alternatively, the Federal Constitutional Court can declare the (provision in the) statute compatible(‘vereinbar’) or incompatible (‘unvereinbar’) with the Basic Law. See § 31(ii) BVerfGG; Battis/Gusy, § 7 V(305); Kommers, Part I, Chapter 2 (‘Judicial Review in Operation’—‘Form and Effect of Decisions’); and thefollowing cases:– Kriele, Fall 18 (‘Naßauskiesung’ (wet gravelling)). In connection with that decision, also referred to as TheGroundwater Case (1981) (Kommers 6.4), see the comments on expropriation (‘Enteignung’) under Article14(iii) GG in the Sourcebook, Chapter 3.– Kriele, Fall 11 (‘Numerus clausus’). A ‘numerus clausus’ (fixed number) of university admissions may beincompatible with the Basic Law. Training (‘Ausbildung’) is the first stage to the exercise of a profession(‘Beru/sausübung’) under Article 12(i) GG. See also Chapter VIII, Note 6.– The Housework Day Case (Sourcebook, Chapter 3).19 An ‘Organstreit’ can also be initiated by a parliamentary grouping (‘Fraktion’) or political party. See Hesse,Part III, Section 3, § 19 II 2.For the application to be admissible, the applicant must allege that a measure or omission of the otherparty injures its rights and obligations under the Basic Law or that it is directly endangered by it: § 64(i)BVerfGG.238

NotesA ‘measure’ includes a Federal Government decision (‘Beschluß der Bundesregierung’): see The Bosnia FlightExclusion Zone Case (Sourcebook, Chapter 2).20 See Maunz/Zippelius, Section 6, § 41 III; Youngs (CL), Chapter 1, Part XVI3.CHAPTER VIII1 Regarding the nature of the basic rights, the entitlement to claim them and their effect see the Sourcebook,Chapter 3 (‘Introduction’); Youngs (CL), Chapter 4, Part I, Sections A-C2 In the Basic Law, the structural principles of state follow the basic rights and commence in Article 20. Thisis a reaction to the crimes of the Nazi period and should be compared with the position under the constitutionof the Weimar Republic and the so-called ‘Paulskirche Verfassung’. See Wesel (FR), Chapter 2 (‘Menschenrechte’)and Chapter II, Note 5, above.3 Basic rights must be distinguished from statutory provisions, which merely set out a state programme oraim (so-called ‘Programmätze’ or ‘Staatszielbestimmunge’). In turn, these are also to be distinguished fromone another: the former are informal statements of intention, while the latter are legally binding. Both,however, are a form of political signpost. See Katz, Part III, § 7 and Part V, § 251:4 Freedom rights typically comprise the following elements:– a guaranteed area (‘Gewährleistungsbereich’);– an area setting out limits (‘Vorbehaltsbereich’). Such limits can be:– general (eg, Articles 2(i) and 8(ii) GG);– qualified / specific (eg, Articles 5(ii) and 9(ii) GG); or– omitted (eg, Articles 4(i),5(iii) and 8(i)GG); rules themselves laying down limits to those limits (‘Schranken-Schranken’).See Battis/Gusy, Part B, § 12 II; Bleckmann II, § 5; Gallwas, Chapters 3 and 4; Katz, Part V, § 26; ‘Limitationof Basic Rights’, below.5 The legislature can concretise institutional guarantees, provided their essential structure (‘wesentliche Struktur’/‘Wesensgehalt’) is not infringed. However, institutional guarantees do not bestow individual rights as such.They provide less protection.There is a school of thought that institutional guarantees should be used as a means of dealing with socialproblems (viz asylum). Whether this will be successful is doubtful.See Battis/Gusy, Part B, § 9; Bleckmann II, § 11 (‘Die Funktionen der Grundrechte’); Katz, Part V, § 25 II;Kommers, Part I, Chapter 2 (‘Constitutional Interpretation’—‘An Objective Order of Values’); The Film DirectorCase (‘Lüth/Harlan’) (Sourcebook, Chapter 6).6 This is achieved by an ‘Umdeutung’ (fresh interpretation) of the basic rights, eg, of Article 3(i) GG. SeeBleckmann II, § 11 II.‘Leistungsrechte’ can be enforced by the administrative courts, ie, they are ‘einklagbaf. See Wesel (FR), Chapter5, which deals with the distinction between ‘Eingnffsverwaltung’ and ‘Leistungsverwaltung’ (‘Daseinsvorsorge’),a distinction first drawn in 1938 by Ernst Forsthoff in his book ‘Die Verwaltung als Leistungsträger’. By way ofexample, Wesel draws attention to a case decided by the Federal Administrative Court in 1954 (BVerwGE1,159; ‘Fürsorgeunterstützung’ (welfare support)). See also Chapter II, Note 12 and Chapter X, Note 21.In the ‘Numerus clausus’ case ‘Leistungsrechte’ were referred to as ‘Teilhaberechte’ (rights to participate (instate services)). See Chapter VII, Note 18.7 A See Battis/Gusy, Part B, § 10 II; Hesse, Part II, Section 1, § 11 II; Kommers, Part I, Chapter 2(‘Constitutional Interpretation’—‘Theory of Basic Rights’); Kriele, Fall 3 (‘Lüth/Harlan’; ‘Aus denGründen: BII1–4’). Particularly instructive is Gallwas (Chapter 6):(i) The process of balancing (‘Abwägung’; see Notes 10 and 20 B, below) enables a collision between(private) interests to be resolved.(ii)(iii)The starting point in the process is the state’s duty of care and protection (‘Achtungs- undSchutzpflicht’) not only for the interests of society as a whole, out also for those of each individual.Even though a dispute between private persons may be influenced by basic rights, it remains(materially and procedurally) a civil law dispute (‘bürgerlicher Rechtsstreit’).239

The German Legal System and Legal Language(iv) A person entitled to a basic right may be the target of a private law daim (‘privatrechtlicherAnspruch’) or he may (in the first instance) want to use private law as a sword to protect himselfagainst an infringement.B For examples of the indirect (secondary) effect of basic rights in cases involving claims for tort see theSourcebook, Chapter 6:– The Publication of a Letter Case;– The Newspaper Delivery Obstruction Case; and– The Film Director Case.In the first case, Articles 1 and 2 GG played a part; in the second, Articles 5 and 8 GG were considered,whilst in the third, Article 5 was decisive. In The Film Director Case the basic rights were vividlydescribed as having an ‘Ausstrahlungswirkung’ (radiation effect) on private law. However, theirinfluence extends to all areas of law. See the Sourcebook, pages 440 and 444; Youngs (CL), Chapter 4,Part I, Section C 3. Thus, for example, Article 5(i) GG (freedom of speech) can be invoked not only inthe context of civil law provisions (eg, §§ 823, 826 and 1004 BGB), but also against administrative actsand criminal convictions (eg, §§ 130,185ff StGB). See Kommers, Part III, Chapter 8 (‘Freedom ofExpression: Guiding Principles’) and the following cases:– The Film Director (Lüth) Case (1958) (Kommers 8.1);– The Schmid-Spiegel Case (1961) (Kommers 8.2);– The Blinkfüer Case (1969) (Kommers 8.3);– The Campaign Slur Case (1982) (Kommers 8.4);– The Holocaust Denial Case (1994) (Kommers 8.5);– The Tucholsky Cases (I/II) (1994/5) (Kommers 8.6).The ‘Tucholsky’ cases demonstrate the particular difficulty which Germans seem to have in handlingambiguous phraseology (‘soldiers are murderers’)—ie, should it be classified as (protected) opinion/criticism, insult or fact?—and the need to keep everyday German and German legal languagedistinct.See Notes 20 and 26 in this Chapter; Chapter XVI, Note 35; Kommers, Part III, Chapter 8 (‘The seminalcharacter of Lüth’).8 See Bleckmann II, § 9 and § 10; Katz, Part V, § 27.The carrier of a basic right is a person entitled to claim its benefit, while the addressee of a basic right is aperson bound by it.9 See Note 4, above; Bleckmann II, § 12; the Sourcebook, Chapter 3 (‘Limitations on the Basic Rights’); Katz,Part V, §§ 28–29; Youngs (CL), Chapter 4, Part I, Section D.10 As in Kriele, Fall 8 (the ‘Mephisto (Gründgens/Mann)’ decision of the Federal Constitutional Court of24.2.1971; ‘Aus den Gründen C IV’).See Battis/Gusy Part B, § 12 II 4.Regarding the process of ‘Abwägung’ (balancing), which had to be carried out by the Federal ConstitutionalCourt in the context of an application for an ‘einstweilige Anordnung’ (temporary order) under § 32 BVerfGG,see The Bosnia Flight Exclusion Zone Case and The East German Politicians Trial Publicity Cases in the Sourcebook,Chapters 2 and 3.The question of a conflict (collision) between the basic rights of different ‘Grundrechtsträger’ (=‘Grundrechtskollision’) is to be distinguished from the situation where there is concurrence of various basicrights (=‘Grundrechtskonkurrenz’), ie, where the conduct of one and the same person falls within the ambit ofmore than one basic right.The issue in both cases is the same: Which basic right takes precedence (is stronger)?However, the problem is resolved in different ways: in the former situation, there is a ‘Güterabwägung,while in the latter the principle of the maximum efficiency of (all) basic rights (‘Grundsatz der maximalenGrundrechtseffektivität’) is applied.See Bleckmann II, § 14; Katz, Part V, § 24 IV.11 See Battis/Gusy, Part B, § 12 III; Gallwas, Chapter 3 (3.4).12 As in The Film Director Case (Sourcebook, Chapter 6; Kriele, Fall 3 (‘Lüth/Harlan’; ‘Aus den Gründen: B II 2’)).13 Together with Article 19(i) GG, Article 19(ii) GG protects basic rights against inner erosion (‘Aushöhlung’)through ‘Gesetzesvorbehalte’.See Hesse, Part III, Section 1, § 10 IV 1.In the context of die development of the European Union, the possible emptying (‘Entleerung’) of basic240

Notesrights was a preliminary issue in The Maastricht Case. It remains a potential danger and should be takenseriously.14 The status and content of the ‘Verhältnismäßigkeitsgrundsatz’ (principle of proportionality) are explained inthe Sourcebook, Chapter 3. Application of the principle is also illustrated by The Arrested Admiral Case (rulesabout arrest) and The Shootings at the Berlin Wall Case (law of the former DDR; Sourcebook, Chapter 7).See also: Battis/Gusy, Part B, § 12 III 3 and 4; Creifelds under ‘Übermaßverbo’; Chapter II, Note 24; ChapterXIV, Note 31; Kommers, Part I, Chapter 2 (‘Constitutional Interpretation’—‘Proportionality’); Youngs (CL),Chapter 4, Part I, Section E.15 The legislature can, by ‘Gesetz’, empower the executive (government or ministers) to issue a ‘Rechtsverordnung’(statutory instrument). However, in accordance with the ‘Rechtsstaat’ principle (‘Gesetzmäßigkeit derVerwaltung’), the ‘Gesetz’ must specify the content, purpose and extent of the authorisation (‘Inhalt, Zweckund Ausmaß der Ermächtigung’) and it must be stated in the ‘Rechtsverordnung’ itself upon what legal basis(‘Rechtsgrundlage’) it is being issued: Article 80(i) GG.See Creifelds under ‘Rechtsverordnung and ‘Wesentlichkeitsvrinzip’; Katz, Part IV, § 20 IV; Kommers, Part I,Chapter 4 (‘Delegation of Legislative Power’). See also the comments under Article 80 GG in the Sourcebook,Chapter 2 and ‘Zustimmungsgesetz’.16 See, for example, Katz, Part V,§ 30.See also the Sourcebook, Chapter 3 (‘The Basic Rights Themselves’), where, successively, Articles 1–3, 6–14and 15–19 GG are treated.17 Although Article 93(i) No 4a GG refers to specific (basic) rights and is in this respect narrower than the‘Rechtsschutzgarantie’, it includes acts of the legislature and the judiciary. The term ‘öffentliche Gewalt’ inArticle 93(i) No 4a GG is, therefore, wider than in Article 19(iv) GG.18 The ‘Justizgewährungsanspruch’ includes a right to effective legal protection (effektiver Rechtsschutz’), a fairhearing (‘faires Verfahren’) and a right to be heard (‘rechthches GehöZ”): Article 103(i) GG and Article 6EuMRK.Although by § 184 GVG the court language is German, § 185 GVG obliges the court to provide an interpreter(‘Dolmetscher’), if a person, who does not have command of German (‘der deutschen Sprache nicht mächtig’), isinvolved in a hearing.In criminal proceedings, a person charged has the right to receive a translation (‘Übersetzung’) of the bill ofindictment (‘Anklageschrift’): Article 6(iii)a EuMRK. Moreover, the final submissions and applications of theprosecution and defence must be explained to the accused by the interpreter: §259(i)StPO.In civil matters, the submission of a translation of an ‘Urkunde’ (document) by an authorised translator(‘ermächtigter Übersetzer’) can be ordered: § 142(iii) ZPO. Indeed, the fundamental prohibition ofdiscrimination on linguistic grounds codified in Article 14 EuMRK and Article 3(iii) GG should justify theprovision of a translation of important written items into or out of a foreign language (‘Fremdsprache’) by acourt of its own motion (‘von Amts wegen’)—ie, from public funds—if a foreigner can show that his financialplight (‘finanzielle Notlage’) is such that he is unable to provide them himself.See Geimer, Part 5 and Part 10 X; Jarass/Pieroth, Article 20, D VI and Article 103, AIV 2; Katz, Part V, § 25 II5; Schack, § 12 VIII (‘Sprachprobleme’); Note 36 in this Chapter; Chapter XVII, Note 29.19 See Kommers, Part III, Chapter 7 (‘The Dignity of Persons’).20 A Article 2(i) GG guarantees a comprehensive basic right of general freedom of action (allgemeineHandlungsfreiheit’). It has three limits (‘Schranken’):– the rights of others (‘die Rechte anderer’);– the constitutional order (‘Zdie verfassungsmafiige Ordnung’);– the moral code (das Sittengesetz’).The constitutional order is, for practical purposes, the most important limit. It comprises every statute(‘Gesetz’), which is formally and materially in conformity with the constitution.Article 2(i) GG is an ‘Auffanggrundrecht’ ie, it springs in on a subsidiary basis, if there is no ascertainableinfringement of the protected area of another (more) specific freedom right (‘Spezialfreuieitsrecht’).B The judiciary has derived a general right of personality (‘allgemeines Persönlichkeitsrecht’) (privacy)from the rights enshrined in Articles 1(i) and 2(i) GG. It provides protection to valuable aspects /qualities/ attributes (‘Eigenschaften’) of the human personality (‘Persönlichkeitsgüter’) not alreadyprotected elsewhere (eg, by § 823(i) BGB) and forms a final barrier against the erosion/penetration ofprivacy in the personal domain.The right has constitutional rank and includes a right to informational self-determination (‘informationelleSelbstbestimmung’).241

The German Legal System and Legal LanguageIn the event of a conflict between a person’s own sphere of personality igensphäre der Persönlichkei’)and the legitimate interests of others, it must (again) be resolved by balancing (‘Abwägung’).Thus, for example, the ‘allgemeines Persönlichkeitsrecht affords protection against the unauthorizedtransmission of confidential data and the distorted reproduction of private correspondence: see ThePublication of a Letter Case (Sourcebook, Chapter 6; the right was first recognized in this case (1954)). It alsocovers a damaging comment (‘schädigende Bemerkung’) or statement of opinion (‘Meinungsäußerung’). .Intentional defamation can be the subject of criminal prosecution for ‘Beleidigung’ (insult; § 185StGB).C The ‘allgemeines Persönlichkeitsrecht’ is treated as a ‘sonstiges Recht’ (other (absolute) right) under §823(i) BGB. It is a framework right (‘Rahmenrecht’) and supplements the special personality rights(‘besondere Persönlichkeitsrechte’) expressly mentioned in § 823(i) BGB ana in other statutory provisions(eg, the right to one’s name (§ 12 BGB) and the right to one’s picture (§§ 22ff KUG)). The followingremedies can be claimed for an unlawful and blameworthy infringement (‘Verletzung’) of the ‘allgemeinesPersönlichkeitsrecht’:– damages (‘Schadensersatz’) for financial loss (§ 823(i)/ (ii) or § 826 BGB);– damages for (immaterial) pain and suffering (‘Schmerzensgeld’), if the breach is particularly serious(§ 847 BGB analogously);– disposal of the impairment (‘Beseitigung der Bedntrachtigung’) as appropriate, eg, by way of retraction(‘Widerruf’) (§ 1004 BGB analogously);– restraint (‘Unterlassung’) for the future (§1004 BGB analogously).Provisional legal protection (‘vorläufiger Rechtsschutz’) by way of injunction (‘einstweilige Verfügung’)is possible. See Schuschke, ZAP 9/2000, Fach 14, p 361.D Apart from these (civil) remedies, a defamatory statement of opinion or fact can also be the subject ofa criminal prosecution as ‘Beleidigung’ (insult): § 185ff StGB. However, an application for prosecution(‘Strafantrag’) must usually be lodged: § 194 StGB. See Chapter XVI, Note 35.E If a statement of fact in a printed publication (‘Druckschrift’) is involved, the press laws (‘Pressegesetze’)of the ‘Länder’ provide for a right to the printing of a response/correction (‘Gegendarstellung’/‘Berichtigun’). The civil and criminal law also make available sanctions for dissemination of certaintypes of untrue factual statements: see § 824 BGB (‘Kreditgefährdung’ (harm to financial status)), § 164StGB (‘falsche Verdächtigung’ (false suspicion)) and §§ 186–187 StGB (‘Üzble Nachrede’ (offensive gossip)and ‘Verkumdung’ ((malicious) defamation)).See Creifelds under ‘Persönlichkeitsrecht’, ‘Unterlassungsanspruch’, ‘Presserecht’ and ‘Gegendarstellung’;Battis/Gusy, Part B, § 12 II 2 and 4 and § 12 III 3 (at 466); Brox (BS), Chapter 8, § 37 A I 3 and III;Fikentscher, Section 16, Part 1, § 103 II 2; Gallwas, Chapters 5 and 10; Hesse, Part III, Section 1, § 121 (at428); Kötz, Part E; Chapter X Note 23; Youngs (CL), Chapter 5, Part II, Sections G and H and Chapter6, Part VI, Section B (6).Regarding the term ‘sonstiges Recht’ under § 823(i) BGB see The Newspaper Delivery Obstruction Caseand The Air Traffic Controllers’ Strike Case.Regarding Article 2(i) GG, see also: Kommers, Part III, Chapter 7 (‘The Right to Personality’ and‘Privacy and Physical Integrity’) and the following cases:– The ‘Mephisto’ Case (1971) (Kommers 7.2);– The Elfes Case (1957) (Kommers 7.4);– The ‘Volkszählung (public census) Case’ (1983) (Kommers 7.6);– The Soraya Case (1973) (Kommers 4.2).F To be distinguished from infringements of the honour/reputation (‘Ehre’I‘Ruf’) of another person arefalse statements regarding a person’s property or business interests.The English tort of malicious falsehood (‘slander of title’/‘slander of goods’; cf defamation) has nosingle equivalent in German law. In such cases, protection is provided primarily by § 823(i) BGB—which also treats the ‘Recht am eingerichteten und ausgeübten Gewerbebetrieb’ (right to an established andexercised business) as a ‘sonstiges Recht’—by § 824 BGB and by § 826 BGB.G The Law against Unfair Competition (UWG) also provides protection against unfair business practicesfor which, in English law, remedies are often provided by the general law of torts (eg, inducing breachof contract interference with trade, passing off).By § 1 UWG, the principal general clause, anyone who, for the purpose of competition (‘zu Zweckendes Wettbewerbes’), undertakes actions which contravene good morals (‘gute Sitten’) is open to claimsfor stoppage (‘Unterlassung’) and damages (‘Schadensersatz’). Stoppage is also available, if misleadingrepresentations (‘irreführende Angaben’) are made regarding business conditions (‘geschäftlicheVerhältnisse’): § 3 UWG.242

NotesThe right to daim stoppage under §§ 1 and 3 UWG is available not only to business competitors, butalso to trade and consumer associations (‘Verbände’) and chambers of commerce: § 13(ii) UWG.Attacks on the reputation of a business are covered by other provisions in the UWG. Thus, the makingof a damaging factual statement regarding (inter alia) the business or goods of another for the purposeof competition gives rise to claims for damages and stoppage, if the statement is not demonstrablytrue (‘nicht erweislich wahr ’) : § 14(i) UWG (so-called ‘Anschwarzung’ (blackening (of the name) or abusiness)). If an untrue statement is made contrary to better knowledge (‘wider besseres Wissen’), criminalpenalties result § 15(i) UWG.§§ 14 and 15 UWG are the business equivalents of §§ 186–187 StGB.Procedurally, the usual method to obtain stoppage is to apply for an injunction (‘einstweilige Verfügung’)under §§ 935ff ZPO. When such an application threatens, the party potentially affected can file a socalled‘Schutzschrift’ (protective pleading) at court as a precautionary measure, to ensure that thematter is not decided without an oral hearing (see § 937(ii) ZPO).By § 21 (i) UWG, the basic limitation period for claims for damages and stoppage is six months fromthe time at which the claimant has knowledge of the conduct in question and of the identity of theperson responsible. In the case of a claim for damages, however, the period does not begin to runbefore damage (‘Schaden’) has occurred (§ 21(ii) UWG).Claims in tort can sometimes become relevant because of the longer limitation period (§ 852 BGB).However, the general rule is that the protection of individual interests afforded by the law of tort (eg,the right to an established and exercised business) is overriden by the UWG, in so far as the UWGcontains special provisions. In other words, §§ 823ff BGB only come into play on a subsidiary basis.See Creifelds under ‘Ehre’, ‘Unerlaubte Handlung’, ‘Unlauterer Wettbewerb’, ‘Anschwärzung’, ‘EinstweiligeVerfügung’ and ‘Schutzschrift’; Dannemann, Section V, 3; Meyer, Part 6, § 13; Rittner, Part 1, § 1 C I;Youngs (CL), Chapter 5, Part II, Section L21 rs, Part III, Chapter 7 (‘The Right to Life’); Youngs (CL), Chapter 4, Part II A.22 This basic right incorporates the principles—binding on the legislature, executive and judiciary—that:– persons are entitled to equal treatment (‘Gleichbehandlungsgrundsatz’); and that– when reaching a decision, it is forbidden to take into account aspects (‘Gesichtspunkte’) or considerations(‘Erwägungen’) which are arbitrary (‘willkürlich’) or irrelevant (‘sachfremd’).See Creifelds under ‘Gleichheit vor dem Gesetz’, ‘Gleichbehandlungsgrundsatz’ and ‘Willkürverbot’; ChapterXIII, Note 18; Chapter XIV, Note 34.The question whether unequal treatment (‘Ungleichbehandlung’) is justified in a particular case is linked tothe principle of the prohibition of arbitrariness (‘Willkürverbot’).The issue within Article 3(i) GG therefore boils down to the age-old problem of (social) justice (‘(soziale)Gerechtigkeit’)—or, as is more elegantly formulated, of the ‘right; to equality of opportunity(‘Chancengleichheit’)—and, ultimately, to the question of the role of the welfare state (‘Sozialstaat’).See Battis/Gusy, Part B, § 13 III and IV; Bleckmann II, § 11 II; Hesse, Part III, Section 1, § 12 II; Kommers, PartIII, Chapter 6 (‘Equality and the Social Economy ’ ); Youngs (CL), Chapter 4, Part V, Sections.23 Article 3(ii) GG was the appropriate ‘Prüfungsmaftstab’ (standard against which the statutory provision inquestion was examined) in The Housework Day Case (Sourcebook, Chapter 3).24 See Kommers, Part III, Chapter 9 (‘The Free Exercise of Religion’); Youngs (CL), Chapter 4, Part VI, SectionC.25 Conscription is dealt with in Article 12a GG.See Youngs (CL), Chapter 4, Part XI3.26 One of the limits to Article 5(i) GG are the ‘allgemeine Gesetze’ (general laws).Whether such laws (which can include norms of civil law) take precedence in a particular case is difficult toestablish. For guidelines (‘Abwägungsfaktoren’) see Battis/Gusy, Part B, § 12 II 3 where relevant excerptsfrom The Film Director Case are also quoted.‘Informationsfreiheit’ (freedom of information) is a corollary to the basic right of ‘Meinungsaufterung’ (freedomof expression). Changes in technology will create new areas of work for the legislature and the courts(balancing of freedom of information against the position (interests) of information providers).See Kommers, Part III, Chapter 8 (‘Freedom of Expression: Guiding Principles’ and ‘Speech, Pereonhood,and Social Morality’); Youngs (CL), Chapter 4, Part VI, Section B. See also Note 7 in this Chapter.27 See Kommers, Part III, Chapter 8 (‘Artistic and Academic Freedom’).243

The German Legal System and Legal LanguageArtistic freedom is not unlimited and must be balanced against human dignity, which does not end withdeath: The ‘Mephisto’Case(Kommers 8.12).28 See Kommers, Part III, Chapter 9 (‘Marriage and Family Rights’); Youngs (CL), Chapter 4, Part VI, SectionA.29 See Kommers, Part III, Chapter 9 (‘Establishment’); Youngs (CL), Chapter 4, Part IX, Section A.30 See Kommers, Part III, Chapter 6 (‘Occupational Liberties’—‘Freedom of Economic Association and theRights of Labor’); Youngs (CL), Chapter 4, Part VII, Section B.31 See The Elfes Case (1957) (Kommers 7.4).32 See Kommers, Part III, Chapter 6 (‘Occupational Liberties’); Youngs (CL), Chapter 4, Part IX, Section B.33 See Kommers, Part III, Chapter 6 (‘The Right to Property ’ ); Youngs (CL), Chapter 4, Part VIIL34 In October 2000, Article 16 GG was amended to enable German citizens to be extradited to an international(criminal) court and to other member states of the EU, subject to there being statutory grounds thereforeand provided fundamental principles (rule of law) are safeguarded.See Chapter XXIC.35 See Chapter XXI, Note 19.36 In addition to the basic rights listed in Articles 1–17 GG, the Basic Law also contains the following rights:— the (ultimate) right of all Germans to resist anyone attempting to overturn the constitutional order(Article 20(iv) GG: the ‘Widerstandsrecht’);— the right of persons involved in legal proceedings to a proper judge as laid down by statute (Article101(i), 2nd sentence GG: the ‘Anspruch aufeinen gesetzlichen Richter’);— the right of persons involved in legal or administrative proceedings to a proper hearing in accordancewith law (Article 103(i) GG: the ‘Anspruch aufrecntliches Gehör’);— the right of the perpetrator of a crime only to be punished, if punishability is fixed by statute before theact is committed (Article 103(ii) GG: ‘nulla poena sine lege’);— the right of the perpetrator of a crime not to be prosecuted or punished more than once for the samecrime (Article 103(iii) GG: ‘ne bis in idem’);— the right of a person not to be deprived of his or her freedom except on the basis of and in the mannerprescribed by a formal statute (Article 104(i) GG: the ‘formelle Freiheitsgarantie’ (formal guarantee offreedom), which supplements Article 2(ii), 2nd sentence GG).Regarding these specific rights (apart from the ‘Widerstandsrecht’), sometimes referred to as ‘justizielleGrundrechte’ (judicial basic rights), seeChapter XXII A;Chapter XIII B I;Chapter XIV B 3 (§ 28 VwVfG);Chapter XVIA (Notes 3,4 and 5);Chapter XIII C D (Note 15); andChapter XVII D.See also: Youngs (CL), Chapter 4, Part IV.For further information regarding the basic rights generally see, for example: Battis/Gusy, Part B (§§ 8–14);Baumann (ER), Part IV, § 13 II 3; Hesse, Part III, Section I (§§ 9–12); Katz, Part V (§§ 24–30); Kommers, PartIII (Chapters 6–9); Maunz/Zippelius, Section 4 (§§ 17–29) and Section 6 (§ 40 II); Schunck/De Clerck, PartII, Section A (Chapter 2)); Model/Creif elds/Lichtenberger, Part I, Section DI (46–53); Creifelds under‘Grundrechte’; Gallwas; Jarass/Pieroth; Kriele.CHAPTER IX1 ‘Publicum ius est, quod ad statum rei Romanae spectat, prmatum quod ad singulorum utilitatem’ (attributed toUlpian).See Chapter I, Note 3; Baumann (ER), Part I, § 2 II 1; Katz, Part I, § 2; Köhler, Part 1, § 2; Rehbinder, ChapterII, § 131-III and Chapter IV, § 26, where codified law and case law are compared.2 See Chapter XIX A.3 See Schwab (Einführung), Part I, Chapter 2 A.4 The various branches and statutes of public and private law are listed in the Appendix to Creifelds. See also:Baumann (ER), Part I, § 2 II; Rehbinder, Chapter II, § 13 V and VI; Schwab (Einführung), Part I, Chapter 4.244

Notes5 A critique of the various theories is contained in Maurer, § 3 III. See also: Bull, Section I, § 2 6; Creifeldsunder Verwaltungsprivatrecht’; Rehbinder, Chapter II, § 13 IV; Wesel (FR), Chapter 5 (‘Von der Vertikalen zurHorizontalen’); Chapter II C (Note 16) and Chapter XXII C 2.6 The characteristic feature of compulsory norms is that they lay down restrictions on freedom of contract forpolicy reasons. They are common in public law and in fields where, in the interest of legal certainty, thechoice of legal form or type has to be limited (eg, in the law of property and the law of succession), or wherebusiness fairness requires that avoidance and exploitation should be prevented (eg, in consumer credit lawand employment law). Other examples are § 138 BGB, the AGBG and the FernAbsG.See Creifelds under ‘Vertrag’ II; Löwisch, § 1; Schellhammer (ZR), Book 3, Part 33, Chapter 4 2; Schwab(Einführung), Part I, Chapter 2 D; Chapter X B 1 6; Youngs (CL), Chapter 2, Part II ((‘Classification ofLaw’).In the field of private international law, contractual obligations remain subject to compulsory norms ofGerman law, whatever the law actually applicable to the contract: Article 34 EGBGB. The applicability of‘mandatory rules’ is also expressly preserved by the Rome Convention 1980: see Chapter XX, Note 14.CHAPTER X1 General summaries for initial reading can be found in Baumann, Part II (§§ 3–8); Köhler, Part 1, § 3; Model/Creifelds /Lichtenberger, Part 3 F (302–362); Schwab (Einführung), Part I, Chapter 2 A-B; Westermann(Grundbegriffe). See also Creifelds under ‘Bürgerliches Recht’.Regarding the term ‘Rechtsquelle’ see Katz, Part I, § 1 II; Köhler, Part 1, § 1 E; Chapter XIV A.2 For the historical background see Chapter I; Köbler, § 7 B III; Laufs, Chapter IX, 2; Wesel (JW), Chapter VII.To be recommended is also the article by Ernest Schuster in the Journal of the Society of ComparativeLegislation (Vol 1, 1896–7, p 191)—the forerunner of ICLQ—where the (draft) German Civil Code is describedin English.3 See Baumann (ER), Part II, § 3; Kallwass, Section 1 (§§ 2–4); see also the diagram in Klunzinger (Einführung),Part I (§ 2, Section I; ‘Die im BGB geregelten Sachgebiete’).4 See generally: Brox (AT); Creifelds; Kaiser, Part I; Kallwass, Section 1, § 8; Klunzinger (Einführung), Part II(§§ 4–20); Köhler; Löwisch; Mensler; Meyer, Part 1, § 2 A II; Model/Creifelds/Lichtenberger, Part 3 F (303–310); Reich/Schmitz, Chapter 2 A-F; Rüthers; Schellhammer (ZR), Book 3 (Parts 33–43); Westermann(Grundbegriffe), Chapters 1–7.5 See Baumann (ER), Part II, § 51; Rüthers, Chapter 4, §§ 13–15; and the comments on the legal capacity ofpersons and the right to (use of) a name (§ 12 BGB) in the Sourcebook, Chapter 4 (following The Injured FoetusCase).‘Rechtsfähigkeit’ is to be distinguished from ‘Handlungsfähigkeit’ (capacity to act), ie:– ‘Geschäftsfähigkeit’ (capacity to undertake a ‘Rechtsgeschäft; see below);– ‘Deliktsfähigkeit’ (capacity to commit a delict (tort); §§ 827, 828 BGB) (in criminal law: ‘Schuldfähigkeit’; §§19, 20 StGB); and– ‘Verschuldensfähigkeit’ (capacity for fault; § 276(i), 3rd sentence BGB).See Creifelds, eg, under ‘Handlungsfdhigkeit’; Note 126 D in this Chapter; Chapter XVI, Note 39; Youngs(CL), Chapter 5, Part III, Section A.6 See the diagrams in Baumann (ER), Part II (§ 5, Section V) and Klunzinger (Einführung), Part II, Chapter 1(§4, Section I). See also: Köhler, Part 3, §§ 8–9; Meyer, Part I, § 3 A; Rehbinder, Chapter II, § 141; Schwab(Einführung), Part II, Chapters 1–3.A natural person can acquire rights before birth: see The Injured Foetus Case (Sourcebook, Chapter 4).7 A ‘Kaufmann’ has a ‘Handels-’ or ‘Haupt-’ fniederlassung’, while a ‘Handelsgesellschaft’ (eg, an OHG, KG or aGmbH) has a ‘Sitz’: see §§ 29 and 106(i) HGB; Chapter XIA 5, below.A ‘Zweigniederlassung’ is a branch (office). See §§ 13,13a-c HGB; Gierke/Sandrock, Section 1, Chapter 3(§14).The ‘Sitz’ of an OHG (or KG) must be at its principal place of management (‘Ort der Geschäftsführung’).This contrasts with § 24 BGB, under which the ‘Sitz’ of a ‘Verein’ can be freely selected.8 The terms ‘Wohnsitz’ and ‘Sitz’ are also of fundamental importance in the Brussels Convention (EuGVÜ)1968 ie, for the purpose of the (international) jurisdiction of the German courts in civil and commercialmatters (and thus for the recognition or enforcement of a foreign (European) judgment).245

The German Legal System and Legal LanguageSee Chapter XIII, Notes 28 C and 171; Creifelds under ‘Wohnsitz’; Dannemann, Part VI 1(a); the article byJohannes Schmidt in ZAP 14/95, Fach 13, p 343; Collier, Part II, Chapter 10 (e) (ii), where the position in theUK (ie, under the Civil Jurisdiction and Judgments Act 1982) is explained.Regarding the ‘Sitz’ of a ‘Handelsgesellschaft’, see the previous Note and Chapter XI A.9 In English private international law, a person has a domicile (of origin) from birth. The term domicile isusually synonymous with ‘permanent home’.A new domicile—a so-called ‘domicile of choice’—can be acquired by actual (physical) presence in a placewith the intention to stay there permanently (or at least indefinitely). If the domicile of choice is lost, thedomicile of origin revives. However, it is not possible to have more than one domicile at the same time. SeeCollier, Part I, Chapter 5.In German law, by contrast, a person can have several ‘Wohnsitze’ or be without a ‘Wohnsitz’ (‘wohnsitzlos’).In the latter situation, his (habitual) residence is normally decisive for legal purposes (see, for example, §132 BGB and § 16 ZPO).10 See Baumann (ER), Part E, § 6, Köhler, Part 4, §§ 10–11 and Rüthers, Chapter 3, §§ 10–12. See also thediagram in Kaiser, Section I, Chapter 8.11 In English law, the fundamental classification of property generally (‘Gegenstände ’ /‘Rechtsobjekte’) is betweenreal property (land/real estate) and personal property. The term ‘chattel’ covers all (personal) propertyother than a freehold interest in land.The further common law classification of personal property as either ‘choses in possession’ or ‘choses in action’corresponds with the basic German law distinction between ‘Sachen’ and ‘Rechte’ (ie, corporeal and incorporealproperty).In German law, the distinction between movables and immovables is made within the term ‘Sachen’. SeeNote 233 in this Chapter.12 The ‘Rechtsobjekte’ belonging to a ‘Rechtssubjekt’ constitute its ‘Vermögen’ (assets).Subject to certain exceptions (§§ 850ff ZPO), the ‘Vermögen’ is available for creditors. See Rüthers, Chapter3, § 12, where the similarly vague (commercial) term ‘Unternehmen’ (enterprise, business) is also explained.13 Regarding the term ‘subjektives Recht’, see Rehbinder, Chapter II, § 14 II-IV, §§ 15–16; Rüthers, Chapter 2, §4.14 See Köhler, Part 2, § 7 and Rüthers, Chapter 2, § 8.15 Regarding the former two, see Rüthers, Chapter 2, § 6 and Note 255 in this Chapter; regarding the latter, seeRüthers, Chapter 2, § 7 and Note 47 C in this Chapter.16 See Baumann (ER), Part II, § 8 II; Köhler, Part 2, § 5 II; Rüthers, Chapter 2, § 5; Schwab (Einführung), Part III,Chapters 1–6. See also the diagram in Klunzinger (Einführung), Part II, Chapter 1 (§ 5, Section II; ‘SubjektiveRechte’).Rehbinder (Chapter II, § 15) explains the distinction between an ‘Anspruch’ (cause of action) and a subjectivelegal right. Whilst today the former (ie, the remedy) is treated as flowing from the right—‘ubi ius, ibiremedium’—historically an ‘Anspruch’ was the precursor of a subjective legal right. As a present-day exampleof the ‘Schluß vom Anspruch aufdas Recnt’, Rehbinder refers to § 823(i) BGB.The position in Scotland is similar. Despite English influence, civil law in Scotland rests more on generalisedrights than in England and the remedy depends on die right rather than, as in English tradition, the right onthe remedy See The legal system of Scotland’, in ‘Britain’s Legal Systems’ ((1993) (HMSO)); ‘Preface to theSecond Edition’, Note 10 B; Note 18 in this Chapter.17 See Chapter VIII, Note 20.18 Very many civil claims are based on ‘Anspruchsgrundlagen’ contained in the norms (referred to as‘Anspruchsnormen’) of the BGB.However, the great majority of the norms of the BGB (indeed, all those in the ‘Allgemeiner Teil’) themselvesdo not form the basis for claims. They are merely accessory norms (‘Hilfsnormen’), which supplement ormodify the ‘Anspruchsnormen’. See Rehbinder, Chapter II, § 11.An ‘Anspruchsnorm’ can often be recognised by its formulation: usually, ‘kann verlangen…’ (can demand…)or—as the counterpart of a right is an obligation (‘Verpflichtung’)—‘ist verpflichtet..’ (is obliged) or ‘haftetfür…’ (is liable for…).An ‘Anspruch’ can be distinguished according to whether it is:— contractual (‘schuldrechtlich’);— real (‘sachenrechtlich’ or ‘dinglich’);— based on family law (‘familienrechtlich’); or— based on the law of succession (‘erbrechtlich’).Apart from originating from an ‘Anspruchsnorm’, an ‘Anspruch’ can also arise out of a ‘Rechtsgeschäft’ (legaltransaction) directly or be based on a supplementary principle developed outside the BGB (eg, the principle246

Notesof ‘culpa in contrahendo’ ((cic) blame during (in the course of) (preliminary) negotiations (quasi-contract)) or‘positive Vertragsverletzung’ ((PVV) positive breach of contract)).A lawyer, who has to check (‘prüfen’) whether a person has an ‘Anspruch’ (claim) against another person,must always ask himself:‘Wer will was, von wem, und woraus?’ (Who wants something, from whom, and based on what?).See Brox (AT), Part III, § 30 II and III; Creifelds under ‘Anspruch’ (and ‘actio’); Fikentscher, Introduction, § 1I; Köhler, Part II, § 6 I; Klunzinger (Einführung), Part I (§ 3, Section IV); Reich/Schmitz, Chapter 2 A; andthe appendix to Schwab (Einführung), where tables of important ‘Anspruchsgrundlagen’ in the BGB are setout.See also: Notes 47 C, 126 C and 135 in this Chapter post; Wesel (FR), Chapter 3 (‘Allgemeine Begriffe’): Weselexplains that before Windscheid coined the term ‘Anspruch’ in 1851, the prevalent thinking was in terms ofparticular procedural actions. He compares this with the present day situation: today, an ‘Anspruch’ issomething which exists ‘außerhalb’ der Gerichte’ (outside the courts) ‘von Mensch zu Mensch’ (from person toperson).In English law, too, the ‘forms of action’ (ie, choice of the correct type of writ) remained important until the19th century. See Note 16 in this Chapter.19 ‘Gestaltungsrechte’ can arise from statute or contract and are often subject to exclusion periods(‘Ausschlußfristen’) ie, they can only be exercised within certain statutory or contractually agreed time limits.For the avoidance of uncertainty, they must be exercised unconditionally (‘bedingungslos’).See Löwisch, § 18; Rüthers, Chapter 2, § 9 III.20 ‘Einwendungen’ are legal objections, which must be taken into account by a court of its own motion (‘vonAmts wegen’).‘Einwendungen’ are distinguished according to whether they are ‘rechtshindernd’—ie, negate the very existenceof an ‘Anspruch’ (eg, nullity of a contract)—or ‘rechtsvernichtend’—ie, destroy an ‘Anspruch’, which isacknowledged to exist (eg, performance of a contract; set-off).‘Einreden’, on the other hand, do not attack the ‘Anspruch’ as such, but allege facts preventing it from beingrealised (‘rechtshemmend’)—ie, an ‘Einrede’ provides the debtor with a right to decline performance(‘Leistungsvenoeigerungsrecht’) either temporarily (eg, due to a respite (‘Stundung’)) or permanently (eg,because of limitation (‘Verjährung’)).To make matters more complicated, the ZPO refers to both ‘Einwendungen’ and ‘Einreden’ as merely ‘Einreden’.An ‘Einrede’ is an allegation of fact, rather than an objection made on procedural grounds, ie, the assertionof an obstacle to the proceedings (‘Prozeßhindernis’).See Creifelds under ‘Einrede’, Klunzinger (Einführung), Part I, § 3 (Section IV), where the types (and examples)of ‘Einwendungen’ and ‘Einreden’ are set out; Köhler, Part 2, § 6; Medicus (BR), Section VI, § 29. See also: Note93 in this Chapter; Chapter XIII, Note 107.21 See Chapter VIII, Note 6, above and Maurer, Part 2, § 81. Maurer describes the ‘Fürsorgeunterstützung’ caseas a ‘fundamental decision’ and refers to the problem of basic rights as ‘Leistungsrechte’.22 Strictly speaking, ‘Rechte und Pflichten’ (rights and duties) are the ‘Rechtsfolgen’ (legal consequences) arisingfrom a ‘Rechtssatz’ (legal provision, ie, one laid down in a ‘Gesetz ’ (statute)). A ‘Rechtsverhältnis’ is, morecorrectly, (merely) a ‘Lebensbeziehung’ (an actual relationship in everyday life).The typical structure of a ‘Rechtssatz’ is that particular ‘Rechtsfolgen’ are attached (‘geknüpft’) to and conditionalon the fulfillment of a specific ‘Tatbestand’ (substantive part/ content (of a norm)).One speaks of the (preconditions (‘Voraussetzungen’) for the applicability of a legal provision and of theelements (‘Merkmale’) of a particular ‘Tatbestand’.For a proper understanding of German law, the (abstract) concepts of ‘Tatbestand” and ‘Rechtsfolge’ arefundamentally important.For further details, see the discussion in Engisch, Chapter II Engisch points out that a ‘Rechtssatz’ lays downwhat ought to occur—it is a ‘Sollenssatz’ and is usually expressed as an imperative (ie, leads to ‘Pflichten’). Adifferent type of ‘Rechtssatz ’ is one which consists of the grant (‘Gewahrung’) of a ‘subjektives Recht’.See also: Creifelds under ‘Rechtsverhältnis’; Meyer, Part I, § 3 C; Schwab (Einfühnmg), Part III, Chapter 5 E;Chapter X C 2 2 (Note 105) and Chapter XVIC (Note 16).23 ‘Vertragsfreiheit’ is guaranteed by Article 2(i) of the Basic Law (as part of the basic right of general freedomof action (‘allgemeine Handlungsfreiheit’)). It is also presupposed by § 305 BGB.However, ‘Vertragsfreiheit’ is not unlimited (‘schrankenlos’); it is subject to the same limits as set out in Article2(i) GG. Thus, for example, a marriage contract (‘Ehevertrag’) which is unfairly burdensome to one partyonly (‘einseitig belastend’), which exploits that party’s inferiority (‘Unterlegenheit’) and which infringesconstitutional norms can be subjected to judicial control (‘richterliche Inhaltskontrolle’): ZAP-Aktuell 5/01, p246; ZAP EN-Nr 170/01.247

The German Legal System and Legal LanguageIndeed, in recent times the reality is that the area remaining for private autonomy has been continuallyrestricted by statutory encroachments (eg, in the field of employment law). Moreover, agreements.See Flume, Chapter I, § 1; Rüthers, Chapter 1, § 3; Kallwass, Section 2, Chapter 1 (§§ 9–12); Kötz (EVR), PartA, § 8; Schellhammer (ZR), Book 3, Part 33, Chapters 1 and 2. See also: Chapter VIII, Note 20; Chapter IX B;Chapter X, Note 80 and D 2 (ii).For a critique of the ‘problem’ of ‘Vertragsfreiheit’, see Wesel (FR), Chapter 3 (‘Vertrag’).Other terms to be distinguished are:Apart from originating from an ‘Anspruchsnorm’, an ‘Anspruch’ can also arise out of a ‘Rechtsgeschäft’— ‘Abschlußfreiheit’, ie, the right to conclude a ‘Vertrag’ with whomever one pleases; and, as its opposite;— the principle of ‘Kontrahierungszwng’ (compulsory contracting), whereby, very exceptionally, a monopolyor other dominant organisation can be compelled to enter into a contract with an applicant.See Köhler, Part 5, § 12 I and II, § 15 V and § 20; Medicus (AT), Part 2, §§ 10 and 11; Schellhammer (ZR), Book3, Part 33, Chapter 3.24 See generally: Baumann (ER), Part II, § 7 II-III; Brox (AT), Part II, §§ 4–27; Gernhuber/Grunewald, Part 1;Köhler, Part 5, §§ 12–22; Reich/Schmitz, Chapter 2 B; Rüthers, Chapter 7; Schwab (Einführung, Part V. Seealso the diagram in Klunzinger (Einführung), Part II, Chapter 2 (§ 7, Section IV; ‘Menschliches Handeln’) andthe Sourcebook, Chapter 4 (‘Legal Transactions’).For a discussion of the history and ‘Problematik’ of the terms ‘Rechtsgeschäft’ and ‘Willenserklärung’ see Flume,Chapter I, § 2 4 and 5.Schuster (see Note 2 in this Chapter) defines ‘Rechtsgeschäfte’ as ‘manifestations of human volition whichintend to create, alter, transfer or release rights and, following the term used by Sir Frederick Pollock,translates ‘Rechtsgeschäft’ as ‘act in the law’.Wesel describes the most important ‘Rechtsgeschäft’ (the ‘Vertrag’ (contract)) as ‘die Verwandlung des Willensin Recht’ (the transformation of will into law). See Wesel (FR), Chapter 3 (‘Vertrag’).See also: Notes 62,101,106 and 132 in this Chapter; Chapter XX, Note 19.25 See Baumann (ER), Part II, § 7 I; Flume, Chapter I, § 9. The concepts of ‘Rechtsgeschäft’ and ‘Rechtshandlung’can also be translated as ‘juristic act’ and ‘legal act’ (as in Zweigert and Kötz, Part II A I (Chapter 311).26 See Baumann, Part II § 6 III 2 (a).27 Examples of ‘gesetzliche Vertreter’ are: parents of minors, guardians and members of an OHG. The organs ofa ‘juristische Person’ (juristic person) are not, strictly speaking, ‘gesetzliche Vertreter’: they act for the ‘juristischePerson’ itself and are not its representatives. However, the ‘Vorstand’ (board of directors) of a ‘Verein’ istreated as a ‘gesetzlicher Vertreter’ (§ 26(ii) BGB) and the ‘Geschäftsführer’ (director(s)) of a GmbH hold(s) acorresponding position (§ 35 GmbHG).See Creifelds under ‘Stellvertretung (Vertretungsmacht)’; see also Chapters XI A, XI B and XI C 3 (b) (ii) and(iii); Note 30 in this Chapter and Chapter XIII, Notes 49 and 56.28 See Chapter XIII D 1 (f) (iv) (§§ 78–90 ZPO). The German law of representation and the position where thereis an undisclosed principal is discussed by Zweigert and Kötz, Part II AI (Chapter 39IV-VI).29 See Kötz (EVR), Part A, § 6; Youngs (CL), Chapter 6, Part X 3; Zweigert and Kötz, Part II AI (Chapter 32(entitled ‘Contractual Capacity’)).30 See Flume, Chapter XI, § 54; Zweigert and Kötz, Part II AI (Chapter 39 III); Chapter XIII, Notes 48 and 55,below.31 Like a contract concluded by a minor without prior consent, a contract concluded by an unauthorised agent(‘Vertreter ohne Vertretungsmacht’/‘Falsus procurator’) is ‘schwebend unwirksam’ (in abeyance), ie, its validity isdependant on the subsequent consent (‘Genehmigung’) of the ‘principal’: § 177(i) BGB. Identically to § 108(ii)BGB, § 177(ii) BGB entitles the other party to demand a statement from the ‘principal’ regarding the latter’s‘Genehmigung’. If it is not declared within two weeks, consent is deemed to be refused and the contract isvoid.Under the HGB, this rule is modified, in order to protect the other party in a commercial transaction. If acontract is concluded by a trading assistant (‘Handlungsgehilfe’) or mercantile agent (‘Handelsvertreter’) withoutauthority to do so, the principal’s refusal of consent must be declared forthwith (‘unverzüglich’) after beinginformed of the transaction. Otherwise, the principal’s silence (‘Schweigen’) is regarded as consent.See §§ 75h and 91a HGB; Notes 40 and 71 in this Chapter; Chapter XI, Note 37; Chapter XIII, Notes 77 and61.Regarding the liability of an unauthorised agent to the other party, if consent is refused, see § 179 BGB.Regarding unauthorised agency where a unilateral transaction (‘einseitiges Rechtsgeschäft’) is involved, see§180 BGB.248

Notes32 See Note 245 in this Chapter.33 See Chapter X C 3 (g) (Title 24) and Note 246 in this Chapter.34 See Chapter XIII, Notes 31 and 32.35 Whilst §§ 116–124 BGB refer to the nullity and challengability of a ‘Willenserklärung’, §§ 125,134,138 and139–144 BGB refer to the nullity of a ‘Rechtsgeschäft’. See also Notes 45,50 and 51 in this Chapter.A ‘Rechtseeschäft’, which is ‘nichtig’ ((null and) void), is referred to as being ‘absolut unzwirksam’ (absolutelyineffective). To be distinguished therefrom is a ‘Rechtsgeschäft’, which is ‘schwebend unwirksam’ (in suspense(pending the consent (‘Genehmigung’) of another person or authority), or a ‘Rechtsgeschäft’, which is ‘relativunwirksam’ (relatively ineffective). See Creifelds under ‘Umvirksamkeit eines Rechtsgeschäfts’; Flume, ChapterVII, § 30; Köhler, Part 5, § 22.For a table of the norms in the AT underlying ‘Unwirksamkeit’ and ‘Anfechtbarkeit’ setting out their differenteffects see Schulte, Vol 1, Chapter 3 VI.36 References in Title 2 are sometimes to a ‘Willenserklärung’ and sometimes to a ‘Rechtsgeschäft’ (see thebreakdown of §§ 116–144 at the beginning of Chapter X B 2 (b).37 See Rüthers, Chapter 6, § 18; Creifelds under ‘Willenserklärung I’; Kallwass, Section 2, Chapters 2 and 3(§§13–22).38 In English law, this is referred to as the ‘intention to create legal relations’. See the comments under ‘Declarationof Will’ (The concept) in the Sourcebook, Chapter 4; Youngs (CL), Chapter 6, Part IV 3.An additional element is sometimes said to be the so-called ‘Erklärungsbewußtsein’ (consciousness of thedeclaration), but the dominant school of thought does not regard this as essential.However, Köhler (Part 5, § 14 II and § 15 III 2) is of the view that a declaration made without‘Erklärungsbewußtsein’ is either not binding or challengable by analogy with § 119 (i), 2nd alternative BGB.39 Such a ‘Willenserklärung’ is a so-called ‘stillschweigende Willenserklärung’ (ie, a ‘Willenserklärung durch schlüssiges,konkludentes Handeln’) and is to be distinguished from pure (conscious) silence.See Creifelds under ‘Willenserklärung’ 12; Flume, § 5 2–4; Kötz (EVR), Part A, § 2 C IIThus, a ‘Willenserklärung’ exists, if a person making a declaration, acting with appropriate care and inaccordance with business custom, could have perceived it as such and it was so understood by the recipient:see The Unintended Declaration of Will Case (Sourcebook, Chapter 4).40 See Notes 31 and 71 in this Chapter; the exceptions listed under ‘Declaration of Will’ (the concept) in theSourcebook, Chapter 4.41 See Creifelds under ‘Willensmängel’ and below under ‘Nullity and challengability of a ‘Willenserklärung’.42 See Meyer, Part II, § 412; Rüthers, Chapter 6, § 20; Kallwass, Section 2, Chapter 4 (§§ 23–24).43 A preliminary requirement is that the person making the ‘Willenserklärung’ could and did reckon with itreaching the correct recipient: see The Misdirected Withdrawal Declaration Case (Sourcebook, Chapter 4).Actual knowledge on the part of the recipient is not required. It suffices, if the ‘Willenserklärung’ is in thearea of control of the recipient (‘Machtbereich des Empfàngers’) and the recipient can fairly be expected tobecome aware of it.44 See Brox (AT), Part II, § 61; Köhler, Part V, § 16; Rüthers, Chapter 6, § 19; Schellhammer (ZR), Book 3, Part 35;Zweigert and Kötz, Part II AI (Chapter 37 III); the comments under § 133 BGB and § 157 BGB in the Sourcebook,Chapter 4 and Chapter 5.We are here concerned with the interpretation of a ‘Willenserklärung’ (‘Rechtsgeschäft’). To be distinguished isthe question (methods) of statutory interpretation (‘Gesetzesauslegung’ (‘Methodenlehre’)), which is an entirelydifferent complex.See Notes 47 E and 105 in this Chapter; Creifelds under ‘Auslegung’; Köhler, Part 1, § 4 III; Schwab(Einführung), Part I, Chapter 5; Youngs (CL), Chapter 2, Part I, Section B (III) and Chapter 6, Part XIII,Section B.45 See Köhler, Part V, § 14 IV 1: challengability of a ‘Willenserklärung’ under §§ 119, 120 BGB is not available, ifthere is no (unconscious) divergence between ‘Wille’ and ‘Erklärung’ and (prior) interpretation leads to anacceptable result.46 In the absence of evidence to the contrary, there is no room for interpretation, if the joint will of the parties(‘der übereinstimmende Wille der Parteien’) can be established or if the wording or the text is dear (‘eindeutig’).An important aspect here is the principle of the protection of trust (‘Vertrauensschutz’).See Schneider, ZAP 3/00, Fach 13, p 943ff (§ 24 V).Moreover, what the parties have stated can stand, even if (objectively) wrongly expressed, if the partiesunderstand what is meant: ‘falsa demonstratio non nocet’ (cf § 155 BGB post).249

The German Legal System and Legal Language47 A The principle of ‘Treu und Glauben’ forms the basis for implying terms into contracts by means of‘ergänzende Auslegung’ (supplementary interpretation). The question is: what is the hypothetical willof the parties (‘hypothetische Parteiwille’), ie, what would they have agreed in the circumstances? Inmatters of interpretation, straddled by §§ 133 and 157 BGB, German law proceeds from the concept ofthe ‘Willenserklärung’. The content of an obligation is a particular ‘Leistung’. The approach of Englishlaw is different: contracts are analysed as comprising ‘terms’, which are then distinguished as beingeither express or implied. Precontractual statements are referred to as ‘representations’; in Germanlaw, in the absence of other special statutory provisions, these fall within the principle of ‘culpa incontrahendo’ or are dealt with under §§ 119–123 BGB. See Notes 75 and 135 in this Chapter; Chapter XC 3 (a); Youngs (CL), Chapter 6, Part XIII, Section D.B The phrase ‘Treu und Glauben’ is also used in § 242 BGB:Der Schuldner ist verpflichtet, die Leistung so zu bewirken, wie Treu und Glauben mit Rücksicht auf dieVerkehrssitte es erfordern.The debtor is obliged to effect performance in such a manner as trust and good faith require, takingcustom /common practice into account.§ 242 is one of the best known paragraphs of the BGB. See the comments under § 242 BGB in theSourcebook, Chapter 5.Although, strictly, § 242 is a norm of the law of obligations and, in terms, only refers to the ‘Schuldner’(debtor/obligor), it is acknowledged to express a general leeal principle (‘allgemeiner Rechtsgrundsatz’)of ‘bona fides’ (good faith) of application throughout the German legal system: persons must conductthemselves fairly when exercising their rights and performing their duties.C § 242 is a general clause (‘Generalklausel’), which can supplement, limit or amend the content of a claim(‘Anspruch’). It does not itself constitute the basis for a claim (‘Anspruchsgrundlage’). § 242 has threefunctions, as follows:1 to supplement the duties (‘Pflichten’) of parties to a ‘Schuldverhältnis’ (the ‘Ergânzungsfunktion’(supplementary function));2 to control and limit (‘beschrânken’) the exercise of rights (the ‘Kontrollfunktion’ (control function));and3 exceptionally, to enable a correction and adaptation (‘Anpassung’) of legal relationships and eventhe development of the law by the judiciary (‘richterliche Rechtsfortbildung’) (the ‘Korrekturfunktion(corrective function)).Thus, under 1, parties to a contractual relationship have certain accessory or supplementary duties(‘Nebenpflichten’), for example:— a duty of consideration (Rücksichtspflicht’) towards the other party;— a duty of protection (‘Schutzpflicht’) towards each other;— a duty to give the other party necessary clarification (‘Aufklärungspflicht’) and information(‘Auskunftspflicht’);— a duty of cooperation (‘Mitwirkungspflicht’); and— a general duty of faithful performance (‘Leistungstreuepflicht’).A breach of a ‘Nebenpfticht’ is one of the main grounds for a claim for positive breach of contract(‘positive Vertragsverletzung’ (PVV)) and ‘culpa in contrahendo’ (etc). See, respectively, in this Chapter,Note 126 C and Note 135. See also The Allergy to Hair Tonic Case in the Sourcebook, Chapter 5.Under 2, it constitutes a prohibited exercise of a right (‘unzulässige Rechtsausübung’; also referred to asan abuse of a right (‘Rechtsmißbrauch’)).— if the exercise of the right is disproportionate (‘unverhältnismäßig’), excessive (‘übermäßig’) or grosslyunjust (‘grab unbillig’);— if the person seeking to exercise the right would thereby benefit from his own prior dishonestconduct (‘unredlichesfrüheres Verhalten’);or— if the person seeking to exercise the right would thereby place himself in conflict with his priorconduct (‘venire contra factum proprium’). The equivalent rule in English law is estoppel’.A sub-category here is the legal institute of ‘Verwirkung’ (the forfeiture of a right (of the claimant)).Under 3, § 242 has been used to permit a flexible reaction in abnormal situations (the Germanhyperinflation in 1923), in cases or the ‘Wegfall der Geschäftsgrundlage’ (falling-away (collapse) of thebasis of the transaction (frustration)) and in times of legal emergency (‘Rechtsnotstand’).D The doctrine of the ‘Geschäftsgrundlage’ (‘clausula rebus sic stantibus’) is a development of the judiciaryand can come into play as a supplement to § 119 BGB, if:250

Notes– at the time the transaction was concluded, the parties proceeded on the basis of certain (in theevent, wrong) conceptions (‘Vorstellungen’) or important considerations;– the conceptions or considerations turn out to have been absent/missing or have meantime changed,collapsed or disappeared (ie, there is a ‘Fehlen’, ‘Änderung’ or ‘Wegfall’ of the ‘Geschäftsgrundtage’);and– it would be unacceptable (‘unzumutbar’) to enforce the transaction as it stands.The primary relief available is adaptation (‘Anpassung’) of the transaction to the actual (unforseen)situation by way of supplementary interpretation (‘ergànzende Auslegung’ (§ 157 BGB)) or, if that fails,its termination (by means of ‘Rücktritt’ or ‘Kündigung’). However, the doctrine is not lightly invokedand is subject to:– the overriding principle of die sanctity of contract ie, that agreements must be kept (‘pacta suntservanda’);– the rule that mistaken motives (‘Motivirr tümer ’ ) are normally irrelevant (exception: § 119(ii) BGB);and– any statutory or contractual provisions or customs concerning the distribution of risk (‘Verteilungdes Risikos’) between the parties.See Klunzinger (Einführung), Part III, § 24 I; Brox (AS), Chapter 4, § 6; Fikentscher, Section 3, § 27;Gernhuber/Grunewald, Part 2 (§ 13) and Part 3 (§ 20); Medicus (AT), Part 3, § 16.See also: Creifelds under ‘Geschäftsgrundlage’; Medicus (BR), Chapter 1, § 7; Schwab (Einführung),Part III, Chapter 6 B and Part V, Chapter 6 H; Note 126 C in this Chapter.E Regarding the wide field of ‘ergänzende Auslegung’ ie, the filling of gaps (‘Lücken’) in a ‘Rechtsgeschäft’,see Brox (AT), Part E, § 6 E; Kötz (EVR), Part A, § 7 V; Schellhammer (ZR), Book 3, Part 35, Chapter 4.To be strictly distinguished is so-called ‘Rechtsfortbildung’ (development of (the) law (by the judiciary)),ie, the filling of gaps in a statute (‘Lücken im Gesetz’), eg, by analogy (‘Analogie’) or opposite conclusion(‘Umkehrschluß’/‘argumentum e contrario’).See Note 44 in this Chapter; Chapter E, Note 22; Köhler, Part 1, § 4IV.48 The effect of ‘Anfechtung’ is retrospective (‘rückwirkend’/‘ex tunc ’ ).The wording of § 142 BGB (which refers to an ‘anfechtbares Rechtsgeschäft’) is incorrect, as only a‘Willertserklärung’ is challengable (see §§ 119,120 and 123 BGB).Because of the abstraction principle, ‘Anfechtung’ usually only affects the validity of the obligationaltransaction (the ‘Verpflichtungsgeschäft’); the property level remains abstract. Restitution is effected via thelaw of unjust enrichment (§§ 812ff BGB).See, in this Chapter, Notes 33,35,102,138 and 245.Regarding the difference between the terms ‘Anfechtbarkeit’ and ‘Nichtigkeit’ in administrative law, see ChapterXIV C 3.49 §§ 116–124 BGB detail various situations in which a ‘Willenserklärung’ is defective (‘fehlerhaft’) due to defectsof will (‘Willensmängel’). Such defects can arise consciously (§§ 116–118) or unconsciously (§§119,120).See Creifelds under ‘Willensmängel’; Flume, Chapter VI (§§ 19–29); Klunzinger (Einführung), Part II, § 14;Köhler, Part V, § 14 I; Medicus (BR), Chapter 1, § 6; Meyer, Part E, § 5 A III; Rüthers, Chapter 7, §24.50 A reservation (‘Vorbehalt’, protestatio) must be declared to be effective. No account is taken of it if it does notaccord with the external circumstances: protestatio facto contraria (non valet). See Creifelds under‘Willenserklärung’ and The Bus Station Case (Sourcebook, Chapter 5).51 See Creifelds under ‘Anfechtung von Willenserklàrungen’. See also: Dannemann, Section E, 9; Flume, ChapterVII, § 31; Kötz (EVR), Part A, §§ 10 and 11; Zweigert and Kötz, Part II AI (Chapter 38 (entitled ‘Mistake,Deceit, and Duress’)); Meyer, Part E, § 5 AIV; the comments under §§ 119–123 BGB in the Sourcebook, Chapter4; Youngs (CL), Chapter 6, Part XII, Sections C-F.52 See Notes 47 A, 58 C and 135 B in this Chapter.53 See Fikentscher, Section 2, § 22.54 The following new forms have been added by the Law to adapt the Provisions of Private Law concerningForm dated 13.7.2001 (the so-called E-Commerce Law), which implements EU Directive 2000/31 dated8.6.2000:– electronic form (§§ 126(iii) and 126a BGB);– text form (§ 126b BGB).These categories of form represent alternatives to strict written form (‘Schriftform’) where statutory provisionsso prescribe/allow. Electronic form requires that a special electronic signature be appended to an251

The German Legal System and Legal Languageelectronically-transmitted document. Text form merely describes a (paper or electronic) document in legiblewritten characters.In future, therefore, originating characteristics other than a personal, human signature (‘Unterschrift’) willapparently suffice to prove the origin of a document and to fulfil the formal requirements for a ‘Rechtsgeschäft’.Where cross-border electronic transactions are concerned, the so-called ‘country of origin principle’(‘Herkunftslandprinzip’) applies and electronic transactions emanating from Germany apparently only needto fulfill formal (and substantive!) German law.See ZAP-Aktuell, 22/00, p 1327; ZAP-Aktuell, 5/01, p 244 and p 251; ZAP EN-Nr 457/2001; Chapter XX,Note 19.55 See Creifelds under ‘Form(erfordernisse, -vorschriften)’. The requirement of a particular form (‘Formzwang’)in a statute serves various purposes; see Kötz (EVR), Part A, § 5; Rüthers, Chapter 7, § 23 I–V.56 This is the rule; exceptions are very limited. See Meyer, Part II, § 5 A I; Rüthers, Chapter 7, § 23 VII;Zweigert and Kötz, Part II AI (Chapter 34 (entitled ‘Formal Requirements’)); and the comments under §§125–127 BGB in the Sourcebook, Chapter 4.57 See Flume, Chapter V, § 17; Youngs (CL), Chapter 6, Part XII, Section B (I) 3.58 A A ‘Rechtsgeschäft’ is ‘sittenwidrig’ (immoral), if, on a comprehensive assessment (‘Gesamtwürdigung’) ofits content, motive or purpose (‘Inhalt, Motiv oder Zweck’), it violates the feeling of propriety of all fairand right thinking persons (das Anstandsgefühl aller billig und gerecht Denkenden’).This can cover a wide range of cases eg, abuse of a dominant commercial position (‘Ausnutzung einerwirtsdiaftlichen Machtstellung’), unduly fettering/restraining contracts (‘Knebelungsverträge’), exorbitantloans (‘Darlehen’) and the taking of excessive security (‘Übersicherung’).Thus, if a spouse or close relative acts as surety or accepts joint liability and is subject to crasslyexcessive financial strain (‘krasse finanzielle Überforderung’), there is an actual presumption (‘tatsächlicheVermutung’) that the lender has exploited that person’s emotional relationship to the debtor. The burdenof rebutting the presumption is then on the lender.See ZAP EN-Nr 136/01; ZAP EN-Nr 497/01; Chapter XIII, Note 10. Cf Barclays Bank v O’Brien [1994]1 AC 340 (HL).B Where the exploitation/unfair advantage is particularly marked (ie, there is an ‘auffälliges Mißverhältnis’(conspicuous imbalance/incongruity)), such a transaction constitutes ‘Wucher’ (extortion; § 138(ii)BGB), which can also be punished as a criminal offence (§ 302a StGB).See Creifelds under ‘Sittenitridrigkeit’ and ‘Wucher’; Note 245 in this Chapter; the comments under §138 BGB in the Sourcebook, Chapter 4; Youngs (CL), Chapter 6, Part XII, Section B (2) and Section E.See also: Flume, Chapter V, § 18; Köhler, Part 5, § 20; Kötz (EVR), Part A, § 9; Meyer, Part II, § 5 A II;Rüthers, Chapter 7, § 251 and III; Zweigert and Kötz, Part IIAI (Chapter 35 (entitled ‘Illegality andImmorality’)).C The equivalent doctrines in English (contract) law are ‘(economic) duress’ and ‘undue influence’.However, in German legal terminology, ‘Nötigung’ only refers to the criminal offence of coercion/duress (§ 240 StGB).Cf also the terms ‘Drohung’ (threat; § 123 BGB) and ‘Notstand’ (emergency; §§ 228, 904 BGB; §§ 34, 35StGB).D Loss caused by intentional immoral injury (vorsätzliche sittenwidrige Schädigung’) can be recovered intort (§ 826 BGB). See Note 220 in this Chapter.59 The term ‘Willensübereinstimmung’ (correspondence of ‘Willenserklärungen’) is also used.60 Exceptionally, a contract can be concluded in certain cases of so-called ‘alternative conduct’ (‘sonstigesVerhalten’), eg, where an expired contract is merely continued (‘fortgesetzt’) or where the conclusion of thecontract is effected by silence. See Chapter X B 2 (c): ‘Rules governing offer and acceptance’.For an example in English law, see Clarke v Dunraven [1897] AC 59 (HL).61 See Rüthers, Chapter 8, § 27.62 Thus, in German leeal language, the term ‘Vertrag’ has a wider meaning than the term ‘contract’ in Englishlaw, even though it is equivalent in translation. It is a sub-category of the general term ‘Rechtsgeschäft’. Thecontractual version (ie, that within Book II BGB) is only one type of ‘Vertrag’.See Flume, § 331–3; Notes 24,101,106 and 132 in this Chapter.Just as the English law of contract is dominated (‘beherrscht’) by the doctrine of consideration, so is Germancivil law the product of highly developed, systematic, scientific and logical thought patterns.Even if one puts linguistic differences aside for the moment (and these are significant enough), it is extremelyquestionable whether a constituent element of a particular system of law (such as the doctrine of252

Notesconsideration), which has evolved organically, should, at a stroke, be excised or a continental legal conceptsuch as ‘Rechtsgeschäft’ implanted into the English legal order. This would mean, at the very least, that otherformal terminology would also have to be introduced.A ‘contract’ in England is, technically, simply not the same as a ‘Vertrag’ in Germany. To quote Cheshire,Fifoot and Furmston:The common law has long stressed the commercial flavour of its contract. An Englishman is liable, notbecause he has made a promise, but because he has made a bargain.’ (Chapter 3, Part 1). Further:The underlying assumption of English law is that a contract is a bargain. If a person furnishes noconsideration, he takes no part in a bargain: if he takes no part in a bargain, he takes no part in a contract.(Chapter 4, Part 3).Thus, in England, the doctrine of consideration (ie, some value in the eyes of the law) as a test of enforceabilityis inextricably intertwined with the concept of a ‘bargain’. In German law, a ‘Vertrag is a purer concept. InGerman legal language, the closest equivalent to the English concept of a ‘bargain’ is the ‘gegenseitigerVertrag’, which is but one variety of a ‘Vertrag’. See Note 106 in this Chapter.For a comparative survey regarding the requirements for binding contracts in English law and on thecontinent (including a critique of the English doctrine of consideration) see Kötz (EVR), Part A, § 4(‘Seriositätsindizien’).See also: Youngs (CL), Chapter 6, Part VI.63 See generally: Youngs (CL), Chapter 6, Part III, Sections A, B and D.64 This also applies to the content of a ‘Leistung’. See Creifelds under ‘Leistung’; §§ 315–319 BGB.An ‘Angebot’ is referred to in §§ 145–153 BGB as an ‘Antrag’.65 See Köhler, Part 5, § 15 II; Kötz (EVR), Part A, § 2 BI and § 3; Youngs (CL), Chapter 6, Part VIII3.This rule corresponds to the requirement of certainty in English contract law.66 To be distinguished is a statement made in the course of contractual negotiations (‘Vertragsverhandlungen’)or (pure) information (eg, in brochures or advertisements), ie, a so-called invitation to treat (‘Aufforderungzur Abgabe eines Angebots’=‘invitatio ad offerendum’).See Note 38 in this Chapter; the comments under § 145 BGB in the Sourcebook, Chapter 5.Regarding liability for breach of duty in the precontractual phase (‘Vertragsanbahnung’) see Note 135 in thisChapter.67 This is not the case in English law. See Dickinson v Dodds (1876) 2 Ch D 463 (CA).See Dannemann, Section II, 2; Kötz (EVR), Part A, § 2 B IV; Zweigert and Kötz, Part II A I (Chapter 33(entitled ‘Offer and Acceptance’) IV and V).A withdrawal (‘Widerruf’) must reach the other party before or at the same time (as the offer): § 130(i) BGB.68 Like an offer, it is an ‘empfangsbedürftige Willenserklärung’. ‘Zugang’ (communication/receipt) is, therefore,normally required. There is no ‘postal rule’, whereby an acceptance is (already) treated as effective whenput in the post (cf English law).See Note 43 in this Chapter.69 See Kötz (EVR), PartA, § 2 C III and IV.70 Thus, relationships can be construed as contracts on the basis of pure factual conduct (‘tatsàchliches Verhalten’)or socio-typical behaviour (‘sozialtypisches Verhalten’), even in the absence of an express declaration (ofacceptance): see The Hamburg Parking Case and ‘The Bus Station Case ’ (Sourcebook, Chapters).However, this doctrine (established in 1941 by Haupt) is open to the criticism that it runs contrary to theprinciple that persons who are not ‘geschäftsfähig’ require protection (‘Schutz des Nichtgeschäftsfähigen’). SeeBrox (AS), Chapter 3, § 4 III; Creifelds under ‘Faktischer Vertrag’ and ‘Schuldverhältnis’; Flume, § 8; Rüthers,Chapter 8, § 27IV.For an English case, in which the creation of a contract by conduct was recognised, see Brogden v MetropolitanRailway (1876) 2 App Cas 666 (HL).71 This is the case in the circumstances laid down in § 362 HGB and where a ‘Kaufmann’ receives a commercialletter of confirmation (‘kaufmànnisches Bestätigungsschreiben’). However, an ‘ Auftragsbestätisung’ (confirmationof order) is merely the same as an acceptance. See Creifelds under ‘Bestätigungsschreiben’ and ‘Vertrag’ I;Meyer, Part II, § 4 B; Note 40 in this Chapter. See also Chapter XXII, Note 74.72 See Youngs (CL), Chapter 6, Part III, Section E.73 See Note 46 in this Chapter; Youngs (CL), Chapter 6, Part VIII.74 ‘Bedingung’ is a legal term, which here forms part of the ‘Rechtsgeschäft’ doctrine. In other legal fields,‘Bedingung can have a different meaning (eg, in criminal law, cause).253

The German Legal System and Legal LanguageSee Chapter XVI, Note 22; Flume, Chapter IX (§§ 38–42).Regarding the different types of ‘Bedingung’ and their legal consequences see Rüthers, Chapter 8, § 28 II andIV. See also Note 245 in this Chapter.75 In English law, such a condition is called, respectively, a ‘condition precedent’ or a ‘condition subsequent’.The word ‘condition’ is traditionally used in English contract law in the sense of a vital term of the contract(or, as is sometimes said, a term, which ‘goes to the root of the contract’), as opposed to a ‘warranty’, whichis a less important term, breach of which only gives rise to a right to damages. The resultant problems ofclassification sometimes occupy the English courts.In English law, however, the word ‘condition’ is also applied in its orthodox (continental) sense, for examplewhen agreements are expressed to be made ‘subject to’ some future (external) event. See Note 47 A in thisChapter; Charlesworth, Part 1, Chapter 3; Cheshire, Fifoot and Furmston, Chapter 6, Part 3 (The relativeimportance of contractual terms); Youngs (CL), Chapter 6, Part XIII, Section A.76 See below (Chapter XB 2 (e)).Regarding ‘Allgemeine Geschäftsbedingungen’ see Dannemann, Part II, 5; Klunzinger (Einführung), Part II, §10 III; Köhler, Part 5, § 23; Schulte, Vol 2, Chapter 4; Schwab (Einführung), Part V, Chapter 5; Zweigert andKötz, Part II A I (Chapter 31 III). See also: Creifelds under ‘Allgemeine Geschäftsbedingungen’; the commentsregarding the AGBG under § 242 BGB in the Sourcebook, Chapter 5; Youngs (CL), Chapter 6, Part XIII,Section C.77 See Chapter XD 2 (iv).78 Aliter in the event of bonafide acquisition.79 See Note 76 in this Chapter, above.See also: Brox (AS), Chapter 3 (§ 4 II); Brox (AT), Part 2, Chapter 2 (§ 9); Fikentscher, Section 3, § 26 VI;Medicus (BR), § 4IV; Rüthers, § 3 II 3.80 See Chapter IX B.81 Terms can qualify as AGB regardless of the type of contract and even if they simply comprise a standardformconfirmation (formularmässige Bestätigung’). However, formula clauses (‘formelhafte Klauseln’) or(notarial) precedents do not normally fall under the AGBG, unless mass transactions (‘Massenverträge’) areinvolved.82 It suffices, if the user is earnestly prepared to negotiate (‘verhandlungsbereit’) and the other party actuallymakes use of the possibility of influencing the content of the contract.83 Inconsistent oral arrangements entered into by a representative are binding, unless it is apparent (‘erkennbar’)to the other party that the representative lacks appropriate authority (‘Vertretungsmacht’), in which case §§177ff BGB apply.84 The necessity for agreement is significantly reduced where a businessman (‘Kaufmann’) is concerned, whoknows or ought to be aware of particular AGB (eg, due to a previous course of dealing (‘dauerndeGeschäftsbeziehung’)) or who accepts them without objection.In particular, AGB are deemed to be incorporated even without specific agreement, if they are usual in therelevant line of business (‘branchenüblich’) or accord with commercial custom (‘Handelsbrauch’).85 Clauses in notarially documented agreements can be surprising, if the Notary fails to give a sufficientcaution (‘Belehrung’) regarding their legal effect (§ 17(i) BeurkG).86 One can fall back on § 9 AGBG, if a clause is not caught by §§ 10–11.87 The following are specifically prohibited in § 11 AGBG:(a) Clauses which exclude or limit liability for loss due to an intentional or grossly negligent breach ofcontract by the user, his statutory representative or assistant (including loss arising from conductduring contractual negotiations): § 11 No 7 AGBG.§ 11 No 7 AGBG applies by analogy to clauses excluding liability for tort (ie, claims for damages under§§823,831 BGB).See also §276(ii) BGB.(b) Clauses which exclude or limit the right of the other party to rescind the contract or claim damages inthe event of delay or impossibility of performance caused by the user: § 11 No 8 AGBG.(c) Clauses which exclude or limit guarantee rights (‘Gewährleistungsansprüche’) of the other party inrespect of things or services, which are newly manufactured or supplied: § 11 No 10 AGBG.(d) Clauses which exclude or limit the user’s liability for damages under §§ 463, 480(ii), 635 BGB in acontract of sale, for services or for work and materials, where the user has given an assurance regardinga particular quality (‘Eigenschaftszusicherung’): § 11 No 11 AGBG.88 See Schuster (Note 2 in this Chapter), Section I (4)–(7).254

Notes89 See Creifelds under ‘Frist’.90 In criminal proceedings, such an application is also possible, if a hearing date is missed.See Creifelds under ‘Wiedereinsetzung in den vorigen Stand’; Chapter XIII, Note 76.91 See Löwisch,§ 19; Note 47 C in this Chapter.92 See Dannemann, Section II, 13; Schulte, Vol 1, Chapter 10 XI; Youngs (CL), Chapter 6, Part XVI3.In German law, limitation of actions (‘Verjährung’) is not a procedural rule. The subject is contained in theBGB and is, therefore, part of the substantive law.This classification is now recognised in England by the Foreign Limitation Periods Act 1984.See Collier, Part I, Chapter 6.Changes to this area of law (in particular, a reduction of the normal limitation period to three years) are dueto come into effect on 1.1.2002. See Reinelt, ZAP-Kolumne 15/01, p 931; Bereska, ZAP, Fach 2, p305.93 See Note 20 in this Chapter.94 See Dannemann, Section II, 13 and Section III 3 (h).See also: Preface to Second Edition, Note 11; Chapter XIC 5.95 See Neuhaus, ZAP, Fach 4, p 669.Regarding a gratuitous loan (‘Leihe’) see § 606 BGB.96 See Dannemann, Section II, 13; Youngs (CL), Chapter 5, Part VII 3.97 See Chapter XF 4 (g)(i).98 In the absence of contrary arrangement or provision regarding the time for performance (‘Leistungszeit’),performance can be required by the creditor or undertaken by the debtor immediately (‘sofort’ ): § 271(i)BGB.If the debtor has an immediate duty to perform (‘Leistungspflicht’), the ‘Leistung’ is referred to as being‘fällig’ (due). By means of a ‘Stundung’, the ‘Fâlligkeit’ (time at which the ‘Leistung’ is due) of the Leistung canbe postponed.See Klunzinger (Einführung), Part III, Chapter 2 (§ 261); Creifelds under ‘Leistungszeit’; Note 124 in thisChapter.99 But see § 11 No 10(f) AGBG.100 For further information, see generally Creifelds; Kaiser, Parts II-IV; Klunzinger (Einführung), Parts III andIV (§§ 21–57); Brox (AS) and (BS); Medicus (AT) and (BT); Model/Creifelds/Licntenberger, Part 3 F (311–332a); Fikentscher; Schellhammer (ZR), Books 1 and 2 (Parts 1–32); Reich /Schmitz, Chapters 3 and 4;Schlechtriem (AT) and (BT); Westermann (Grundbegriffe), Chapters 8–13.101 In common parlance the term ‘Vertrag’ usually only refers to the establishment of ‘Verpflichtungen’ (in a‘Vervflichtungsgeschäft’). However, its main constituent element is an ‘Einigung’ (‘Willensubereinstimmung’):in German legal language it includes ‘Verfügungen’.See Schulte, Vol 1, Chapter 211; Zweigert and Kötz, Part II A I (Chapter 31 II); Note 62 in this Chapter 3, below.102 See the diagrams in Klunzinger (Einführung), Part II, Chapter 2 (§ 9, Section II; ‘Kausale und abstrakteRechtsgeschäfte’ and ‘Abstraktionsprinzip’) and Chapter X D 2 (v) post. See also: Kallwass, Section 2, Chapter5 (§ 25); Reich/Schmitz, Chapter 2 C; Schellhammer (ZR), Book 3, Part 34, Chapter 2; Schwab (Einjükrung),Part V, Chapter 2.The difference between a ‘Verpflichtung’ and a ‘Verfügung’ is succinctly put by Medicus (BR), § 3 I 3: ‘DieVerpflichtung bindet, die Verfügung wirkt’ (the obligation binds, the disposition takes effect).103 See Meyer, Part E, § 4 III.104 See Fikentscher, Section 9, § 66 III; Wesel (FR), Chapter 3 (Kauf). See also: Chapter X D 3 (c) (ii)/(iii) ‘Thecomponents of a transfer of ownership’.A ‘Verpflichtung zur Übereignung’ can be based not only on a contract of purchase (‘Kaufoertrag ’ ), but also onother types of ‘Vertrag’ (eg, a contract for services (‘Werkvertrag’: § 631 BGB) or a contract of work andmaterials (‘Werkli/erungsvertrag’: § 651 BGB). Regarding these, see, respectively, Notes 166 and 234 in thisChapter. See also Meyer, Part II, § 6 A.A transfer of ownership is only one type of ‘Verfügung’: see Schulte, Vol 1, Chapter 1 V.105 In order to assess whether the application (‘Anwendung’) of a legal provision (‘Rechtssatz’) or norm is possiblein a particular case, one must interpret the relevant provision/norm (‘Auslegung’) and establish whether the‘Sachverhalt’ (set of facts) involved can be subsumed under it (so-called ‘Subsumtion’).The process of ‘Subsumtion’ is part of German lawyers’ daily work or, in the words of Wesel, their ‘ABC’—see Wesel (JW), Chapter I (‘Dos Arbeitsfeld des Juristen’).255

The German Legal System and Legal LanguageSee also: Chapter X B 1 4 (Note 18); Chapter X B 1 5 (Note 22); Chapter X B 2 (b) (Note 44); Chapter XIII, Note67; Chapter XVI C (Note 16); Creifelds under ‘Auslegung (Interpretation)’ I and ‘Rechtsanwendung’; Baumann(ER), Part I, § 4; Engisch, Chapters III-V; Honsell, § 2 III; Klunzinger (Einführung), Part I, § 3 I-II; Löwisch, §§4 and 5, pages 9–15; Rehbinder, Chapter II, § 12; Schwab (Einführung), Part I, Chapter 1 D and Chapter 2 C.106 A ‘Schuldverhàltnis aus Rechtsgeschäft’ (obligation created by legal transaction) can be ‘einseitig begründet’(based on the declaration of (only) one participant)—examples being Auslobung’ (public offer of reward; §657 BGB) and ‘Vermächtnis’ (legacy; § 1939 BGB)—or, usually, ‘zwei- oder mehrseitig begründet’ (based on thedeclarations of two or more participants) - as in the case of a ‘Vertrag’ (see §305 BGB).A ‘Vertrag’ can be distinguished according to whether it is:— contractual (‘schuldrechtlich’). Such a ‘Vertrag’ can be:• ‘einseitig verpflichtend’ (unilaterally obliging)—the sole example being a ‘Schenkungsversprechen’(promised gift; § 518 BGB);• for examples of unilateral contracts in English law, see Carlill v Carbolic Smoke Ball Co (1893) 1 Q.B. 256(CA); Errington v Errington and Woods [1952] 1 KB 290 (CA).• usually, ‘zwei- oder mehrseitig verpflichtend’ (bilaterally or multilaterally obliging).The latter type of ‘Vertrag’ is, in turn, classified as either:° ‘gewöhnlich’ (usual) or ‘unvollkommen’ (incomplete); or° ‘gegenseitig’ (mutual / reciprocal) or ‘synallagmatisch’ (synallagmatic).Many very common contracts dealt with in the BGB are ‘gegenseitige Vertràge’ eg, ‘Kauf’, ‘Tausch’, ‘Miete’,‘Pacht’, ‘Dienst-’ and ‘Werkvertrag’. There is a ‘synallagma’, ie, the (reciprocal) ‘Leistung’ of each party isdependent on that of the other party. The rationale of such contracts (of exchange (‘Austauschvertrage’)) isbest expressed by the Latin phrase ‘Do ut des’ (I give, so that you give).See Creifelds under ‘Gegenseitiger Vertrag’; Gernhuber/Grunewald, Part 3 (§ 17); Medicus (BR), Section I,Chapter 2 (§12).§§ 323–325 and § 326 BGB contain special provisions where there is a ‘Leistungsstörung’ (disturbance inperformance) in a ‘gegenseitiger Vertrag’ (ie, ‘Unmöglichkeit’ or ‘Verzug’, respectively). See Note 126 E and F inthis Chapter:— based on the law of property (‘sachenrechtlich’ or ‘dinglich’);— based on family law (‘familienrechtlich’);— based on the law of succession (‘erbrechtlich’); or— based on public law (‘öffentlich-rechtlich’), rather than on private law (‘privatrechtlich’).Regarding the fields in which a ‘Vertrag’ can be found and the types of ‘Vertrag’, see Creifelds under ‘Vertrag’III, IV and V. See also Note 62 in this Chapter.Whereas a ‘Rechtsgeschäft’ requires ‘Geschäftsfähigkeit’, the parties to a ‘Schuldverhàltnis’ need only be‘rechtsfähig’: see Creifelds under ‘Schuldverhàltnis’.‘Schuldverhältnisse’ are classified in detail in Fikentscher, Section 1, Subsection 2, §§ 10–13 and in Section 8,Introduction, § 64.107 Dealt with in §§ 823–853 BGB. A detailed comparative study of the German law of tort is contained inZweigert and Kötz, Part II C (Chapters 47-50).108 Dealt with in §§ 812–822 BGB. A detailed comparative study of the German law of unjust enrichment iscontained in Zweigert and Kötz, Part II B (Chapters 45 and 46; see also Chapter 36IV).The characteristic of a ‘gesetzliches Schuldverhàltnis’ is that, in the absence of a ‘Rechtsgeschäft’, there is aninfringement of another person’s interests and statute has to intervene: see Klunzinger (Einführung), PartIV, Introduction before § 55.109 The following description of the arrangement of Sections 1–7 of Book II of the BGB is broad and cursory. Itis intended as a framework for the English-speaking ‘beginner’, for whose purposes I consider that it suffices.In order to understand the system of Sections 1–7, the reader is recommended to compare my (inofficial)groupings of §§ 241–853 BGB with the text of the BGB itself. A study of each individual paragraph (inconjunction, if required, with a German textbook and /or commentary) is unavoidable, if further explanationis desired.The content of this Note is similarly applicable not only to my coverage of the other parts of the BGB, butalso to my treatment of other German statutes in this book.110 See Klunzinger (Einführung), Part III, Chapter 2 (§§ 24–426); Meyer, Part 1, § 2 A III 1; Youngs (CL), Chapter6, Parts XIII-XV.111 A ‘Leistung’ (and the relevant ‘Leistungspuidnt’) can be classified according to whether it is main (ie, a‘Hauptleistung(-spflicht)’) or accessory (ie, a ‘Nebenleistung(-spflicht)’), Both are so-called ‘primareLeistungspflichte’ (primary duties of performance).256

NotesPerformance of a ‘Nebenleistungspflicht’ can be independently enforced by court action (ie, it is ‘selbständigeinJdagbar’).To be distinguished from ‘Hauptleistungspflichten’ and ‘Nebenleistungspflichten’ are:— so-called secondary duties of performance (‘sekundäre Leistungspflichten’, eg, the payment of damages),which arise following breach of a primary duty of performance;— ‘Nebenpflichten’ (accessory duties), which cannot be independently enforced; and— ‘Obliegenheiten’ (informal duties), which the person concerned should observe in his own interest (‘imeigenen Interesse’), but which cannot normally found a claim for the other party.See Jauernig (BGB), § 241, Note 4; Kaiser, Part II, 3 and 13 (at the end); Creifelds under ‘Obliegenheit’;Gernhuber/Grunewald, Part 3 (§ 16); Medicus (BR), Section I, Chapter 2 (§ 11); Notes 47 C, 126 F and 159 inthis Chapter; ‘Leistung’.112 See Note 106 in this Chapter.A useful aid to understanding the term ‘Gegenleistung’ (‘quid pro quo’) is the phrase ‘als Gegenleistung (für)..’,the English translation of which is ‘in return (for)…’.113 See Schulte, Vol 2, Chapter 5 III 1.114 As § 362(i) BGB puts it, the ‘Bewirkung’ (effecting) of the ‘Leistung’ ie, the ‘Leistungserfolg’.Conversely, ‘Nichterfüllung’ is the failure to effect the ‘Leistung’/fulfil the ‘Leistungspflicht’, ie, failure to perform/ non-performance / breach.115 In § 362(i) BGB the word ‘Schuldverhältnis’ is meant in this (narrow) sense: see Fikentscher, Section 4, §3813.Regarding the meaning of the term ‘Schuldverhältnis’, see eg, Brox (AS), Chapter 2, § 2 and Fikentscher,Section 1, Subsection 1 (§ 71).A ‘Schuldverhältnis’ is to be distinguished from a ‘Gefälligkeitsverhältnis’ (a relationship of grace and favour),which is merely socially, but not legally, binding. See Chapter X B 2 (b) (‘The term ‘Willenserklärung”).Regarding the meaning of the term ‘Leistung’, see Fikentscher, Section 1, Subsection 1 (§ 8). Regarding thespecial meaning of the term ‘Leistung’ in §§ 812ff BGB and its meaning in § 326 BGB, see under ‘Leistun’ inAppendix A.A check-list for determining the content of a ‘Schuldverhältnis’ (‘aus Rechtsgeschäft’) is set out in Fikentscher,Section 3, § 26 V and X.116 Where the object of performance (‘Leistungsgegenstand’) is generically characterised (‘der Gattung nachbestimmt’) it is referred to as a ‘Gattungsscnuld’ (generic debt) in contrast to a ‘Stuckschuld’ (specific or individualdebt).A ‘Gattungsschuld’ is defined in § 243(i) BGB: the obligation of the ‘Schuldner’ is to supply a ‘Sache’ of ‘mittlererArt und Güte’ (medium type and quality). The ‘Schuldner’ is said to have a ‘Beschaffungspflicht’ (duty ofacquisition).The distinction between a ‘Gattungsschuld’ and a ‘Stückschuld’ has important consequences. Where there isa ‘Stückschuld’, the ‘Gläubiger ’ carries the risk of performance. It there is a ‘Gattungsschuld’, by § 279 BGB the‘Schuldner’ remains liable to deliver the object owed until exhaustion of the ‘Gattung’, even if he is notresponsible for the (post-contractual, subjective) impossibility of performance. This is an exception to §275(i) BGB (see Note 126 F in this Chapter).However, once the ‘Schuldner’ has done what is necessary to concretise the object of performance (‘das zurLeistung einer solchen Sache seinerseits Erforderliche getan’) his obligation is limited to that (particular) ‘Sache’:§ 243(ii) BGB. The risk of performance (‘Leistungsgefahr’) then passes to the ‘Gläubiger’. See Note 234 B in thisChapter.Three remaining points should be noted:— where there is a ‘Gattungsschuld’, the ‘Leistungsgefahr’ also passes to the ‘Gläubiger’, if he delays acceptance:§ 300(ii) BGB;— where there is a ‘Geldschuld’ (money debt), the ‘Schuldner ’ must ensure that the money owed actuallyreaches the creditor § 270 BGB (there is a ‘Schickschuld’);— where there is a generic purchase (‘Gattungskauf) and the ‘Sache’ is defective, the purchaser does nothave to make use of his rights to claim rescission (‘Wandlung’) or a reduction in price (‘Minderung’)under § 462 BGB.Instead, he can insist on proper contractual performance and demand further delivery (‘Nachliejerung’) of athing free of defects (‘mangelfreie Sache’): § 480 BGB.See Creifelds under ‘Gattungsschuld’; Baumann (ER), Part II, § 6 II 2 (b); Brox (AS), Chapter 4, § 71; Gernhuber/Grunewald, Part 5 (§ 241); Kaiser, Part III, Section 1, 6; Klunzinger (Einführung), Part III, Chapter 2, § 25 I;Medicus (AT), Part 3, § 19; Medicus (BR), Section I, Chapter 2, § 13 II 3; Schwab (Einführung), Part V, ChapterII E (c).257

The German Legal System and Legal Language117 See eg, Brox (AS), Chapter 4, § 81; Medicus (AT), Part 3, § 18.118 The BGB draws a fundamental distinction between loss which relates to a person’s assets (‘Vermögen’)—ie,material loss (‘materieller Schaden’)—and loss which is merely immaterial or ideal (‘ideel’). §253 BGB excludesclaims for immaterial loss, except in cases laid down by statute. Thus, German law generally only compensatesmaterial loss.See eg, Creifelds under ‘Schadensersatz’; Brox (AS), Chapter 7, §§ 24–27; Medicus (AT), Part 7 (§§52–60).119 §§ 249ff BGB only govern the extent and type of compensation for loss (‘Schaden’). The provisions saynothing about the basis of liability—ie, the duty to compensate (‘Verpflichtung zum Schadensersatz’) -whichcan arise from contract or statute.Moreover, it is an unwritten precondition of liability for damages under §§ 249ff BGB that the relevant lossmust be attributable (‘zurechenbar’) to the other party, ie, mere is a duty to compensate only if and so far asthe loss is caused (‘verursacht’) by an event (‘Ereignis’), for which the other party is responsible (‘haftet’).There must be a causal connexion (’Kausalzusammenhang’) between the two.See Note 227 in this Chapter.120 See Youngs (CL), Chapter 5, Part IV C 3 and Chapter 6, Part XV B 3.121 See eg, Brox (AS), Chapter 4, § 9.122 See eg, Brox (AS), Chapter 4, § 7 II.123 See eg, Brox (AS), Chapter 4, § 11 and § 121; Medicus (AT), Part 3, § 17.124 § 271(i) BGB lays down no hard and fast rule for the time of performance. If the parties do not agree on atime for performance or it cannot be determined by statute, it must be gleaned from the circumstances (‘ausden Umständen’).See Schulte, Vol 2, Chapter 1 VII; Note 98 in this Chapter.125 See eg, Medicus (AT), Part 3, § 22.126 A A ‘Schuldverhältnis’ gives rise to a ‘Leistungsverpflichtung’ on the part of the ‘Schuldner’ (§ 241 BGB; seeabove).B The BGB only deals with two types of ‘Leistungsstörung’: If the ‘Schuldner’ does not carry out the‘Leistung’ (performance) required of him—ie, in the event of ‘Nichterfüllung’ (non-performance)—there is a ‘Leistungsstörung’ (disturbance/irregularity in performance).— ‘Unmöglichkeit’ (impossibility); the BGB distinguishes between ‘anfàngliche’ (initial) and‘nachträgliche’ (subsequent) ‘Unmöglichkeit’; and— ‘Verzug’ (delay); the BGB distinguishes between ‘Verzug des Schuldners’ (delay on the part of thedebtor) and ‘Verzug des Glàubigers’ (delay on the part of the creditor).C Outside the BGB, the principle of ‘positive Vertragsverktzung’ (PVV; positive breach of contract) and thedoctrine of the ‘(Wegfall der) Geschäftsgrundlage’ ((falling away (collapse) of the) basis of the transaction(frustration) were developed to handle situations requiring relief not falling within impossibility ordelayA claim seeking a remedy for positive breach of contract (PVV) requires an existing ‘Schuldverhältnis’(obligation)—‘rechtsgeschäftlich’ or ‘gesetzlich’—and is mainly used in cases of ‘Schlechtleistung’ (badperformance) and ‘Verletzung einer Nebenpflicht’ (breach of an accessory duty). PVV is excluded, to theextent that a claim under a ‘Gewahrleistungsvorschrift’ (guarantee provision) of the BGB is available, as,eg, in a contract of sale (‘Kauf’) or rental (‘Miete’). See Jauernig (BGB), § 276 V; Notes 47 C and 188 inthis Chapter.D The liability (‘Einstehenmüssen’ /‘Haftung’) of a ‘Schuldner’ for a ‘Leistungsstörung’ usually depends onthe ‘Schuldner’s ‘Verschulden’ ((blame) also referred to as ‘Vertretenmiissen’). The question is: is the‘Leistungsstörung’ the fault of (due to) the ‘Schuldner ’ (‘von ihm zu vertreten’)?The civil law concept of ‘Verschulden’ is defined in § 276 BGB: in so far as there is no different provision,a ‘Schuldner’ is liable for ‘Vorsatz’ ( intent) and for ‘Fahrlässigkeit’ (negligence). A person acts negligently,if he does not observe the (normal) degree of care which social contact requires (‘die im Verkehrerfbrderliche Sorgfalt’).Apart from being a component of most ‘Leistungsstorungen’, ‘Verschulden’ is a condition for liabilityunder the (unwritten) principle of ‘culpa in contrahendo’ (etc; see Notes 18 and 135 in this Chapter), forPVV and also a requirement for a claim in tort (‘unerlaubte Handlung’; §§ 823 ff BGB). However, while,as a rule, both in contract and in tort there can be no responsibility without blame (‘keine Verantwortlichkeitohne Verschulden’), liability independent of blame (‘verschuldensunabhàngige Haftung’) can arise byagreement of the parties or by statute (‘Garantiehaftung’; Medicus (AT), Part 5, Section 1, § 29 and § 31II).In particular, in certain cases, there is, exceptionally, ‘Haftung ohne Verschulden’ (ie, the ‘Schuldner ’ is258

NotesEFGliable without ‘Verschulden’/in any event), eg, for faulty goods (under §§ 459 ff BGB)—so-called‘Erfolgshaftung’ (liability for the result)—or for the various situations in which ‘Gefahrdungshaftung’(strict liability) is laid down by statute (eg, in the case of road and rail traffic accidents (‘Verkehrsunfälle’)and where the keeper of an animal (‘Tierhalter’) is liable for damage caused by it (§ 833 BGB)).Thus, in the German law of obligations, there are two major branches/principles of liability -liabilityfor fault (‘Verschuldenshaftung’) and strict liability (‘Gefährdungshaftung’).See Fikentscher, Section 5, § 53 and Section 16, § 109.For a list of common ‘Anspruchsgrundlagen’ in traffic accident cases, see Grüneberg, ZAP 12/00, Fach9, p 567 (Section I). See also Note 222 E in this Chapter.Regarding capacity, see Note 5 in this Chapter.The BGB distinguishes between a ‘Leistungsstörung in the case of an ‘einseitiges Schuldverhältnis’(unilateral obligation; §§ 275–304, 306–309 BGB) and a ‘Leistungsstörung’ in the case of a ‘gegenseitigerVertrag’ (mutual/reciprocal/synallagmatic contract; §§ 320–327 BGB). Regarding the former, thequestion that arises is (apparently) simple:‘Wie veràndert sich die Pflicht zur Leistung durch die Leistungsstörung?’How is the duty of performance altered (affected) by the ‘Leistungsstörung’?(Medicus (AT), Part 5, Section 2, before § 33).Thus, if, at the time the contract is concluded, performance is objectively (initially) impossible (‘anfânglichunmöglich’), the contract is void: § 306 BGB. However, § 306 BGB does not apply, if performance is only(subjectively) impossible for the ‘Schuldner’. In such a case, the contract is completely valid and the‘Schuldner’ cannot avoid liability (so-called ‘Garantiehaftung für anfängliches Unvermögen’).The BGB contains complex rules setting out the consequences for the ‘Schuldner’ of a ‘Leistungsstörungand the effect of a ‘Leistungsstörung’ in the case of a ‘gegenseitiger Vertrag, ie, the position (and rights) ofthe ‘Gläubiger ’ (creditor) and the fate of his Gegenteistung’ (counter-performance).Thus, for example, if, after conclusion of a contract, a ‘Leistung’ (subsequently) becomes -objectivelyor subjectively—impossible (‘nachträglich unmöglich’) without blame on the part of the ‘Schuldner’, heis freed from the obligation to perform (‘von der Verpflichtung zur Leistung frei’): § 275(i) BGB. The‘Gläubiger’ carries the risk of performance (‘Leistungsgefahr ’ ).Regarding the position in the case of a ‘Gattungsschuld’, see Note 116 in this Chapter.If neither party is to blame for the impossibility (ie, it is fortuitous (‘zufâllig’)), the ‘Schuldner ’ loses hisclaim to the ‘Gegenleistung’: § 323(i) BGB; he carries die price risk (‘Preisgefahr’).To be contrasted with the situation—in a ‘gegenseitiger Vertrag’—where the ‘Leistung’ is irnpossible, isthe position where there is delay (‘Verzug’) on the part of die ‘Schuldner’. By § 326 BGB, die ‘Gläubiger’has various (alternative) remedies:• subject to the setting of an appropriate deadline (‘angemessene Frist’), the ‘Gläubiger’ can claim damagesor rescission. Both result in the contract being transformed into a winding-up relationship(‘AbwickLungsverhältnis’). No deadline is required, if performance of the contract is (objectively) nolonger of interest to the ‘Gläubiger’: § 326(ii) BGB.By § 327 BGB, §§ 346–356 BGB are of corresponding application to the (statutory) right of rescissionin § 326 BGB;• the ‘Gläubiger’ can, instead, opt to uphold die contract, demand performance (‘Erfüllung’) andclaim recovery of the loss due to the delay (‘Verzugsschaden’): § 286(i) BGB. ‘Verzug’ is defined in§§ 284–285 BGB. ‘Verschulden’ (blame) is necessary. Moreover, for die purpose of § 326 BGB, thedelay must relate to the performance of a main obligation (‘Hauptpflicht’) See Notes 111 and 127 inthis Chapter. See generally Fikentscher, Section 5 (§ 45). Cf § 361 BGB.The ‘Schuldner’ usually carries the risk of (receipt of) the price (‘Preisgefahr’) until he has completelyperformed (ie, until ‘Erfüllung’). Regarding the time of transition of (price) risk (‘Gefahrübergang’) indie case of a ‘Kaufoertrag’ see §§ 446, 447 BGB; in die case of a ‘Werkvertrag’ see §§644–646 BGB.It is important to understand that these are special provisions (‘Sonderregeln’)/ exceptions to § 323 BGBand only deal with die situation where there is a fortuitous destruction or deterioration (‘zufälligerUntergang oder Verschlechterung’) of the ‘Sache’ or ‘WerK after conclusion of die contract. In suchcircumstances, there is a transition of (price) risk to the purchaser or customer usually from the momentof ‘Übergabe’ (delivery; § 446 BGB) or ‘Abnahme’ (acceptance; § 644 BGB), as appropriate.If, however, one of the parties is responsible for the destruction or deterioration (ie, the subsequentimpossibility is his fault (‘von ihm zu vertreten’)), the normal rules regarding the ‘Preisgefahr’ in §§ 324and 325 BGB apply.259

The German Legal System and Legal LanguageHIJSee Creifelds under ‘Gefahr(tragung)’; Brox (BS), Chapter 1, § 4 and Chapter 3, § 22; Fikentscher, Section9, § 67 and Section 11, § 80; Medicus (BR), Section I, Chapter 1, § 13 IV; Schulte, Vol 1, Chapter 5IV andVI and Vol 2, Chapter 6 III; Youngs (CL), Chapter 6, Part XIV, Section C 3.Whenever there is no proper performance (‘Leistung’) of an existing (contractual) obligation(‘Schuldverhältnis’), the following questions, therefore, become important:— What type of disturbance in performance (‘Leistungsstörung’) is involved?— Who is responsible for it? The obligee (‘Schuldner’) or his assistant (‘Erfüllungsgehilfe’; § 278 BGB)?— Does that person’s conduct fall within the définition of ‘fault’ (‘Verschulden’) in § 276(i) BGB?— Who bears the burden of proof (‘Beweislast’)?— Are any special statutory provisions relevant?— What remedies can be claimed?The question of the burden of proof is now dealt with in more detail.The general principle regarding the (reversal of the) burden of proof (‘Beweislastumkehr’) in cases of(subsequent) impossibility ‘(nachträgliche) Unmödglichkei’ ana delay (‘Verzug’) is laid down in § 282and § 285 BGB, respectively It is also of corresponding application to cases of PVV and ‘culpa incontrahendo’ ie, it applies to all types of obligation, other than tort.Under these provisions, contrary to the general rule that all preconditions for a particular ‘Anspruch’(claim) must be established by the claimant, the ‘Schuldner ’ carries the burden of proving that he wasnot at fault within the meaning of §§ 276, 278 BGB, ie, that the Leistungsstörung was not caused bycircumstances for whicn he was responsible.In other words, once a ‘Leistungsstörung’ is established, the ‘Schuldner’s fault (‘Verschulden’) is (rebuttably)presumed and it is for him to present exonerating evidence (‘Entlastungsbeweis’).The rule in § 282 BGB applies both if performance (‘Erfüllung’) is being claimed (and the ‘Schuldner’relies on § 275(i) BGB as a defence) and if damages for non-performance (‘Schadensersatz wegenNichterfüllung’; §§ 280,325 BGB) are being sought. In the latter situation, the ‘Gläubiger’ has to proveboth the impossibility (of performance) itself and the causation (‘Kausalität’) between the impossibilityand the damage suffered.Prima facie evidence (‘Anscheinsbeweis’) can ease the burden of proof, both for the ‘Schuldner’ and‘Gläubiger’. However, the ‘Schuldner’ bears the burden of any remaining doubt, if the cause of a‘Leistungsstörung’ is unclear, but falls within his area of responsibility (‘Veraniwortungsbereich’). Theburden cannot be shifted onto the other party by standard business terms: § 11 No 15 (a) AGBG.By § 283 BGB, if the ‘Gläubiger’ obtains a finally binding judgment for performance and sets anappropriate time limit (Frist), damages for non-performance can be claimed without having toprove impossibility. After expiry of the time limit—which can be set by the court on application (§255 ZPO)—the claim to performance (‘Leistungsanspruch’) is converted into one for damages(‘Schadensersatzanspruch’). § 325(ii) BGB extends § 283 BGB, where a ‘gegenseitiger Vertrag’ isconcerned.See Fikentscher, Section 5, § 44 II, 3; Jauernig (BGB), §§ 282,283; Chapter XIII, Note 10.§ 282 BGB does not apply to employees engaged in risky activities (‘schadensgeneigte Arbeit’). SeeChapter XVIII I.In the case of tort claims, on the other hand, the injured plaintiff usually carries the burden of proof offault although a ‘Beweislastumkehr’ (reversal of the burden of proof) has been established by the courtsin medical negligence actions (for a ‘grober Behandlungsfihler’ (gross medical error)) and in cases involvingproduct liability (eg, in ‘The Fowl Pest’ case; see Youngs (CL), Chapter 5, Part I, Section G).However, under the ‘Produkthaftungsgesetz’ (Product Liability Law; ProdHaftG), proof of blame is notrequired.By § 1 ProdHaftG, subject to certain exceptions, the manufacturer (‘Hersteller’) of a faulty product(‘fihlerhaftes Produkt’) is (strictly) liable for damages, if the fault causes death or injury to body orhealth, even if the manufacturer is not to blame for the fault (ie, even if he discharges the (reversed)burden of proof (‘sich entlastet’) for a claim under § 823 BGB).The claimant need usually only prove the fault (‘Fehler’), the damage (‘Schaden’) and the causal link(‘ursächlicher Zusammenhang’) between them (§ l(iv) ProdHaftG).The manufacturer is also liable, if the faulty product causes damage to (other) property(‘Sachbeschädigung’), provided such (other) item of property was intended for private use orconsumption and was mainly so used. However, the claimant must bear the first DM 1125 of thedamage himself (§ 11 ProdHaftG).In accordance with § 3 ProdHaftG a product is faulty, if it does not provide the safety (‘Sicherheit’)which can justifiably be expected of it bearing in mind all the circumstances, in particular:260

Notes(a) its presentation;(b) the use which can fairly be reckoned with; and(c) the time at which it was placed into circulation (‘in den Verkehr gebracht’).A product is not faulty merely because an improved product (verbessertes Produkt’) was later placedinto circulation (§ 3(ii) ProdHaftG).Moreover, liability can be reduced in the event of contributory negligence (§ 6(i) ProdHaftG) and nodamages for pain and suffering (‘Schmerzensgeld’) can be recovered. See Note 227 in this Chapter.The limitation period for a claim under § 1 ProdHaftG is three years from the time knowledge of thedamage, the fault and the identity of the manufacturer was, or should have been, obtained. Thelimitation period is prevented from running so long as negotiations regarding the damages payableremain pending (§ 12 ProdHaftG).Claims under § 1 ProdHaftG basically expire 10 years after the faulty product was placed into circulation(§ 13 ProdHaftG).Liability under other provisions (eg, § 823 BGB) is unaffected by the ProdHaftG (§ 15(ii)).In so far as it applies, the ProdHaftG provides a claimant with additional protection. In English law,Part I of the Consumer Protection Act 1987 imposes strict liability for personal injury and damage toproperty caused by defective products. Like the ProdHaftG, it was enacted pursuant to an EC CouncilDirective (of 25.7.1985).See Creifelds under ‘Produkthaftung’; Chapter XIII, Note 10 4; Dannemann, Section IV, 4(b); Youngs(CL), Chapter 5, Part II, Section F; Zweigert and Kötz, Part II C, Chapter 491 and V.K See generally: §§ 275–304, 306–309 and 320–327 BGB; Creifelds under ‘Leistungsstörungen’, ‘Unmöglichkeitder Leistung’, ‘Schuldnerverzug’, ‘Gläubigerverzug’, ‘Verschulden’, ‘Haftung’, ‘Positive Vertragsverletzung’,‘Geschäftsgrundkge’, ‘Gefährdungshaftung’ and ‘Gegenseitiger Vertrag’.See also the very detailed coverage of the topic of ‘Leistungsstörungen’ in Zweigert and Kötz, Part II AI (Chapter 43 (entitled ‘Breach of Contract’) and Chapter 44 (entitled ‘The Effect of Supervening Events’))and the innumerous German textbooks and commentaries on ‘Schuldrecht (Allgemeiner Teil)’ eg, Brox(AS), Chapter 6, §§ 18–23; Fikentscher, Section 5 (§§ 41–48); Kallwass, Section 3, Chapter 2 (§§ 41–45);Medicus (AT), Part 5 (§§ 28–46); Meyer, Part E, § 5 B and D; Schulte, Vol 2, Chapter 1.L Regarding strict liability in tort (‘Gefährdungshaftung’) see the comments under ‘Strict Liability andAnimals’ in the Sourcebook, Chapter 6; Dannemann, Section IV, 4; Youngs (CL), Chapter 5, Part I,Section D; Zweigert and Kötz, Part II C, Chapter 49 II.127 On 1.5.2000, the ‘Gesetz zur Beschleunigung fälliger Zahlungen’ (Law to Accelerate Due Payments) broughtinto force changes to §§ 284 and288 BGB.By the new § 284(iii) BGB, once a money debt has become due (‘fälling’) ‘Verzug’ (delay) (only) arisesautomatically (ie, by operation of law) 30 days after receipt of a bill (‘Zugang einer Rechnung’) or an equivalentdemand for payment (‘Zahlungsaufforderung’). A prior warning (‘Mahnung’) is no longer necessary norsufficient to establish delay.The rule in § 284(iii) BGB is dispositive, but it cannot be derogated from in a consumer contract(‘Verbrauchervertrag’) to the disadvantage of a consumer. In an individual contract (‘Individualvertrag’),however, it can, eg, be agreed that the 30 day (grace) period for payment (‘Zahlungsfris’) be shortened orthat a ‘Mahnung’ (still) be permitted.Maturity (‘Fälligkeit’) alone does not always suffice to establish delay. According to § 284(ii) BGB, only inrespect of payments recurring on particular fixed dates (‘wiederkehrende Geldleistungen’)—ie, where an ongoingobligation (‘Dauerschuldverhältnis’) exists—does delay arise when the payments become due (‘fällig’). Theprovision does not extend to one-off payments (‘Einmalzahlungen’), even if these are owed on a certain date(‘kalendermäßig bestimmt’).See Hertel, ZAP 10/00, Fach 2, p 275. Hertel criticizes that the new provisions have turned the previous lawon its head (‘aufden Kopf’) and diverge from a draft EU Directive to combat delays in payment (dated3.12.1998). In particular, Hertel points out that the new § 284(iii) BGB is meant to be exhaustive (‘abschließend’),but its wording is too broad and requires teleological reduction.See also: Stollenwerk, ZAP-Aktuell 3/01, p 125.128 After 1.5.2000, the statutory rate of interest during delay is 5% over the base rate (‘Basiszinssatz ’) . of theGerman Federal Bank (§ 1 ‘Diskont-Überleitungs-Gesetz’).This rate applies correspondingly to interest on money debts, which are the subject of court proceedings(‘Prozeßzinsen’), from the time the proceedings are legally pending: § 291 BGB.129 See Youngs (CL), Chapter 6, Part XIV, Section D.130 See Meyer, Part 1, § 2 A III 2.131 See Note 106 in this Chapter.261

The German Legal System and Legal Language132 § 305 BGB presupposes the principle of freedom of contract (‘Vertragsfreiheit’). It lays down the basic rulethat, unless statute otherwise provides, an obligation created by legal transaction can only be established oramended by way of a contract (‘Vertrag’) between the parties. § 305 thus forms the basis for all types ofcontractual obligation.See Notes 23, 106 and 159 in this Chapter; Brox (AS), Chapter 3, § 31 and § 4 I; Jauernig (BGB), § 305;Medicus (AT), Part 2, §9.133 See eg, Brox (AS), Chapter 4, § 5 II; Medicus (AT), Part 3, § 21.134 See below, Title 5.135 A See Creifelds under ‘Vertrag zugunsten Dritter’. See also: Brox (AS), Chapter 8, § 28; Fikentscher, Section3, § 371-VI; Gernhuber/Grunewald, Part 3 (§ 18); Kötz (EVR), Part B, § 13; Medicus (AT), Part 9, § 66;Schulte, Vol 1, Chapter 10 VII; Zweigert and Kötz, Part II AI (Chapter 41 (entitled ‘Contracts for theBenefit of Third Parties’)).A variation of the ‘Vertrag zugunsten Dritter’ is the concept of the ‘Vertrag mit Schutzwirkung zugunstenDritter’ (contract with protective effect in favour of a third party), which derives from § 242 BGB andhas been developed by case-law.In The Fall in the Supermarket Case (Sourcebook, Chapter 5) the defendant would have been liable (fordamages) under the principle of ‘culpa in contrahendo’ to the mother of the plaintiff child, had themother herself been injured. As it was, the plaintiff was able to base her (contractual) claim for breachof accessory duties (‘Zvertragliche Nebenpflichten’) on her mother’s (precontractual) position: there wasa ‘Vertrag mit Schutzwirkung zugunsten Dritter’.The motivation for this outcome lay in the different limitation periods for claims in contract and tort (§195 as against § 852 BGB) and the reversal of the burden of proof (§ 282 BGB).By means of the concept of the ‘Vertrag mit Schutzwirkung zugunsten Dritter ’ , the protective duties/duties of care (‘Schutzpflichten’) emanating from a contract are extended to a person outside the directcontractual relationship in circumstances, in which it is apparent to (‘erkennbar’), or foreseeable by(‘voraussehbar’), the obligor that the obligee typically has an interest in the inclusion (‘Einbeziehung’) ofsuch a person in the protective sphere of the contract (‘Schutzbereich des Vertrages’). One speaks of theproximity of the third party to the act of performance (‘Leistungsnähe’).The consequence is that the third party has a personal claim for damages (PVV / cic) against theobligor, if the relevant duties are breached.The extent of the ‘Schutzpflichten’ of an obligor in a particular case is unclear, but one criterion iswhether it is acceptable (‘zumutbar’) for the obligor to bear (increased) liability. Moreover, the thirdparty’s claim can be affected by exclusion clauses (see the AGBG) and can be reduced due tocontributory fault on the part of the obligee: § 254 BGB.The concept has been applied to contracts of all kinds, eg, building contracts, contracts for services,tenancy agreements, travel contracts and contracts with professional advisers.In particular, the concept makes up for the deficiencies of tort law. Thus, claims for vicarious liabilitycan be brought on a contractual basis in conjunction with § 278 BGB—which imputes the fault of an‘Erfüllungsgehilfe’ to the obligor—instead of seeking to rely on § 831 BGB, which provides an imperfectcause of action, because it is possible for the target principal to supply exonerating evidence(‘Entlastungsbeweis’).See Notes 215 and 222 in this Chapter; Fikentscher, Section 3, § 37 VII; Medicus (AT), Part 9, § 67;Schulte, Vol 3, Case 28 (‘Elektrogeräte’).B The Termination of Negotiations Case (Sourcebook, Chapter 5) is an illustration of the application of theprinciple of ‘culpa in contrahendo’ where precontractual negotiations are broken off without good reason.In that case, the plaintiff’s justified expectation that a licence would be granted to it was disappointed.Similarly, wasted costs can be claimed on the basis of ‘culpa in contrahendo’, if a property purchase fallsthrough (ZAP EN-Nr 708/99) or if significant disputes concerning the property are not revealed (ZAPEN-Nr 37/00).Other fruitful areas for claims based on ‘culpa in contrahendo’ are the failure (omission) to fulfil a dutyof disclosure (‘Aujklärungspflicht’, eg, on the sale of a business (ZAP EN-Nr 472/01)) and negligentmisrepresentation (‘fahrlässige Tàuschung’). The equivalent German concept for fraudulentmisrepresentation (deception) is ‘arglistige Tàuschung’ (§ 123 BGB).The principle of ‘culpa in contrahendo’ was established by Jhering in 1861. Its underlying rationale isthat entry into precontractual negotiations (‘Vertragsverhandlungen’) gives rise to a quasi-contractualrelationship of trust (‘vertragsähnliches Vertranensverhältnis’) between the parties. This in turn results induties of care (‘Sorgfaltspflichten’) and of consideration (‘Rücksichtnahme’) towards each other, whichexist even if the negotiations ultimately fail (‘scheitern’) and there is no preliminary contract (‘Vorvertrag’)or other express agreement. A blameworthy breach (schuldhafte Verletzung’) by one of the parties of262

Notesthese duties will entitle the other to compensation (‘Schadensersatz’). The blameless party (‘vertragstreuePartei’) may, eg, have made other arrangements (‘Dtspositionen’) in reliance on the negotiations.See Notes 18, 47 A, 66 and 126 D in this Chapter; Creifelds under ‘Vertrag’ III; Dannemann, Section II,11; Kötz (EVR), Part A, § 1 III and § 2 D; Medicus (AT), Part 2, § 14; Youngs (CL), Chapter 6, Part III C,Part V and Part XIIF and G.C ‘Culpa in contrahendo’ is available quite apart from claims for mistake, deception or threat (§§ 119–123BGB) or tort (§ 823ff BGB).However, like PVV, cic only applies in the absence of special statutory provisions. Thus, for example,false information specifically regarding the object of a contract of sale or rental falls under § 459ff BGBand § 538 BGB, respectively.One of the reasons for cic is that vicarious liability in tort can often be avoided under § 831 BGB, ie,where injury is caused not by the defendant, but by his servants or employees, the plaintiff wouldotherwise be left without a remedy.See Jauernig (BGB), § 276 VI; Schulte, Vol I, Chapter 5 XI; Note 222 in this Chapter.D ‘Culpa in contrahendo’ is accepted as a principle of customary law (‘Gewohnheitsrecht’), although it canalso be regarded as flowing from § 242 BGB. See Fikentscher, Section 2, § 20IV.136 By § 329 BGB, in the event of doubt, an ‘Erfüllungsubernahme’ (ie, a (merely internal) promise of performancebetween an ‘old’ and a ‘new’ debtor) does not give the creditor a right to demand performance. It is thereforenot a ‘genuine’ contract for the benefit of a third party. Cf ‘Schuldübernahme’. See Note 157 in this Chapter.137 See eg, Brox (AS), Chapter 4, § 10.138 The effect of rescission (‘Rücktritt’) is that for the future (‘ex nunc’) the contract is converted into/replacedby a so-called ‘Rückgewahrschuldverhaltnis’, ie, an obligation on each side to return what was received, or, inthe case of services or the use of a thing, their value (‘Werf’): § 346 BGB. Rescission itself leaves the propertylaw consequences of the transaction unaffected.The effect of ‘Anfechtung’ (challenge), on the other hand, is that the contract is nullified (ie, destroyed, notconverted) ab initio (‘ex tunc’). Retrospective winding-up (‘Ruckaburicklung’) is effected via the unjustenrichment provisions (§§ 812ff BGB).See Creifelds under ‘Rücktritt vom Vertrag’; Notes 48,147 and 245 in this Chapter; Brox (AS), Chapter 5, § 17;Fikentscher, Section 5, § 48 II; Gernhuber/Grunewald, Part 5 (§ 25); Schulte, Vol 1, Chapter 10 IX.Regarding the position in English law ie, the right of an innocent party to terminate a contract for ‘anticipatory’(repudiatory) or actual (‘fundamental’) breach/default, see Cheshire, Fifoot and Furmston, Chapter 18,Parts 6 and 7.In English law, the term ‘rescission’ is commonly used to refer to one of the remedies for misrepresentation.See Cheshire, Fifoot and Furmston, Chapter 9, Part 1 D.139 See Creifelds under ‘Fixgeschäft’; Fikentscher, Section 5, § 45IV.If the transaction is a ‘Fixhandelskauf (fixed time trade purchase), rescission or damages can be claimed.However, if damages are sought blame must be shown.See § 376(i) HGB; Capelle / Canaris, Part E, Section 5, § 29IV.140 See Note 266 in this Chapter.141 See generally Jauernig (BGB), §§ 346ff; Kaiser, Part II, Chapter 20; Medicus (AT), Part 6, §§ 48–49.142 See Klunzinger (Einführung), Part III, Chapter 3 (§§ 32–33); Brox (AS), Chapter 5, §§ 13–16; Fikentscher,Section 4 (§§ 38–40); Gernhuber / Grunewald, Part 5 (§ 26); Medicus (AT), Part 4 (§§ 23–27).143 Regarding the difference in meaning between ‘Erfüllung’ and ‘Leistung’ see this Chapter at Note 114.144 See Medicus (AT), Part 6 (§§ 47–51); Schwab (Einführung), Part V, Chapters 6–8.145 See ‘Nullity and Challengability of a ‘Wzzlenserttarung’ and ‘Form and nullity of a ‘Rechtsgeschäft’ in thisChapter.146 See ‘Nullity and Challengability of a ‘Willenserklärung” in this Chapter.147 ‘Kündigung’ only operates for the future (‘ex nunc’). There is no retrospective exchange of ‘Leistungen’(‘Rückaustausch’) as in the case of rescission (‘Rücktritt’).See Medicus (AT), Part 6, § 50; Chapter XVIII, Notes 6 and 7; Note 138 in this Chapter.148 See Note 75 in this Chapter.149 See Note 47 in this Chapter.150 An ‘Aufhebungsvertrag’ is often used as a means of terminating a contract of employment. See ChapterXVIII, Note 5.Novation is the replacement of one debt by another (‘Schuldersetzung’).263

The German Legal System and Legal Language151 See Note 126 in this Chapter.152 See the previous page in this Chapter (Title 5).153 See Schulte, Vol 1, Chapter 10 VI.154 See Schulte, Vol 1, Chapter 10IV.155 See eg, Brox (AS), Chapter 8, § 29; Medicus (AT), Part 8 (§§ 61–65); Schulte, Vol 1, Chapter 10 II. See alsoZweigert and Kötz, Part II AI (Chapter 40 (entitled ‘Assignment’)).156 The provisions regarding contractual assignment are of corresponding application to assignment of a claimby operation of law (‘cessio legis’), eg, under § 774 BGB, § 67 VVG, § 116 SGB (Book X).See Fikentscher, Section 6, § 58.157 Under a ‘Schuldübernahme’, there is an exchange of debtors (substitution).A ‘Schuldbeitritt’ or ‘Schuldmitubernahme’—not dealt with in the BGB—describes the situation where a new(additional) debtor joins the old one. It results in a ‘Gesamtschuld’ (joint debt) and can arise by agreement or,in certain cases, by statute.Neither a ‘Schuldübemahme’ or ‘Schuldbeitritt’ require a particular form.See Creifelds under ‘Schuldübernahme’ and ‘Schuldmitübernahme’; Brox (AS), Chapter 8, § 30; Meyer,Part III, § 7 B II; Schulte, Vol 1, Chapter 10 III; Notes 136,177 and 238 in this Chapter.158 See eg, Brox (AS), Chapter 9, §§ 31–33; Medicus (AT), Part 9 (§§ 68–69); Schulte, Vol 1, Chapter 10 X.159 See generally Creifelds; Fikentscher, Sections 8–16 (§§ 64–114); Kaiser, Parts III and IV; Klunzinger(Eirrfuhrung), Part IV (§§ 43–57); Brox (BS); Medicus (BT); Meyer, Part 1, § 2 A IV; Model/Creitelds/Lichtenberger, Part 3 F (315–332); Reich/Schmitz, Chapter 4. When referring to the special part of Book II ofthe BGB, the following points must always be borne in mind:— The various different types of ‘rechtsgeschäftliche Schuldverhältnisse ’ set out in §§ 433–808a BGB are onlyexamples. They are not comprehensive; others (‘atypical’ or mixed contracts) are possible: § 305 BGB.They often develop independently of the BGB—see Chapter XI, Note 42.— Regardless of how a ‘rechtsgeschäftliches Schuldverhältnis’ is described by the parties, the question of nowit is to be classified for legal purposes is dependent solely on what they agree are their ‘Hauptpflichten’(main obligations). See Note 111 in this Chapter.— For the purposes of the BGB, the following types of contract (ie, obligational relationships arising froma ‘Rechtsgeschäft’) are commonly distinguished:• contracts for the disposal of an asset (‘Veräußerungsverträge’) ie, ‘Kauf’, ‘Tausch’ and ‘Schenkung’;• contracts for the grant of the use of an asset (‘Gebrauchsüberlassungsverträge’), ie, ‘Miete’, ‘Pacht’, ‘Leihe’and ‘Darlehen’;• contracts involving the undertaking of an activity (‘Tätigkeit’) for someone else, ie, ‘Dienstoertrag’,‘Werkvertrag’, ‘Reisevertrag’, ‘Maklervertrag’, ‘Auftrag’, ‘Geschäftsbesorgungsvertrag’ and ‘Verwahrung’.It is important to note here that, in Roman law, contracts of service (‘Diensiverträge’) and contracts forservices (‘Werkverträge’) were classified as forms of a group of contracts described as ‘locatio conductio’(hire). ‘Locatio conductio’ (lit the placing of something at the disposal of another) was treated as a unifiedconcept along the lines or a contract of sale, but was given much less attention. See Fikentscher, SectionII, § 78; Honsell, § 48; Nicholas, Chapter IV, 1,2 (b) 2.Similarly, in German law, the law relating to contracts of service was given sparse treatment in the BGB,with the result that the law of employment (‘Arbeitsrech’) has largely developed outside the Civil Code.See Chapter XVIII, below:• contracts for the advancement of a common purpose (‘gemeinsamer Zweck’) in the form of a company(‘Gesellschaft’); and• contracts comprising special promises (‘besondere Versprechen’), ie, promising a certain ‘Leistung’(ie, ‘Leibrente’, ‘Spiel’ and ‘Wette’) or entered into in order to settle, establish or secure certainobligations (eg, ‘Vergleich’, ‘Schuldversprechen’, ‘Anweisung’, ‘Burgschaft’, ‘Garantievertrag’and’Sicherungsvertrag’).See Creifelds under ‘Vertrag’ 2; Fikentscher, Section 8 (§§ 64–65); Schellhammer (ZR), Book 3, Part 33,Chapter 4 2 and Book 1, Parts 1–21.160 See Brox (BS), Chapter 1, §§ 1–7; Fikentscher, Section 9, §§ 66–72; Meyer, Part II, §§ 4–5; Schulte, Vol 2,Chapter 5.161 See Brox (BS), Chapter 1, § 8; Fikentscher, Section 9, § 73.162 See Brox (BS), Chapter 2, §§ 9–13; Fikentscher, Section 10, §§ 74–75; Meyer, Part II, § 6 D.163 See Brox (BS), Chapter 2, § 15; Fikentscher, Section 10, § 76.164 See Brox (BS), Chapter 2, § 16; Fikentscher, Section 10, § 77; Meyer, Part III, § 7 A.264

Notes165 See Brox (BS), Chapter 3, §§ 17–19; Fikentscher, Section 11, § 79; Meyer, Part II, § 6 B; Chapter XVIII H (Note60).166 Conclusion of a ‘Werkvertrag’.Apart from the general requirements of §§ 104ff and §§ 145ff BGB, § 631(i) BGB makes it dear that conclusionof a ‘Werkvertrag’ depends on agreement between the parties regarding the particular ‘Werk’ (work) to beproduced/supplied and the fee (‘Vergütung’) to be paid by the customer (‘Besteller’) to the manufacturer/producer (‘Unternehmer’).If no specific (or specifiable) fee is agreed, but one is to be expected in the circumstances, a fee is deemed tobe implied: § 632(i) BGB. The fee is assessed at the official rate for the particular work (‘Taxe’), or, if none, atthe usual level in the relevant business: § 632(ii) BGB. (Cf English law, which allows ‘reasonable remuneration’to be claimed on a ‘quantum meruit’. See Cheshire, Fifoot and Furmston, Chapter 22, Part 2 A 6.)Object of a ‘Werkvertrag’The object of a ‘Werkvertrag’ is defined in § 631(ii) BGB. It includes not only the production or alteration ofa thing (‘die Herstellung oder Veränderung einer Sache), but also the achievement of a (particular) (successful)result by means of work or the provision of service (‘ein…durch Arbeit oder Dienstleistung herbeizuführenderErfolg’).Thus, a ‘Werkvertrag’ can include a wide range of agreements, which, at first sight, might not be consideredas a homogeneous group. The linking factor, however, is the concept of an ‘Erfolg’.ClassificationAlthough it is easy to state that the provision of services (‘Dienstleistung’) is the dominant element of a‘Dienstvertrag’ and that the achievement of an ‘Erfolg’ is characteristic of a ‘Werkvertrag’, classification of aparticular contract as a ‘Dienst-’ or ‘Werkvertrag’ can prove difficult. The real distinction lies in the fact that,in the case of a ‘Werkvertrag’, payment is only due in the event of an ‘Erfolg’, ie, the producer bears thecommercial risk (‘Unternehmerrisiko’ or ‘Erfolgsrisiko’). In a ‘Dienstvertrag’, no ‘Erfolg’ is (technically) required(eg, normally, in the case of a contract (of treatment) with a doctor (‘Arztvertrag’ /‘Benandlungsvertrag’) orlawyer (‘Anwaltsvertrag’)).Certain types of ‘Werkvertrag’ are the subject of special rules (eg, those listed in §§ 407–460 HGB (concerningshipment (‘Spedition’), storage (‘Lagerung’) or transport (‘Beförderung’) of goods), the ‘Reisevertrag’ (travelcontract; §§ 651a-651k BGB) and the ‘Bauvertrag’ (building contract; see below).If die producer has to supply his own materials for production of the ‘Werk, the contract is one of work andmaterials (‘Werklieferungsvertrag’), which is normally governed by the provisions relating to sale of goods: §651 (i) BGB. On the other hand, the provisions regarding contracts for services (§§ 631ff BGB) apply, if anindividualised ‘Sache’ is to be produced. The same is the case, if the materials involved are only accessoryingredients (‘Zutaten’) and their supply is not a significant element of the contract: § 651(ii) BGB.The element of rewardIt is important to note that both a ‘Dienstvertrag’ and a ‘Werkvertrag’ are undertaken in return for reward(‘entgeltlich’), while an ‘Auftrag’ (gratuitous contract of instruction) is not remunerated. All three are examplesof a contract for me carrying out of an activity (‘Tätigkeit’) for another person. Thus, an ‘Auftrag’ requires anintention to create legal relations—it is a ‘Gefälligkeitsvertrag’, not a ‘Gefälligkeitsverhältnis’ (relationship ofgrace and favour).In turn, an ‘Auftrag’ must be distinguished from a ‘Geschäftsbesorgungsuertrag’ (commercial mandate; § 675(i)BGB)—this involves the independent undertaking of a transaction (‘Geschäft’) for another person in returnfor reward, on the basis of a ‘Dienst-’ or ‘Werkvertrag’. The relevant activity must relate to that other person’seconomic interests (‘Vermögensinteressen’) and be undertaken by someone in a position of trust(‘Vertrauensstellung’), eg, a lawyer, accountant, bank or trustee.Assuming that a contract can be classified as a ‘Werkvertrag’, what are the duties of the parties? What is theirposition before and after acceptance and what remedies are available, if there is a breach of contract? Onwhom is the burden of proof?Duties of the partiesThe producer (‘Unternehmer’) has two main duties:— manufacture of the ‘Werk’ (= ‘Herstellung’); and— delivery of the completed ‘Werk’ to the customer (= ‘Ablieferung’).In particular, by § 633(i) BGB, the producer must manufacture the ‘Werk’ in such a way that it has anyrelevant guaranteed qualities (‘zugesicherte Eigenschaften’) and does not have any faults (‘Mängel’), such thatthe value or fitness for normal use of the ‘Werk’ (or its contractually presumed use) are not suspended orreduced.265

The German Legal System and Legal LanguageThe customer’s main duties are to pay the agreed price (‘die vereinbarte Vergütung’) and to accept the work.Importance of acceptanceAcceptance (‘Abnahme’) is of crucial importance. The customer is only obliged to accept the ‘Werk’, if theproducer has manufactured it in accordance with the contract (‘vertragsmässig’): § 640(i) BGB. Until then,the customer can refuse acceptance (§ 320(i) BGB), but not if detects are minor /insignificant (‘geringfügig’/‘unwesentlich’).On acceptance, the customer is liable to pay the price: § 641(i) BGB.The producer can request part payments on account (‘Abschlagszahlungen’/‘Teilzahlungen’): § 632a BGB.Meaning of acceptanceAcceptance is considered as usually consisting of two elements—the acquisition of physical possession ofthe ‘Werk’ and the express or implied approval of it by the customer as being essentially in conformity withthe contract (‘Billigung’).For this purpose, it suffices, if the customer, by his conduct, acknowledges that the condition of the ‘Werk’is to his satisfaction.If physical acceptance is not possible, due to the nature of the ‘Werk’, its function is taken by the moment ofactual completion (‘Vollendung’): § 646 BGB.Breaches of contractBefore acceptance, the general rules in the BGB regarding disturbances in performance(‘Leistungsstörungen’)—ie, §§ 323ff BGB—apply. Thus, if the producer is responsible for impossibility ofperformance or a delay in delivery, the customer can claim damages under § 325 or § 326 BGB, respectivelyThe general limitation period of 30 years applies.After acceptance, the general rules are ousted. The customer’s principal and secondary rights, if there is afault in the ‘Werk’, are laid down in §§ 633ff BGB. Much shorter limitation periods then apply: §638(i)BGB.In appropriate circumstances, other remedies remain possible, eg, claims for damages under the principlesof ‘culpa in contrahendo’ and PVV for breach of accessory duties (‘Nebenpflichten’) in the pre-and postcontractualphases.Rights of the customerWhat rights does the customer have, if a ‘Werk’ does not conform to the contract?Before acceptance, the customer can claim performance /renewed manufacture (‘Neuherstellung’) under §631 BGB. Alternatively, he can request removal of the defect (‘Beseitigung des Mangels’)—ie, repair(‘Nachbesserung’)—under § 633(ii) BGB or, if this is overdue, carry out the repair himself: §633(iii)BGB.If attempts at repair fail, the rights of the customer before acceptance are those set out in §§ 325, 326 BGB.Additionally, the customer can rescind the contract in the event of delayed manufacture, even withoutblame (‘Verschulden’) on die part of the producer: § 636(i) BGB.After acceptance, the customer’s (secondary) rights—his guarantee claims (‘Gewährleistungsansprüche’)—are set out in §§ 634, 635 BGB.By § 634 BGB, generally after expiry of an appropriate time limit (‘angemessene Frist’), the customer candaim rescission of the contract (so-called ‘Wandlung’) or reduction of the price (so-called ‘Minderung’). §§465–467 and §§ 469–475 BGB, which relate to contracts of sale, are of corresponding application.By § 635 BGB, if the producer was responsible for the relevant defect, the customer can, instead of seeking‘Wandlung’ or ‘Minderung’, claim damages against the producer. § 635 BGB covers loss directly or closelyrelated to the fault (so-called ‘Mangelscnaden’), but more distant, consequential loss (so-called‘Mangelfolgeschaden’) falls under PvV. The distinction is important, because while ‘Mangelschaden’ is subjectto the (short) limitation periods in § 638 BGB, a claim for ‘Mangelfolgeschaden’ only becomes time-barredafter 30 years.By § 640(ii) BGB, if, despite knowing of a defect, the customer unreservedly accepts the ‘Werk’, he loses hisrights under §§ 633, 634 BGB. However, claims under § 635 BGB, PVV, tort or product liability remainpossible.Burden of proofBefore acceptance, the customer must prove the content of the contract. The producer must move properperformance—ie, that the ‘Werk’ is free of faults (‘mangelfrei’)—and that the ‘Werk’ was manufactured intime (‘rechtzeitig’). This can be established by means of a certificate of completion(‘Fertigstellungsbescheimgung’): § 641a BGB.266

NotesAfter acceptance, the customer has the burden of proving divergences from the contract and any faults inthe ‘Werk’. ^The producer has the burden of proving that acceptance has taken place, if it is disputed.See Brox (BS), Chapter 3, § 17 III and §§ 20–25; Fikentscher, Section 11, §§ 79–82; Meyer, Part II, § 6 A;Schulte, Vol 2, Chapter 6; Notes 126,189 and 234 in this Chapter; Chapter XVIII, Note 60.BGBorVOB?In the building industry, an important role is played by the ‘Verdingungsordnung für Bauleistungen’ (VOB),which contains (internal) administrative regulations for the award of building contracts by the public sector.Part B of the VOB sets out standard terms of business, which can, by agreement, govern a private contractfor building work. In such a case, the provisions in the BGB concerning contracts for services (§§ 631ff BGB)are ousted.See Creifelds under ‘Verdingungsordnungen’.Regarding building contracts, see further: Lepp, ZAP 14/89, Fach 5, p 17 (performance and guarantee);Lepp, ZAP 3/90, Fach 5, p 47 (consequential loss); Neuhaus, ZAP 17/00, Fach 5R, p 223 (recent developments).167 See Fikentscher, Section 11, § 84.168 See Fikentscher, Section 11, § 85.169 See Brox (BS), Chapter 4, § 26; Fikentscher, Section 11, §§ 81–82; Meyer, Part E, § 6 CI–II See also: Note 166 inthis Chapter; ‘Auftrag’.170 The rationale behind ‘Geschäftsführung ohne Auftrag’ (GoA).The rationale underlying §§ 677ff BGB is that, although, generally, persons are not altruistic and have ebusiness of others without authorisation, it ca no right to interfere with the business of others withoutauthorisation, it can happen that, despite the absence of a formal legal relationship or a pre-existing,express permission, action in another person’s interest is desirable or necessary in circumstances in which,normally, someone else would be responsible to undertake it. If so, it is right and proper that those whohonourably intervene on behalf of other persons and thereby incur expenditure be granted relief/reimbursement.Within the German law of obligations, the subject of GoA is traditionally dealt with after the law of contract,but before tort and unjust enrichment. It is a distinct basis of equitable, quasi-contractual liability.When §§ 677ff BGB apply.Action taken for someone else is only governed by §§ 677ff BGB, if the following elements are fulfilled:(i) other (contractual or statutory) authority for the action must be lacking;(ii) the relevant matter must objectively fall within the competence of another person, ie, it must fall withinsomeone else’s area of interest/ responsibility (there must be a ‘fremdes Geschäft’);(iii)there must be an intention to undertake the matter for the other person (‘Fremdgeschäftsführungswille’).§§ 677ff BGB do not apply, if the person conducting the matter (the ‘Geschäftsführer’) does so under a mistakenbelief that he is thereby looking after his own business: § 687(i) BGB. In particular, the provisions are notintended to encourage busy-bodies or know-alls (‘Besserwisser’), nor are they meant to benefit someone,who realises that he is not entitled to act at all, ie, who usurps his position (‘Geschäftsanmaßung’; § 687(ii)BGB). These cases of ‘Eigengeschaftsjuhrung’ (self-transaction) are not protected.Position of the partiesWhen §§ 677ff BGB apply, the primary duty of the ‘Geschäftsführer’ is laid down in § 677 BGB: a person, whoundertakes a matter for someone else without authority, owes proper execution of the matter (‘ordnungsgemäßeAusführung’). He must observe the interests of the principal (the ‘Geschäftsherr’) and must take into accountthat person’s real or presumed wishes (‘wrklicher oder mutmaßlicher Wille’).The ‘Geschäftsführer’ also has various secondary duties—eg, to notify the ‘Geschäftsherr’ as soon as possible,to await instructions (except in an emergency) and to hand over to the ‘Geschäftsherr’ anything he recoversin the course of the GoA: § 681 BGB.Blameworthy breach of these duties can give rise to a claim for damages under general principles (§§ 280ff,284ff, 823ff BGB; PVV). However, if the purpose of the GoA is to avert an imminent danger (‘dringendeGefahr’), the ‘Geschäfisführer’ is only liable for intent or gross negligence: § 680 BGB.If the assumption of the matter by the ‘Geschäftsführer’ accords with the wishes of the ‘Geschäftsherr’, theGoA is regarded as justified (‘berechtirt’) ana the ‘Geschaftsfuhrer’ can claim reimbursement of his expenses(‘Ersatz seiner Aufwendungen’) from the ‘Geschäftsherr’: §§ 683, 670 BGB. He can also claim typical consequentiallosses.GoA is normally justified in rescue cases. However, whether action by a public authority can be deemedGoA, thereby allowing reimbursement of costs, is controversial, as is the application of GoA in circumstanceswhere the ‘Geschäftsführer’ has an existing contract with a third party.267

The German Legal System and Legal LanguageIf, on the other hand, the Go A is unjustified (ie, the action was undertaken against the principal’s wishesand this was apparent to the ‘Geschäftsführer’), damages can be claimed against the ‘Geschäftsführer ’ by the‘Geschäftsherr’ : § 678 BGB. The claim is regardless of whether or not the ‘Geschäftsführer’ was otherwise atfault; it supplements other possible claims for damages based on tort or unjust enrichment.The only exception is laid down in § 679 BGB: the contrary wishes of the ‘Geschäftsherr’ are irrelevant, if the‘Geschäftsherr’ has a duty in the public interest or a statutory duty of maintenance, which would not befulfilled in time, if the relevant action were not taken. Go A would then be justified.A ‘Geschäftsherr’, who has been enriched by an unjustified Go A, must return everything received becauseof the GoA: § 684,1st sentence BGB. However, the ‘Geschäftsherr’ can subsequently approve the GoA, inwhich case the GoA then becomes justified: § 684,2nd sentence BGB.See Brox (BS), Chapter 6, § 31; Fikentscher, Section 11, § 83; Gernhuber/Grunewald, Part 6 (§ 27); Medicus(BR), Section E, § 17; Meyer, Part E, § 6 C III.171 See Brox (BS), Chapter 4, § 27; Fikentscher, Section 11, § 86. The equivalent concept to ‘Verwahrung’ inEnglish law is die contract of bailment. See Charlesworth, Part 7, Chapter 24.172 See Fikentscher, Section 11, § 87.173 See Chapter XI A; Fikentscher, Section 12, § 88; Meyer, Part IV, § 9 B I.174 See Chapter XI A; Fikentscher, Section 12, § 89.175 See Fikentscher, Section 13, § 90.176 See Brox (BS), Chapter 5, § 30; Fikentscher, Section 13, § 91.177 A The purpose of a ‘Burgschaft’ is to secure performance of a main obligation (‘Hauptverbindlichkeit’) bya (third party) debtor: § 765(i) BGB.The declaration of surety (‘Bürgschaftserklärung’) must be given in writing by the guarantor: § 766, 1stsentence BGB. However, cf § 350 HGB.A contract of guarantee (‘Garantievertrag’; ie, indemnity) is not dealt with in the BGB and creates aseparate, new obligation beyond (mere) performance of the main obligation. It need not be in writing.Liability under a ‘Garantievertrag’ is strict and does not depend on fault.See Creifelds under ‘Burgschaft’ and ‘Garantievertrag’; Brox (BS), Chapter 5, § 28; Fikentscher, Section13, § 92; Lauer, ZAP, Fach 8, p 257; Meyer, Part III, § 7 BI and III; Notes 157 and 159 in this Chapter.B In English law, by the Statute of Frauds 1677, Section 4, a contract of guarantee (ie, ‘any special promiseto answer for the debt, default or miscarriage of another person’=the equivalent of a Bürgschaft’) isunenforceable (not invalid!), unless it is evidenced by a note or memorandum in writing, signed bythe person to be charged or his authorised agent.By a similar provision (Section 40, Law of Property Act 1925), a contract for the sale or other dispositionof an interest in land was unenforceable, unless there was such evidence. Such a contract must now be‘made’ in writing: Section 2, Law of Property (Miscellaneous Provisions) Act 1989.Regarding the contract of guarantee in English law, see Charlesworth, Part 7, Chapter 25.178 See Brox (BS), Chapter 5, § 29; Fikentscher, Section 13, § 93.179 See Fikentscher, Section 13, § 94.180 See Fikentscher, Section 13, § 95; Meyer, Part III, § 8 B E.181 See Fikentscher, Section 13, §96.182 See Brox (BS), Chapter 7, §§ 32–35; Fikentscher, Section 15 (§§ 98–101); Gernhuber/Grunewald, Part 6 (§§29–31); Loewenheim; Medicus (BR), Section V, §§ 26–28.183 Regarding the law of torts, see generally: Notes 219–224 in this Chapter; the comments under § 823 BGB inthe Sourcebook, Chapter 6; Brox (BS), Chapter 8, §§ 36–42; Dannemann, Part IV; Fikentscher, Section 16 (§§102–114); Kaiser, Part IV, 1–6; Kötz; Schwab (Einführung), Part IV, Chapters 2–8; Kallwass, Section 3 (§§ 34–38); Medicus (BT), Part 10, §§ 135–148; Medicus (BR), Section IV (§§ 24–25); Meyer, Part 5, § 11 B and C;Youngs (CL), Chapter 5; Zweigert and Kötz, Part E C, Chapter 47.Regarding contributory negligence (‘Mitverschulden’) see § 254 BGB.In a road traffic accident, § 254 BGB normally applies: § 9 StVG. However, if damage is caused by severalvehicles, § 254 BGB is ousted by § 17(i) StVG. See Grüneberg, ZAP 3/01, Fach 9, p 605 (Section I) and ZAP8/01, Fach 9, p 615.Regarding defamation and business-related conduct, see Chapter VIII, Note 20.Regarding the burden of proof of fault, see Note 126 J in this Chapter.184 See Chapter X, Note 104; Fikentscher, Section 9, § 66 VII; Meyer, Part E, § 4 A II.268

Notes185 A A ‘Rechtsmangel’ (defect in title) must be distinguished from a ‘Sachmangel’ (fault in a ‘Sache’). Regardingthe latter, see Notes 188 and 189 in this Chapter.§§ 434–438 and §§ 439–443 BGB deal with ‘Rechtsmängel’, ie, the situation where the vendor fails tosupply the full, unencumbered right to the relevant ‘Sache’ or ‘Recht’ sold or, as is also said, fails tofulfill his duty to procure title (‘Rechtsverschaffungspflicht’) in accordance with § 433(i) BGB.See Fikentscher, Section 9, § 69; Jauernig (BGB), §§ 434ff.B A ‘Sachmangel’ must, in turn, also be distinguished from a ‘Falschlieferung’ (wrong delivery or ‘aliud’),since the normal 30 year limitation period (only) applies to the latter.See Dannemann, Part in 3 (b); Chapter XI, Note 69.C In the English law concerning sale of goods, the purchaser is protected against both kinds of defect(defects in title and defects of quality or fitness for purpose) by the mechanism of (statutorily) impliedterms. However, terms regarding quality and fitness are only implied by s 14(2) and s 14(3) Sale ofGoods Act, if the vendor sells the goods in the course of a business. In a private transaction, therefore,a buyer of goods must exercise (more) care ie, in such a situation, English law continues to adhere tothe principle of ‘caveat emptor’ (let the buyer beware).See Note 47 A in this Chapter; Charlesworth, Part 3, Chapter 15.186 See Chapter X, Note 126 G; Fikentscher, Section 9, § 67 IV.187 See Note 238 in this Chapter.188 These guarantee provisions (‘Gewährleistungsvorschriften’) are special rules (‘Sonderregeln’), which largelyreplace the general provisions of the BGB regarding ‘Leistungsstörungen’ (§§ 320ff) from the moment oftransition of risk (‘Gefahrübergang’). The guarantee provisions extend to both movables and immovables (ie,‘Sachen’ generally), so that the translation, which derives from the equivalent field of English law,—‘sale ofgoods’—is not strictly correct. The provisions apply regardless of blame (‘Verschulden’) on the part of thevendor. See the following Note.See also: Brox (BS), Chapter 1, § 5; Creifelds under ‘Gewährleistung’; Fikentscher, Section 9, §§ 68–70;Gernhuber/Grunewald, Part 2 (§ 14); Jauernig (BGB), §§ 434ff, §§ 459ff; Meyer, Part II, § 5 C.Regarding the relationship between the ‘Gewährleistungsvorschriften’ and other remedies (the question ofconcurrence (‘Konkurrenz’)), ie:— the principle of ‘culpa in contrahendo’ (Note 135 in this Chapter);— PVV (Notes 47 C and 126 C in this Chapter);— the provisions concerning ‘Anfechtung’ (challenge) (§§ 119–123 BGB);— claims in tort (Notes 183 and 219 in this Chapter);— product liability (‘Produkthaftung’), ie, the liability of the manufacturer (‘Hersteller’) of a movable (Notes126 J and 222 in this Chapter);See Brox (BS), Chapter 1, § 5 VI; Fikentscher, Section 9, § 70 IX; Jauernig (BGB), § 459 IV.189 A Pursuant to § 459 BGB, the principal norm, the vendor of a ‘Sache’ (movable or immovable) has a twofoldliability—he not only guarantees to the purchaser that, at the time of transition of risk, the ‘Sache’is not affected by faults (‘Fenler ’ ), such that the value or the fitness for normal use of the ‘Sache’ (or itscontractually presumed use) are not suspended or (significantly) reduced. The vendor is also liablefor guaranteed qualities (‘zugesicherte Eigenschaften’) of the relevant ‘Sache’.A ‘Sache’ is faulty (‘fehlerhaft’), if there is a deviation (‘Abweichung’) between the actual and usual (orcontractually presumed) condition of the ‘Sache’, to the detriment of the purchaser. The test is subjective.See Medicus (BR), Section I, Chapter 2 (§ 15).B If a ‘Sache’ is faulty and the vendor is not relieved from liability under § 460 BGB, the purchaser canclaim either rescission of the purchase (‘Rückgängigmachung des Kaufes’, so-called ‘Wandlung’) orreduction of the purchase price (‘Herabsetzung des Kaufpreises’, so-called ‘Minderung’): § 462 BGB.If a ‘Sache’ lacks a guaranteed quality (‘zugesicherte Eigenschaft’) at the time of sale, or if a fault wasfraudulently concealed (‘arglistig verschwiegen’) by the vendor, the purchaser has an alternative remedy.Instead of seeking ‘Wandlung’ or ‘Minderung’, he can claim damages (‘Schadensersatz’): § 463 BGB.However, § 463 BGB only enables damages to be recovered for loss directly involving the ‘Sache’ itself(so-called ‘Mangelscnaden’); other consequential loss (‘Mangelfolgeschaden’) can fall within PVV, if itwas caused by the fault (‘Verschulden’) of the vendor.C A vendor can exclude or limit his liability for faulty ‘Sachen’ by way of (express or implied) agreementbut such an agreement is void, if the relevant fault is fraudulently concealed by the vendor: § 476 BGB.Moreover, the parties can agree that the vendor (first) be allowed to attempt correction/repair of thedefect (‘Nachbesserung’). Such a remedy is available to a customer as of right in the case of a ‘Werkvertrag’(contract for services), as a means of achieving the removal of the defect (‘Beseitigung des Mangels’): §633(ii) BGB. See also §11 No 10 AGBG.269

The German Legal System and Legal LanguageLiability can also be extended by an (independent) contract of guarantee (‘Garantievertrag’). See Notes126 D and 177 in this Chapter; Jauernig (BGB), § 4591.D Regarding ‘Wandlung’, see § 467 BGB;—the limitation period for claims, see § 477 BGB; Preface to Second Edition, Note 11; Note 185 in thisChapter;—the special position of a purchaser in a generic purchase, see § 480 BGB and Note 116 in this Chapter.190 See Chapter X C 3 (b) Title 5.191 See Fikentscher, Section 9, § 71.192 See Fikentscher, Section 9, § 72.193 See Thorsten Vehslage, ZAP, Fach 3, p 169; ZAP-Aktuell, 15/00, p 938.194 See Fikentscher, Section 9, § 73.195 See Note 265 in this Chapter.Ownership of the fruits is acquired by the lessee under §§ 956–957 BGB.196 See Note 106 in this Chapter.197 See Creifelds under ‘Leasingvertrag ’ and ‘Mietkauf; Fikentscher, Section 9, § 71 V 7; Meyer, § 6 D IV; Note 238in this Chapter.198 Regarding the different types of licence, see Creifelds under ‘Lizenzvertrag’.See also: Meyer, § 6 D V; Chapter XI, Note 42.199 Regarding the remedies available to the lessor, if the lessee does not comply with the contractually requireduse, see §§ 550 and 553 BGB (§§ 541,543 BGB).Regarding the position of the borrower under a contract of ‘Leihe’, see §§ 603(i) and 605 No 2 BGB.200 SeeGather, ZAP 5/95, Fach4, p 339.201 Whether the condition of the rented item is defective is assessed subjectively. ‘Fehler’ is a wide term.202 The same applies, if the object of the rental agreement lacks a particular guaranteed quality (‘zugesicherteEigenschaft’) or if such a characteristic later falls away: § 537(ii) BGB.203 § 566 BGB (§ 550 BGB) extends to residential accommodation (‘Wohnraum’) and other premises (‘Räume’).Note, in these cases, §§ 564a-564b BGB (§§ 568,573 BGB).204 The first possible termination date is the end of the first year: § 566, 2nd sentence BGB.205 See Medicus (BT), Part 2 § 89 II.206,If the lessee continues to use the rented item after expiry, the rental agreement is deemed to continue for anunspecified period, unless the lessor or the lessee express a contrary intention within two weeks: § 568 BGB(§ 545 BGB).207 See Fikentscher, Section 10, § 74 III; Medicus (BT), Part 2, § 88V.208 The same used to apply, if the rental agreement was entered into for a limited period (‘Zeitmietvertrag’): §556b (i) BGB (repealed). The tenant could request continuation of such a tenancy for an indefinite period, ifhe did so in writing not later than two months before expiry of the agreement. In future, however, thetenancy renews itself automatically until terminated by one of the parties, unless there is a written reciprocalwaiver of termination (‘wechselseitiger Kündigungsverzicht’): § 564c (i) BGB.209 A See Fikentscher, Section 10, § 74IV; Medicus (BT), Part 2, § 90.The purpose of § 564b BGB (§ 573 BGB) is to protect a tenant, who abides by the contract (ie, is‘vertragstreu’). Thus, a contrary agreement, which disadvantages the tenant, has no effect: § 564b (vi)BGB. Moreover, the landlorabears the burden of proof of his ‘justified interest ’ and cannot usuallybring forward grounds not stated in the written ‘Kündigung’: § 564b (iii) BGB.§ 564b BGB (§ 573 BGB) does not apply:(1)to short-term accommodation (ie, let out for temporary use (‘zu vorübergehendem Gebrauch’);(2)to accommodation in a building also occupied by the landlord, unless the accommodation is intendedfor permanent use by a family; and(3)to accommodation in a student or youth hostel.(§ 564b (vii) BGB) (§ 549 BGB).B A tenant of residential accommodation is also not protected against termination, if the rental agreementis entered into for a limited period and, at the time of conclusion of the agreement, the landlorddeclares in writing that, after expiry of the tenancy, he intends either to use the premises for himself orhis family, to do away with the premises or carry out significant conversion or renovation work theretoor to re-let the accommodation to members of staff (a so-called ‘qualified tenancy for a limited period270

Noteswithout security’V The tenancy ends, if the landlord then confirms the position at the tenant’s requestthree months before expiry of the term: § 564c (ii) BGB (§ 575 BGB).The landlord bears the burden of proof that the relevant grounds exist.See Horst, ZAP 11 / 95, Fach 4, p 359; ZAP Mandanten-lnformation 1 / 2001, p 4.C By § 5 ‘Wirtschaftsstrafgesetz’ (WiStG) 1954, which makes sundry business infringements punishable,the overcharging of rent (‘Mietyreisüberhöhung’) for residential premises constitutes a minor offence(‘Ordnungswidrigkeit’). A fine of up to DM 100,000 can be imposed.There is overcharging within § 5 WiStG, if the relevant rent is disproportionately high (‘unangemessenhoch), ie, broadly, 20§ or more above the comparable local rent (‘ortsubliche Vergleichsmiete’).If § 5 WiStG is infringed, the rental agreement is void for civil law purposes (§ 134 BGB) and a claimfor repayment of overpaid rent can be made on the ground of unjust enrichment (§§ 812ff BGB).See Kossmann, ZAP 21 / 00, Fach 4, p 615.210 Where the custodian is a public authority, one speaks of an ‘öffentlich-rechtliche Verwahrung’. The provisionsin the BGB apply analogously, with the exception of § 690.211 Sums held in a current bank or post office account (‘Girokonto’) are normally classified as irregular contractsof custody. Savings accounts (‘Sparkonten’), on the other hand, are deemed to be loans.Deposit of securities (‘Wertpapierverwahrung ’ ) with banks is governed by the ‘Depotgesetz’ (Deposit Law) of4.2.1937, unless it is expressly agreed that they should be held under an irregular contract of custody:§700(ii) BGB.Both the deposit of money (‘Einlagengeschäft’) and the deposit of securities (‘Depotgeschäft’) at credit institutions(‘Kreditinstitute’) are banking transactions (‘Bankgeschäfte’), to which the Law concerning the Credit System(‘Kreditwesengesetz’ (KWG)) of 11.7.1985 applies.See Creifelds under ‘Bankeinlagen’, ‘Bankgeschäfte’, ‘Depotgeschäft’ and ‘Kreditinstitute’.212 See Chapter XVIII B.213 See the article by Heil and Scherer, ZAP, Fach 17, p 363.214 See Notes 104 and 234 in this Chapter.215 The general rule is that the giving of advice or recommendation is regarded merely as a non-committalsocial favour (‘unverbindliche Gefälligkeit’), which is not intended to create legal relations. However, theprovision of information (‘Auskunft’) by persons having particular expertise (‘Sachkunde’) within the contextof their profession or business is, usually, binding. To establish Liability, there does not have to be an expresscontract; liability can be based on an accessory duty (‘Nebenpflicht’), a relationship of trust(‘Vertrauensverhältnis’), a contract with protective effect (if a third party is involved), or tort (§ 826 BGB).Thus, eg, a bank must be careful to ensure that any information or advice it gives regarding investments iscorrect (‘richtig’) and complete (‘vollständig’). Depending on the circumstances, there can be a duty on abank to draw attention to significant risks (wesentlicne Risiken’) involved in a particular transaction or evento reveal its own existing knowledge, which gives the bank an informed advantage (‘Wissensvorsprung’).See Note 135 in this Chapter; Jauernig (BGB), § 676; Lauer, ZAP, Fach 8, p 335; ZAP EN-Nr 722/ 2000.216 See ZAP-Aktuell, 25.8.1999, p 812; Note 166 in this Chapter.217 See Chapter XIB.218 See Chapter XI B.219 It is important initially to understand that the German law of torts is principally directed at the protectionof certain ‘legal assets’ (‘Rechtsgüter’; ie, assets/rights considered by the legal system as worthy of protection)against infringement and that negligence (‘Fahrlässigkeit’; defined in § 276 BGB) is merely a possible form ofsuch an infringement. In English law, on the other hand, ‘negligence’ is a separate tort constructed aroundthe concept of a duty (of care). See Note 183, above.§ 823 BGB contains two heads of liability: one general (§ 823(i)) and the other based on breach of a protectivestatute (‘Schutzgesetz’) (§ 823(ii)).§ 823(i) BGB provides a remedy for injury to particular ‘Rechtsgüter’. It covers not only active conduct, butalso omissions (‘Unterlassen’). See Note 222 B, below.Liability under § 823(i) was successfully established in:— The Fowl Pest Case;— The Publication of a Letter Case; and— The Newspaper Delivery Obstruction Case.(See the Sourcebook, Chapter 6).Under § 823(ii) BGB, a plaintiff can claim damages against another person for deliberate or negligentbreach of a provision in a ‘Schutzgesetz’ (protective statute) if:271

The German Legal System and Legal Language– the provision has as its purpose the protection of individual persons (‘Individualschutz’);– the plaintiff belongs to the protected class (‘geschiztzter Personenkreis’); and– the plaintiff’s interest (eg, his bodily health) is protected by the norm.§ 823(ii) BGB is not limited to specific, subjective rights, but covers any individual interests.See Brox (BS), Chapter 8, § 37 B; Fikentscher, Section 16, § 104; Medicus (BT), Part 10, Section 1, §142.220 These further ‘Anspruchsgrundlagen’ are directed towards compensation for:– harm to financial status (§ 824 BGB); and– harm contrary to morality (§§ 825–826 BGB). (Sourcebook, Chapter 6).§ 826 BGB provides protection against ‘vorsàtzliche sittenwidrige Schädigung’ (intentional immoral injury).§ 826 is a general clause—a mopping-up provision (‘Auffangtatbesiand’)—which can come into play inconjunction with norms both inside and outside the BGB (eg, unfair competition rules). However, thedominant view is that it is ousted by § 839 BGB.§ 826 BGB requires damage (‘Schaden’) to another person, caused intentionally (‘vorsàtzlich’) and (objectively)in breach of good morals (‘gegen die guten Sitten’). Unlike § 823(i) BGB, no injury to a particular legal asset(‘Rechtsgut’) is necessary and § 826 protects a person’s wealth (‘Vermogen’) as such. The same remedies areavailable under both provisions.The relevant conduct, which falls within § 826, can be objectionable (‘verwerflich’) according to its form orpurpose (‘Zweck’) and can be directed either against a business partner or a third party (eg, an authority).Due to continual changes in social values (‘Werte’), the categories of situations covered by § 826 are notclosed, although § 82b is predominantly applied in the commercial field, if claims on other grounds fail.Thus, for example, § 826 can cover.– fraudulent deception (‘arglistige Täuschung’ / ‘Irreführung’);– breach of trust by a trustee (‘Vertrauensbruch eines Treuhänders’);– inducement to breach of contract (‘Verleiten zum Vertragsbruch’);– payment of slush money (‘Schmiergeld’);– abuse of position (‘Ausnutzung einer Stellung’);– fraud on creditors (‘Gläubigerbenachteiligung’).See Brox (BS), Chapter 8, § 37 C; Fikentscher, Section 16, Part 1, § 105; Jauernig (BGB), § 826; Medicus (BT),Part 10, Section 1, § 143; Dannemann, Section IV, 3; Youngs (CL), Chapter 5, Part II, Section I.221 See Youngs (CL), Chapter 5, Part III, Section B.222 A Vicarious liability for acts of directors or persons employed can be alleged both in conjunction with acontract (§ 31 BGB; § 278 BGB) and in tort (§ 831 BGB). The contractual remedy is stronger, as under §831 BGB an employer can be relieved from liability, if he observes the necessary degree of care (althoughhe still has a general duty of supervision (‘Aufsichtspflidit’). Moreover, for § 831 BGB to apply, theemployer must have a right of direction (‘Weisungsrecht’) over the person concerned. The acts ofindependent contractors are, therefore, not covered.See Note 135 A in this Chapter.B Regardless of relief from liability under § 831 BGB, an employer can be open to a direct claim fordamages in tort under § 823(i) BGB for failure to observe a duty of safety (‘Verkehrssicherungspfticht’)or a duty of supervision (‘Aufsichtspflicht’). In this connection, it is important to appreciate that a claimunder § 823(i) BGB has four distinct components:(a) there must be injury to one of the legal assets/rights protected by that paragraph(‘Rechtsgutsverletzung’);(b) the damage must be attributable (‘zurechenbar’) to the defendant;(c) the conduct of the defendant must be unlawful (‘rechtswidrig’); and(d) the conduct of the defendant must be blameworthy (‘schuldhaft’), ie, intentional or negligent.Components (a) and (b) constitute the ‘Tatbestand’ of the norm, while (c) relates to ‘Rechtswidrigkeit’and (d) raises the issue of ‘Schuld’. (It is useful to compare the similar construction of the norms ofcriminal law; see Chapter XVI C.) Whether damage is due to the breach of a ‘Verkehrssicherungspflicht’falls within component (b) ie, it goes to the question of causation.The underlying rationale of the doctrine of the ‘Verkehrssicherungspflicht’ is that anyone who creates asource of danger (‘Gefahrenquelle’) or allows one to persist must take appropriate precautionary steps(‘Vorkehrungen’) to ensure that third parties come to no harm (cf the ‘Garantenpftich’ in criminal law,Chapter XVIC 1 (b)).For example, persons who are in charge of premises (eg, a building (site) or children’s playground) orwho organize sporting events (‘Sportveranstaltungen’) have a duty to act to prevent/ward off danger(‘Gefahrabwendungspflicht’) (to visitors/spectators).272

NotesMembers of a profession (eg, an architect or doctor) can also be exposed to liability in tort, if they failto maintain the standards to be expected of them (‘Berufspflichten’) and cause harm to others.Generally, any place, thing or activity, at which members of the public are present, with which theycome into contact or upon which they rely can be a potential hazard. Adequate protective measuresmust be taken.The Fallen Telegraph Pole Case (Sourcebook, Chapter 6) is instructive. In that case, a motorcyclist wasseriously injured when he drove into a telegraph pole lying across a road at night. The pole belongedto the defendant Post Office and the question was whether there had been a blameworthy omission bythe defendant to observe a ‘Verkehrssicherungspflicht’.The plaintiff alleged both delayed removal and defective maintenance of the fallen telegraph pole. Inthe context of the first limb (delayed removal), the exception to § 831 BGB was successfully invoked.A claim under § 823 BGB on that ground was also rejected, because there was no apparent organisationalfault (‘Organisationsverscnulden’), ie, no failure to observe a duty of supervision.On the question of defective maintenance, however, the facts still required to be clarified. It was possiblethat defective maintenance was a contributory cause of the accident. The matter was, therefore, referredback (to the lower court) and the burden of proof reversed.See Youngs (CL), Chapter 5, Part IF 3, Part II E 3 and Part III C 3.The burden of proof can also be eased. Thus, if a tree on a roadside is rotten and a passer-by is injuredby falling branches, there is prima facie evidence (‘Anscheinsbeweis’) that the accident was caused by thebreach of a ‘Verkehrssicherungspflicht’.See Chapter XIII, Note 10; ZAPEN-Nr 462/2001.C Where a juristic person is represented by a person holding the position of an organ (‘Organstellung’),blameworthy conduct by the relevant individual is attributed to the body represented, which is regardedas having a duty of safety (‘Verkehrs(sicherungs)pfticht’) or duty of organisation (‘Organisationspflicht’).The claim against the juristic person is founded on §§ 823(i), 31, 30, 89(i) BGB, thereby avoiding § 831BGB.See Kaiser, Part IV, 3.D The concept of the ‘Verkehrs(sicherungs)pflicht’ also plays a central role in the German law of productliability, where it is broken down into various sub-duties. See Dannemann, Section IV, l(c) and 4(b);Jauernig, § 823, Section VIII E.E Road traffic (‘Straßenverkehr’) is governed by special norms (StVG, StVO, StVZO).If harm is caused, persons involved can be subject to strict liability (‘Gefährdungshaftung’)—as, forexample, the keeper (‘Halter’) or driver (‘Führer’) of a motor vehicle (‘Kraftfahrzeug’) under § 7 and § 18StVG, respectively—and/or, provided fault (‘Verschulden’) can be shown, to a claim in tort. Additionalrights are expressly preserved by § 16 StVG.The basis for liability in tort is § 823(i) BGB, where there is a failure to observe a ‘Verkehrssicherungspflicht’or, as appropriate, § 823(ii) BGB in conjunction with the relevant norm of road traffic law, provided itcan DC classified as a ‘Schutzgesetz’ (protective statute).See Grüneberg, ZAP 12/00, Fach 9, p 583 (Section II 3); Medicus (BT), Part 10, Section 2, § 146.F Regarding ‘Verkehrs(sicherungs)pflichten’ generally, see Jauernig, § 823, Section IIB 4.223 See Youngs (CL), Chapter 5, Part II E 3.224 Whereas liability for the official activity (‘hoheitliches Handeln’) of a civil servant is assumed—as a matter ofpublic law—by the State on the basis of Article 34 GG (in conjunction with § 839 BGB; ‘Staatshaftung’), thebreach of an official duty (Amtspflicht’) by a civil servant acting fiscally or in private law form can result inhis personal (private) liability (‘Eigenhaftung’) § 839(i) BGB.However, a civil servant can only be held personally liable for negligence (‘Fahrtässigkeit’), if there is noalternative means of obtaining redress (‘Keine anderweitige Ersatzmöglichkeit’)—§ 839(i), 2nd sentence BGB—eg, under §§ 8230), 31/ 89(i) BGB against his employer/master (‘Dienstherr’), ie, where the civil servant hasacted as an organ (in a representative capacity).§ 839 and § 823 (or § 831) BGB are mutually exclusive, ie, where § 839 applies, a claim cannot also be basedon those other provisions.See Chapter II C and Chapter XIII D1 (e); Creifelds under ‘Staatshaftung’; Fikentscher, Section 16, § 106 IV;Kaiser, Part IV, 6; Jauernig (BGB), § 839 I-III; Medicus (BT), Part 10, Section 3, § 150; Note 222 in this Chapter.Liability under Article 34 GG (in conjunction with § 839 BGB) was established in The Air Traffic Controllers’Strike Case (Sourcebook, Chapter 6).225 See Youngs (CL), Chapter 5, Part III, Section B.273

The German Legal System and Legal Language226 Usually, only a person, whose ‘Rechtsgüter’ (legal assets) have been infringed can sue in tort. §§ 844 and 845BGB contain limited exceptions to this principle for a particular group of persons ie, those who had a rightto maintenance (‘Recht auf Unterhalt’) against the deceased (§ 844 BGB) or to whom the deceased owedservices (§ 845 BGB). See Jauernig (BGB), §§ 844–846 (preliminary comments); Youngs (CL), Chapter 5, PartVI, Section B (5)227 (a) In principle, damages (‘Schadensersatz’) can be claimed under the BGB (§§ 249ff) regardless of whetherthe loss involved is pecuniary loss (‘Vermögensschaden’, ie, loss which can be expressed in terms ofmoney) or non-pecuniary loss (‘Nichtvermögensschaden’). However, general damage to wealth(‘allgemeiner Vermögensschaden’)—pure economic loss—is not protected. Moreover and moreimportantly, compensation in money for immaterial loss (immaterieller Schaden’I ‘Nichtvermögensschaden’in the narrow sense) is limited; it is only available in those cases prescribed by statute: § 253 BGB.(b) A major exception to the exclusion of immaterial loss is contained in § 847(i) BGB (ie, the law of tort):a person, whose body or health has been injured or who has been deprived of his freedom can claiman equitable amount in money (‘eine billige Entschädigung in Geld’)—ie, damages for pain and suffering(‘Schmerzensgeld’)—for his immaterial, non-pecuniary loss.Further, damages for pain and suffering can also be awarded, if there is a (serious) infringement of the‘allgemeines Persönlichkeitsrecht’. See Chapter VIII, Note 20 C.§ 847(i) BGB only applies to injuries resulting from a tort within §§ 823ff BGB. It does not apply tocontractual claims nor to cases of strict liability (eg, under the ‘Straßenverkehrsgesetz’ (Road TrafficLaw) or the ‘Produkthaftungsgesetz’ (Product Liability Law); regarding the latter, see Note 126 J inthis Chapter). See also Preface to Second Edition, Note 11 B.In the case of road traffic accidents giving rise to a claim for ‘Schmerzensgeld’, tables have been developedto help calculate the proper amount, based on court decisions.See Schneider and Biebrach, ZAP 21/95, Fach 9, p 389; ZAP ‘Justizspiegel’, 6/01, p 301; Chapter XIII,Note 96.In German law, third parties (eg, dependants who suffer nervous shock) have no claim to damages forpain and suffering in their own right.See Jauernig (BGB), § 847; Creifelds under ‘Schmerzensgeld’ and ‘Produkthaftung’; Youngs (CL), Chapter5, Part VI, Section B (4).(c) Regarding the meaning of the term ‘Vermögensschaden’, the extent of the loss recoverable (the so-called‘Interesse’ (interest)) and its calculation, see Creifelds under ‘Schaden’, ‘Schadensersatz’ 2; Fikentscher,Section 5, §§ 49, 50 and 55 and Section 16, §§ 111 and 113; Jauernig (BGB), vor §§249–253.Regarding (pure) economic loss, see Youngs (CL), Chapter 5, Part VI, Section B (3).228 See Note 96 in this Chapter.229 For further information, see generally Creifelds; Kaiser, Part V; Kallwass, Section 4, Chapters 1–6 (§§ 58–79);Klunzinger (Einführung), Part V (§§ 58–66); Medicus (BR), Section III (§ 19); Meyer, Part 1, § 2 A V; Model/Creifelds/Lichtenberger, Part 3 F (333–340); Reich/Schmitz, Chapter 5; Westermann (Grundbeeriffe), Chapters14–18; Westermann (SR), Vol I (General Principles and Movables) and Vol II (Immovables); other textbookseg, Schwab/Prütting; Wolf.230 See Chapter X D 3 (c) (i), below; Nicholas, Chapter III 1 (Fundamental Distinctions).The equivalent terms to ‘Besitz’ and ‘Eigentum’ in Roman law are ‘possessio’ and ‘dominium’.231 See the diagram in Klunzinger (Einführung), Part V, Chapter 1 (§ 58, Section III; ‘Regelungsbereiche desSachenrechts’).‘Eigentum’ can exist in two main forms: sole ownership (‘Alleineigentum’) or joint ownership, which, in turn,exists as either ‘Miteigentum (nach Bruchteilen)’ (§91008–1011 BGB) or as ‘Gesamihandseigentum’.A further category is the ‘eigentumsähnliches Recht’ (quasi-proprietary right)—ie, a real right treated as thoughit were the equivalent of ownership. The main example is me ‘Erbbaurecht’ (heritable building right). It canbe disposed of and encumbered like a piece of land (‘Grundstück’) and is therefore also referred to as a‘grundstücksgleiches Recht.See Baur/Stümer, § 3 II, § 15 III 3; Chapter XI A.232 See the diagram in Klunzinger (Einführung), Part V, Chapter 3 (§ 64, Section II; ‘Sonstige dingliche Rechte ’ ).Regarding the various types of security over movables and immovables, see also: Kallwass, Section 4, Chapter3 (§ 65); Wolf, Chapter 5 (‘Sicherungsrechte’; §§ 28–35).233 See Creifelds under ‘Grundstück’ and ‘Grundstücksrechte’. ‘Bewegliche Sachen’ (movables) are commonlytranslated into English as ‘goods’, although they can also be referred to as ‘chattels’. See Notes 11 and 234 inthis Chapter. See also ‘Waren’.234 A To be distinguished is the (subjective) term ‘Gattungsschuld’ (generic debt; § 243 BGB), which describesa particular obligation. It usually involves a ‘vertretbare Sache’, but this does not have to be so: seeRüthers, Chapter 3, § 10 III.274

NotesWhether a ‘Sache’ is ‘vertretbar’ or not is important for the distinction between a ‘Lieferungskauf (deliverysale) and a ‘Werklieferungsvertrag’ (contract of work and materials). Thus, if a ‘vertretbare Sache’ is to beproduced and delivered (eg, one which is catalogued or normed in some way), the sale of goodsprovisions (§§ 433ff BGB) apply, whereas a contract for delivery of a ‘Sache’ with particularindividualised characteristics is treated as a ‘Werkvertrag’ (contract for services) and §§633ff BGB apply.See § 651(i) BGB; Schulte, Vol 2, Chapter 6 II.B In English law, too, there is a fundamental distinction between a contract of sale of goods, which isgoverned by the Sale of Goods Act 1979 (SGA), and a contract, the substance of which is the provisionof services (with goods supplied)—a contract for work and materials—which is governed by theSupply of Goods and Services Act 1982.A contract for the sale of goods is ‘a contract by which the seller transfers or agrees to transfer theproperty in goods to the buyer for a money consideration called the price’ (s 2(i) SGA). The term‘goods’ includes all chattels personal, other than things in action and money (s 61 SGA).In a contract for the sale of goods, risk normally passes with property (ownership) and depends onwhether the goods are classified as specific goods or unascertained goods. Moreover, the seller canonly sue for the price, if property has passed to the buyer (cf § 446 BGB, under which the moment of‘Übergabe’ (delivery) is decisive). Otherwise—unless the price is payable on a specified date—theseller is limited to a claim for damages for non-acceptance.See Charlesworth, Part 3, Chapter 15.C In England, contracts for the sale of land are governed by the Law of Property Act 1925, as amended.A transfer of ownership of (real) property is called a ‘conveyance’. When land is sold, the conveyanceincludes the land, but (normally) not the chattels. See the previous Note.235 An example of a ‘verbrauchbare’ (and ‘vertretbare’) ‘Sache’ is money, which, if given by way of loan (‘Darlehen’),must be returned in equivalent form: § 607(i) BGB.236 ‘Ansprüche’ (claims) are relative rights, even if they have no obligational basis and serve to protect a realright, from which they flow (so-called ‘dingliche Ansprüche’).However, provisions of Books I and II of the BGB (eg, §§ 194, 242, 249, 273, 281) can be of analogous,ancillary or supplementary application to relationships governed by Book in.See Note 266 in this Chapter; Schwab (Einführung), Part IV, Chapter 4 E; Westermann (SR), § 2 III, § 5; Wolf,Chapter 3 (§13).237 The principle of speciality does not apply in Book II (law of obligations). Thus, eg, a ‘Sachgesamtheit’ can bethe subject of a contract of sale.However, a transfer of ownership (‘Übereignung’) can only take place in respect of each individual ‘Sache’and in the appropriate form. The ‘Sache’ in question must be (sufficiently) specified (bestimmt’) and notmerely capable of specification (‘bestimmbar).See Baumann (ER), Part II, § 6 II 3 (b); Klunzinger (Einführung), Part V, § 591 and Part IV, § 44 II 4.238 In English law, this type of arrangement is referred to as a ‘conditional sale agreement’. A ‘conditional saleagreement’ falls under the Consumer Credit Act 1974, when it is a (regulated) consumer credit agreement.See Charlesworth, Part 3, Chapters 16 and 17.In Germany, the equivalent statute is the ‘Verbraucherkreditgesetz’ (VerbrKrG; Consumer Credit Law) of17.12.1990. The VerbrKrG is more comprehensive than the previous law relating to instalment business(‘Abzahlungsgeschäft’, ‘Teilzahlungsgeschäft’). The VerbrKrG also covers hire-purchase (‘Mietkauf’) and leasingarrangements.See Creifelds under ‘Eigentumsuorbehalt’, ‘Kreditvertrag’, ‘Mietkauf and ‘Leasingvertrag’,The VerbrKG extends by analogy to an accession by an additional debtor (‘Schuldbeitritt’), but not to aguarantee (‘Burgschaft’) by a consumer of a commercial loan. See Scherer/Mayer, ZAP 13/98, Fach 8, p299.Regarding the different forms of ‘Eigentumsvorbehalt’, see Schwab /Prütting, Chapter 3, Section 3, § 30.Regarding the financing of instalment business, see Creifelds under ‘Teilzahlungskredite’.See also Notes 77,239 and 245 in this Chapter.239 See Creifelds under ‘Anwrtschaft’ and ‘Anwartschaftsrecht’; Rüthers, Chapter 2, § 5 IV.Rüthers points out that an ‘Anwartschaftsrecht can be directed not only to the acquisition of a ‘dinglichesRecht’, but also to the acquisition of a relative right.Regarding ‘Eigentumsvorbehalt’ see generally: Brox (BS), Chapter 1, § 61; Fikentscher, Section 9, § 71 V 1–4;Schulte, Vol 2, Chapter 5 VII; Wolf, Chapter 5, Section 1 (§ 29).240 See Chapter XC 22.241 The BGB also provides for two types of ‘schuldrechtliche Verfügungen’ in Book II (law of obligations):275

The German Legal System and Legal Language– ‘Abtretung’ (assignment; § 398); and– ‘Erlaf? (remission of debt; § 397).See Schellhammer (ZR), Book 3, Part 33, Chapter 4 3.242 The transfer of a right is also referred to as a ‘Veräufterung’ (disposal).243 See §§ 185 and 816 BGB. See also: Note 262 in this Chapter; Creifelds under ‘Verfügung eines Nichtberechtigten’,‘Ermächtigung’ and ‘Unwirksamkeit eines Rechtsgeschäfts’; Wolf, Chapter 4, § 17 IV.244 An order for the compulsory sale of land by auction (‘Zwangsversteigerung’) or compulsory administration(‘Zuwngsverwaltung’) constitutes a seizure (‘Beschlagnahme’) ofthe land: §§ 20,148 ZVG.Like the distraint lien (‘Pfündungspfandrecht’) over movables, it results in the object of enforcement beingtaken under public control (‘Verstrickung’).See Chapter XIII, Note 179.245 This is the normal position.However, a ‘Verfügung’ can be made subject to a condition (‘Bedingunsf). Thus, in the case of an‘Eigentumsvorbehalt’, the condition under which property is transferred is full payment of the purchaseprice. If it is not paid or instalments are not paid on time, the property transfer (‘Übereignung’) is void andthe owner can claim return of the ‘Sache under § 985 BGB. The vendor can extricate himself from the contractof sale by claiming rescission (‘Rücktritt’): § 455 BGB. Until the right of rescission is exercised, the contract ofsale itself (= ‘Verpflichtungsgeschäft’ ) is completely valid.To be distinguished is the situation where a transfer of property is subject to the validity of the contract ofsale. Such a (resolutive) condition (‘auflösende Bedingung’), whilst theoretically permissible (under § 158(ii)BGB; only for movables: § 925(ii) BGB), would amount to a breach of the abstraction principle.The only other situations in which, exceptionally, the abstraction principle is breached are:– where the same defect nullifies both the ‘Verpflichtungsgeschft’ and the ‘Verfugungsgeschaft’ (so-called‘Fehleridentität’ (identical defect)), ie, in a case of:– ‘Geschäftsunfähigkeit’ (§ 105 BGB);– ‘arglistige Täuschung’ or ‘widerrechtliche Drohung (§ 123 BGB); or– ‘Wucher’ (usury) (§ 138(ii) BGB).In such cases, the property transfer is also void and return of the ‘Sache’ can be claimed under § 985 BGB(ie, apart from a claim under § 812(i), 1st sentence, 1st alternative BGB).– where the parties agree that the ‘Verpflichtungsyeschaft’ and the ‘Verfugungsgeschaft’ are to be a unifiedtransaction (so-called ‘Geschäftseinheit’, falling under § 139 BGB).See Klunzinger (Einführung), Part V, Chapter 1, § 59 III; Löwisch, Part 3, § 14, Case 76; Meyer, Part II, § 5 AV; Schwab (Einführung), Part V, Chapter 8 D b; Westermann (SR), Vol I, Book I, § 4IV.246 See Chapters X B 2 (a) and X C 3 (g) (Title 24); Appendix A under ‘Ungerechtfertigte Bereicherung’,‘Leistungskondiktion’ and ‘Nichtleistungskondiktion’. See also Wolf, Chapter 4 (§ 17); Zweigert and Kötz, PartII AI (Chapter 36 IV) and Wesel (FR), Chapter 3 (‘Eigentum’).Wesel points out that the abstraction principle is the creation of the 19th century jurist Savigny. Weseldescribes it as ‘a high point of juristic acrobatics’.247 See Note 109 in this Chapter.248 Regarding ‘Besitz’ see generally: Creifelds; Kaiser, Part V, 5; Klunzinger (Emführuns), Part V, Chapter 2, § 60;Nicholas, Chapter III, 2; Rehbinder, Chapter II, § 16; Schwab/Prütting, Chapter 1 (§§ 3–11); Westermann(Grundbegriffe), Chapter 14; Westermann (SR), Vol I, Book II (§§ 8–27); Wolf, Chapter 2, § 8.See also Note 266 D in this Chapter.249 Regarding real property law and the Land Register, see generally Schwab/Prütting, Chapter 2 (§§12–21).250 The transaction must be a ‘Verkehrsgeschäft’, ie, at arm’s length between different persons.See Westermann (SR), Vol II, Book VI, § 101; Wolf, Chapter 4, § 20 II.251 However, Article 14 GG does not protect a person’s ‘Vermögen’ (wealth) as such: see The Investment Aid ActCase (Sourcebook, Chapter 3).252 See the comments under Article 14 GG in the Sourcebook, Chapter 3; Schwab/Prütting, Chapter 3, Section 1,§ 24.253 The pieces of land do not have to be neighbouring properties (‘Nachbargrundstücke’). Cf §§ 907–924 BGB.See Schwab /Prütting, Chapter 3, Section 1, § 25; Youngs (CL), Chapter 5, Part E, Section B.276

Notes254 Other provisions which play a central role in the protection of neighbours against nuisances are: §§ 859,862,910and 1004 BGB. Claims under § 823 BGB are also possible.See die article by Hans Reinold Horst in ZAP 3/99, Fach 7, p 159, which contains a survey of the specifictypes of nuisance mentioned in § 906 BGB.See also: Note 266 in this Chapter; Creifelds under ‘Immissionen’, ‘Nachbarrecht’ and ‘Aufopferungsanspruch’.255 See the diagram in Klunzinger (Einführung), Part V, Chapter 2 (§ 62, Section I; ‘rechtsgeschäftlicherEigentumserwerb’). See also: Gernhuber/Grunewald, Part 8 (§§ 36–37); Kaiser, Part V, 7; Schwab/Prütting,Chapter 3 (§§ 26 and 29); Westermann (Grundbegriffe), Chapter 15; Wolf, Chapter 4, Section 1 (§ 18) andSection 2 (§ 22).A transferee can usually only acquire the same legal position as that of the transferor: Nemo plus iuris adalium transferre potest, quam ipse habet (nemo dat, quod non habet). The right of the transferee is said to be‘abgeleitet’ (derived) from his predecessor (‘Rechtsvorgänger’). A transfer of ownership is an example of a‘Rechtsnachfolge’ or ‘Sukzession’ (succession). See Creifelds under ‘Rechtsnachfolge’, ‘Rechtserwerb’ and ‘Nemoplus iuris…’ and the discussion of § 929 BGB and the abstraction principle in Wesel (FR), Chapter 3 (‘Eigentum’).See also Kallwass, Section 4, Chapter 5 (§74).The ‘nemo dat’ rule also applies in Fjiglish law. See Note 260 in this Chapter.256 A The ‘Auflassung’ (conveyance) of a piece of land (‘Grundstück’) is independent of, and must be strictlydistinguished from, the underlying obligational transaction (eg, a contract of sale(‘Grundstückskaujvertrag’)). That transaction must normally (also) be notarially documented: § 313BGB.An ‘Auflassung’ must be declared before a competent authority (eg, any German notary) in the presenceof both parties: § 925(i), 1st sentence BGB. The notary must draw up a written record of the proceedings(‘Niederschrift’ über die Verhandlung’), which must be read out to the participants in the presence of thenotary, be approved by the parties, signed by them personally and finally by the notary: § 13 BeurkG.The ‘Niederschrift’ thereby becomes a public document (‘öffentliche Urkunde’).An ‘Auflassung’ cannot be conditional or limited in time: § 925(ii) BGB (cf English conveyancing practice,which allows execution of a deed as an ‘escrow’). Thus, a retention of title (‘Eigentumsvorbehalt’), as inthe case of movables, is not possible. However, the grant of a (revocable) power of attorney (‘Vollmacht’)is permitted and does not require notarial form: §167(ii)BGB.Once the ‘Auflassung’ has been notarially documented, the parties are bound (ie, the real agreement isnot freely revocable): § 873(ii) BGB. The effect of ‘Auflassung’ is that the purchaser acquires a (real)right of expectancy (dingliches Anwartschaftsrechf), but it does not operate as a restriction on die vendor’sright of disposal of the property (‘Verfügungsbeschränkung’). The purchaser can secure his (obligational)right to change of ownership by means of a priority notice (‘Vormerkung’) in the land register: § 883(i)BGB.If a participant has insufficient command of German or the relevant language of die proceedings, thisshould be stated in the ‘Niederschrift’, which must then be translated (orally) instead of being read out.A written translation can be supplied on request: § 16(ii) BeurkG. The ‘Urkunde’ itself is usually preparedin German, but it can be drawn up in a different language, if the parties so desire and the notary hasthe necessary capability: § 5 BeurkG. See Chapter XXII E.B An ‘Einigung’ under § 929,1st sentence BGB (ie, over movables) requires no form and need not beexpress. In practice, it is frequently effected together with the (underlying) obligational contract byimplied conduct (‘schlüssiges Verhalten’).However, it must be clear from the parties’ agreement that ownership is intended to pass. This, inturn, hinges on an interpretation of the actions/declarations of will of the parties and the classification/nature of die (obligational) contract (ie, is the transfer of ownership one of die main duties ofperformance (‘Hauptleistungspflichten’)?). In particular, despatch and receipt of goods (‘Versendungund Entgegennahme von Waren’) of itself does not, as a rule, suffice, unless an offer and acceptance oftransfer of ownership can be established.See Notes 104, 111 and 159 in this Chapter.257 Another name for a ‘Besitzkonstitut’ is ‘Besitzmittlungsverhältnis’ (possession mediation relationship), wherebythe new owner is placed in indirect possession (‘mittelbarer Besitz’): § 868 BGB.As part of a ‘Verfügung’, the ‘Besitzkonstitut’ / ‘Sicherungsubereignung’ is strictly abstract and separate fromthe underlying, causal ‘Sicherungsvertrag’ / ‘Sicherungsabrede’ (security agreement).Regarding ‘Sicherungsubereignung’ see generally: Jauernig (BGB), § 930, 5; Schulte, Vol 1, Chapter 4IV; Schwab/Prütting, Chapter 3, Section 3 (§ 31); Westermann (SR), Vol I, Book IV (§ 44); Wolf, Chapter 5, Section 1 (§ 30).See also Note 280 D in this Chapter.277

The German Legal System and Legal LanguageThe equivalents of ‘Übergabe’ and ‘Besitzkonstitut’ in Roman law are, respectively, ‘traditio’ and ‘constitutionpossessorium’. See Nicholas, Chapter III, 3–4.In English law, the equivalent institution to a ‘Sicherungsubereignung’ is a conditional bill of sale. Under theBills of Sale Act 1882, it requires registration and must be in a particular form.258 See Schwab/Prütting, Chapter 3, Section 3 (§ 32).259 Failure to make proper enquiries can amount to gross negligence (‘grobe Fahrlässigkeit’), if there is a‘Nachforschungspflicht’: see Schulte, Vol 3, Case 22 (‘Taxi ohne Brief’).§ 932 BGB (only) protects a bona fide belief as to ownership, not (as to) other circumstances: see Schulte, Vol1, Chapter 4 VII260 Exceptions: money, bearer securities and things sold at public auction.See Kallwass, Section 4, Chapter 4 (§ 70 I-III); Westermann (SR), Vol I, Book IV (§§ 45–50); Wolf, Chapter 4,Section 2 (§ 23).Wesel (FR), Chapter 3 (‘Eigentum’) is of the opinion that, due to the enactment of § 932 BGB on 1 January1900, the abstraction principle underlying § 929 BGB has become superfluous. However, merely becausethe interests of trade must sometimes outweigh legal certainty (‘Rechtssicherheit’) does not mean that legalcertainty—which the abstraction principle seeks to achieve—should be abandoned.Similarly, in English law the basic rule of ‘nemo dat, quod non habet’ is enacted in s 21 SGA, ie, the ‘sale’ ofgoods by a person, who is not the owner (or is not authorised by the owner) does not pass title (ownership)to the buyer. However, the rule is subject to various exceptions (inter alia, in ss 23–25 SGA), which protectthe position of a bona fide purchaser for value without notice.See Charlesworth, Part 3, Chapter 15.261 See the complex provisions in §§ 933 and 934 BGB. See also: Kallwass, Section 4, Chapter 4 (§ 71 I); Schulte,Vol 1, Chapter 4 VII262 See Note 243 in this Chapter and Schulte, Vol 1, Chapter 4 VIII.263 See the diagram in Klunzinger (Einführung), Part V Chapter 2 (§ 63, Section I; ‘gesetzlicher Eigentumserwerb’).See also Kallwass, Section 4, Chapter 2 (§§ 63–64); Schwab/Prütting, Chapter 3, Section 3 (§§ 33–43);Westermann (SR), Vol I, Book IV (§§ 51–60).264 In English law, as under § 946 BGB, chattels can become part of the land (ie, fixtures), if they are affixed tothe land.See Note 11 and Section D1 in this Chapter.By § 950(i), 1st sentence BGB, where materials are processed or remodelled into a new movable, themanufacturer (‘Hersteller’) becomes owner of the new ‘Sache’, unless its value is significantly less than thevalue of the original materials (‘Ausgangsstoffe’), ie, if the original materials are worth significantly more,their owner becomes owner of the new ‘Sache’.Although § 950 BGB is not really dispositive and lays down an objective test, case-law allows the parties toagree, by means of a processing clause (‘Verarbeitungsklausel’), that the supplier of materials (‘Stofflieferanf’)becomes owner of the new ‘Sache’. This is important where a sale under retention of title (‘Kauf unterEigentumsvorbehalt’) is concerned.If materials are processed in the context of a contract for services (‘Werkvertrag’), the customer (‘Besteller’) isregarded as the manufacturer and acquires ownership, but not if the producer has to supply the materials(ie, in the case of a contract for work and materials (‘Werklieferungsvertrag’; § 651 BGB)).See Creifelds under ‘Verarbeitung’.265 The fruits (‘Früchte’) of a ‘Sache’ are defined as its produce (‘Erzeugnisse’) and output (‘Ausbeute’), while thefruits of a ‘Recht’ are its ‘Ertrag’ (yield): § 99 BGB.The term ‘Nutzungen’ (benefits, profits) refers to both the fruits of a ‘Sache’ or ‘Recht’ and to such advantages(‘Vorteile’) as use of the ‘Sache’ or ‘Recht’ brings: § 100 BGB.See Creifelds under ‘Früchte’.266 A The claim under § 985 BGB applies to both movables and immovables. In the former situation, it isdirected to ‘Herausgabe (return), in the latter to ‘Räumung’ (eviction).B §§ 987–1003 BGB deal with the so-called ‘Eigentümer-Besitzer-Verhältnis’ (the relationship between theowner and the person in possession of a ‘Sache’).Apart from the owner’s claim to return of the ‘Sache’ under § 985 (the ‘Herausgabeanspruch’), a personin illegal possession (an ‘unrechtmäßiger Besitzer’) can also—unless he is in good faith (‘gutgläubig’)—be subject to accessory claims (‘Nebenansprüche’) from the owner for release of benefits(‘Nutzungsherausgabe’) and damages (‘Schadensersatz’): §§ 987–993.A person in possession (‘Besitzer’), who has incurred expenditure (‘Verwendungen’) on a ‘Sache, cancounter-claim against the owner for reimbursement (‘Verwendungsersatz’: § 994) and has a right ofretention (‘Zurückbehaltungsrecht’) until he is satisfied (§ 1000).278

NotesSee Notes 18 and 245 in this Chapter; Gernhuber/Grunewald, Part 6 (§ 28); the diagram in Klunzinger(Einführung), Part V, Chapter 2 (§ 61, Section II; ‘Schutz des Eigentums’); Kaiser, Part V, Chapters 2, 3, 4and 6; Kallwass, Section 4, Chapter 6 (§§ 78–79); Schwab/Prütting, Chapter 3, Section 4 (§§ 44–47);Wolf, Chapter 3 (§§ 10–14).C The claim under § 1004 BGB (also referred to as the ‘actio negatoria’ (negatory action) or ‘Abwehrklage’(defensive counter-action)) is directed against any interference (‘Beeintrachtigung’) with ownership,short of removal or withholding. Unlike a claim (for damages) in tort, it does not require proof of fault(‘Verschulden’).Strictly, § 1004 BGB only protects ‘Eigentum’ (ownership). However, it extends, eg, to easements (§1027 BGB) and pledges of movables (§ 1227 BGB), and similar statutory provisions exist in commerciallaw with regard to business protection, competition and copyright (‘Urheberrecht’).Most importantly, § 1004 BGB is of corresponding application to the various (absolute) rights/legalassets (‘Rechtsgüter’) other than ‘Eigentum’ specified in § 823(i) BGB, to the general right of personality(‘allgemeines Persönlichkeitsrecht’) and to the right to an established and exercised business (‘Recht ameingerichteten und ausgeübten Ge werbebetrieb’ ). In these cases, the claim is referred to as an ‘actioauasinegatoria’ (quasinegatory action).See Chapter VIII, Note 20 C; Fikentscher, Section 16, § 114; Gernhuber/Grunewald, Part 4 (§§ 22–23);Jauernig (BGB), § 1004; Youngs (CL), Chapter 5, Part VIA 3.D Equivalent proprietary remedies in English law to § 985 and § 1004 BGB (where chattels are involved) arespecific restitution—enforceable by so-called ‘Writ of Delivery’—and (damages for the tort of) conversion.The former is a discretionary remedy and can only be granted, if the chattel concerned is of special valueand not merely an ‘ordinary article of commerce’.The English tort of ‘trespass to chattels’ (interference with goods) involves an interference with possessionof chattels, rather than ownership.In German law, possession is protected primarily by the law of property (Book in of the BGB). Under §858(i) BGB, withdrawal or disturbance of possession, if not permitted by statute, constitutes ‘verboteneEigenmacht’ (illegal self-assumption). Under § 861 (i) BGB, if possession is withdrawn, the persondispossessed can claim restoration (‘Wiedereinräumung’). Under § 862(i) BGB, if possession is disturbed,removal of the disturbance (‘Beseitigung’) and/or restraint of further disturbances (‘Unterlassung’) can beclaimed. The remedies in §§ 861–862 correspond to those available to the owner of a ‘Sache’ under § 985 and§ 1004 BGB.A person in legitimate possession or who acquired it bona fide and for value is also protected by the Germanlaw of torts. Such forms of possession (ie, the rights themselves) are regarded as ‘sonstige Rechte’ within §823(i) BGB; interference can give rise to a claim to damages.See Creifelds under ‘Besitz’ and ‘Besitzschutz’; Note 248 in this Chapter; Youngs (CL), Chapter 5, Part II,Section B.267 See §§ 741ff BGB, Creifelds under ‘Miteigentum’; Note 231 in this Chapter; Chapter XI A.A particular form of ‘Miteigentum nach Bruchteilen’ is the ownership of an apartment/flat(‘Wohnungseigentum’).268 See Schwab/Prütting, Chapter 5 (§§ 72-SO).269 See Baur / Stümer, Part III, Chapter 4, § 35.270 Regarding ‘Grundpfandrechte’ see Creifelds under ‘Grundpfandrechte’, ‘Hypothek’ and ‘Grundschuld’; Kaiser,Part V, 9; Klunzinger (Einführung), Part V, Chapter 3 (§ 66 II); Schwab/Prütting, Chapter 4, Section 1 (§§ 51–65); Westermann (Grundbegriffe), Chapter 17; Westennann (SR), Vol H Book VI Part IV (§§ 107–136); Wolf,Chapter 5, Section 2 (§§ 32–35).271 See Chapter X D 2.272 In other words, the legal aura (‘Rechtsschein’) of the Land Register is fictitiously extended to the claim, sincea mortgage is an accessory real right.See Jauernig (BGB), § 1138; Westermann (SR), § 122.273 See Westermann (SR), § 130.274 See Westermann (SR), § 1351.275 The ‘Sicherungsabrede’ constitutes the legal basis (‘causa’) for the grant of security and must be strictlydistinguished from the credit and property levels of the transaction. It sets out the terms of the deal and therights and obligations of the parties.See Westermann (SR), § 131.276 See Westermann (SR), § 132 III277 See Westermann (SR), § 133 II.279

The German Legal System and Legal Language278 If no security arrangement is reached, or no claim comes into existence, a claim to return of the ‘Grundschuld’can be made under § 812 BGB.See Westermann (SR), §§ 130 II, 131 III.279 See Westermann (SR), § 133 III–V.280 A Section 9, Title 1 distinguishes between a ‘Pfandrecht’ created (‘bestellt’) by ‘Rechtsgeschäft’ ((contract) aso-called ‘Faustpfandrecht’) and a statutory ‘Pfandrecht’ (‘gesetzliches Pfandrecht).The provisions regarding a ‘Pfandrecht’ created by ‘Rechtsgeschàft’ (§§ 1205–1256 BGB) are ofcorresponding application (‘entsprechende Anwendung’) to a ‘Pfandrecht’, which has arisen by statute(‘ein kraft Gesetzes entstandenes Pfandrecht’): § 1257 BGB.Examples of statutory ‘Pfandrechte’ are:– in the BGB, the liens of the landlord (§ 559), the manufacturer (§ 647) and the innkeeper (§ 704);– in the HGB, the liens of the ‘Spediteur’ (carrier (forwarder): § 410) and the ‘Frachtfuhrer’ (freighter: §440).B A ‘Pfandrecht’ over movables is defined in § 1204(i) BGB as securing a contractual claim (‘Forderung’)and entitling the creditor (‘(Pfand)gläubiger’) to seek satisfaction (‘Befriedigung’) out of the thing pledged(‘aus aer Sache’). Satisfaction is achieved by means of sale (‘(Pfand)verkauf) once the contractual claim isdue (‘fallig’): §§ 1228ff.A ‘Pfandrecht’ is strictly accessory (linked) to the contractual claim, which it secures (so-called‘Akzessorietät’). Thus, it can only be transferred with the ‘Forderung’ and ends (is discharged: ‘erlischt’)with it: § 1250(i) and § 1252.C Another type of lien is the ‘Pfändungspfandrecht’ (distraint lien), which arises (under public law) whereenforcement (‘Zwangsvollstreckung’) in movable assets takes place: § 804(i) ZPÔ. See Note 244 in thisChapter.D Where movables are concerned, the creation of a ‘Pfandrecht’ usually requires actual delivery (‘Übergabe’)of the ‘Sache’ to the creditor. This has resulted in the institute of the ‘Pfandrecht’ largely being displacedas a form of security by the more practical ‘Sicherungsübertignung’, where the debtor need not partwith possession. See Note 257 in this Chapter.However, the contractual ‘Pfandrecht’ is still of commercial significance in Lombard transactions(‘Lombardgeschäft’) and pawnbroking (‘Pfandleihe’).See generally: Creifelds under ‘Lombardgeschäft’, ‘Pfandrecht’, ‘Pfandleiher’, ‘Pfändung’ and‘Pfändungspfandrecht’; the diagram in Klunzinger (Einführung), Part V, Chapter 3 (§ 66 I (‘Pfandrechte’)and § 66 III-IV); Schwab/Prütting, Chapter 4, Section 2 (§§ 66–71); Westermann (SR), Vol I Book V (§§61–73); Wolf, Chapter 5, Section 1 (§ 31).E The equivalent concepts to a contractual and statutory ‘Pfandrecht’ in English law are pawn and lien.See Charlesworth, Part 7, Chapter 24.281 For further information, see generally: Creifelds; Model/Creifelds/Lichtenberger, Part 3 F (341–352);Westermann (Grundbegriffe), Chapter 19; various textbooks, eg, Beitzke/Lüderitz; Schwab (F).282 See ‘Güterrecht’.283 See Chapter XIII D 6 and ‘Unterhalt’284 For further information, see generally Creifelds; Model/Creifelds/Lichtenberger, Part 3 F (353–362);Westermann (Grundbegriffe), Chapter 20; various textbooks eg, Brox (ER); Leipold. See also Chapter XXIIE.285 See Brox (ER), Section L § 2 II.286 See generally: Brox (ER), Section II, Chapter 1, §§ 4–7; Leipold, Part 2, §§ 4–8.287 For a surviving spouse, who is statutory heir, it can be advantageous to claim the actual gain and the smallcompulsory portion instead of the increased statutory entitlement.See Leipold, Part 2, § 6 III 5.288 See generally: Brox (ER), Section II, Chapter 1, § 3 and Chapter 2, § 8; Leipold, Part 3, § 9ff.289 However, the claims of dose dependants exduded from inheritance to a compulsory portion of the estate(‘Pflichtteil’) remain unaffected. See Section 4 (g), below.290 For a list of possible ‘letztwillige Verfügungen’, see Leipold, Part 3, § 121.291 However, the performance (‘Leistung’) required pursuant to a legacy (‘Vermächtnis’) can be left to the fairdiscretion of a third party, provided the testator specifies the purpose (‘Zweck’) of the legacy: § 2156 BGB.292 See Leipold, Part 3, § 91 and § 10 E.293 See generally: Brox (ER), Section E, Chapter 2, §§ 9–13; Leipold, Part 3, §§ 10–13.294 See Brox (ER), Section E, Chapter 2, § 9; Leipold, Part 3, § 101.295 See Brox (ER), Section E, Chapter 2, §§ 10–12; Leipold, Part 3, § 111-IV.280

Notes296 See Brox (ER), Section E, Chapter 2, § 13; Leipold, Part 3, § 11 V.297 See Brox (ER), Section E, Chapter 2, § 16 I-II.298 See Leipold, Part 3, § 12 IV.299 See Leipold, Part 3, § 12 III 2.See also § 2087 BGB, referred to in Section 4 (c), below.300 See Leipold, Part 3, § 12 II.301 See Leipold, Part 3, § 13 E.302 A disposition can, for example, infringe § 138(i) BGB if its sole or dominant purpose (‘Zweck’) is theadvancement of or reward for extra-marital sexual relations (‘ehebrecherische Beziehungen’).Thus, the appointment of a lover as heir can be void (a so-called ‘Geliebten-Testament’), unless, in the particularcircumstances, the disposition was (also) based, at least partially, on honourable motives (‘ehrenwerte Motive’).See Brox (ER), Section II, Chapter 2, § 18 IV; Leipold, Part 3, § 9 II and § 131.303 See Leipold, Part 3, § 14 I–V.304 See Creifelds under ‘Berliner Testament’.305 The inflexibility of a ‘Berlin will’ can be disadvantageous for tax purposes.306 See Leipold, Part 3, § 151–III.307 See Leipold Part 3, § 15V.308 See Leipold, Part1, §2 VI and Part 4, §211.309 See generally: Brox (ER), Section IV, §§ 29–31; Leipold, Part 4, § 21.310 See Chapter XI A; Brox (ER), Section IV, § 291–II.311 Both the obligation to dispose (‘Verpflichtung’) and the disposition itself (‘Verfügung’) must be notariallydocumented: §§ 2033,2371 BGB.See Brox (ER), Section IV, § 29 III.312 See Brox (ER), Section IV, § 30.313 See Brox (ER), Section IV, § 31 II.314 See Brox (ER), Section III, Chapter 1, § 231; Leipold, Part 3, § 12 III 1.315 See Leipold, Part 3, § 12 III3.316 See Creifelds under ‘Anwachsung’; Brox (ER), Section III, Chapter 1, § 23 III.317 See Brox (ER), Section III, Chapter 1, § 24; Leipold, Part 4, § 191.318 See Brox (ER), Section III, Chapter 2, § 25; Leipold, Part 4, § 19 II.319 See Brox (ER), Section II, Chapter 3, § 20; Leipold, Part 4, § 18 II.320 See Brox (ER), Section V, § 32.321 See Leipold, Part 4, § 24 II1.Regarding the possible defences available to an heir against a claim to a compulsory portion, see Rinsche,ZAP 23/00, Fach 12, p 101.322 See Chapter X B 4 (c).323 See Brox (ER), Section V, § 32 VI.324 See Brox (ER), Section V, § 32 II.325 See Leipold, Part 4, § 2412 and 3.326 See Brox (ER), Section V, § 32IV.327 See Section 3 (a) (ii) above; Leipold, Part 4, § 24 II 2.328 See Leipold, Part 4, § 24 II 3.329 See Leipold, Part 4, § 24 II 4.330 See Brox (ER), Section V, § 32 VII; Leipold, Part 4, § 24 III.331 See Brox (ER), Section III, Chapter 3, §§ 27–28; Leipold, Part 4, § 22.332 If estate administration (‘Nachlaßvenvaltung’) has been ordered, similar treatment is accorded to transactionsundertaken by the heir before acceptance: § 1978(i) BGB.333 See Brox (ER), Section II, Chapter 3, § 22 VII; Leipold, § 1815.334 Instead of giving up his rights to the estate entirely, the disclaiming person can, by agreement, disclaimagainst payment of a lump sum (‘Abfindung’).335 However, challenge is possible: § 1956 BGB.281

The German Legal System and Legal Language336 See Chapter X, Note 39.337 A similar concept in English law is the ‘executor de son tort’, although that relates to an executor, not an heir.An application for a certificate of inheritance is regarded as acceptance of the inheritance. See Brox (ER),Section II, Chapter 3, § 22 V.338 Challenge is possible, if acceptance or disclaimer is caused by mistake (‘Irrtum’) or threat (‘Drohung’). Thesame applies, for example, if the heir misses the period for disclaimer (§ 1956 BGB), because he does notrealise that the estate is over-indebted (‘überschuldet’). This constitutes a mistake as to quality(‘Eigenschaftsirrtum’).See Brox (ER), Section II, Chapter 3, § 22 VI.339 See generally Brox (ER), Section VII, §§ 37–42; Leipold, Part 4, § 20 and § 21 IV.340 See Section 5 (e), below.341 Regarding acts of prior administration by the heir(s) see Note 332 in this Chapter.342 The executor can also himself apply for a certificate of appointment (‘Testamentsvollstreckerzeugnis’): §2368BGB.343 Regarding the ‘Erbschein’, its grant (‘Erteilung’) and revocation (‘Einziehung’), see the article by HartwigSprau in ZAP 21 / 97, Fach 12, p 53.344 See Brox (ER), Section VI, § 35; Leipold, Part 4, § 18IV.345 The provisions regarding guardianship (‘Vormundschaft’; §§ 1773ff BGB) are of corresponding application: §1915(i) BGB.CHAPTER XI1 On ‘Handelsrecht’ (commercial law) see generally: Baumann (ER), Part III, § 9; Capelle/Canaris; Hofmann;Klunzinger (Grundzüge) (HR); Meyer, Part 1, § 2 B; Model/Creifelds/lichtenberger, Part III G (363–379).On ‘Gesellschaftsrecht’ (company law) see generally: Eisenhardt, Chapters 1–6; Hueck, Sections 1 and 2 (§§1–19); Klunzinger (Grundziige) (GR), Chapters 1,2 and 4; Kraft/Kreutz, Parts A-G.2 See Chapter XIX A 2.3 See Eisenhardt, Chapter 1, § 2 I; Kallwass, Section 7 (§ 107). See also: die diagrams in Klunzineer (Einführung),Part II, Chapter 1 (§ 4, Section I; ‘Personenzusammenschlüsse’) and in Schulte, Vol 1, Chapter 9 I(‘Personenvereinigungen des Privatrechts’); Chapter XXH D 9.4 The distinguishing factors of a ‘Gesellschaft des bürgerlichen Rechts’ are:– it is established by agreement (‘Vertrag’);– it is aimed at the achievement of a particular joint purpose (‘Erreichung eines gemeinsamen Zwecks’: §705BGB);– it has no separate legal personality (ie, it is not ‘rechtsjuhig’).See Section B 3 and Note 51 in this Chapter.5 Not dealt with in this Chapter.Another type of ‘Gesellschaft, also governed by a separate statute, is the ‘Genossenschaft’ (cooperative(association/ society)), which is a form of trading ‘Verein’ established for one of the purposes set out in § l(i)of the ‘Genossenschaftsgesetz’ (GenG; Law relating to ‘Genossenschaften’, eg, acquisition, production and/orsale of agricultural and/or other products; banking. Its function is the advancement (‘Forderung’) of thelivelihood or commercial interests (‘Erwerb oder Wirtsdutft’) of its members (‘Genossen’) by means of acommunal business (‘gemeinschaftlicher Geschäftsbetrieb’).A ‘Genossensdwft’ requires registration in the ‘Genossensdiaftsregister’ (register of ‘Genossenschaften’) -kept atthe ‘Amtsgericht’ (District Court; § 10 GenG)—and is then referred to as a registered cooperative (‘eingetrageneGenossenschaft’ (eG)).6 See Kraft/Kreutz, Part AIV.7 Restrictions on the right to terminate (‘Aufhebungsrecht’) have limited effect: §§ 749(ii)-751 BGB.8 See Eisenhardt, Chapter 3, § 9; Hueck, Section 1, § 1.9 Regarding juristic persons of public law see Chapter IIC (Note 11).10 For an interesting historical comparison of the different forms of ‘Personenvereinigung’ in Roman and Germanlaw see Hueck, Section 1, § 2 VI.11 See Creifelds under ‘Verbände’, ‘Kammer’ and ‘Lobbyismus’.282

Notes12 A A member’s share of the assets (‘Gesellschaftsvermögen’) of a ‘Gesamthandsgemeinschaft’ (or a GmbH –see Chapter XII C) is known as the ‘Geschaftsanteil’ or ‘Vermdgensanteil’.To be distinguished from the ‘Geschäftsanteil’ is the ‘Kapitalanteil’, which is a bookkeeping term referringto the (arithmetic) capital value of a member’s share of the assets of an OHG or KG.B If the members agree, a member’s share in a ‘Gesamthandsgemeinschaft’ as a whole (‘im Ganzen’) -the‘Gesellschaftsanteir—can be transferred together with his or her share of the assets. However, assetdisposal isolated from disposal of membership is not possible (§ 719 BGB).A member’s share in the ‘Gesellschaftsvermögen’ is available to his or her creditors.See Creifelds under ‘Geschäftsanteil’ and ‘Kapitalanteil’; Hueck, Section 1, § 3 II; § 725 BGB; § 859(i)ZPO.13 The relationship between the owners of flats (‘Wohnungseigentümer’) is a ‘Gemeinschaft’, but not a ‘Gesamthandsgemeinschaft’.See Creifelds under ‘Wohnungseigentum’; § 10(i) WEG; Schwab/Prütting, Chapter 3, Section 5, § 49.14 The provisions regarding the ‘Gemeinschaft (nach Bruchteilen)’ apply to all cases of ‘Rechtsgemeinschaft’ ie,whenever a right is owned ‘gemeinschaftlich’ by various persons: § 741 BGB. This can include a ‘Gesellschaft’with a ‘Gesellschaftsvermögen’. However, §§ 742–758 BGB only have subsidiary application in the absence ofother (statutory (or contractual)) provisions.See Eisenhardt, Chapter 3, § 9; Hueck, Section 1, § 1 II; Kraft/Kreutz, Part D12 (c).Regarding ‘Miteigentum (nach Bruchteilen)’ see Creifelds under ‘Miteigentum’ and the (special) provisions in§§ 1008–1011 BGB.15 Only a non-commercial association (a so-called ‘Idealverein’) can be registered in the ‘Vereinsregister’ at the‘Amtsgericht’: § 21 BGB.16 See generally Meyer, Part 4, §§ 9 and 10.The assets of a ‘juristische Person’ are regarded as belonging not to its members, but to the ‘juristische Person’itself and it is only that ‘Gesellschaftsvermögen’—not the private assets of the members—which is available tocreditors for the satisfaction of the obligations of the company (the principle of separate corporate personalityor separation principle (‘Trennungsprinzip’)).See § 13(ii) GmbHG; § l(i), 2nd sentence AktG; cf ‘Salomon v Salomon & Co Ltd’ [1897] AC 22.Exceptionally, however, the members of a ‘juristische Person’ can be held personally liable for obligations ofthe company on the basis of § 242 or § 826 BGB. The ‘veil of incorporation’ is lifted (so-called‘Durchgriffshaftung’).See Creifelds under ‘Durchgriffshaftung’; Eisenhardt, Chapter 9, § 41 II; Hueck, Section 3, § 36 II 5.17 A ‘Stille Gesellschaft’ (silent partnership) is also a ‘Personengesellschaft’, but not a ‘Handelsgesellschaft’.Regarding ‘Personengesellschaften’, see Hueck, Section 2, Chapters 1–4 (§§ 5–19); Klunzinger (Grundzüge)(GR), Chapter 2 (§§ 4–7); Kraft/Kreutz, Parts D-G; Meyer, Part I, § 3 AI and Part 4, § 9 B.Regarding ‘Kapitalgesellschaften’, see Klunzinger (Grundzüge) (GR), Chapter 3 (§§ 8 and 11); Kraft/Kreutz,Parts J and L; Meyer, Part 4, § 10 A.Regarding the fundamental distinction ‘BGB-Gesellschaft’/‘Verein’ see Eisenhardt, Chapter 2 (§§ 4–5); Hueck,Section 1, § 1 III and § 2; Kallwass, Section 7, Chapter 1 (§ 108); Kraft/Kreutz, Part A III 1.The relationship between members of a ‘Personengesellschaft’ can be purely internal (a so-called‘Innengesellschaft’ (internal company)), eg, the ‘stille Gesellschaft’ and the so-called ‘Gelegenheitsgesellschaft’(ie, where a ‘BGB-Gesellschaft’ is formed for a casual or short-term purpose).See, in particular, Hueck, Section 1, § 2 III.18 The ‘Komplementär’ has the same position as the ‘Gesellschafter’ of an OHG and is usually responsible -to theexclusion of the ‘Kommanditist’—for managing the KG and representing it towards third parties. However,exceptions are possible.See Eisenhardt, Chapter 5 (§ 19).19 See Eisenhardt, Chapter 5 (§ 20); Klunzinger (Grundzüge) (GR), Chapter 4 (§ 13).20 In the case of a private limited company (GmbH), the ‘Sitz’ of the company must usually be at the place,where the company has an operational business unit (‘Betrieb’; see Chapter XVIII C), where its management(‘Geschäftsleitung’) is situated or where its administration (‘Verwaltung’) is located: § 4a(ii) GmbHG.Regarding the ‘Wohnsitz’ ((place of) residence) of a natural person, see Chapter X B12.21 Regarding the parties to a ‘Gesellschaftsvertrag’, its form, content and interpretation, see Kraft/Kreutz, PartCIl.See also Chapter XII B, below.283

The German Legal System and Legal Language22 Note the parallel to § ll(ii) GmbHG (see Chapter XII B, below).23 See Eisenhardt, Chapter 3 (§ 6).24 See generally Hueck, Section 2, Chapter 1, §§ 7–9.25 In other words, the extent (‘Umfang’) of the power of representation of members can be limited in thecompany agreement. Any such limitation (‘Beschrankung’) must be made apparent (‘erkennbar’) to the relevantthird party.However, in the case of a private limited company (‘GmbH’), restrictions in the company agreement on adirector’s power of representation have no external effect: § 37(ii) GmbHG.Frequently, therefore, to safeguard the interests of a ‘GmbH’, the involvement of two persons is required assignatories for a particular transaction (the ‘four-eye principle’ (‘Vier-Augen Prinzip’).26 However, liability cannot be limited by tampering with the firm name.See Nothoff, ZAP, Fach 15, p 333; ZAP EN-Nr 729/99; Notthoff, ZAP, Fach 15, p 303.27 See generally Baumann (ER), Part III, § 9 and Capelle / Canaris, Part 1.28 See generally Capelle / Canaris, Part 2.29 Not dealt with in this text.30 See Capelle/Canaris, Part 1, Section 1 (§§ 2–3); Gierke/Sandrock, Section 1, Chapter 1 (§§ 6–8, 10); Hofmann,Part B; Kallwass, Section 5 (§§ 83–86); Klunzinger (Grundzüge) (HR), Chapter 2, § 6; Meyer, Part I, § 3 A II–VI.31 With effect from 1.7.1998, the HGB has been reformed by the ‘Handelsrechtsreformgesetz’ (Commercial LawReform Act).As before, § l(i) HGB provides that a ‘Kaufmann’ is a person who engages in a ‘Handelsgewerbe’ (tradingbusiness). However, in the amended § l(ii) HGB, there is no longer a list of basic trading activities—a‘Handelsgewerbe’ is now defined as every exercised business (‘Gewerbebetrieb’), unless, according to the typeand extent of the enterprise (‘Unternehmen’), a properly organised business (‘ein in kaufmännischer Weiseeingerichteter Gewerbebetrieb’) is not required.The term ‘Handelsgewerbe’ is thus much broader than before—it covers the service sector(‘Dienstleistungsunternehmen’) and so-called ‘Urproduktion’.§ 4 HGB (concerning the ‘Minderkaufmann’) has been repealed and the former distinction between a‘Mußkaufmann’ and a ‘Sollkaufmann’ has become obsolete. Instead, the new § 2 HGB provides that a smallbusinessman (‘Kleingeiverbetreibender’) can voluntarily register as a ‘Kaufinann’ (‘Kannkaufmann’).The term ‘Gewerbe’ and its type and extent (‘Art und Umfang’) remain central to the establishing whether abusiness falls within the HGB. However, classification is difficult, since there are no standard criteria.Once there is a ‘Gewerbebetrieb’, a ‘Handelsvewerbe’ is (rebuttably) presumed to exist; the burden of disprovingthis falls on the (non-registered) businessman.There have also been changes for civil law companies (‘BGB-Gesellschaften’) exercising a ‘Gewerbe’ and forpersonal trading companies (OHG/KG).See Chapter XIX A 2; the article by Torsten Schöne in ZAP 23/98, Fach 15, p 267.32 See Capelle/Canaris, Part 1, Section 2 (§ 4) and Section 4 (§ 10 I); Gierke/Sandrock, Section 1, Chapters 2and 3 (§ 17); Hofmann, Parts C and D; Klunzinger (Grundzüge) (HR), Chapter 3, § 11 and §13.§ 15 HGB sets out certain important rules regarding the effect (or lack) of an ‘Eintragung’ (registration) and‘Bekanntmachung’ (publication) of a particular fact, which requires registration (an ‘einzutragende Tatsache’)in the ‘Handelsregister’, and of an incorrect publication (‘unrichtige Bekanntmachung’) in the necessary journals(see § 10 HGB):– by § 15 (ii) HGB a third party is bound by the (proper) registration and publication of a (correct) fact(except within 15 days of publication, provided the third party proves that he neither knew nor shouldhave known the fact);– by § 15 (i) HGB a fact which is not registered and published cannot be held against a third party actingin good faith (so-called ‘negative Publizität’ (negative publicity): one can rely on the silence of the‘Handelsregister’);– by § 15 (iii) HGB a fact which is ‘unrichtig bekanntgemacht’ (incorrectly published) can be relied upon inthe form of its publication by a third party acting in good faith (so-called ‘positive Publizität’ (positivepublicity): one can rely on the information as published in the relevant journal(s) unless one knows it isincorrect).See Creifelds under ‘Handelsregister’; Capelle/Canaris, Section 2, § 5; Klunzinger (Grundzüge) (HR), Chapter3, §13 III and IV.284

NotesBesides the details which have to be filed at the ‘Handelsregister’ for registration purposes, every businessmust notify its business address (‘Geschäftsanschrift’) and any subsequent changes.See Schumacher, ZAP, Fach 15, p 335 (at p 339).33 See Capelle/Canaris, Part 1, Section 6 (§§ 14–15); Gierke/Sandrock, Section 1, Chapters 4 and 5 (§§ 21–25);Hofmann, Part F; Klunzinger (Grundzüge) (HR), Chapter 2, § 8.34 A procurist cannot dispose of, or charge, real property, unless specifically authorised: § 49(ii) HGB.35 A procurist must indicate his status when signing on behalf of a firm: § 51 HGB. The name of a procurist iscommonly preceded by ‘ppa’ or ‘pp’ (‘per procura’ or ‘per proxy’).36 Like a procurist, a ‘Handlungsbevollmächtigte’ must indicate his status when signing on behalf of a firm (eg,by using the abbreviations ‘iA’ (‘im Auftrag’) or ‘i.V’ (‘in Vertretung’). However, he must desist from usingany designation indicating a procura: § 57 HGB.37 Regarding the protection of a third party against unauthorised transactions, see also Chapter X, Note 31.38 These provisions should systematically belong to the law of employment.SeeChapter XVIII, Note 2(a); Capelle/Canaris, § 111 (c); Hofmann, Part F III.39 See Capelle/Canaris, Part 1, Section 7 (§ 17 and § 19); Gierke/Sandrock, Section 1, Chapter 6 (§§ 26,27 and29); Hofmann, Part G; Klunzinger (Grundzüge) (HR), Chapter 2, § 9.40 If a ‘Handelsvertreter’ is not genuinely self-employed (ie, his self-employment is pretended(‘Scheinselbstândigkeit’)), he is treated as an ‘Angestellter’ (employee).See ZAP EN-Nr 558/98. See also: Chapter XVIII, Note 2(b).41 A ‘Handelsmakler’ normally holds a neutral position between the parties. He is involved full-time/professionally (‘gewerbsmäßig’) in the negotiation/referral of commercial contracts (‘…die Vermittlung vonVerträgen…über…Gegenstânde des Handelsverkehrs’) for others (§ 93(i) HGB). See Creifelds under‘Handelsmakler’.An estate agent (‘Grundstücksmakler’) is not a ‘Handelsmakler’, but a so-called ‘Zivilmakler’ (under § 652BGB).An insurance broker (‘Versicherungsmakler’) is a ‘Handelsmakler’, but an insurance agent (‘Versicherungsagent’or ‘Versicherungsvertreter’) is a ‘Handelsvertreter’.See Creifelds under ‘Versicherungsmakler’, ‘Versicherungsvertreter’ and ‘Makler’.42 Though not mentioned in the HGB, the following persons have evolved from business practice and are alsoengaged in the marketing (‘Absatz’) of products:– the ‘Eigen-’ or ‘Vertragshändler’ (authorised dealer/distributor), who distributes (‘vertreibt’) goods (‘Waren’)for a particular manufacturer (‘Hersteller’) or supplier (‘Lieferant’) in his own name and for his ownaccount (‘auf eigene Rechnung’). The ‘Vertragshändler’ is integrated (‘eingegliedert’) to a greater or lesserdegree in the manufacturer’s or supplier’s organisation;– the franchisee (‘Franchisenehmer’), who, within the framework of an ongoing contractual relationship(‘Dauerschuldverhältnis’), is granted a licence (‘Lizenz’) to market particular branded goods (‘Markenwaren’)or services (‘Dienstleistungen’) using the name of the franchisor (‘Franchisegeber’).See Creifelds under ‘Vertragshändler’, ‘Franchisevertrag’ and ‘Lizenzvertrag’; Capelle/Canaris, Part I, Section7 (§ 18); Hofmann, Part G II.43 Regarding the international position of ‘Handelsvertreter’ and ‘Vertragshändler’ and the effect of EEC law, seethe Lawyers’ Handbook, Part B XIII, 1,3.44 See generally Eisenhardt Chapter 4 (§§ 10–17).45 See generally Eisenhardt Chapter 5 (§§18–23).46 See Note 17 in this Chapter.47 See Klunzinger (Grundzüge) (GR), Chapter 2, § 5; Kraft/Kreutz, Part E.48 See also §§29 and 31 HGB.49 However, the vetoing member can sue for a restraining order (‘Unterlassung’).50 Creditors should be careful to sue the members as well: § 129(iv) HGB.51 Following a judgment of the BGH on 29.1.2001, this rule now appears to be obsolete. The proceduraldistinctions between a ‘BGB-Geseuschaft’ and an OHG have been wiped away and a ‘BGB-Gesellschaft’ isnow treated in the same way as an OHG.However, a judgment against particular members of a ‘BGB-Gesellschaft’ is still required, if enforcement intheir private assets (‘Privaivermögen’) for obligations of the company contracted during their membership issought.See ZAP-Aktuell, 3/01, p 122; Sieg, ZAP, Fach 15, p 355.285

The German Legal System and Legal LanguageSee also: Section B 3 in this Chapter; Chapter XXII, Notes 115 and 116.52 See §§105(ii)HGB and 730–740 BGB.53 See Klunzinger (Grundzüge) (GR), Chapter 2, § 6; Kraft/Kreutz, Part F.54 See Capelle/Canaris, Part 1, Section 5 (§§ 12–13); Hofmann, Part E; Klunzinger (Grundzüge) (HR), Chapter3, § 10.55 See Creifelds under ‘Handelsgeschaft’; Hofmann, Parts H and J; Kallwass, Section 5, Chapter 2 (§§ 87–88);Klunzinger (Grundzüge) (HR), Chapter 4, §§ 14–17.56 See Capelle/Canaris, Part 2, Sections 1–4 (§§20–28).57 The term ‘Schuldschein’ in § 344(ii) HGB includes any type of document, which confirms or evidences anobligation on the part of a ‘Kaufmann’, eg, bills of exchange, guarantees and commercial securities (listed in§363 HGB).58 These include trade terms (‘Handelsklauseln’), eg, ‘Incoterms’. See Creifelds under ‘Handelsbrauch’ and‘Handelsklauseln’.59 Cf§246BGB.60 Cf § 288 BGB. Normally, a ‘Zahlungsaufforderung’ (demand for payment) and ‘Verschulden’ (fault) on the partof the debtor are also necessary. See Chapter X, Note 127.61 Cf § 343(i) BGB.62 Cf § 932 BGB.63 See Capelle/ Canaris, Part 2, Section 5 (§ 29).64 See Capelle/ Canaris, Part 2, Section 5 (§ 30).65 See Capelle / Canaris, Part 2, Section 5 (§ 31).66 See Capelle/ Canaris, Part 2, Section 5 (§ 32).67 See Capelle/Canaris, Part2, Section 5 (§33).68 See Capelle/Canaris, Part 2, Section 5 (§ 34).69 This also applies in the event of a wrong delivery (‘Falschlieferung), unless the difference is obviously(‘offensichtlich’) so significant that the vendor must have realised that the purchaser could not possiblyaccept the goods: § 378 HGB.70 See Creifelds under ‘Mängelrüge’ and ‘Untersudiungspflicht’.The undertaking of remedial works (‘Nachbesserungsarbeiten’) by the vendor does not relieve a purchaserfrom his duty to examine the goods promptly thereafter. ZAP, Fach 3, p 177 (computer software).CHAPTER XII1 By § 31 BGB, for example, if the conduct of an organ of a ‘Verein’ causes loss, the ‘Verein’ is liable. SeeEisenhardt, Chapter 7, § 31 II; Meyer, § 10 A15.2 See generally: Eisenhardt, Chapter 9, § 37; Hueck, Section 3, § 351-II; Kraft / Kreutz, Part CI5.3 See Hueck, Section 3, § 35 II 1.4 See Hueck, Section 3, § 35 II 2.5 See Creifelds under ‘Gründungsgesellschaft’; Eisenhardt, Chapter 9, § 37 II 3. § 11 (ii) GmbHG also applies,if the person acting exceeds his authority ie, it takes precedence over § 179 BGB. See Hueck, Section 3, §35 II 3.6 See Hueck, Section 3, § 35 II 4.7 See generally Kraft/ Kreutz, Part L III.8 Authorised capital (‘genehmigtes Kapital’) is not a term known to German law.9 The equivalent in the case of a public limited company (AG) is the ‘Grundkapital’ (basic capital), the minimumnominal amount of which (‘Nennbetrag’) is Euro 50.000 ( ): § 7 AktG.10 See Creifelds under ‘Einlage’.11 In the case of a public limited company (AG), the word ‘Aktie’ represents both a person’s membership(‘Mitgliedschaft’) and that person’s share (‘Bruchteil’) of the ‘Grundkapital’.Before the ‘Stückaktiengesetz’ of 25.3.1998, ‘Aktien’ had to be issued for a particular nominal value (‘Nennwert’).However, this is no longer necessary and so-called ‘Quotenaktien’ or ‘Stuckaktien’ (single shares, whichparticipate proportionately in the basic capital) are now permitted: § 6 AktG.286

Notes12 See generally Kraft/ Kreutz, Part LIV.13 The company agreement can limit the right to revoke a director’s appointment to an important reason: §38(ii) GmbHG.14 See Hueck, Section 3, §23IVSee also Chapter XVIII, Note 2.A director of a GmbH is usually regarded as an employee for tax purposes, so that wages tax (‘Lohnsteuer’)has to be deducted from his remuneration.See Braun, ZAP, Fach 20, p 281.15 The external power of representation of a director is unlimited and unlimitable (‘unbeschränkt undunbeschränkbar’).See Chapter XI, Note 25.16 See Kerkhoff, ZAP, Fach 15, p 227; ZAPEN-Nr 175/2001.17 See Schumacher, ZAP, Fach 15, p 335 (at p 341).CHAPTER XIII1 As from 1.1.1992, §§ 645–687 ZPO, which formerly dealt with matters relating to ‘Entmundigung’ (tutelage),have been repealed, as has § 6 BGB in which ‘Entmundigung’ was defined. Adults can now be placed under‘Betreuung’ (care and attendance/companionship). See §§ 1896–1908i BGB.2 See Baumann (ER), Part VI, § 18 II; Baur/Grunsky, § 4; Jauernig (ZP), Book 2, Chapter 4 (§§ 24–29); Model/Creifelds/Lichtenberger, Part III C (234).3 This includes the right to make legal submissions (‘Rechtsausführungen’) and to state one’s legal opinion(Rechtsauffassung). However, there is no entitlement to a legal discussion (‘Rechtsgespräch’)—the court isassumed to know the law (‘iura novit curia’).In accordance with the principle of the rule of law (‘Rechtsstaatsprinzip’), civil procedure must be conductedfairly and in conformity with basic rights. Effective legal protection (‘effektiver Rechtsschutz’) must be available,there must be a level playing-field (‘Waffengleichheit’ (equality of arms)) and the parties must be given anopportunity to state their case (‘Gelegenheit zur btellungnahme’). Surprise decisions(‘Übenaschungsentscheidungen’) are forbidden.See Schneider, ZAP 2/00, Fach 13, p 911; Schneider, ZAP 4/01, Fach 13, p 995; Schneider, ZAP 5/01, Fach13, p 1025.See also: Creifelds under ‘Faires Verfahren’; Note 69 in this Chapter.4 See Chapters XV D and XVII A; §§ 24 VwVfG, 86(i) VwGO; § 155 StPO.5 The accused has no duty to tell the truth in criminal proceedings. See Creifelds under ‘Wahrheitspflicht’;Note 66 in this Chapter.6 See Note 69 in this Chapter.7 See Creifelds under ‘Offizialprinzip’; Note 96 in this Chapter; Chapter XVII, Note 13.8 By § 169, 2nd sentence GVG, the recording and televising of court proceedings is forbidden.A challenge to this prohibition was rejected by the BVerfG on 24.1.2001. See ZAP-Aktuell, 3/ 01, p 123.Currently, therefore, publicity is (still) limited to the confines of the courtroom.However, with effect from 1.1.2002, the transmission of pictures and sound during a hearing in the form ofa simultaneous video link can be allowed. See ZAP-Aktuell, 13/01, p 788.9 1 Whether or not a particular alleged fact (‘Tatsachenbehauptung’) is true can be assessed freely by thecourt. It can consider the proceedings as a whole and (not only) any evidence presented to it. SeeJauernig (ZP), Book 2, Chapter 8, § 49 V1. See also Chapter XXII E.2 The taking of evidence (‘Beweisaufnahme’) only requires a formal order of the court (‘Beweisbeschluß’),if special proceedings are necessary for this purpose (§ 358 ZPO) eg, because evidence is not immediatelyavailable or if it is desired that a party should give evidence (§ 450 ZPO).3 To be distinguished from the (normal) requirement of the (full) conviction (‘(volle) Überzeugung’) ofthe court is the ‘Glaubhaftmachung’ (substantiation) of a particular alleged fact.This applies only if required/permitted by statute (eg, in ‘Arrest’ or injunction proceedings: §§ 920,936 ZPO) and means that a lesser degree of proof—namely, the mere good possibility (‘gute Möglichkeit’)of the truth of a particular assertion—suffices. Any ‘Beweismittel’ (means by which evidence is presented)can be used (also a declaration in lieu of oath by a party or a third person), provided it is immediatelyavailable (§ 294 ZPO).287

The German Legal System and Legal Language4 The court has a duty to exhaust die evidence preferred (‘Erschöpfung der Beweise’). Failure to do sobreaches § 286 ZPO and can infringe the right to be heard (Article 103(i) GG). An application for thetaking of evidence (‘Beweisantrag’) can only exceptionally be refused (cf § 244(iii) StPO).See, in Appendix A, ‘Beweisaufnahme’, ‘Beweismittel’ and ‘Beweisverfahren’.10 1 In civil procedure, it is a basic rule (‘Grundregel’) that the party alleging that the factual conditions fora particular ‘Anspruchsgrundlage’ or ‘Gegennorm’ (counter-norm) are fulfilled must allege and provethem (the ‘Behauptungslast’ (‘Darkgungslast’) and, respectively, the (subjective) ‘Beweislast’ (burden ofproof)).The evidence of that party (the ‘beweisbelastete Partei’) is referred to as the ‘Hauptbeweis’ (main evidence),while that of the other party is the ‘Gegenbeweis’ (counter-evidence).2 If, following the ‘Beweiswürdigung (assessment of the evidence), there is a ‘non liquet’ (ie, somethingremains unclear) and the court is not convinced of the truth or otherwise of a particular ‘Tatsache’(fact), the question is then: who (still) has the (objective) ‘Beweislast’?That person is referred to as remaining ‘beweisfallig’ (liable to supply proof) and bears the consequences(‘Folgen’) of the failure of proof (‘Beweislosigkeit’).3 The ‘Beweislast’ can be eased by ‘prima facie’ evidence (‘Beweis des ersten Anscheins’ or ‘Anscheinsbeweis’),eg, by a rule of experience (‘Erfahrungssatz’). The equivalent in English law is the rule of ‘res ipsaloquitur’ (the thing speaks for itself).‘Anscheinsbeweis’ is a special type of circumstantial evidence (‘Indizienbeweis’). Both are so-called‘tatsächliche Vermutungen’ (actual presumptions (not to be confused with the term ‘Tatsachenvermutung’(presumption of fact)).However, unlike ‘Indizienbeweis’, ‘Anscheinsbeweis’ is merely provisional (‘vorlàufig’) and can bedestroyed (‘zerstört’) or shaken (‘erschüttert’) by facts indicating the serious possibility of a differentcourse of events (‘die ernsthafte Möglichkeit eines anderen Geschehensablaufes).4 The ‘Beweislast’ can also be regulated or reversed (‘Umkehr der Beweislast’) in cases where statutorypresumptions (‘gesetzliche Vermutungen’) apply (eg, § 1006 BGB) or where presumptions have beendeveloped by the courts (for example, in (tort) actions involving alleged medical negligence(‘Arzthaftung’) or product liability (‘Produkthaftung’), eg, in The Allergy to Hair Tonic Case (Sourcebook,Chapter 5) and The Fowl Pest Case (Sourcebook, Chapter 6).However, statutory presumptions as to facts or rights can be refuted (‘entkräftet’) by contrary evidence(‘Beweis des Gegenteils’): § 292 ZPO. See also § 282 BGB.See generally Creifelds under ‘Behauptungslast’, ‘Beweis’, ‘Beweislast’, ‘Glaubhaftmachung’, ‘Non liquet’,‘Anscheinsbeweis’, ‘Indizienbeweis’ and ‘Produzentenhaftung’.‘Anscheinsbeweis’ is of particular practical relevance in the field of road traffic accidents. See the articleby Grüneberg, ZAP 12/00, Fach 9, p 567 (Section II 1 (m)).See also: Notes 67, 84 and 97 in this Chapter; Chapter X, Note 126 I; Chapter X, Note 222 E; Chapter XVD; Bergerfurth, Part 3 (15–18); Jauernig (ZP), Book 2, Chapter 8 (§§ 49–50); Rosenberg/Schwab, BookII, Section 1 (§ 118); Schellhammer (ZP), Book 1, Part 3, Chapter 7; Schneider, ZAP 2/00, Fach 13, §§22–23 (p 897–938); Youngs (CL), Chapter 5, Part I, Section G.(Note: the numbering in Schellhammer (ZP) has changed since I consulted the 3rd Edition (1987),Book 2, Part 3, Chapter 7, Sections 6,9 and 10.3–10.6).Doctors have a duty to enlighten the patient (‘Aufklärungspflicht’) and a duty to keep properdocumentation (‘Dokumentationspfiicht’). They can be liable for a defect in treatment (‘Behandlungsfehler’)in criminal and/ or civil law (contract and/or tort); see Schafer, ZAP, Fach 2, p 159; Uhlenbruck, ZAP,Fach 2, p 171; Marburger, ZAP, Fach 18, p 693; Creifelds under ‘Arzt’ and ‘Arztliche Kunstfehler’; ChapterX, Notes 126 J, 166 (‘Classification’) and 222 B.5 In criminal proceedings, where the inquisition principle (‘Inquisitionsprinzip’) applies, the term‘Beweislast’ is not used in the above manner. The consequence of a ‘non liquet’ is that the accusedalways has the benefit of any remaining doubt the unwritten principle ‘in dubio pro reo’ (in case ofdoubt, for the accused (on issues of fact)). The principle of ‘freie Beweiswürdigung’ again applies andthe court must be convinced (of the guilt of the accused) on the basis of the totality of the hearing: §261 StPO. All facts and means of evidence (‘Tatsachen und Beweismittel’), which are in some waysignificant for the decision, must be proven: § 244(ii) StPO. There are no presumptions of guilt(‘Schuldvermutungen’).See Creifelds under ‘non liquet’ and ‘in dubio pro reo’; Roxin, Book I, Chapter 5 (§ 24 C).11 See D 8 in this Chapter, below.12 See Rosenberg-Schwab, Book I, Section 3, §62 and Section 4, §77.13 Regarding the mechanics of service, see Chapter XIII D 1 (g) (ii), below.288

Notes14 A ‘Beschluß’ or ‘Verfügung’ requires no particular form, but if there has been an oral hearing, it must bepronounced (‘verkündet’): § 329(i) ZPO.See Creifelds under ‘Beschlußverfahren’; Chapter XIII D 3 (c).15 Bis de eadem re ne sit actio (no action lies twice in the same matter; ne bis in idem is the equivalent expressionin the field of criminal law). See Baur, § 13 A and § 17; Bergerfurth, Part 4 (24); Jauernig (ZP), Book 2,Chapter 9 (§§ 61–65); Rosenberg/Schwab, Book II, Section 3 (§§ 150–163). See also Chapter XIV C (Note 26).The ‘Rechtskraft’ of a judgment also extends to the parties’ successors in title: § 325 ZPO.Exceptionally, the ‘Rechtskraf’ of a decision can be ‘beseitigt’ (disposed of, overturned) by means of:– an application for ‘Wiedereinsetzung’ in den vorigen Stand’ (reinstitution of the previous position): §§233–238 ZPO;– an ‘Ab Under ungsklage’ (writ to adjust a judgment for the payment of regular sums (eg, maintenance)due to a change of circumstances): § 323 ZPO;– a ‘Wiederaufnahme des Verfahrens’ (resumption of proceedings): §§ 578–591 ZPO.The ‘Rechtskraft’ of a decision can also be ‘durchbrochen’ (breached), if grounds for a claim under § 826BGB can be proven.See Creifelds under ‘Rechtskraft’, ‘Wiedereinsetzung in den vorigen Stand”, ‘Abànderungsklage’ and‘Wiederaufnahmeverfahren’.Regarding the ‘Abànderungsklage’, see also the article by Schellhammer in ZAP 9/98, Fach 11, p 445.16 See Rosenberg-Schwab, Book I, Section 4 (§§ 81–82); Thomas-Putzo, § 128 II.See also: Chapter XIII D 2 (d).17 See Note 113 in this Chapter.18 Regarding the independence of the judiciary, see Chapter XXI A.Regarding the principle of the binding of the judiciary to statute and law, see Chapter II, Note 23.Jauernig (ZP, Book I, Chapter 2 (§ 8 V) points out that the principle protects the subject from judicial ‘Willkür’(arbitrariness). This is correct, but Jauemig then takes the view that this function can only be performed, ifa ‘Gesetz’ contains sufficient norms. One can then beg the question: How many norms are enough? Is aparticular ‘Gesetz’ really necessary? Does not an increase in quantity lead to a decrease in quality?See Preface to Second Edition at Note 13; Chapter VIII, Note 22; Chapter XVI, Note 6.19 See Creifelds under ‘Einheitlichkeit der Rechtsprechung’, ‘Präjudizien’, ‘Divergenz gerichtlicher Entscheidungen’,‘Bindungswirkung’; Article 100(iii) GG; §§ 132,136–138 GVG; §§ 11–12 VwGO.See also: Chapter I, Note 6.20 See Section D 3 in this Chapter.21 See Note 15 and Section D 4 in this Chapter; Jauernig (ZP), Book II, Chapters 9 (§ 60) and 11.Reopening of the hearing is possible, if a court reaches a surprise decision on the basis of a point of lawwhich a party has overlooked or not considered to be significant. See Note 121 in this Chapter.22 The district court for the place at which an applicant (‘Antragsteller’) has a general venue has exclusive localjurisdiction: § 689(ii), 1st sentence ZPO.A foreign plaintiff (ie, one without a general venue in Germany) must apply to the ‘Amtsgericht’ Schöneberg’in Berlin: § 689(ii), 2nd sentence ZPO.Thus, for die purpose of the ‘Mahnverfahren’ (and the local jurisdiction of German courts), the general venueof the defendant is, in principle, irrelevant. However, this is subject to the qualification that if there is aspecial (but no general) venue for the defendant in Germany, the matter falls within the local jurisdiction ofthe ‘Amtsgericht’, which would—hypothetically—have (local) jurisdiction over the main dispute, were thedistrict courts competent to deal with it § 703d ZPO.Apart from local jurisdiction, German courts can have (cross-border) international jurisdiction (also withrespect to a ‘Mahnverfahren’) on the basis of international treaties. Procedure is then governed by the Law toImplement International Conventions on Recognition and Enforcement (‘AnerkennungsundVollstreckungsausführungsgesetz’; AVAG) of 30.5.1988 and the ZPO rules are ousted.See Michael Johannes Schmidt in ZAP 24/95, Fach 14, p 195; Note 163 in this Chapter; Chapter XXI, Note13.23 The effect of lodging an application for a ‘Mahnbescheid’ is that ‘Verjährung’ (prescription) is interrupted: §693(ii) ZPO.However, the application must sufficiently individualise the claims being made.See Schneider, ZAP, Fach 13, p 391; ZAP EN-Nr 43/01.289

The German Legal System and Legal Language24 See Baur/Grunsky, § 18 B; Bergerfurth, Part 6 (34); Jauernig (ZP), Book 3, Chapter 14 (§ 90); Model/Creifelds/Lichtenbeiger, Part III C (249).25 Books of the ZPO and, as appropriate, their Sections are not subdivided into Sections or, as appropriate,into Titles except where stated in this text.26 It would extend beyond this text to consider Book I, Section 2, Titles 5–7 ZPO (§§ 91–127a ZPO) in detail. Forfurther information, see Baur/Grunsky, § 20; Bergerfurth, Part 4 (22); Jauernig (ZP), Book 4, Chapter 16 (§95); Fischer in ZAP 1/01, Fach 13, p 975.See also: Chapter XIII D 8 (b), Chapter XXII B (Note 22) and XXII D 8 (Note 111) post.27 See Baur/Grunsky, § 5; Jauernig (ZP), Book 1, Chapter 2 (§§ 9–12); Model/Creifelds/Lichtenberger, Part 3C (236–237).28 A Questions of international jurisdiction (‘internationale Zuständigkeit’) in civil matters are fundamentallygoverned by the rules on local jurisdiction contained in the ZPO. However, if other special proceduralprovisions for cases with an international element exist (eg, in international conventions, such asEuGVÜ), these have priority (in so far as they are applicable).See Jauernig (ZP), Introduction, Chapter 1, § 6; Thomas-Putzo, § 1 Vorbem II 4; Geimer, Part 4.B International jurisdiction is a ‘Prozeßvoraussetzung’ (precondition for a judgment) and must beconsidered by the court of its own motion (‘von Amts wegen’). See Notes 47 and 136 in this Chapter.C In the ZPO, the basic rule is that, in the absence of an exclusive venue, the court of a person’s generalvenue has local (and, therefore, international) jurisdiction in all (civil) actions against that person: § 12ZPO. In other words, for a court in Germany to have jurisdiction in a civil matter, a general venue forthe defendant must first be established. The general venue of a natural person is his ‘Wohnsitz’ (§ 13ZPO); that of a company, its ‘Sitz’ (§17 ZPO). Special venues are (alternative) venues laid down forparticular types of action (eg, the location of the branch (‘Niederlassung’/‘Filiale’) of a business (‘Gewerbe’),where the activities of that branch are concerned: § 21(i) ZPO; the place of performance, wherecontractual obligations are involved: § 29 ZPO). See also, in this connection, Article 5, Nos 5 and 1EuGVÜ. Unless there is a (local/international) exclusive venue, the plaintiff can choose betweenavailable venues: § 35 ZPO. With the same qualification, German international jurisdiction can existconcurrently with that of a foreign court, although, under Articles 21–23 EuGVÜ, once a matter ispending in more than one country (‘anderweitige Rechtshàngigkeit’ = ‘lis alibi pendens’), the later courtmust (or can), in certain circumstances, decline jurisdiction in favour of the court first seised of thecase (‘das zuerst angerufene Gericht’).D The location of a natural person’s general venue—or, indeed, of any other venue—must, if disputed,be determined according to the law of the forum (‘lex fori’). The position under the EuGVÜ is similar:– in order to determine a natural person’s general venue, the national law of the forum must initiallybe applied. However, foreign law can (secondarily) become relevant, if no general venue isestablished under national law: Article 52 EuGVÜ.– where the issue is the location of the ‘Sitz’ (seat) of a ‘Gesellschaft’ or ‘juristische Person’ (company),the private international law of the forum is decisive: Article 53 EuGVÜ.E For a survey of the circumstances in which a German court has (local) jurisdiction under §§ 12–37ZPO, ie, the:– ‘allgemeine Gerichtsstände’ (general venues; §§ 12–19 ZPO);– ‘besondere Gerichtsstände’ (special venues; §§ 20–23a, 27–29,30–34 ZPO); and– ‘ausschliefiliche Gerichtsstände’ (exclusive venues; §§ 24–26, 29a, 606, 802 ZPO),and the interrelationship between those norms and the Brussels Convention (EuGVÜ) 1968, seeDannemann, Part VI1 (a)-(c). See also: Chapter X Note 8; Chapter XX Note 2 and D 2.F Regarding local jurisdiction:– in marriage matters (‘Ehesachen’) and other family matters, see Chapter XIII D 6 (b);– in criminal matters (Strajsachen’), see Chapter XVII, Note 37;– in administrative matters, see § 52 VwGO.29 See Chapter XVII, Note 4.30 See Chapter XIII C G; Chapter XXII B; Jauernig (ZP), Book I, Chapter 2 (§ 15 II and § 8 V).31 Family matters (‘Familiensachen’) are dealt with by the family court (‘Familiengerichlt’), which, like theguardianship court (‘Vormundschaftsgericht’), is a division of me ‘Amtsgericht’.The hearing in ‘Familiensachen’ and ‘Kindschaftssachen’ is held in private: § 170 GVG.See Creifelds under ‘Familiensachen’, ‘Familiengericht’ and ‘Vormundschaftsgericht‘, Chapter X B 2 (a); ChapterXIII D 6 (a), below; Bergerfurth, Part 6 (30); Jauernig (ZP), Book III, Chapter 14, §§ 91–92.290

Notes32 The ‘Amtsgericht’ also acts as:– land registry (office) (‘Grundbuchamt’): § 1 GBO;– bankruptcy court (‘Konkursgericht’): § 2 InsO;– enforcement court (‘Vollstreckungsgericht’): § 764 ZPO;– guardianship court (‘Vormundschaftsgericht’): § 35 FGG;– probate court (‘Nachlaßgericht’): § 72 FGG;– registration court (‘Registergericht’) responsible, for example, for the ‘Handelsregister’ (commercial register):§125 FGG.See Chapter XXII, Note 33.33 See Chapter XXII D 8.34 See Chapter X Note 224.35 See Chapter XIII D 3 (a) and (b), below.36 See Bergerfurth, Part 1 (3); Jauernig (ZP), Book 1, Chapter 3 (§§ 18–20) and generally Baur/Grunsky, §6.37 A party in non-contentious matters (‘freiwillige Gerichtsbarkeit’) and in administrative, social and financeproceedings (see Chapter XXII C 4) is referred to as ‘ein Beteiligter’ (a person involved).38 For examples of ‘Prozeßhandlungen’, with information regarding their characteristics and form, see generally:Jauernig (ZP), Book II. Chapter 4, § 30; Baur/Grunsky, § 6 F; Schellhammer (ZP), Book 4, Part 16, Chapter11.39 ‘Erwirkungshandlungen’ are classified as:– applications (‘Anträge’);– assertions (‘Behauptungen’, which term includes ‘Angriffs- und Verteidigungsmittel’—see Note 119 in thisChapter); and– offers of evidence (‘Beweisangebote’).See Rosenberg/Schwab, Book I, Section 3, Chapter 2 (§ 64).See also: Note 64 in this Chapter; Jauernig (ZP), Book II, Chapter 4, § 30 III.40 See Jauernig (ZP), Book II, Chapter 4, § 30 IV.41 However, once proceedings have begun, an internal procedural condition (‘innerprozessuale Bedingung’) ispermissible. Thus, eventual applications (ie, for/in die event that…(für den Fall, daß …’)) are, in general,allowed.See Chapter XIII D 2 (c) (iii), below.42 ‘Heilung’ is also possible, if a faulty ‘Prozeßhandlung’ is approved retrospectively (‘rückwirkende Genehmigung’)or if it is carried out anew in the correct manner (‘erneute Vornahme’).43 See Baur/Grunsky, § 10; Bergerfurth, Part 1 (7); Jauernig (ZP), Book 2, Chapter 5 (§ 33); Creifelds under‘Zulässigkeit’; Note 44 in this Chapter.44 See Creifelds under ‘Prozeßvoraussetzungen’; Chapter XIII D 2 (c) (iii); Chapter XV C (Note 11); Chapter XVI(Note 17).45 See Chapter XIII D1 (f) (iv).46 The basic provision governing the ‘Rechtsweg’ in civil and criminal proceedings is § 13 GVG: see ChapterXXII C 2.47 Once the defendant makes unqualified oral submissions on the main issue at first instance (ie, withoutchallenging the court’s jurisdiction), he is bound to the court and can make no further objection to itsjurisdiction: § 39 ZPO.However, in proceedings before the ‘Amtsgericht’, this does not apply, if the court fails to advise the defendantof its lack of (substantive or local) jurisdiction: § 504 ZPO.A plaintiff faced with his action being rejected as inadmissible (unzulässig) on the ground that the court hasno jurisdiction (ie, is ‘unzuständig’) should apply for a transfer (‘verweisung’) of the matter to the competentcourt under § 281 ZPO.See Jauernig (ZP), Book 1, Chapter 2 (§ 12); preceding subsection in this Chapter (D I (e)).48 There is currently a thorny legal debate in Germany as to whether a company without a ‘Site’ in Germanyhas the capacity to sue in Germany, ie, as to the procedural status of foreign companies in the eyes ofGerman law.German courts still cling to the view that the legal capacity of a company is determined not by the home law(‘Heimatrecht’) of its place of incorporation (‘Gründung’), but by the law of its actual (administrative) seat(‘Verwaltungssitz’).291

The German Legal System and Legal LanguageOne says that this rule is necessary to counteract evasion of local rules by businesses, which form a ‘sham’mail-box company (‘Briefkastenfirma’) in another jurisdiction and then ‘relocate’ their centre of administrationto that place.Whatever the merits of this argument, such an approach is, in reality, discriminatory and hampers thesmooth resolution of international disputes. Moreover, it is incompatible with the spirit of the EEC Treaty(which guarantees the right of establishment for companies (‘Niederlassungsfreiheit’)—see the ‘Centros’ decisionof the ECJ (93.1999)).The issue shows how difficult it is to reconcile different legal standpoints (cultures).See ZAP, Fach 25, p 91; ZAP EN Nr 511 /00; Article 7 EGBGB.49 See Zweigert and Kötz, Part II AI (Chapter 39 III) on the different position of minors in English and Germanlaw. See also: Chapter X, Notes 27 and 30; Note 56 in this Chapter.50 See Bergerfurth, Part 1 (8); Jauernig (ZP), Book 3, Chapter 13 (§§ 81–82).51 See Jauernig (ZP), Book 3, Chapter 13 (§§ 83–85) and Baur/Grunsky, § 9.52 See Note 39 in this Chapter.See also §§ 146, 282 and 296 ZPO.53 See the previous paragraph in the text.54 See Jauernig (ZP), Book 1, Chapter 3 (§§21 and 22).55 But not in proceedings before an ‘Amtsgericht’ (§§ 495–510b ZPO).In a civil matter subject to legal aid (‘Prozeßkostenhilfe’), the aided party has a right (in an ‘Anwaltsprozeß’(lawyers’ action)) to the appointment (‘Beiordnung’) by the court of the lawyer selected by him or her: §121(i) ZPO. If no such lawyer can be found, the presiding judge appoints one on application: § 121(iv) ZPO.An outside lawyer instructed to take steps in court proceedings elsewhere in Germany (or abroad) is referredto as me principal authorised representative (‘Haupt- or Prozeßbevollmächtigter’), while the local (instructing)lawyer, who maintains (direct) contact with the client, is called a ‘Korrespondenzanwalt’/‘Verkehrsanwalt’(correspondence lawyer).Fee arrangements (eg, sharing) can be made, but the ‘Verkehrsanwalt’ is entitled at least to one full ‘Gebühr’(§ 52 BRAGO). Usually, all statutory fees are halved without regard to their recoverability: § 22 BerufsO.A ‘Verkehrsanwalt’ can be appointed on application under legal aid, if special circumstances (‘besondereUmstände’) so require: § 121(iii) ZPO.See Kindermann, ZAP, Fach 24, p 613; Note 63 in this Chapter; Chapter XXII, Notes 73 and 101.56 See Creifelds under ‘Vollmacht’ (cf ‘Ermächtigung’ and ‘Treuhandeigentum’), Kaiser, Part I (17); Köhler, Part 5(§ 18); Klunzinger (Einführung), Part II (§§18-20); Kötz (EVR), Part B, § 12; Lowisch, Part 2, § 8; Zweigert andKötz, Part II AI (Chapter 39 (entitled ‘Representation’)); see Chapter X, Note 28. For the position regardingminors, see Chapter X Notes 27 and 30 and Note 49 in this Chapter.57 The appointment of a ‘Vertreter’ (agent) generally requires no particular form: § 167(ii) BGB (exception: anirrevocable ‘Vollmacht’ for a real estate transaction). Moreover, the grant of a ‘Vollmacht’ can be express orcan be implied from the principal’s conduct (‘schlüssiges Verhalten’).In two situations, by analogy with §§ 170–173 BGB, case-law has constructed a ‘Vollmacht’ where noneactually exists (ie, the ‘agent’ is unauthorised):– ‘Duldungsvollmacht’ (allowed authority): the principal knowingly tolerates the actions of the agent;– ‘Anscheinsvollmacht’ (ostensible authority): the principal is not aware of the agent’s activities, but could,with appropriate care, have discovered them.The rationale underlying both situations is the need to protect the trust of the innocent third party(‘Vertrauensschutz’); the principal must bear the consequences for the ‘Rechtsschein’ (legal appearance) whichhas been created.In commercial law, the doctrine of the (unregistered) ‘Scheinkaufmann’ (apparent businessman) is based onsimilar considerations: a person, whose appearance (‘Auftreten’) in a business environment gives an innocentthird party the false impression (‘Eindruck’) that he is a businessman, is treated as such.In particular, it suffices for personal liability, if a firm name is used without an appropriate suffix (eg,contrary to § 4(ii) GmbHG).See Creifelds under ‘Vollmacht’ and ‘Scheinkaufmann’, Capelle/Canaris, Part 1, Section 6 (§ 16); Hofmann,Part B IV 2; Köhler, Part 5, § 18IV; Schneider, Fach 15, p 245; Schulte, Vol 1, Chapter 8IX; Chapter X, Notes 27and 31; Chapter XI at Note 37; Chapter XVIII, Note 7.58 German lawyers always insist on a written ‘Vollmacht’ before taking on a case, but rarely agree to limitations.Thus, a ‘Vollmacht’ is potentially a very dangerous instrument for unwitting clients.292

NotesIf an internal limitation is desired, it is important—so as to safeguard possible claims for damages againstthe lawyer appointed—that it be spelt out in writing, preferably in advance of the retainer. Such externallimitations as are accepted and are permitted should be contained in the ‘Vollmacht’ itself.59 However, the ‘Vollmachtgeber’ can immediately withdraw or correct admissions or factual statements madeby the ‘Bevollmächtigten’ in his presence.60 See also §164(i)BGB.61 See Chapter X, Note 31.62 In a party action (‘Parteiprozeß’), the court must take account of a defect in a ‘Vollmacht’ of its own motion,unless a lawyer appears.63 The costs of a ‘Verkehrsanwal’ are normally considered as unnecessary and not recoverable.See Notes 26 and 55 in this Chapter.64 Types of pleading:‘Vorbereitende Schriftsätze’ (preparatory pleadings) summarize the proposed submissions and applicationsin the forthcoming hearing.To be distinguished are ‘bestimmende Schriftsätze’ (definitive pleadings), which are intended to procure actionby the court, eg, a writ (‘Klage’). See Note 39 in this Chapter.If a party is unable to respond to an opponent’s submissions because they were not notified in time beforethe hearing in a preparatory pleading (ie, the party is surprised after conclusion of the hearing), applicationcan be made to the court to allow the lodging of a pleading in response (so-called ‘nachgereichte’ (or‘nachgelassene’) Schriftsätze’): § 283 ZPO.Reference to Documents (‘Bezugnahme’)Preparatory pleadings can be supplemented by means of reference to documents (Urkunden’) in thepossession of the party. They must then be attached in original or copy: § 131 (i) ZPO.All written items (‘Schriftstücke’) can be, and usually are, referred to by way of reference (‘Bezugnahm”) atthe hearing: § 137(iii) ZPO.Documents can be referred to in the preparatory pleadings as means of evidence (‘Beweismittel’), in whichcase the provisions regarding the taking or evidence (‘Beweisaufnahme’, §§ 355ff ZPO) apply. However, aprerequisite is the making of sufficient factual submissions.65 See Creifelds under ‘Mündliche Verhandlung’ and Chapter XIII D 2 (c) (vi). See also §§ 272 and 278 ZPO66 See Chapter XIII B 2.The ‘Wahrheitspflicht’ was introduced by an amendment (‘Novelle’) to the ZPO in 1933. See Jauernig (ZP),Book E, Chapter 4 (§ 25 VIII and § 26).67 Substantiation (‘Substantiierung’) serves the process of ‘Subsumtion’ and is important for the purpose of the‘Schlüssigkeitsprüfung’. It is more than just ‘Glaubhaftmachung’. The presentation of the facts (‘Darstellung desSachverhalts’) must go into detail (‘in Einzelheiten gehen’) and be complete (‘lückenlos’) ie, they must beconcretised as far as possible. The parties have a burden of allegation (‘Darkgungslast’).If the parties cannot discharge their ‘Darlegungslast’ (eg, if they allege too few or unfavourable facts), theparties run the risk of their submissions being dismissed as ‘unschlüssig’ (inconclusive) or ‘unerheblich’(insignificant).In particular, the court can reject:– statements which are known to be untrue (‘bewußt unwahres Vorbringen’);– assertions which are based on an arbitrary presumption (‘willkürliche Vermutung’), ie, which are madeinto the blue (‘ins Blaue hinein’) without tangible proof (‘ohne greifbare Anhaltspunkte’); and– applications for evidence, which are only made in order to obtain additional, possibly significantinformation intended to form the basis for further investigations, ie, fishing expeditions(‘Ausforschungsanträge’).The extent of a plaintiff’s duty to substantiate in a particular case depends on the norm sought to be invoked(ie, the provisions of the substantive law (‘materielles Recht’)) and on the defendant’s expected reaction to the‘Klage’. No further substantiation is required, if a particular legal term (‘Rechtsbegriff’) used by a plaintiff isnot disputed by the defendant (ie, both parties are in agreement).If the court considers the substantiation supplied to be insufficient, it has a duty (under § 139 ZPO) toindicate this (‘Hinweispflicht’). However, courts often overstretch the degree of substantiation required so asto avoid the need for the taking of evidence (‘Beweisaufnahme’).See Chapter X, Note 105; Notes 10, 97 and 107 in this Chapter; Jauernig (ZP), Book II, Chapter 5, § 37 II 4;Nicknig, ZAP 7/97, Fach 13, p 501; Schneider, ZAP 2/00, Fach 13, p 897.68 See Chapter XIII B 2 and 3.293

The German Legal System and Legal Language69 § 139 ZPO is a central norm of civil procedure, which places an obligation on the presiding judge to take anactive role in the conduct of the proceedings (‘Prozeßleitung’), the purpose being to elicit the material atissue (‘Prozeßstoff’). However, the extent of the judge’s duty is disputed; § 139 ZPO merely sets out theminimum requirements.Thus, although the judge must do what is necessary to advance the case to an appropriate decision(‘sachgerechte Entscheidung’)—he has a ‘Förderungspflicht’—he must remain neutral between the parties(‘unparteiisch’).A breach of § 139 ZPO constitutes a procedural defect (‘Verfahrensmangel’). On objection by a party that adirection by the presiding judge or a question from a member of the court is inadmissible (‘unzulässig’), thefull court must decide: § 140 ZPO. Moreover, an appeal and other remedies are possible: see Chapter XXII,Note 19.The court also has a general procedural duty of care (‘prozessuale Fürsorgepflicht’) derived from the constitution(Articles 2(i), 19(iv) GG), infringement of which can give grounds for a constitutional complaint.See Creifelds under ‘Aufklärungspflicht des Richters’; Jauernig (ZP), Book II, Chapter 4, § 25 VII; Schneider,ZAP, Fach 13, p 731; ZAP-Report: Justizspiegel 6/01, p 307.See also §§ 273, 278(iii), 295 and 504 ZPO; Note 3 in this Chapter.In administrative court proceedings, the counterpart of § 139 ZPO is § 86(iii) VwGO.In criminal proceedings, the counterpart of § 140 ZPO is § 238(ii) StPO.70 By § 279(i) ZPO the court must, at all stages of the proceedings, consider a possible amicable settlement ofthe dispute in whole or in part.71 The court can, for example, stay the proceedings, if its decision depends on the existence or non-existence ofa legal relationship (‘Rechtsverhältnis’), which is the subject of other proceedings (§ 148 ZPO), or if, duringthe proceedings, it transpires that the investigation of a possible crime could influence the courts decision (§149 ZPO).Other examples of preliminary questions (‘Vorfragen’), which can also require a stay of proceedings, areconcrete norm-control references (to the Constitutional Court) and references to the European Court ofJustice regarding European Union law (under Article 234 EC Treaty (formerly Article 177 EEC Treaty)).See § 94 VwGO; Article 100(i) GG; §§ 246ff, 261(iii) and 614 ZPO; Chapter VII, Notes 12 and 13.72 The provisions relevant to the issue of a ‘Klage’ (writ) are dealt with in Chapter XIID 2 (c).73 See also Note 89 in this Chapter.74 See also § 207 ZPO.75 For example, the notice periods for termination of a contract of employment (‘Kündigungsfristen’; § 622BGB).76 See Baur/Grunsky, § 13; Chapter XIII, Note 15.77 Dealt with here: §§ 230–231 ZPO.78 However, a party, who fails to observe (inter alia) a ‘Notfrist’ or the time limit for lodging particulars ofappeal, can apply for ‘Wiedereinsetzung in den vorigen Stand’ (reinstitution of the previous position), if:– the failure arose without blame (‘ohne Verschulden’) on his part;– a substantiated application for reinstitution is made within two weeks of the date on which theimpediment is remedied (‘der Tag, an dem das Hindernis behoben ist’), ie, the date, after which further nonobservanceof the time limit by the party is blameworthy.– the ‘Prozeßhandlung’ is carried out anew (‘nachgeholt’) within the two week period;– the application for reinstitution is made, at the latest, within one year of the expiry of the missed timelimit.See §§ 233, 234, 236(ii) and 294 ZPO.Substantiation (‘Glaubhaftmachung’) usually takes the form of an assurance in lieu of oath (‘eidesstattlicheVersicherung’).A grant of reinstitution is final: § 238(iii) ZPO.79 Dealt with in Book II of the ZPO (§§253ff).80 See§333ZPO.81 See Note 107 in this Chapter.82 See also §§148–155 ZPO.83 See also §251a ZPO.84 A more detailed consideration of Titles 2–12 (§§ 300–494 ZPO) would extend beyond the scope of this text.294

NotesHowever, for information regarding:– Title 2, see ‘Prozefiurteil’, ‘Sachurteil’ and ‘Urteil’ in Appendix A;– Title 3, see Chapter XIII D1 (g) (iv);– Title 4, see Chapter XIII D 2 (c) (i);– Titles 5–12, see Chapter XIII B 7, Chapter III D 2 (c) (iii) and the entries between ‘Beweis’ and‘Beweiswürdigung’ in Appendix A.85 See Baur / Grunsky, § 7; Bergerfurth, Part 1 (2 and 6) and Jauernig (ZP), Book 2, Chapter 6 (§§ 38–401);Model/Creifelds/Lichtenberger, Part 3 C (240).86 See Schneider, ZAP 18/98, Fach 13, p 741 (‘Formfragen’); Note 64 in this Chapter.87 Thus, for example, the ‘Klageschrift’ must make dear whether defendants are being sued as joint debtors(‘Gesamtschuldner’).See Schneider, ZAP 1 /00, Fach 13, p 845 (§ 18); Chapter XIIID 1 (f) above.88 For the bailiff’s involvement in enforcement proceedings, see Chapter XIII D 8 C (v).89 Other forms of ‘Zustellung’ are available where the circumstances require: ‘Ersatzzustellung’ (substitutedservice: §§ 181–185 ZPO); ‘öffentliche Zustellung’ (service by public notice: §§ 203–206 ZPO).90 Return of the acknowledgement of receipt is a precondition for service to be valid (‘wirksam’).However, a date of receipt stamp (‘Eingangsstempel’) is sometimes not itself conclusive of the date of service.Moreover, a lawyer must take care to calculate and note any relevant time period (‘Frist’) for the lodging ofan appeal (‘Rechtsmittel’).See the article by Brigitte Borgmann in ‘BRAK-Mitteilungen’ 6/98, p 270.91 Certain exceptions are set out in § 65(vii) GKG.92 See also Chapter XXII D 8.93 See Jauernig (ZP), Book 2, Chapter 5 (§ 34) and Creifelds under ‘Klagearten’.94 See § 304(i) ZPO, Jauernig (ZP), Book 2, Chapter 5 (§ 34) and Creifelds under ‘Leistungsklage’, ‘Gestaltungsklage’and ‘Feststellungsklage’. See also Chapter XV B (Note 7).95 See Jauernig (ZP), Book 2, Chapter 5 (§ 37); Rosenberg / Schwab, Book II, § 96.96 ‘Die bestimmte Angabe des Gegenstandes und des Grundes des erhobenen Anspruchs, sowie einen bestimmten Antrag’.It is a strict rule that it must be made dear to the court what claim is being made and what decision is beingsought, otherwise the ‘Klage’ has to be dismissed as inadmissible (‘unzulässig’). The relevant application(‘Klageantrag’/‘Sachantrag’) must be sufficiently specific (‘hinreichend bestimmt’), ie, it must have an enforceablecontent (‘vollstreckungsfähiger Inhalt’), such that the defendant is able to perceive his risk and defend himselffully accordingly.The wording of an application is, therefore, of critical importance in German civil procedure. Clarity (‘Klarheit’)is vital.The following are examples of the specificity principle (‘Bestimmiheitsgrundsatz’):– The first stage of a ‘Stufenklage’ (step action; § 254 ZPO)—ie, the application for information (‘Auskunft’).This must exactly specify (‘genau bezeichnen’) what is desired.Following the supply of supporting documents/certificates (‘Unterlagen’/‘Belege’), the second stage thenconsists of the defendant providing; confirmation of their completeness in the form of an assurance inlieu of oath (‘eidesstattliche Versicherung’).The final stage—ie, the application for the relevant act of performance (‘Leistung’) being sought (eg,payment (‘ahlung’))—need not (initially) be specific, however, as the ‘Stufenklage’ is an exception to § 253ZPO.See Note 105 in this Chapter. See also § 259 BGB; § 889 ZPO.– Claims for money / damages must be stated in figures (‘beziffert’) and be broken down (‘aufgeteilt’).However, the giving of figures (‘Bezifferung’) is not necessary if, for special reasons, it cannot be expectedof the plaintiff (‘nicht zumutbar’). Thus, on a claim for damages for pain and suffering (‘Schmerzensgeld’)an appropriate sum (‘angemessener Betrag’) can be demanded, provided its approximate size(‘Größenordnung’) or a minimum amount (‘Mindestbetrag’) is stated or its ascertainment (‘Ermittlung’) bythe court is made possible. See Chapter X, Note 227 (b).– Claims arising from an accident must be scheduled under separate headings eg, damage to property(‘Sachschaden’), damages for pain and suffering, medical expenses and costs of cure (‘Arzt- undHeilungskosten’), loss of earnings (‘Verdienstausfall’), additional needs (‘vermehrte Bedurfnisse’).– If part of a larger sum is daimed (‘Teilklage’), the relevant items being daimed (‘Positionen’) must belisted.295

The German Legal System and Legal Language– In an ‘Unterlassungsklage’ (action for a restraining order), the particular conduct complained of andsought to be restrained must be dearly formulated.– If the release (‘Herausgabe’) of a thing (‘Sache’) is sought, the thing must be described in detail.– If acts of repair (‘Mängelbeseitigung’) under a contract for services (‘Werkvertrag’) are claimed, they mustbe identified.‘Statement…of the ground of the claim’ means that it is necessary to distinguish (‘kennzeichnen’) the particularclaim by me supply of facts (‘Angabe von Tatsachen’); merely to individualise the relevant legal relationshipis not sufficient.The court cannot go beyond (ie, is bound by) what is applied for: § 308(i) ZPO. This follows from theprinciple that civil proceedings are at the disposition of the parties (‘Dispositions grundsatz’). The applicationtherefore sets the boundaries for the court’s examination (‘Grenzen des Prüfungsumfangs’).On the other hand, it should really suffice if, as far as possible, an application is understandable (‘verständlich’).In particular, under § 139 ZPO the court has a duty to promote the making of suitable applications(‘sachdienliche Anträge’). Moreover, if an application is unclear, interpretation (‘Auslegung’) can be resortedto.The term ‘Streitgegenstand’ is also used in administrative procedure: § 90(i) VwGO. However, in administrativeproceedings, the actual wording of the application to the court (‘Klageantrag’) is not so important, providedthe matter (‘Angelegenheit’) involved and the aim of the action (‘Klageziel’) is sufficiently apparent: § 82(i)VwGO (‘…soll einen bestimmten Antrag enthalten.’). Clarification of the facts is a matter for the court, althoughthe parties have a duty of cooperation (‘Mitwirkungspflicht’): §86(i)VwGO.See Creifelds under ‘Klageschrift’, ‘Streitgegenstand’; Schneider, ZAP 1/00, Fach 13, p 861 (§ 19 I-IV); ChapterXV D, below.97 1 The court compares the submissions in the ‘Klage’ (the ‘Klagevortrag’) and defence (the‘Verteidigungsvortrag’) with the requirements of die relevant ‘Anspruchsgrundlage’ or ‘Gegennorm’(counter-norm): the so-called ‘doppelte Schlüssigkeitsprüfung’ (double check of apparent wellfoundedness).Thus, a plaintiff must take care to ensure that his submissions satisfy all conditions for the claim beingmade (‘Anspruchsvoraussetzungen’) and dispose of any foreseeable objections (‘Einwendungen’).The ‘Klage’ has to be dismissed as unfounded (‘ist als unbegründet abzuweisen’), if it is not ‘schlüssig’(conclusive) or if the defence (‘Verteidigung’ /‘Einlassung’) is ‘erheblich’ (substantial). For example, the‘Klage’ of a plaintiff, who applies for a judgment in default (‘Versäumnisurteil’), must be ‘schlüssig’:§331(ii) ZPO.Moreover, the ‘Klagebegründung’ (ie, the facts presented in support of the ‘Klage’) must be substantiated(‘substantiiert’).See Chapter XIII, Note 67 ante; Jauernig (ZP), Book 2, Chapter 4, § 25 V; Creifelds under ‘Schlüssigkeit’;Schellhammer (ZP), Book 1, Part 3, Chapter 6 (Note: the numbering in Schellhammer (ZP) has changedsince I consulted the 3rd Edition (1987), Book 2, Part 3, Chapter 6).2 If both the ‘Klage’ is ‘schlüssig’ and the defence ‘erheblich’, this can only mean that one or other ‘Tatsache’is ‘streitig’ (disputed/contentious).Facts which are disputed are ‘beweisbedürftig’ (ie, require evidence) and form the ‘Beweisgegenstand’(subject of evidence; also referred to as the ‘Beweisthema’ (evidence theme)). Facts, which are admittedat court or which are ‘offenkundig’ ((patently) obvious) are not ‘beweisbedürftig’: §§ 288, 291 ZPO.The equivalent doctrine in English law is ‘judicial notice’.See Jauernig (ZP), Book 2, Chapter 4, § 25IV and Chapter 8, § 49 VII; Rosenberg/Schwab, Book II,Section 1 (§§ 116–117).3 The ‘Schlüssigkeitsprüfung’, therefore, enables the court to establish whether it is necessary to takeevidence and if so, on what points (the ‘Beweisgegenstand’ or ‘Beweisthema’). It is a judicial test, aprocedural filter.4 Whether the submission of a party (the ‘Parteivortrag’) is regarded by the court as ‘schlüssig’ mustbe distinguished from the ‘Behauptungslast’ (and ‘Beweislast’), ie, the question of which party hasthe burden of alleging (and proving) that the factual conditions for a particular ‘Anspruchsgrundlage’or ‘Gegennorm’ are fulfilled. It is not a judicial test, but a basic principle of procedure for theparties.See Chapter XIII, Notes 10 and 67; Schellhammer (ZP), Book 1, Part 3, Chapter 7 (Note: the numberingin Schellhammer (ZP) has changed since I consulted the 3rd Edition (1987), Book 2, Part 3, Chapter 7,Section 8).296

Notes5 There is no ‘Schlüssigkeitsprüfung’ in proceedings where the ‘Untersuchungsgrundsatz’(‘Inquisitionsprinzip’ (inquisition principle)) applies: see Jauernig (ZP), Book 2, Chapter 4, § 25 V. Inthat case it is die court which alone decides the ‘Beweisbedurftigkeit’: see Jauernig (ZP), Book 2, Chapter8, § 49 VII 1; Roxin, Book I, Chapter 5 (§ 24 C).98 lura novit curia: the court knows the law.A German judge is assumed to have knowledge of all law applicable in the Federal Republic.If foreign law is applicable, the court has a duty to familiarize itself with it. § 293 ZPO.See Chapter XX E.99 1 By § 355(i) ZPO, the ‘Beweisaufnahme’ must take place before the court hearing the case (the‘Prozeßgericht’): the principle of ‘Unmittelbarketi’? (directness). ‘Beweisaufnahme’ can only be placed inthe hands of a member of the court—the ‘beauftragter Richter’ (appointed judge)—in certain (exceptional)cases. See Creifelds under ‘Beweis’ and ‘Beauftragter Richtef’.2 By § 357(i) ZPO, the parties have the right to be present during the ‘Beweisaufnahm7e’: the principle of‘Parteiöffentlichkeit’ (party openness). See Creifelds under ‘Beweis’ and Chapter XIII B 7 ante.100 Normally, an amendment of the writ (‘Klageänderung’) is only possible if the defendant agrees or the courtconsiders it helpful to the matter (‘sachdienlich’): § 263 ZPO.However, provided there is no significant change in the cause of action (‘Klagegrund’), submissions of fact orlaw can be supplemented (‘ergänzt’) or corrected (‘berichtigt’) and applications to the court can be extendedor limited (‘Klageeriveiterung’/‘Klagebeschrankung’): § 264 ZPO.See also §256(ii) ZPO.101 See §§ 261(iii) No 1,263,264 and 322(i) ZPO.A proper demarcation (‘Abgrenzung’) of the object of the action can be problematical. This is particularly thecase where the same application (‘Klageantrag’) is made to the court in a second action, but on differentgrounds. The question is then: do the new grounds introduce a new ‘Streitgegenstand’ or do they merelysupplement the earlier set of facts (‘Sachverhalt’)?The question is resolved with the help of the civil law doctrine of concurrence (‘Konkurrenzlehre’). Accordingto this doctrine, if the norms relied on in the second action are different, but form the basis for a single(substantive) claim, the ‘Streitgegenstand’ is regarded as being the same (‘Gesetzeskonkurrenz’ (statutoryconcurrence)); on the other hand, if the norms found more than one (substantive) claim (‘mehrere Ansvriiche’),the ‘Streitgegenstand’ is deemed to be different (‘Anspruchskonkurrenz’ (concurrence of claims)).Thus, the doctrine of concurrence is an attempt to determine the ‘Streitgegenstand’ and to achieve ademarcation of the facts in issue (‘Sachverhaltsabgrenzung’) by means of identifying and comparing the‘Anspruchsnormen’ involved.Although this is a norm-based test, there is a tendency to take a real life approach when trying to demarcatethe ‘Streitgegenstand’, so as to satisfy the conflicting interests at stake in civil procedure which are not onlylegal, but also political.See Jauernig (ZP), Book 2, Chapter 5 (§ 37), Chapter 6 (§§ 40 II and 41) and Chapter 9 (§ 62 III); Dannemann,Part VI1 (e) (‘Lis Alibi Pendens’). The concept is also used in other jurisdictional branches: see Creifeldsunder ‘Streitgegenstand’.Regarding the staying of English actions on the basis of the doctrine of ‘forum non conveniens’ (the forum isnot appropriate) and the position under the Brussels Convention (Articles 21–23) if there is a suit pendingelsewhere (‘lis alibi pendens’), see Collier, Part II, Chapter 8 (a) and Chapter 10 (e) (viii).‘Forum non convenient’ can be relied on by plaintiffs and defendants. See, respectively: Spiliada MaritimeCorp v Cansulex [1987] AC 860 and Berezovsky v Forbes (1999), Gazette 96/03, p 30.102 See generally: Jauernig (ZP), § 88; Thomas-Putzo, § 260; Rosenberg/Schwab, Book II, Part 1, § 100.103 See Chapter XIII D1 (f) (ii).104 Eventual applications are also possible on the part of the defendant, eg, an eventual counter-claim(‘Eventualwtderklage’) or eventual set-off (Eventualaufrechnung’).See Note 41 in this Chapter; Rosenberg/Schwab, Book I, Section 3, § 65 IV; Baur/Grunsky, § 11 I 3;‘Vorbehaltsurteil’.105 See Creifelds under ‘Klagenverbindung’, ‘Hilfsantrag’ and ‘Stufenklage’; Note 96 in this Chapter.The ‘Stufenklage’ is of particular importance in family law (for maintenance and marital property claims).106 See Bergerfurth, Part 2 (10); Jauernig (ZP), Book 2 (§ 23).107 Cf§275(i)ZPO.A defendant can react to a ‘Klage’ in various ways, all of which come under the general heading of thedefendant’s ‘Einlassung’ (engagement (in the action)).297

The German Legal System and Legal LanguageThe defendant can:– acknowledge the claim (‘Anerkenntnis’; see §§ 307(i) and 93 ZPO);– take no action at all, possibly resulting in a judgment in default (‘Versaumnisurteil’) against him;– assert that the ‘Klage’ is inadmissible (‘unzulässig’) on the ground that one or more ‘Prozeßvoraussetzungen’(preconditions for a judgment) are not fulfilled or because certain ‘Prozeßhindernisse’ (obstacles to theproceedings) exist; dispute the plaintiff’s factual submissions (‘Bestreiten’ / ‘Klageleugnen’);– admit the plaintiff’s factual submissions (Gestândnis’; see §§ 288–290 ZPO), but submit that they are not‘schlüssig’ (apparently well founded);– assert the existence of objections to the claim (Einwendungen’ or ‘Einreden’);– lodge a counterclaim (‘Widerklage’).In all but the first two situations, the defendant’s (main) application (‘Antrag’) is for dismissal (‘Abweisung’)of the ‘Klage’.See respectively:– regarding a ‘Versaumnisurteil’: Chapter XIII D1 (g) (iv) (at Note 80);– regarding ‘Prozeßvoraussetzungen’: Chapter XIIID 1 (f) (i) (Note 44);– regarding ‘Schlussigkeit’: Chapter XIII D 2 (c) (iii) (Note 97);– regarding ‘Einwendungen’ and ‘Einreden’: Chapter X B 1 4 (Note 20);– regarding a ‘Widerklage’: §§ 33,530(1), 610(ii) ZPO.See also: Baur/Grunsky, § 11; Bergerfurth, Part 1 (9); Jauernig (ZP), Book 2, Chapter 7 (§§ 43–48); Model/Creifelds/Lichtenberger, Part 3 C (241).108 See also Chapter XIII D1 (g) (iv).109 See Bergerfurth, Part 2 (10).110 See Bergerfurth, Part 2 (11); Jauernig (ZP), Book 2, Chapter 12 (§ 78).111 It can be longer, if service is to be effected abroad.112 See Note 65 in this Chapter; Rosenberg/Schwab, Book II, Section 1 (§ 107); Schellhammer (ZP), Book 1, Part5, Chapter 2 (Note: the numbering in Schellhammer (ZP) has changed since I consulted the 3rd edn (1987),Book 2, Part 5, Chapter 2).113 The personal appearance (‘persönliches Erscheinen’) of both parties should normally be ordered, if this seemsnecessary in order to clarify the facts of the case: § 141(i), 1st sentence ZPO.However, if it cannot be expected of a party to appear at court due to great distance or for another importantreason, the court must refrain from ordering personal appearance: § 141(i), 2nd sentence ZPO.There is a similar rule in marriage matters: § 613 ZPO.If personal appearance is ordered, the relevant party must be officially summoned by a ‘Ladung’: § 141(ii)ZPO.The ‘Ladung’ must state for what purpose the personal appearance has been ordered and indicate thatfailure to appear can result in a fine being imposed, unless the party sends an authorised representative tothe hearing: § 141 (iii) ZPO. However, if personal appearance is ordered in an attempt to reach a settlement(§ 279(ii) ZPO) such a sanction is not permitted.See Krügermeyer-Kalthoff, ZAP-Aktuell, 16/00, p 989.114 This is the ‘Verhandlung zur Hauptsache’ (see eg, §§ 39,333 ZPO).115 See § 278(i), 2nd sentence ZPO; § 613 ZPO.To be distinguished from an ‘Arihörung’ is the examination of the parties (‘Parteivernehmung’) as a means ofevidence (’Beweismittel’). This requires a ‘Beweisbeschluß’: § 450 ZPO.116 This is the start of the ‘streitige Verhandlung’ (contentious proceedings) proper. § 137(i) ZPO does not requireexpress reference to the pleadings.The provisions regarding judgments in default (§§ 330–347 ZPO) only bite, if an appropriate person (§ 157ZPO) fails to apper at the hearing (‘nicht Auftreten’) or if there is a complete lack of involvement (‘völligesNichtverhandeln’; § 333 ZPO), ie, there is an absence (‘Säumnis’).Thus, they do not apply:– if there is some degree of active participation at the hearing;– if (and once) a substantive application (‘Sachantrag’) is made; or– if a party makes submissions, but remains silent regarding particular facts or documents (§ 334ZPO).See Chapter XII D 1 (f) (iv) and (g) (iv).At the start of a hearing, judges frequently rush into requesting the parties to make their applicationsimmediately, without giving appropriate directions concerning the action (‘Hinweise’) beforehand (ie, inadvance of the hearing). This infringes §§ 139, 273 and 278(iii) ZPO and is a trap for the unwary. The remedy298

Notesis, initially, to insist on such directions and then to apply for an adjournment (‘Vertagung’) under §227(i)ZPO.See Schneider, ZAP-Kolumne, 21 /00, p 1269.117 See Chapter XIIID 2 (c) (iii).118 See Chapter XIII B 7.119 See §§ 146 and 282(i) ZPO for a definition of ‘Angriffs und Verteidigungsmittel’ (means of attack and defence).‘Angriffs- und Verteidigungsmittel’ include any type of factual or legal submissions in support of proceduralclaims or applications (not the applications themselves).A ‘Klage’ (writ) is not an ‘Angriffsmittel’, but itself an ‘Angriff’ (attack).See Note 39 in this Chapter.120 If a party is not responsible for a delay (‘Verzögerung’), over-zealous application of the preclusion provisions(§ 296 ZPO) can clash with constitutional law (Article 103(i) GG). Certainly, however, there is a judicial dutyto give reasons (‘Begründungszwang’), if the court rejects or does not consider essentially relevant submissions.See Schneider, ZAP, Fach 13, pp 1026ff.A ‘Rüge’ can only be admitted, if the defendant sufficiently apologises for the delay (‘wenn der Beklagte dieVerspätung genügend entschuldigt’): § 296(iii) ZPO.In marriage matters, § 296 ZPO is replaced by § 615 ZPO.121 See Note 3 in this Chapter; Creifelds under ‘Rechtliches Gehör’.122 See Note 69 in this Chapter.123 This is without prejudice to an application to reopen the proceedings (§ 156 ZPO).See also § 283 ZPO (Note 64 in this Chapter) and § 611 ZPO.In view of the consequences, a lawyer should stay eagle-eyed at all times against the danger of a prematureclosure of the oral hearing.Regarding possible remedies, see Chapter XXII, Note 19.124 The same applies, if, following an oral hearing, the court decides by way of a ‘Beschluß’.See Note 14 in this Chapter.125 Such an order must be quashed, if the party in whose favour it is granted so applies or if it seems that thepersonal appearance of the parties is unavoidable (‘unumgänglich’): § 128(iii), 4th sentence ZPO.See Krugermeyer-Kalthoff, ZAP-Aktuell, 16/00, p 989.126 See Note 47 in this Chapter.127 See Section C H in this Chapter; Baur/Grunsky, § 16; Bergerfurth, Part 5; Jauernig (ZP), Book 2, Chapter 11(§§ 72–75); Model/Creifelds/Lichteriberger, Part 3 C (245); Rosenberg/Schwab, Book II, Section 2 (§§135–149).128 See Creifelds under ‘Berufung’.129 Refusal of this application (‘Fristverlängerungsantrag’) can be challenged by an application for reinstitution(‘Wiedereinsetzung’) and/or a constitutional complaint.See the article by Brigitte Borgmann in ‘BRAK-Mitteilungen’ 1 /99, p 24.130 The normal rule is that, on appeal, new submissions can be made until the dose of the oral hearing: § 525ZPO.§§ 527–529 ZPO are exceptions to this principle. They are predusionary provisions, which serve the samepurpose as § 296 ZPO at first instance (ie, acceleration and concentration of the proceedings).§§ 527–528 ZPO are not applicable in marriage matters: § 615(ii) ZPO.131 This principle also applies on a ‘Revision’: § 559(i) ZPO.As to the position in criminal proceedings and in other jurisdictions, see Creifelds under ‘reformatio in peius’.132 See Creifelds under ‘Revision’.133 If an OLG refuses to allow a ‘Berufung’, a ‘Revision’ is always possible: § 547 ZPO.A ‘Berufung’ to an OLG can be bypassed (‘übergangen’), if, following a final judgment of a ‘Landgericht’, theother party to the proceedings consents to a leap-frog appeal (‘Sprungrevision’), ie, a direct appeal (on apoint of law) to the BGH (§ 566a ZPO).Such a ‘Sprungrevision’ cannot be based on procedural defects and the BGH can decline to accept it, if thematter has no fundamental significance (‘grundsätzliche Bedeutung’; § 566a(iii) ZPO).In criminal proceedings:299

The German Legal System and Legal Language– jurisdiction to hear and decide a ‘Revision’ is split between the BGH and the OLG (§§ 135, 121 GVG). Noleave to appeal is required;– a ‘Revision’ is possible against the judgment of a ‘Landgerichf (sitting in the form of a ‘Strajkammer ’ (criminalchamber) or ‘Schwurgericht’ (jury court; the ‘große Strafkammer’ (large criminal chamber) is referred to assuch when it deals with particular more serious offences: § 74(ii) GVG)) and against the judgment of anOLG at first instance (§ 333 StPO; § 120 GVG);– a ‘Sprungrevision’ is also possible against the judgment of an ‘Amtsgericht’ (§ 335 StPO).134 Such an appeal must be dealt with by the BGH unless:– the matter has no fundamental significance; or– the BGH comes to the view, on a preliminary assessment, that the appeal (ultimately) has no chance ofsuccess (‘Aussicht aufErfolg’).In such a case the court can refuse to accept the appeal (‘die Annahme der Revision ablehnen’) by a qualifiedtwo-thirds majority vote: § 554b ZPO.A matter having no fundamental significance, but which has a chance of success, does not require ‘Annahme’in the first place: see Jauernig (ZP), Book 2, Chapter 11, § 74 II 2.135 If leave to appeal is refused by the OLG, no further complaint can be made (in civil proceedings). However,where a ‘Revision’ is sought in administrative, finance, social or employment proceedings, the refusal ofleave can be challenged by a so-called ‘Nichtzulassungsbeschwerde’.As from 1.1.2002, a ‘Nichtzulassungsbeschwerde’ is also possible in civil proceedings (§ 544 ZPO).See Creifelds under ‘Nichtzulassungsbeschwerde’.136 The situations in § 551 ZPO are:1 if the court was not properly composed (‘nicht vorschriftsmäßig besetzt’);2 if a judge took part in die decision, despite being excluded by statute from exercising the office of judge(except in so far as a motion of challenge (‘Ablehnungsgesuch’) on that ground was dismissed) (§§ 41ffZPO);3 if a judge took part in the decision, although he was rejected due to risk of bias (‘Besorgnis der Befangenheit’)and a motion of challenge on that ground was successful (§ 46(ii) ZPO);4 if the court wrongly assumed or declined (functional or international) jurisdiction (substantive or localjurisdiction cannot be re-examined on appeal: § 549(ii) ZPO);5 if a party in the proceedings was not properly represented (eg, § 51 (i) ZPO) (and there was no expressor implied approval by the party to their conduct);6 if the decision was based on an oral hearing, at which provisions regarding publicity of the proceedings(‘Öffentlichkeit des Verfahrens’; § 169 GVG) were breached;7 if no reasons for the decision were given.137 See Baur/ Grunsky, § 16 C; Jauernig (ZP), Book 2, Chapter 11, § 74 IV-VIII.138 See Creifelds under ‘Zurückverweisung’.A ‘Zurückverweisung’ (remand) must be distinguished from the term ‘zurückweisen’, which refers to therejection of an appeal (or, indeed, of any application) as unfounded (‘unbegründet’).When an appeal is rejected as inadmissible (‘unzulàssig’), the verb ‘verwerfen’ (to dismiss) is used.See Rosenberg/Schwab, Book II, Part 1, Section 2 (§ 137).139 See Creifelds under ‘Beschwerde’.140 ‘Verfügungen’ (directions) of a court at first instance can be challenged by a ‘Beschwerde’ to the ‘Landgericht’and, thereafter, by a further ‘Beschwerde’ to the OLG: §§ 568 ZPO, 19–30 FGG.A ‘Beschwerde’ is possible not only in civil proceedings, but also in all the other main jurisdictional branches.See Creifelds under ‘Beschwerde’; Schneider, ZAP, Fach 13, p 373; Chapter XXII, Note 19.141 To be distinguished from a ‘Beschwerde’ is the ‘Erinnerung’ (reminder), where the matter (initially) remainsin the same instance.An ‘Erinnerung’ is available, for example, against the decision of an officer of the business office of the court(‘Urkundsbeamter der Geschäftsstelle’; § 576(i) ZPO) or of a legal executive (‘Rechtspfleger’; § 11 RPflG).In the latter case, the ‘Erinnerung’ is ‘befristet’ (time limited), ie, it must be lodged within die same period asa ‘sofortige Beschwerde’ (usually two weeks from service: § 577 ZPO).See also Chapter XXII Note 29.142 See Note 15 and Section C H in this Chapter; Jauernig (ZP), Book 2, Chapter 11 (§ 76); Model/Creifelds/Lichtenberger, Part 3 C (246).143 Such actions breach the ‘Rechtskraft’ of the judgment. See Chapter XIII, Note 15.144 SeeModel/Creifelds/Lichtenberger,Part3C(247).145 See Model/Creifelds/Lichtenberger, Part 3 C (248).300

Notes146 See Chapter XIII, Note 31.147 See Chapter XIII at Note 1.148 Foreign decisions in ‘Ehesachen’ (eg, divorces obtained abroad) require formal recognition (‘Anerkennung’)by the relevant state Justice Ministry in Germany: Article 7 ‘Familienrechtsänderungsgesetz’ (FamRÄndG).However, by EU Regulation 1347/2000, with effect from 1.3.2001, divorce/nullity decisions and decisionsin proceedings concerning parental care over joint children of the spouses are recognised automaticallythroughout all other member states of the EU (except Denmark).See Zerdick, ZAP-Aktuell 19/00, p 1173.Regarding recognition of decisions in (other) civil and commercial matters within the EU (includingmaintenance decisions) see Note 171 in this Chapter.The recognition of foreign decisions can, in certain circumstances, be precluded by § 328 ZPO or § 16a FGG.See also: Article 6 EGBGB.149 A temporary order (‘einstweilige Anordnung’) is also the appropriate remedy to obtain current maintenanceprovisionally (‘vorläufig’), if a maintenance action (‘Ünterhaltsklage’) or proceedings to establish paternity(‘Vaterschaft’) are pending.An injunction (‘einstweilige Verfügung’) for emergency maintenance—under §§ 935, 940 ZPO analogously—remains possible in other situations.See the article by Kurt Schellhammer in ZAP 4/99, Fach 11, p 495.150 See Notes 9 and 97 in this Chapter.151 See Friederici, ZAP 9/00, Fach 11, p 555 (Section V).152 See ‘Unterhalt’.153 See § 621a-f ZPO, §§ 49–64 FGG.154 The duty to provide information in § 1605 BGB only extends so far as is necessary to establish a claim tomaintenance. Thus, it can be limited, if the person seeking maintenance has income of his (or her) own.Employees usually have to supply details of their income (only) for the 12 months before proceedings areissued. A longer period—usually three years—is required from self-employed persons.Non-fulfilment of the duty under § 1605 BGB can give rise to a claim for damages.155 Regarding the meaning of initial and final assets and their valuation (‘Wertermittlung’), see, respectively: §§1374–1375 BGB and § 1376 BGB.See also: ‘Güterrecht’ and Schellhammer, ZAP, Fach 11, p 347.156 For the position after divorce, see §§ 1585b and c BGB.Regarding the maintenance of a child during the separation of the spouses or while a marriage matter ispending, see § 1629(ii), 2nd sentence BGB.157 See Notes 96 and 105 in this Chapter.158 The court can only deviate from a joint proposal regarding custody (‘elterliche Sorge’), if the welfare of thechild (‘Wohl des Kindes’) so requires: § 1671(iii) BGB.If the court proposes to do so, it must decide the question first, before it deals with any other matters: § 627ZPO159 Unless the agreement is documented in the form of an enforceable title, no divorce can be granted: § 630(iii)ZPO.However, even if the spouses fail to reach agreement, the court can still grant a divorce under § 1565(1), 2ndsentence BGB or § 1566(ii) BGB: see below.The agreement does not extend to (other) marital property and the ‘Versorgungsausgleich’: see Schwab (F),Part I Chapter 6, § 35 V.160 Serious marital failings (‘schwere Eheverfehlungen’) can suffice. See Jauernig (BGB), § 1565,3.161 See Friederici, ZAP 9/00, Fach 11, p 555 (Section 1,5).162 See Friederici, ZAP 9/00, Fach 11, p 555 (Section IV).163 See Chapter XIII CI.In the European Union, the ‘Mahnverfahren’ seems to be a model for a pan-European effort to speed up andsimplify procedures for debt recovery.However, the underlying complexities are substantial. See Heike Lörcher in ‘BRAK-Mitteilungen’ 6/98, p275; Michael Johannes Schmidt in ZAP 24/95, Fach 14, p 195.164 The subject of enforcement is fully covered in Jauernig (ZVS), Part I. See also: Creifelds under301

The German Legal System and Legal Language‘Zwangsvollstreckung’; Kallwass, Section 8 (§ 120); Model/Creifelds/Lichtenberger, Part 3 C (250–255 and260–261).165 See Jauernig (ZVS), Part 1, § 1 II; Chapter XVIII, Notes 56 and 57, below.166 See Chapter XIIIC E.167 See Chapter XIV C 3 (Note 23 A).168 See § 8llff and § 850ff ZPO; Jauernig (ZVS), Part 1, Chapter 7, §§ 32–33; Creifelds under ‘Vollstreckungsschutz’,‘Lohnpfandung’, ‘Pfändungsschutz’, ‘Pfandungsverbote’ and ‘Unpfëndbarkeit’.169 See Jauernig (ZVS), Part 1, § 1 X and also (xi), below.170 See Chapter XIV, Note 23 A and (xi), below.171 Where court decisions from an EU (EEC) country in civil or commercial matters are to be enforced, applicationcan be made for an enforcement clause (‘Vollstreckungsklausel’) to be appended to the decision. It is a simplifiedprocedure (by way of ‘Beschluß’), recognition (‘Anerkennung’) of the decision usually being granted (by theLG) as a matter of course.See Articles 26, 27, 28, 31ff EuGVÜ and the ‘Ausfuhrungsgesetz’ thereto (AVAG) in ‘Sartorius IT Nos 160 and160a; Chapter X, Note 8; Note 148 in this Chapter; Chapter XXI, Note 13.To be distinguished from such cases is enforcement by means of a ‘Vollstreckungsurteil’ (§§ 722–723 ZPO)or by means of a ‘Vollstreckbarerklärung’.The basic rule (§§ 722–723 ZPO) is that foreign judgments (eg, from non-EU countries) require a (German)‘Vollstreckungsurteil’ (enforcement judgment) for their enforcement.However, under various international conventions a mere ‘Vollstreckbarerklärung’ (declaration ofenforceability) is sometimes provided for, eg, for those areas of law where the EuGVÜ is not applicable (seeArticle 56 EuGVÜ), for foreign decisions on costs (‘Kostenentscheidungen’; under the Hague Convention onCivil Procedure of 1.3.1954) and for claims to maintenance (‘Unterhalt’; under die Hague Convention on theRecognition and Enforcement of Maintenance Decisions of 2.10.1973).Declaration of enforceability is also the appropriate method of enforcement for decisions under arbitrationagreements (‘Schiedsverträge’; § 1042ff ZPO) and, in particular, for foreign arbitration a wards/decisions(‘ausländische Schiedssprüche’), in so far as international treaties do not otherwise provide (eg, the UNConvention on Recognition and Enforcement of Foreign Arbitration Decisions of 10.6.1958).See Chapter XXI; Thomas-Putzo, § 723 ZPO Annex.172 In certain cases, the ‘Rechtspfleger’ is responsible: § 20 No 12 RPflG.Regarding the issue of ‘vollstreckbare Ausfertigungen’ of other (including notarial) documents (‘Urkunden’)see § 797 ZPO.173 See Jauernig (ZVS), Part 1, Chapter 2, §§ 8–9.174 See Jauernig (ZVS), Part 1, §§ 10–14; Gottwald, ZAP, Fach 14, p 375.Regarding § 771 ZPO see Chapter XIII D 8 (c) (v), below.After enforcement is completed, the debtor may have remedies under §§ 812ff and 823ff BGB. See Jauernig(ZVS), Part 1, § 12 VI.175 See Chapter XXII, Notes 28 and 29.176 See Jauernig (ZVS), Part 1, § 1 VI.177 The only exception is contained in § 777 ZPO178 See §§ 829–845 and 846–849 ZPO. See also: Note 168 in this Chapter; Model/Creifelds/Lichtenberger, Part3 C (251–254).179 The effect of an official seizure—of movables or immovables (see Chapter X Note 244)—is that the object ofenforcement is taken under public control (‘Verstrickung’). Any infringement of this status (eg, tamperingwith the item) is punishable as ‘Verstrickungsbruch’ (§ 136 StGB).180 See §§808 and 828 ZPO and also §§ 753 and 764 ZPO.The activities of the ‘Gerichtsvollzieher’ (court bailiff) are regulated by the ‘Geschäftsanweisung fürGerichtsvollzieher’ (GVGA; Business Order for Court Bailiffs).181 Such special urgency (‘Dringlichkeit’/‘Eilbedürftigkeit’) is presumed to exist where a creditor is granted aseizure order (‘Arrestbefehl’), but, if an injunction (‘einstweilige Verfügung’) directed to the payment of moneyis concerned, the creditor must usually wait until there has been an unsuccessful attempt at enforcement(‘erfolgloser Vollstreckungsversuch’) before taking further steps.See Gleußner, ZAP, Fach 14, p 213; Chapter XXII, Note 26.182 See §§ 814–825 and 835–839 ZPO.In the case of a ‘Forderung’, the court orders its ‘Überweisung’ ((bank) transfer) to the creditor.302

Notes183 See Thomas-Putzo, § 808.184 SeeThomas-Putzo,§771.185 Also referred to as a ‘Zwangshypothetk’ (compulsory mortgage). See Model /Creifelds /Lichtenberger, Part3 C (255).186 See § 866 ZPO.187 See § 869 ZPO.188 See Model/Creifelds/Lichtenberger, Part 3 C (256–257).189 For examples, see Thomas-Putzo, §§ 887, 888, Note 1.190 These coercive measures are referred to as ‘Beugemittel’ or ‘Ordnungsmittel’. See Chapter XVIII, Note 56.By § 890(ii) ZPO, action under that paragraph must be preceded by an appropriate threat (‘Androhung’).191 See Creifelds under ‘Offenbarungs(eid)versicherung’; (e), below.The making of a false assurance before a competent authority is punishable, if made intentionally ornegligently: §§ 256, 263 StGB. See Creifelds under ‘Eidesstattliche Versicherung’.192 See Gottwald in ZAP 20/00, Fach 14, p 391.193 Amendments to the law with effect from 1.1.1999 have extended the grounds on which an application canbe made.Now, a debtor can also be compelled to make a declaration, if he has refused to allow the bailiff to carry outa search (‘Durchsuchung’) of his home or if the debtor has repeatedly not been found there by the bailiff afterprior notice of at least two weeks: § 807(i), Nos 3 and 4 ZPO.194 See Model/Creifelds/Lichtenberger, Part 3 C (258–259); Chapter XIII, Note 181; Chapter XIV, Note 23195 SeeModel/Creifelds/Lichtenberger, Part 3C (262).196 Book X has been reformed with effect from 1.1.1998.See Bosch in ZAP 21/98, Fach 13, p 787; Model/Creifelds/Lichtenberger, Part 3 C (263); Note 171 in thisChapter.CHAPTER XIV1 See Chapter IV; Model/Creifelds/Lichtenberger, Part I, Section D II (561).The ‘Bundeswehr’ is the (federal) defence organisation of the ‘Bund’. It consists of the armed forces (‘Streitkräfte’)and the military administrative service (‘Bundeswehrverwdtung): Articles 87a-b GG.See Creifelds under ‘Bundeswehr’ and ‘Bundeswehrverwaltung’.2 Whether ‘Richterrecht’ (judge-made law) is (also) a ‘Rechtsquelle’ is questionable. See Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 1; Kommers, Part I, Chapter 4 (‘Judicial versus Legislative Authority’); Maurer,Part 1, § 4 and Erichsen, Part II, §§ 6–9; Wolff/Bachof/Stober, Part 3, Section 2, §§ 24 ff; Youngs (CL),Chapter 1, Part VI3.Regarding the history and development of administrative law see Bull, Section I, § 2 1–5 and § 5; Maurer,Part 1, § 2 and § 31.For a general summary of administrative law see Baumann (ER), Part IV, § 14.3 See Chapter II B (Note 7).4 See Maurer, Part 1, § 5.5 The VwVfG only applies to the activity of authorities involved in judicial administration (‘Behörden derJustizverwaltung’) insofar as such activity is subject to control by the administrative courts.See § 2(iii) No 1 VwVfG and Chapter XV, Note 2.6 Teil VII contains provisions regarding ‘Ausschüsse’ (committees/boards) and honorary activity in die‘Verwaltungsverfahren’. Teil VIII contains final provisions.7 See Bull, Section II, § 8; Maurer, Part 5, § 19; generally Erichsen, Part IV, §§ 36–42.8 The ‘Verwaltungsverfahren’ must be conducted simply and expediently (‘einfach und zweckmäßig’: § 10, 2ndsentence VwVfG) in German (§ 23(i) VwVfG).9 The right to a hearing flows from Article 103(i) GG.Regarding the position in social security proceedings (under § 24 SGB X), see the article by Horst Marburgerin ZAP 17/99, Fach 18, p 613.303

The German Legal System and Legal LanguageFor a survey of the procedural rules in social security matters, see the article by Hans-Peter Jung in ZAP 23/99, Fach 18, p 627.10 Regarding the right of inspection of the file in social security proceedings (under § 25 SGB X), see the articleby Horst Marburger in ZAP 15/96, Fach 18, p 445.11 See Giemulla/Jaworsky/Müller-Uri, Book I, Chapters 4–6; Erichsen, Part III, Section I, §§ 11–20;Maurer, Part 3, §§ 9–12; Schwerdtfeger, Part 2, §§ 4–14; Stern, Part 1, § 4 IV 2; Wolff/Bachof/Stober, Part 5,Section 2, § 45.12 See Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 4 B-G.A ‘Verwaltungsakt’ is frequently designated as a ‘Bescheid’ (official notice).To be distinguished from the formal ‘Verwaltungsakt’ is the pure administrative order (‘schlichtesVerwaltungsgebot’), which can be issued by the executive in the case of civil servants (‘Beamté) and otherpersons, wno are subject to direction (‘weisungsabhangig’, eg, schoolchildren and soldiers): see Bull, SectionIII, § 10.For a classification of the various types of administrative legal relationships (‘Verwaltungsrechtsverhältnisse’)see Bull, Section IV, § 14.See also Creifelds under ‘Gewaltverhältnis, öffentlich-rechtliches’.The enforceability (and enforcement) of a ‘Verwaltungsakt’ is a separate matter. See Note 23 in this Chapter;Chapter XVIII, Note 56.13 Preliminary procedural actions (‘Verfahrenshandlungen’) by an authority, which merely serve to prepare afinal decision (‘Zabschliessende Regelun’) are not ‘Verwaltungsakte’ and are not separately challengable: § 44aVwGO.14 While one speaks of access (‘Zugang’) to an ‘öffentliche Sache’, the use of an ‘Anstalt’ is subject to admission(‘Zulassung’). See Erichsen, Part V, § 43; Chapter II C.15 See Creifelds under ‘Justizverwaltungsakte’; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 4 C II 2; ChapterXV A (Note 2).Cf ‘Rechtspflege’; Chapter XXII C 6.16 See §§ 37and 39 VwVfG.17 See § 36 VwVfG. See also: Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 7; Maurer, Part 3, § 12; Wolff/Bachof/Stober, Part 5, Section 2, § 47.18 See § 38(i)VwVfG.19 See § 43(ii) VwVfG: ‘Ein Verwaltungsakt bleibt wirksam, solange und soweit er nicht zurückgenommen, widerrufen,anderweitig aufgehoben oder durch Zeitablauf oder aufandere Weise erledigt ist.’See also: Chapter VII, Note 8; Bull, Section III, §§ 11 and 12; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter6 A I.20 See §§ 43(iii), 44(i) and 44(ii) VwVfG. See also: Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 5 C I.21 See Chapter II, Note 24.22 See Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 5 C II and the diagram (‘Prüfungsschema (Fehlerlehre)’)in Book I, Chapter 5 F.Regarding the difference between the terms ‘Anfechtbarkeit’ and ‘Nichtigkeit’ in civil law, see Chapter X B 2(b) (‘Nullity and Challengability of a ‘Willenserklärung’).23 A Once one of these ‘Rechtsmittel’ (legal remedies) is lodged, no steps can be taken to enforce the VA.‘Vollziehung’ (enforcement) of the VA is ‘gehemmt (prevented from proceeding). If the VA has alreadybeen (prematurely) enforced, the administrative court can order enforcement to be reversed (so-called‘Folgenbeseitigung’): § 113(i), 2nd sentence VwGO. This is unlike the position in civil proceedings,where the lodging of a ‘Rechtsmittel’ does not usually prevent a judgment from being declaredprovisionally enforceable (‘vorläufig vollstreckbar’). An application for temporary suspension (einstweiligeÉinstellung’) of enforcement has to be made: § 719 ZPO.B By § 80(ii) VwGO the suspensive effect (‘ufschiebende Wirkung’) of a ‘Widerspruch’ and ‘Anfechtungsklage’is inapplicable:1 where public levies and costs are demanded;2 where orders (‘Anordnungen’) and measures (‘Maßnahmen’) are given or taken by‘Polizeivollzugsbeamten’ ((executive) police officers), which are ‘unaufschiebbar’ (ie, cannot bepostponed);3 in (other) cases prescribed by federal law;4 where the ‘Behörde’ orders immediate enforcement (‘sofortige Vollziehung’) of the VA.304

NotesIn the case of No 4, above:– immediate enforcement must be in the public interest or in the overwhelming interest ofone of the parties (‘im öffentlichen Intéresse oder im überwältigenden Intéresse tines Beteiligten’);– the ‘Behördé’ must give written reasons for the particular interest (‘das besondere Intéresse’)in immediate enforcement unless there is ‘Gefahr im Verzug’ (danger in delay): § 80(iii)VwGO;C Provisional legal protection (‘vorläufiger Rechtsschutz’) is possible under § 80(v) VwGO.By § 80(v), 1st sentence VwGO, an application can be made to the administrative court for the suspensiveeffect of a ‘Widerspruch’ or ‘Anfechtungsklage’ (‘aufschiebende Wirkung’) to be fully or partially ordered(‘angeordnet’) or fully or partially restored (‘wiederhergestellt’). The former remedy comes into play incases based on statute (ie, § 80(ii) Nos 1–3 VwGO), while the latter relates to § 80(ii) No 4 (ie, where anorder for immediate enforcement from a ‘Behörde’ is involved).The common feature of an application under § 80(v), 1st sentence VwGO is that it is directed to thesuspension of enforcement (Aussetzung der Vollziehung) by the court. Such an application can be madewithout having to involve the ‘Widerspruchsbehorde’ (next higher authority) and before lodging an‘Anfechtungsklage’.By analogy with § 42(ii) VwGO, an application for suspension is only admissible (‘zulässig’), if itappears that the applicant is injured in his rights by the VA, ie, the applicant must have ‘ Antragsbefugnis’(authority to make the application).To be contrasted with an application for suspension of enforcement is the (additional) remedy availableunder § 80(v), 3rd sentence VwGO—if enforcement has already commenced, the court can order it tobe quashed (Aufhebung der Vollziehung). This prohibits not only the repeating of any measures ofenforcement for the future (‘ex nunc’), but includes the (provisional) reversal (‘Rückgângigmachung’) ofany (past) direct consequences of enforcement (‘Folgenbeseitigung’). It also covers cases of so-calledfactual enforcement (‘faktische Vollziehung’), ie, where the ‘Behorde’ just goes ahead with enforcement,regardless of the requirements of § 80(ii) VwGO.When it deals with an application under § 80(v) VwGO, the administrative court has discretion(‘AufAntrag kann das Gericht…’). Unless the VA is dearly legal or illegal, the court must weigh thepublic interest in enforcement of the VA against the applicant’s interest in its suspension or annulment(‘Abwägung der Interessen’).The court should normally order or restore suspensive effect, by analogy with § 80(iv), 3rd sentenceVwGO, if there are serious doubts as to the legality of a VA (‘ernsthafte Zweifel an der Rechtmäßigkeiteines VA’) or if its enforcement would result in an unacceptable hardship (‘unbillige Härte’). See SchmittGlaeser, Appendix to § 3, Section D.The administrative court reaches its decision in the form of a ‘Beschluss’, which can be altered orrevoked at any time: § 80(vi) VwGO. In particular, suspension can be ordered subject to conditions(‘Auflagen’) or be limited in time (‘befristet’): § 80(v), 4th and 5th sentences. Moreover, unlike § 123VwGO (see E, below), there is no duty to compensate the other party, if it later transpires that thedecision was unjustified (cf § 945 ZPO).D Once a ‘Widerspruch’ has been lodged, enforcement of the VA can be suspended by the ‘Behördé or the‘Widerspruchsbehörde’ itself, either on its own motion or on application: § 80(iv) VwGO.E If a matter is urgent (‘dringend’), ‘vorläufiger Rechtsschutz’ (provisional legal protection) is also availableunder § 123 VwGO. It is a form of injunctive relief modelled on the provisions in the ZPO (note, inparticular, §§ 920 and 945 ZPO) and directed towards the grant of a temporary order (‘einstweiligeAnordnung’) ie, it can come into play in the forefront of a ‘Leistungsklage’ or ‘Feststellungsklage’.§§ 80(v) and 123 VwGO are mutually exclusive: § 123(v) VwGO. Thus, § 123 VwGO does not applywhere a prospective ‘Anfechtungsklage’ against a VA is involved (ie, where it is sought to challenge aVA): the remedy is then an application under § 80(v).F See Bull, Section VI, § 19 8; Creifelds under ‘Aufschiebende Wirkung’, ‘Vollziehung sofortige’ I, ‘VorläufigeVollstreckbarkeit’ and ‘einstweilige Anordnung’; Giemulla/Jaworsky/Müfler-Üri, Book III, Chapter 4;Schmitt Glaeser, Part 2, Appendices to §§ 3 and 4; Stern, Part 1, § 6. See also Chapter XIII D 8 (a) (Note167), Chapter XV C and Chapter XVIII H (Note 56), below.24 The term ‘Gültigkeit’ covers both ‘Wirksamkeit’ and ‘Rechtmäßigkeit’. It is normally translated as ‘validity’,but is often (confusingly) used in both senses in everyday speech.‘Gültigkeit’ properly refers (only) to the validity of norms ie, one should not really speak of the ‘Gültigkeit’ ofa VA.See Chapter VII B and, for example, § 47(i) VwGO.305

The German Legal System and Legal Language25 le, was there a ‘gesetzliche Grundlage’ (statutory basis) for the issue of the VA? See Chapter II F, Chapter VIIB and Chapter XV, Note 14.See also: Erichsen, Part III, Section I, § 15; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 5 B III;Schwerdtfeger, Part 2, § 5 II 1–2; Wolff /Bachof /Stober, Part 5, Section 2, §§ 48–49.26 See Chapter XIII C E.As in civil procedure, one distinguishes the ‘formelle Bestandskraft’ (formal authority) or ‘Unanfechtbarkei’(non-challengability) of a VA and its ‘materielle Bestandskraff (material authority), which arises only insofaras the VA is not withdrawn or revoked by the issuing ‘Behörde’.Once a VA becomes ‘formell und materiell bestandskräftig’, it becomes ‘vollziehbar’ (enforceable).See Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 6 A II; Maurer, Part 3, § 11 I 3 and 4; Wolff/Bachof/Stober, Part 5, Section 2, § 50.27 See §§48–51 VwVfG.See also: Erichsen, Part III, Section I, §§ 16–19; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 6 B to E;Maurer, Part 3, § 11 II-VII; Wolff/Bachof/Stober, Part 5, Section 2, § 51. ‘Rücknahme’ and ‘Widerruf aresubsidiary terms to ‘Aufhebung’ (annulment). When a VA is ‘rechtswidrig’ (illegal) one speaks of ‘Rücknahme’(§ 48 VwVfG), whereas when a VA is ‘rechtmäßig’ (legal) one speaks of ‘Widerruf’ (§ 49 VwVfG).28 See Giemulla/Jaworsky /Müller-Uri, Book I, Chapter 4 K; Maurer, Part 3, § 9 V; Wolff/Bachof/Stober, Part5, Section 2, § 46.29 Also referred to as a ‘Genehmigung’ (approval). See Creifelds under ‘Erlaubnis (behördliche)’ and‘Gewerbezulassung’.30 See Schwerdtfeger, Part 2, § 91.31 The purpose of a norm (and, therefore, the extent of any discretion) have to be ascertained by interpretation(‘Auslegung’).32 See Schwerdtfeger, Part 2, § 5 II4; Stern, Part 2, §1712–3; §40 VwVfG; § 114 VwGO.The executive must observe the principles of appropriateness/expediency (‘Zweckmâftigkeit’) andproportionality (‘Verhältnismäßigkeit’).See also: Creifelds under ‘Ermessen’, ‘Zweckmäßigkeitsgrundsatz’ and ‘VerhMtnismaftigkeit(sgrundsatz)’; ChapterVIII, Note 14.33 See the previous paragraph in the text.34 This is only the case in certain limited areas when internal value-judgments are involved eg, decisionsregarding exams or civil service matters. See Creifelds under ‘Ermessen’; Schwerdtfeger, Part 2, § 5 II 3 (b);Stern, Part 2, § 1714.In the case of an exam decision, the matter can only be brought to court, if ‘Bezvertungsfehler’ or‘Verfahrensfehler’ (mistakes in evaluation or procedure) can be proven. The disappointed candidate can thenapply (to the administrative court) under § 123 VwGO for a temporary order (‘einstweilige Anordnung’) for(re-)admission to the exam (‘Zulassung zur Prüfung’) or, as appropriate, for restoration of the ‘aujschiebendeWirkung’ of a ‘Widerspruch’.See Kuhla in ‘BRAK-Mitteilungen’ 5/1996, p 197; Louven, ZAP 9/01, Fach 18, p 699 (Section II 4); Note 23 Ein this Chapter.35 If the executive exercises its ‘Ermessen’ in a particular way, it can become bound (‘Selbstbindung derVerwaltung’). In a similar subsequent case, it cannot then depart from its existing practice without a substantialreason (‘ohne sachlichen Grund’).See Creifelds under ‘Gleichbehandlungsgrundsatz’ and ‘Gleichheit vor dem Gesetz’.See also: Bull, Section II, § 7 7; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 2 D; Maurer, Part 2, §7.36 See Louverv ZAP 9/01, Fach 18, p 699 (Section III 5 and 6).CHAPTER XV1 See Creifelds under ‘Beschwerde- und Petitionsrecht’ and ‘Gegenvorstellungen’; § 79 VwVfG.2 The addressee of a ‘Justizverwaltungsakt’ usually has to follow special procedures, if he wishes to challengeit (eg, §§ 18ff FGG).In the absence of such provisions, he must apply to the OLG (ie, a court of the ‘ordentliche Gerichtsbarkeit’)for the legality of a ‘Justizverwaltungsakt’ to be examined: §§ 23–30 EGGVG.See Chapter XIVC 1; Stem, Part 1, § 313b (ee).306

Notes3 The OVG is sometimes called the ‘Verwaltungsgerichtshof’ (VGH).4 See § 67 VwGO.5 See § 47(i) VwGO.6 The norm-control application must be made within two years of publication of the relevant norm. SeeSchmitt Glaeser, Part 2, § 9.See also: Bull, Section VI, § 19 9; Stern, Part 1, § 5; Chapter VII, Note 13; Chapter XIV, Note 24.7 See § 42(i) VwGO, § 43(i) VwGO and § 113(i), 4th sentence VwGO. See also: Bull, Section VI, § 19 6; Creifeldsunder ‘Verwaltungsstreitverfahren’ 1 (a)-(c) and 5; Schmitt Glaeser, Part 2, §§ 3–7; Schwerdtfeger, Part 2, § 51.Regarding ‘vorläufiger Rechtsschutz’ (provisional legal protection), see Chapter XIV, Notes 23 and 33.8 See §§ 68 and 73 VwGO.9 See § 68(i) VwGO.A ‘Widerspruch’ must be lodged within one month of the ‘Bekanntgabe’ (notification) of the VA: § 70(i) VwGO.If the issuing ‘Behörde’ considers the ‘Widerspruch’ to be justified (begründef)—because, eg, the VA was‘rechtswidrig’ (illegal)—the ‘Behörde’ must remedy the situation (so-called ‘Abhilfe’ (redress)) and decide oncosts: § 72 VwGO. Otherwise, a ‘Widerspruchsbescheid’ must be issued: § 73(i) VwGO.10 The other courts to which there is an express assignment (‘ausdrückliche Zuweisung’) of public law disputesare listed in Schmitt Glaeser, Part I, § 2 II B.See also: Chapter VII C (Note 10) and Chapter XVII (Note 33); Creifelds under ‘Enumerationsprinzip’,‘Öffentlich-rechtliche Strtitigkeiten’ and ‘Ordentlicher Rechtsweg’; Bull, Section VI, § 19 2.11 Such conditions are known as the ‘Sachurteilsvoraussetzungen’ (conditions for a substantive judgment). SeeStern, Part I, §§ 2–16; Giemulla/Jaworsky/Müller-Uri, Book III, Chapters 2 and 3; Bull, Section VI, § 194.Schmitt Glaeser distinguishes (general) conditions common to all actions (‘allgemeineSachentscheidungsvoraussetzungen’) and conditions specific to each type of ‘Klage’ (‘besondereSachentscheidungsvoraussetzungen’): see Schmitt Glaeser, Parts 1 and 2 (§§ 2–9).Regarding the (substantially similar) ‘Sachurteilsvoraussetzungen’ in civil proceedings, see Chapter XIII D 1(f) (i).12 See § 42(ii) VwGO.The plaintiff’s assertions must be plausible (‘plausibel’): see Schmitt Glaeser, Part 2, § 31B, § 4, Sections 1 and2,1B and § 6, Section 2,1B. To be distinguished from a ‘Popularklage’ is the action by a federation(‘Verbandsklage’), which, eg, in issues concerning environmental law (‘Umweltrecht’), has the right to suebefore the administrative court in certain ‘Länder’. See Creifelds under ‘Popularklage’, ‘Verbànde’ and‘Verbandsklage’.On the question of ‘Klagebefugnis’, see also the good example given in Wesel (JW), Chapter DC and Wesel(FR), Chapter 5 (a neighbour’s ‘Anfechtungsklage’ against a ‘Baugenehmigung’ (planning permission)). Seealso Bull, Section VI, § 19 5 and 7.13 See §§ 74, 81 and 82 VwGO.14 See § 113(i) and § 113(iv) VwGO. A VA is illegal, if it is not ‘rechtmafiig’ (lawful): see Chapter XIV C 3.15 § 1004 BGB analogously.This type of writ is called an ‘allgemeine Leistungsklage’. It can also be directed to the undertaking (‘Vornahme’)of (individual) measures of pure administrative action by the executive. However, it only springs in on asubsidiary basis to a ‘Verpftichtungsklage’.See Schmitt Glaeser, Part 2, § 6, Section 2.16 See Creifelds under ‘Verwaltungsstreitverfahren 4–5’; Schmitt Glaeser, Part 4, §§ 12–15; Stern, Part 2, §§ 17–18.17 See § 86(i) VwGO; Chapter XIII, Note 96.In so far as no court proceedings are pending (ie, while a matter is still in the hands of an administrativeauthority (‘Behdrde’)), the equivalent of § 86(i) VwGO is § 24(i) VwVfG.18 See § 88 VwGO; Schmitt Glaeser, Part 4, §151.19 See Chapter XIII, Note 10; Schmitt Glaeser, Part 4, § 15II.See also Chapter XIII, Note 69.307

The German Legal System and Legal LanguageCHAPTER XVI1 For examples of statutes containing such supplementary norms (‘Nebenstrafrecht’), see Creifelds under‘Strafrecht I2’.See also: Baumann (ER), Part V, § 16 II 1; Model /Creifelds /Lichtenberger, Part H (393–394, 404); Naucke,§ 4 II.2 See Naucke, §6.3 A See Baumann (GBS), Chapter 3 II; Creifelds under ‘nullum crimen sine lege’; Naucke, § 2 II. See also:Chapter I (Note 14); Chapter VIII C (Note 36).In German criminal law, the role of customary law (‘Gewohnheitsrecht’) is minimal.B When considering Article 103(ii) GG, the fact that an act is committed on state instructions (‘imstaatlichen Auftrag) or by order (‘aufBefehl’) can give rise to problems.Generally, an act can only be punished, if, at the time it is committed, it is regarded as punishable(‘strafbar’) by statute, ie, punishment must be laid down/fixed by statute before the act is committed.The act must, therefore, be illegal according to law, ie, there must be no justification for the relevantconduct. Sometimes, however, a justifying ground (‘Rechtfertigungsgrund’) can infringe higher legalprinciples.In The Shootings at the Berlin Wall Case (Sourcebook, Chapter 7), the court concluded that:It is not arbitrary treatment, if the accused, so far as the unlawfulness of his action is concerned, isjudged in the way in which he ought to have been treated on the correct interpretation of DDR lawat the time of the act.Following superior orders, which were barbaric according to recognised standards of internationalhuman rights, did not properly constitute a justification, even if a different view was taken in actualstate practice. Thus, Article 103(ii) GG was no defence. See Notes 4, 23 and 34 in this Chapter; Jarass/Pieroth, Article 103, B 3 (c), particularly at (cc).C This type of (creative) judicial reasoning is reminiscent of the ‘purposive’ method of interpretation ofdomestic law, which national courts are required (by the European Court of Justice) to adopt to giveeffect to Directives enacted by the European Community (so-called ‘indirect effect: Von Colson v LandNordrhein Westfalen ((1984) ECR1891)).Whenever problems arise regarding the compatibility of (domestic) laws passed to implement ECDirectives, the national court’s duty is, to use Loveland’s words, simply to ask:What would Parliament had done if it had realised that the literal meaning of the words itwished to use was incompatible with a new EC law?and to answer:Parliament would have used the words which we are now implying into the Act.In truth, this is a pretentious, revolutionary and unsophisticated approach to interpretation, whichputs words into Parliament’s mouth and discards traditional principles of literal construction. Insofaras it enables the courts to deal with exceptional situations, it is laudable. However, will it by itself befirm enough in the long term to extricate the European Community from an era of political and legalinstability and to relax the tension between inter-nationalism and supra-nationalism? Where is thedividing-line between creative jurisprudence and political decision-making? What will be theconsequences of sacrificing (national) positivism to the ideal of a United Europe?See Loveland, Chapters 12 and 13; Preface to the Second Edition, Note 10; Preface to the Third Edition,Note 2; Chapter E, Note 34; Note 6 in this Chapter.Regarding the important role of policy in the European Court see Hartley, Part I, Chapter 2 (‘Policy’).D Apart from the controversial prosecution of the former East German border guards and ‘Politbüro’members (see also Notes 23 and 34 in this Chapter), the German criminal system can assume substitutejurisdiction (‘stettvertretende Strafrechtspflege) where alleged offences committed abroad (‘Auslandstaten’)are involved (eg, crimes in former Yugoslavia) and extradition (‘Auslieferung) does not take place: §7(ii) No 2 StGB.4 This prohibition is normally a cast-iron rule, founded on the protection of trust (‘Vertrauenssckutz’). However,in exceptional cases, it must give way (‘zurücktreten’) to general principles of law (attgemeine Recktscrundsätze ’ )as recognised by civilised nations where national laws (‘Gesetze’) are perverted by those in positions ofpower to ‘exclude’ punishability for serious abuses of human rights (eg, the shootings along the formerEast German border). Thus, despite Germany’s reservation to Article 7(ii) of the European Convention onHuman Rights on ratification in 1952, the prohibition provides no shelter for persons who are responsible.See Notes 3, 23 and 34 in this Chapter.308

Notes5 Multiple punishment for the same offence is also prohibited: Article 103(iii) GG.However, a re-opening of a case (re-trial) following a binding judgment (‘Wiederaufnahme des Verfahrens’) ispossible on certain statutory grounds.See §§ 359–373a StPO; Creifelds under ‘Wiederaufnahmeuerfahren ’ ; Chapter XVII, Note 40 C; Youngs (CL),Chapter 4, Part IV, Sections B and D.6 The content and limits of criminal legal provisions must be calculable/predictable (‘berechenbar’ /‘vorhersehbar’).In criminal law, the filling of gaps (‘Lücken’) on the basis of indefinitely formulated general clauses(‘Generalklauseln’)—as in civil law—ie, creative jurisprudence (‘Rechtschöpfung’) extending beyond objectivestatutory interpretation (‘objektive Auslegung’)—is not permitted.See Note 3 in this Chapter; Chapter X, Notes 44 and 47 E; Chapter XIII, Note 18.7 See Creifelds under ‘Straftat’ II; Model/Creifelds/Lichtenberger, Part II (395, 403); Naucke, § 6 III and IV;Otto (AS), Part 1 (§§ 1–4).8 See § 23(i) StGB. The punishment for an attempted offence can be reduced: see § 23(ii) StGB (§ 49 StGB).9 See the ‘Gesetz über Ordnungswidrigkeiten’ (OWiG; Minor Offences Law) of 24.5.1968 as amended and reissuedfrom time to time.See also: Creifelds under ‘Bußgeld, -verfahren’, ‘Geldbuße’ and ‘Ordnungswidrigkeiten’; Baumann (ER), Part V,§ 16 II 2; Jakobs, Book 1, Chapter 1 (Section 31); Naucke, § 4 V.Most traffic offences under the ‘Straßenverkehrsgesetz’ (Road Traffic Law) are ‘Ordnungswidrigkeiten’.Prosecution is the responsibility of the administrative authority (‘Verwaltungsbehörde’), unless there areindications (Anhaltspunkte’) that a criminal offence (‘Straftat’) has been committed, in which case the mattermust be passed to the ‘Staatsanwaltschaft’: § 41(i) OWiG.In the ‘Bußgeldverfahren’ (fine proceedings), the provisions regarding criminal proceedings apply (ie, theStPO, GVG and JGG) and the prosecuting authority has the same rights and duties as the ‘Staatsanwaltschaft’:§ 46(i) and (ii) OWiG.The prosecution of an ‘Ordnungswidrigkeit’ is at the discretion of the relevant authority, which can decidemerely to give a warning (‘Verwarnung’) together with a ‘Verwarnungsgeld’ (penalty): § 47(i) and § 56 OWiG.If a ‘Bußgeldbescheid’ (notice of fine) is issued, an objection (‘Einspruch’) can be lodged within two weeks, inwhich case the matter has to be dealt with by the ‘Amtsvericht’ (district court): § 67(i) and § 68(i) OWiG.10 A classification of the most important offences in the BT according to the relevant ‘Rechtsgut’ protected canbe found in Naucke, § 6 III3.Recent changes to the BT (in force since 1.4.1998) give greater weight to the protection of highly personal‘Rechtsgüter’, as against material ‘Rechtsgüter’.See Wimmer, ZAP 15/98, Fach 21, p 173.11 See §§ 80–165 StGB. Regarding ‘Delikte gegen staatliche Rechtsgüter’ see Otto (ED), Part 3, Chapter 2 (§§ 83–100).12 See §§ 166–184 StGB. Regarding offences against (other) ‘Rechtsgüter der Gesamtheit’ (‘nichtstaatlicheüberindividuelle Rechtsgüter’) see Otto (ED), Part 3, Chapter 1 (§§ 60–82).13 See §§ 185–241 StGB; Otto (ED), Part 2, Chapter 1 (§§ 2–37).Four cases involving offences within this category are contained in the Sourcebook, Chapter 7:– The Insult of Soldiers Case § 185 StGB ‘Ehre’ (honour).– The Base Motive Case § 211 StGB ‘Leben’ (life).– The Shootings at the Berlin Wall Case §§ 212, 213 StGB.– The Rough Ill-Treatment Case § 223b StGB ‘Korperliche Unversehrtheit’ (bodily integrity).14 See §§ 242–358 StGB (Sections 19–29). Section 27 covers certain ‘gemeingefährliche Straftaten’ (offences involvingdanger to the public) and includes § 323c.In The Neglected Assistance Case (Sourcebook, Chapter 7) there was a subsequent prosecution under what isnow § 323c StGB. The court passed a guilty verdict (‘Schuldspruch’), but could not, due to the ‘Verbot derreformatio in peius’ rule, impose a punishment: see § 358 (ii) StPO.See also Otto (ED), Part 2, Chapter 2 (§§ 38–59). ‘Rechtsgüterschutz’ as the legitimate function of criminal lawis criticised by Jakobs (Book 1, Chapter 1 (Section 2)).15 See Baumann (GBS), Chapter 2 2; Creifelds under ‘Straftat’ I, ‘Schuld’ and ‘Rechtswidrigkeit’; Model/Creifelds/Lichtenberger, Part II (397, 401); Naucke, § 7; Otto (AS), Part 2 (§§ 5–17); Wesel (FR), Chapter 4 (‘Rechtswidrigkeitund Schuld’): Wesel points out that ‘Rechtswidrigkeit’ and ‘Schuld’ were first distinguished as separate elements100 years ago.309

The German Legal System and Legal Language16 See Chapter X B1 5 (Note 22) and Chapter X C 2 2 (Note 105).17 These elements form part of the German system of criminal offences and must be examined individually ineach case. In particular, in German criminal law there can be no punishment without ‘Schuld’ (‘nulla poenasine culpa’), whereas in civil law liability is not always dependent on blame (‘Verschulden’; eg, cases of‘Gefährdungshaftung’ (strict liability)) ‘Tatbestand’ and ‘Rechtswidrigkeit’ are objective elements; ‘Schuld’ issubjective.In certain special cases, the following additional elements can also become relevant:– ‘Objektive Bedingungen der Strafbarkeit’ (objective conditions of punishability);– ‘Persönliche Strafausschließungs- und Strafaufhebungsgriinde’ (personal grounds for the exclusion ofpunishment and personal grounds for the lifting of punishment);– ‘Prozefivoraussetzungen’ (preconditions for a hearing).See Baumann (ER), Part V, § 15 I; Baumann (GBS), Chapter 1 II 2 b; Jakobs, Book 2, Title 1, Chapter 1(Sections 7–10); Otto (AS), Part 2, Chapter 1, Section 1 (§ 5); Naucke, § 7 (‘Das Straftatsystem’); Creifeldsunder ‘Bedingungen der Strafbarkeit’; Note 61 in this Chapter.18 To what extent a ‘Handlung’ incorporates a subjective element is disputed.The classic (objective) theory is the so-called ‘kausale (‘normative’) Handlungslehre’, which regards conduct asrelevant for the purposes of criminal law, if it is caught by the provisions of a criminal norm and causes aparticular consequence. The perpetrator’s will causes his conduct, but is not part of it. ‘Schuld’ is an entirelyseparate, subjective, psychological issue.Baumann understands the term ‘Handlung’ in this sense. However, not all authors follow the same‘Straftatsystem’ (system for defining what constitutes a criminal act), ie, there is disagreement between thecriminal law theorists as to what amounts to a (criminal) ‘Handlung’.The ‘finale Handlungslehre’ (developed by Welzel) regards a ‘Handlung’ as ‘final’, ie, directed to a particularaim (‘Ziei’). The perpetrator’s will (ie, his ‘vorsatz’) is incorporated as a subjective element in his conduct.This (so-called neo-classical’) theory, therefore, incorporates a subjective element in the ‘Tatbestand’.The ‘soziale Handlungslehre’ (supported by Wessels) takes the view that only acts which are socially significant(‘sozialerheblich’) can fall within the criminal law.See Baumann (ER), Part V, § 15 11 b; Baumann (GBS), Chapter 4 I; Creifelds under ‘Handlungsbegriff and‘Finale Handlungslehre’; Naucke, § 7 V; Wesel (JW), Chapter X and Wesel (FR), Chapter 4 (‘Tat und Tatbestand’).19 According to modern, neo-classical doctrine (see the preceding Note), these elements can be not onlydescriptive/objective, but also subjective.Thus, Haft, for example, explains that ‘Vorsatz’ (intent) and ‘Fahrlässigkeit’ (negligence) have a double function.They are not only forms of ‘Schuld’ (‘Schuldfor men’), but are also subjective ‘Tatbestandsmerkmale’ ie, formsof conduct (‘Verhaltensformen’).See Haft (AT), Part 3, § 3 and § 7.20 See Krause / Thoma, Part 2, Section 3.An offence for which there is a heavier punishment in the event of particular consequences is referred to asan ‘erfolgsqualifiziertes Delikt’: § 18 StGB.See Creifelds under ‘erfolgsqualifiziertes Delikt’; Note 50 in this Chapter.21 This theory dominates in criminal law, but not in civil law, where the theory of foreseeability (‘Adäquanztheorie’(adequacy theory)) applies.See Creifelds under ‘Schadensersatz’ I (a); Dannemann, Part IV, 6; Jakobs, Book 2, Title 1, Chapter 1 (Section7); Kallwass, Section 3, Chapter 1 (§ 39); Youngs (CL), Chapter 5, Part IV A 3.22 ‘Jede Bedingung, die nicht hiniveggedacht werden kann, ohne daß der Erfolg entfiele’: ‘conditio sine qua non’.23 A See § 13 StGB, which states that the ‘Täter’ must ‘legally have to answer for’ (‘rechtlich einstehen für’)preventive action.An ‘echtes Unterlassungsdelikt’ is subsidiary to an intentional (but not negligent!) ‘Begehungsdelikt’ or‘unechtes Unterlassungsdelikt’. Thus, in The Neglected Assistance Case (Sourcebook, Chapter 7) the courtconsidered and distinguished the position where a crime is committed by means of an ‘unechteUnterlassung’ from § 323c StGB, which penalises a genuine omission.Another ‘echtes Unterlassungsdelikt’ is § 142 StGB (‘Unerlaubtes Entfernen vom Unfallort’ (unauthorizedwithdrawal from the scene of an accident (without leaving particulars)).See Creifelds under ‘Hilfeleistung, unterlassene’, ‘Unerlaubtes Entfernen vom Unfallort’; Haft (BT) (§§323c and 142 StGB); Ludovisy, ZAP, Fach 9 R, p 201; Note 73 in this Chapter.B The conviction (in August 1997) of members of the ‘Politbüro’ for aiding and abetting manslaughter(‘Beihilfe zum Totschlag’) was based on the failure to observe a ‘Garantenpflicht’ ie, they omitted toprevent the shootings along the former East German border, although they could have done so.310

NotesThe case shows that organs of state are not immune from the law and must observe elementary humanrights, even if this means constructing a ‘Garantenpflicht’ towards individual citizens.Justification for the decision can be found in the so-called ‘Radbruch formulât: if the contradictionbetween positive (national) law and principles of justice (‘Gerechtigkeit’) becomes so intolerable(‘unerträglich’)—eg, because the relevant (national) norms fly in the face of (internationally accepted)standaras of civilised behaviour—the positive law is illegal non-law (‘Unrecht’) and must give way tojustice.See Notes 3 and 34 in this Chapter; Creifelds under ‘Radbruch’sche Formel’; Wesel (FR), Chapter 8 (atthe end).Regarding crimes by omission see Creifelds under ‘Garantenstellung’ and ‘Unterlassungsdelikt’; Jakobs,Book 2, Title 2, Chapter 6 (Sections 28–30); Naucke, § 7 VIII; Otto (AS), Part 2, Chapter 1, Section 3 (§9).24 Elementary duties to help, of safekeeping and care (‘Hilfe- Obhut- und Fürsorgepflichten’) can also arise incivil law (tort) on the basis of a ‘Garantenstellung’.See Flume, §7 4.25 See§§13(ii)and49(i)StGB.26 See Creifelds under ‘Rechtswidrigkeit’; Otto (AS), Part 2, Chapter 1, Section 2 (§ 8).In English law, ‘Rechtfertigungsgründe’ would be classified as general (justifying) defences, in contrast to‘affirmative’ (excusatory) defences, which seek to exclude/negate the ‘mens rea’ of a crime, eg, mistake (inthe form of ‘Tatbestandsirrtum’ or ‘Verbotsirrtum’) or duress and necessity, which, in German law, fall under‘entschuldigender Notstand’ (§ 35(i) StGB). See 3 (d), below.27 See Baumann (GBS), Chapter 511 and Chapter 5 IV.28 For example, § 228 StGB. See also Jakobs, Book 2, Title 1, Chapter 2 (Section 14).29 See Jakobs, Book 2, Title 1, Chapter 2 (Section 15 IV).30 See § 32 StGB; Jakobs, Book 2, Title 1, Chapter 2 (Section 12).31 See § 228 BGB.32 See § 904 BGB.33 See § 34 StGB.By § 34 StGB, where there is a state of emergency (‘Notstandslage’), such that life, limb, freedom, honour,property or another legal asset is under immediate danger, emergency action (‘Notstandshandlung’) is justifiedas a last resort (‘ultima ratio’) to avert the danger from oneself or from another person, it, on a balancing(‘Abwägung’) of all intereste concerned, the interest protected ‘significantly outweighs’ the interest impaired.The measure taken must be appropriate (‘angemessen’).‘Notstand’ can also exclude ‘Schuld’ (§ 35 StGB). However, the area of application of § 35 StGB is much morerestricted.See 3 (d), below and cf § 35 StGB. See also Jakobs, Book 2, Title 1, Chapter 2 (Section 13).34 See Jakobs, Book 2, Title 1, Chapter 2 (Section 16 II).In The Shootings at the Berlin Wall Case (Sourcebook, Chapter 7) the ‘Grenzgesetz’ (Border Act) of the formerDDR did not, in the final analysis, amount to a justifying reason. Moreover, the argument that they acted‘aufBefehl’ (on orders) did not help the accused either.However, on the issue of ‘Schuld’, § 5(i) Wehrstrafgesetz (Military Crime Law) was applied analogously infavour of the accused, enabling the court to assess a milder punishment.See also Notes 3 and 23 in this Chapter.35 Thus, in the case of a criminal prosecution for ‘Beleidigung’ (insult), die utterance (‘Äußerung’) must beillegal (‘rechtsuridrig’) and intentional (‘vorsätzlich’). By § 193 StGB, it is not illegal, for example, if it is:– a critical review in the field of science, art or business;– a judgment at work (‘dienstliche Beurteilung’) by a superior; or– made in pursuit of just interests (‘berechtigte Interessen’).However, this is subject to the principle of proportionality (‘Verhältnismäßigkeitsgrundsatz’), the balancing ofcompeting interests (‘Abwägung’) and the duty, as far as possible, to check (‘nachprüfen’) the correctness ofthe statement. Moreover, me utterance can amount to a ‘Beleidigung’, depending on its form and thecircumstances.It is important to understand that die principal term (‘Oberbegriff’) ‘Beleidigung’ embraces three differentforms, which can all be written or oral:– simple insult (§ 185 StGB), ie, ‘Beleidigung’ in die narrow sense;311

The German Legal System and Legal Language– defamation/slander/offensive gossip (‘uble Nachrede’): § 186 StGB; and– malicious defamation / calumny (‘Verleumdung’): § 187 StGB.Simple insult covers a derogatory statement of opinion (‘Werturteil’) to the person insulted or to a thirdparty about him. It includes an assertion of fact (‘Tatsachenbehauptung’), if the assertion is untrue and isuttered to the person himself.Other assertions of fact (ie, those referring to the person insulted, but made to third parties) fall within ‘übleNachrede’ or ‘Verleumdung’.See Creifelds under ‘Beleidigung’; Chapter VIII, Note 7 (The Tucholsky Cases) and Note 20 D.36 Social adequacy or acceptability is also relevant in employment law as a criterion for establishing the legalityof industrial action (for the purposes of § 823(i) BGB). See Creifelds under ‘Soziale Adäquanz’; Chapter XVIII,Note 53.37 See § 127 StPO and §1631 BGB.38 This is to be compared with the (formerly dominant) ‘psychological’ definition of ‘Schuld’; see Note 18 inthis Chapter; Baumann (GBS), Chapter 6 11; Jakobs, Book 2, Title 1, Chapter 3 (Section 17 II); Otto (AS), Part2, Chapter 2 (§ 12).Another (subjective) definition of ‘Schuld’ (formulated by Stratenwerth) is: ‘persönliche Verantwortung’(personal responsibility). See Creifelds under ‘Schuld’ and Wesel (FR), Chapter 4 (‘Rechtswidrigkeit und Schuld’).39 See § 19 StGB; Creifelds under ‘Strafmündigkeit’; Chapter X, Note 5.40 Juvenile offences (‘Jugendstraftaten’)—also referred to as ‘Verfehlungen’ (transgressions)—are governed bythe Juvenile Courts Law (‘Jugendgerichtsgesetz’; JGG) of 11.12.1974. The JGG ousts the general criminal law,except insofar as the JGG otherwise provides: § 2 JGG.Jurisdiction over juvenile ‘Verfehlungen’ lies with special youth courts (‘Jugendgerichte’), the composition ofwhich varies according to the expected punishment and the nature of the offence: §§ 33, 39–41 JGG.If a youth is not sufficiently mature (‘nicht reif genug’) to be criminally responsible (ie, is unable to appreciatethat what was done was wrong), the youth court has the same powers as the guardianship court(‘Vormundschaftsgericht’): § 3 JGG (§ 1773ff BGB).However, if criminal capacity is not in question and a juvenile offence is established, the ordering ofeducational measures (‘Erziehungsmafiregeln’) takes precedence. Disciplinary measures (‘Zuchtmittelz) orjuvenile punishment (‘Jugendstrafe’) are possible, but only if educational measures do not suffice: § 5(ii)JGG.The preliminary procedure (‘Vorverfahren’) is dealt with by a youth prosecutor (‘Jugendstaatsanwalt’; § 36JGG), who must undertake extensive inquiries (‘Ermittlungen’) into the background of the accused youthand all other circumstances: § 43 JGG.The prosecutor can refrain from bringing the matter to court—without the consent of the judge—if judicialinvolvement can be dispensed with by an (less incisive) educational measure, or if § 153 StPO applies:§45(ii) JGG.See Creifelds under ‘Jugendliche und Heranwachsende’, ‘Jugendstrafe’ and ‘Jugendstrafrecht’.41 See Baumann (GBS), Chapter 614 a.42 See Creifelds under ‘actio libera in causa’.43 See Note 18 in this Chapter; Creifelds under ‘Schuld’; Jakobs, Book 2, Title 1, Chapter 1 (Sections 8 and 9);Otto (AS), Part 2, Chapter 1, Section 2 (§ 7); Model/ Creifelds/Lichtenberger, Part H (397).44 See § 15 StGB; Baumann (GBS), Chapter 6 II1 a; Naucke § 6IV 5 (a) (§ 15).45 See Baumann (GBS), Chapter 6 II 1b.46 See Baumann (GBS), Chapter 6 II 1 c.47 ‘Absichf’ and ‘sonstige spezielle subjektive Merkmale’ (other special subjective elements (of a ‘Straftat’)) form aseparate, differentiated sub-category under the general heading of ‘Schuld’. See Naucke, § 7IV.48 In other words, the perpetrator is indifferent to the risk of an offence occurring.49 See the Sourcebook, Chapter 7, Footnote 5.50 Gross negligence is also referred to as reckless conduct (‘leichtfertiges Handeln’). Such a degree of negligenceis a prerequisite in the case of an ‘erfolgsqualifiziertes Delikt’ punishable by more than five years’ imprisonment.See Wimmer, ZAP 15/98, Fach 21, p 175.51 See Baumann (GBS), Chapter 6 III; Otto (AS), Part 2, Chapter 1, Section 4 (§ 10).52 Creifelds lists five ‘Schuldausschließungsgründe’ (grounds for the exclusion of ‘Schuld’):– ‘Tatbestandsirrtum’ (§ 16 StGB);– ‘Entschuldigter (unvermeidbarer) Verbotsirrtum’ (§ 17 StGB);312

Notes– ‘Schuldunfdhigkeit’ (§ 19, § 20 StGB);– ‘Überschreitung der Notwehr’ (§ 33 StGB; so-called ‘Notwehrexzeß’); and– ‘Entschuldigender Notstand’ (§ 35 StGB).Even if ‘Schuld’ is excluded, the ‘Handlung’ of the ‘Tàter’ remains ‘rechtswidrig’. See Creifelds under‘Schuldausschließungsgründe’; Model/Creifelds/Lichtenberger, Part H (401).Regarding ‘Verbotsirrtum’, see Baumann (GBS), Chapter 6 II 3.Regarding ‘Schuldunfähigkeit’ and ‘Notwehrexzeß’ see Jakobs, Book 2, Title 1, Chapter 3 (respectively Sections18 II and 20 III).See also Otto (AS), Part 2, Chapter 2 (§§ 13–14).53 See Creifelds under ‘Irrtum’ II.To be distinguished is the situation where the ‘Täter’ knows that what he is doing is wrong, but makes amistake as to its punishability (‘Irrtum über die Strafbarkeit’). That is a ‘Rechtsfolgeirrtum’ (mistake as to thelegal consequence), which is always irrelevant54 Eg, ‘Putativnotwehr’: see Creifelds under ‘Notwehr’ I 3. For ‘Putativnotstand’ see below and Creifelds under‘Notstand’ 12.55 See Creifelds under ‘Wahndelikt’.56 See Creifelds under ‘Irrtum’ II.57 Referred to in § 17 StGB as ‘die Einsicht Unrecht zu tun’.Regarding ‘Unrechtseinsicht’ and ‘Verbotsirrtum’ see Jakobs, Book 2, Title 1, Chapter 3 (Section 19). See also:Engisch, Chapter VIII, Note 246a; Naucke, § 7 VII.58 See § 17,2nd sentence StGB. Punishment was reduced on this ground in The Shootings at the Berlin Wall Case(Sourcebook, Chapter 7).59 Regarding the exclusion of ‘Schuld’ in cases of ‘unvermeidbarer Verbotsirrtum’ (§ 17 StGB) and ‘entschuldigenderNotstand’ (§ 35 StGB), see Wesel (FR), Chapter 4 (‘Rechtsmdrigkeit und Schuld’). See also Jakobs, Book 2, Title1, Chapter 3, (Section 201).60 An act is not ‘rechtswidrig’ (illegal) in the former case and is carried out without ‘Schuld’ (guilt) in the latter.61 Due to personal circumstances existing at the time of, or arising after, the ‘Tat’. See Creifelds under‘Strafausschließungs (aufhebungs)—griinde’.62 See Creifelds under ‘Strafen’ and ‘Maßregeln der Besserung und Sicherung’; Model/Creifelds/ Lichtenberger,Part II (396); Wesel (FR), Chapter 4 (‘Dogmatik und Strafe’).63 The main example of a ‘Nebenstrafe’ is the ‘Fahrverbot’ (driving ban) in § 44 StGB. See Creifelds under‘Nebenstrafen’ and Note 81 in this Chapter, below. See also Baumann (ER), Part V, § 15IV 3.64 See §§38–39 StGB.65 See §§ 40–43 StGB.The ‘Geldstrafe’ is to be strictly distinguished from the term ‘Geldbuße’, which is the sanction for a minoroffence (‘Ordnungswidrigkeit’). See Note 9 in this Chapter.66 See § 38 StGB.67 See § 40 StGB.68 See § 47(i) StGB.69 See § 56 StGB.70 See §§ 57 and 57a StGB.71 See §§ 59(i) and 59a(i) StGB.72 See § 60 StGB.73 See § 46(i) StGB.Assessment of punishment (‘Strafbemessung’) is distinguished according to whether one and the same actinfringes various criminal provisions (so-called ideal concurrence (‘Idealkonkurrenz’ I ‘Tateinheit’ (unity ofact))—eg, §§ 142 and 323c StGB—or whether various offences are committed (so-called real concurrence(‘Realkonkurrenz’ / ‘Tatmehrheit’ (plurality of acts))—eg, a road accident involving § 222, § 230 and/or § 315c(iii) StGB is followed by the offence of § 142 and/or 323c StGB.While the former leads to only one punishment (§ 52(i) StGB), the consequence of the latter is a ‘Gesamtstrafe’(combined punishment; § 53(i) StGB).‘Gesetzeskonkurrenz’ (concurrence of statutory provisions) refers to the situation where one statutory provisionis displaced (‘verdrängt’) by another.313

The German Legal System and Legal LanguageSee Creifelds under ‘Konkurrenz (Zusammentreffen) von Straftaten’; Haft (BT); Note 23 in this Chapter.74 See §§ 61–72 StGB. A ‘Maßregel’ is also a ‘Mafinahme’ (measure) as defined in § ll(i) No 8 StGB. Regarding‘Maßregel’ see Baumann (ER), Part V, § 15IV 4; Jakobs, Book 1, Chapter 1 (Section 1 VI).75 See Baumann (ER), Part V, § 15IV; Naucke, § 3; Creifelds under ‘Zzveispurigkeit im Strafrecht’.76 See § 62 StGB.77 See § 63 StGB.78 See § 64 StGB.79 See § 66 StGB.80 See § 68 StGB.81 See § 69 StGB; to be distinguished from the ‘Fahrverbot’ of § 44 StGB: see Note 63 in this Chapter ante.82 See §70 StGB.Under certain provisions of the StPO some ‘Maßregel’ can be imposed provisionally (‘vorläufig’), ie, evenbefore judgment is passed. See Roxin, Book I, chapter 6, § 36.83 See §§73–76 StGB.CHAPTER XVII1 See generally: Creifelds under ‘Strafprozeß(recht)’; Baumann (ER), Part VI (§ 19); Model/Creifelds/Lichtenberger, Part 3 D (267–292); Naucke, § 5; Roxin.2 Regarding the differences between the continental European (German) system of criminal procedure andthat in England, see Roxin, Book I, Chapter 3, § 17 B and C and Book E, Chapter 16, § 73 A.3 Regarding the roots of German criminal procedure, see the diagram in Roxin, Book II, Chapter 15 (‘ZurGeschichte’).Regarding the ‘Constitutio Criminalis Carolina’ (‘Peinliche Gerichtsordnung’), see Chapter I, Note 8, above andRoxin, Book II, Chapter 15, § 69.Despite the Enlightenment of the 18th century, changes in Germany were only gradual.Thus, eg, until the Paulskirche assembly in 1848 there was no provision for a ‘Staatsanwaltschaft’.After 1848, reforms were introduced in Germany on a state by state basis.See Roxin, Book II, Chapter 15, § 70 C.4 The relevant §§ of the GVG are:– in accordance with their respective ‘(sachliche) Zuständigkeit’ ((substantive) competence/jurisdiction) incriminal matters (‘Strafsachen’):• for the AG: § 24 GVG;• for the ‘Strafrichter’ (single criminal judge): § 25 GVG;• for the ‘Schöffengerichte’: § 28 GVG;• for the LG:§§ 73–74 GVG;• for the OLG: §§ 120–121 GVG;• for the BGH:§ 135 GVG; and– for the ‘Staatsanwaltschaft’: §§ 141–152 GVG.See Naucke, § 5 II-IV; Chapter XXII, Note 37. Regarding the sources of the law of criminal procedure,see Roxin, Introduction (§ 3).5 See § 151 StPO; Roxin, Book I, Chapter 2, § 13.See also Note 23 in this Chapter.6 The maxims of criminal procedure are set out in Baumann (ER), Part VI, § 19 II and in Roxin, Book I,Chapter 2 (§§11–16).See also: Chapter VIII, Notes 18 and 36; Article 6 EuMRK.7 See § 158 StPO. Regarding the German criminal courts, their jurisdiction and composition (‘Besetzung’)see Roxin, Book I, Chapter 1 (§§ 7–6).See also: Creifelds under ‘Einzelrichter’, ‘Schöffengericht’, ‘Strafkammer’ and ‘Strafsenat’, Model/ Creifelds/Lichtenberger, Part 3 D (270 and 277).8 See §§77 and 77b StGB.9 Eg, trespass to land (‘Hausfriedensbruch’): § 123 StGB; insult (‘Beleidigung’): § 185 StGB; breach of the duty of314

Notesprofessional secrecy (‘berufliche Geheimhaltungspflicnt’): § 203 StGB; bodily harm (‘Körperverletzung’): § 223StGB.See Creifelds under ‘Antragsdelikte’, ‘Hausfriedensbruch’, ‘Beleidigung’ and ‘Berujsgeheimnis’; Roxin, Book I,Chapter 2, § 12 B.Cf private prosecution (‘Privatklage’).10 See § 158(ii) StPO.11 See Creifelds under ‘Strafverfolgungsverjährung’; §§ 78–78c StGB.The relevant limitation periods are set out in § 78(iii) StGB. The minimum period—for an offence carryinga sentence of less than one year’s imprisonment—is three years. Prosecutions for murder (‘Mord’) or genocide(‘Völkermord’) can never become statute-barred. ‘Veriährung’ begins on completion of the relevant offenceor, if a particular result (‘Erfolg’) is required by the ‘Tatbestand’, on its occurrence: § 78a StGB.12 Regarding the ‘Staatsanwaltschaft’, its structure, functions and position see Roxin, Book I, Chapter 1, §10 A.13 This is the ‘Offizialprinzip’ (official principle).See § 152 StPO; Roxin, Book I, Chapter 2, § 12; Chapter XIII B 3.14 See § 374 and § 376 StPO; Model / Creifelds / Lichtenberger, Part 3 D (2841).Such offences (‘Privatldagedelikte’) are a separate category to ‘Antragsdelikte’.See Note 9 in this Chapter and Chapter XVII H, below.15 See § 150 GVG.16 The relevant courts are shown in brackets.17 See the article by Werner Roth entitled ‘Ein klassischer Fall von Befangenheit’ in the Frankfurter AllgemeineZeitung (FAZ) of 20.3.2000.18 See § 152(ii) StPO.19 See § 153ff StPO and, in this Chapter, Note 40 A.20 See § 160(i) StPO. An initial suspicion (‘Anfangsverdacht’) is necessary.The ‘Ermittlungsverfahren’/‘Varverfahren’ (in the hands of the ‘Staatsamwltschaft’) precedes the issue of theindictment (‘Anklageerhebung’) and is the first stage of criminal proceedings. It is followed by:– the interim proceedings (‘Zwischenverfahren’), in which the court decides whether to open the mainproceedings (§§ 199ff StPO);– the main proceedings (‘Hauptverfahren’), in which the main hearing (‘Hauptverhandlung’) is preparedand held (§§ 213ff StPO).The ‘Erkenntnisverfahren’ (proceedings leading to a judgment) is another term for all proceedings up toenforcement (ie, within Books II-VI StPO).See Note 43 in this Chapter and Chapter XVII G.See also: Model/Creifelds/Lichtenberger, Part 3 D (278); Roxin, Introduction (§ 5), Book I, Chapter 7 (§ 37,§ 40) and Chapter 8 (§§ 41–45).21 See §160(ii) StPO.22 See §161 StPO.Those police officers authorised to assist the ‘Staatsanwaltschaft’ are referred to as ‘Hilfsbeamten derStaatsanwaltschaft’: § 152 GVG. Regarding their position see Roxin, Book I, Chapter 1, § 10 B I.Regarding the interrogation (‘Vernehmung’/‘Verhor’) of the suspect in the ‘Ermittlungsverfahren’ see Note 38H in this Chapter.Witnesses (‘Zeugen’) and experts (‘Sachverständige’) can also be questioned by the ‘Staatsanwaltschaft’ andpolice: § 161a, § 163a (v) StPO.Certain persons (eg, close relatives) have a right to refuse to give evidence (‘Zeugnisverweigerungsrecht’): §§52–53 StPO. Moreover, a witness can refuse to answer particular questions (‘Auskunftsverweigerungsrecht’),if to do so would expose the witness or a member of thewitness’s family to a risk of prosecution: § 55(i) StPO (‘self-incrimination’). Witnesses must be cautionedregarding their above rights before being examined: §§ 52(iii), 55(ii) StPO.A suspect must appear, if summoned by the ‘Staatsanwaltschaft’: § 163a (iii) StPO. However, unlike witnessesand experts, the suspect does not have to make a statement (‘aussagen’).23 See §162(i) StPO.Various points should be noted here:315

The German Legal System and Legal Language– The ‘Staatsanwaltscnaft’ is in full control of the ‘Ermittlungsverfahren’: it is ‘Herr des Ermittlungs¬ verfahren’(master of the investigation procedure).– During the ‘Ermittlungsverjahren’ the judge is referred to as the ‘Ermittlungsrichter’ (investigative judge).When dealing with an application for an investigative act the judge’s function is merely executive, ie, tocheck whether the act applied for is ‘zulässig’ (admissible) in the circumstances. See Roxin, Book I,Chapter 1, § 10 B II and § 162(iii) StPO.– The order (‘Anordnung’) for an investigative act must usually be made by the judge. However, if there is‘Gefahr im Verzug’ (danger in delay) the order can be made by me ‘Staatsanwaltschaft’ or police.– The strict rule is that a judicial investigation can never be started by a court on its own initiative: seeNote 6 in this Chapter.Thus, there must either be a ‘Klage’ or an application (‘Antrag’) for a ‘richterliche Untersuchungshandlung’.However, by § 165 StPO, necessary ‘Untersuchungshandlungen’ can be undertaken by a judge alone (actingas a so-called ‘Notstaatsanwalt’ (emergency prosecutor)), if a ‘Staatsanwalt’ is not available (‘erreichbar’).§ 165 is a very exceptional provision, the application of which can result in a conflict of functions.See the instructive discussion in Wesel (FR), Chapter 1 (at the end) of the political scandal, which ensued theseizure (at the 1967 Frankfurt Book Fair) of a book containing allegations against the former Federal PresidentHeinrich Lübke.See also: Creifelds under ‘Ermittlungsrichter’; Roxin (Book I, Chapter 2, § 13), who refers to § 165 as an‘apparent exception’ to the principle ‘Wo kein Kläger, da kein Richter’ (there is no judge without a claimant).24 See § 81a StPO; Roxin, Book I, Chapter 6, § 33. § 81 a StPO dispenses with the permission of the suspect forany risk-free physical examination, eg, the taking of blood samples (‘Entnahme von Blutoroben’) or a DNAtest. It can be carried out on the orders of the ‘Staatsanwaltsdmft’ or police, if any delay would endanger thesuccess of the investigation: § 81a (ii) StPO.Measures to ascertain the identity of a suspect (‘erkennungsdienstliche Maßnahmeri’; eg, photos, fingerprints)do not require the sanction of a judge: §§ 81b, 163b StPO. For identification purposes, where a person issuspected or convicted of a particularly serious crime, body cells can be extracted and subjected to geneticexamination, if there is reason to believe that fresh criminal proceedings will be necessary against the sameperson for such an offence in future: § 81g StPO.The storage of such a genetic fingerprint (‘DNA-Identifizierungsmuster’) in a data bank is not unconstitutional.See ZAP-Aktuell, 4/01, p 192.25 A more modern expression for ‘Beschlagnahme’ is ‘Sicherstellung’ (safekeeping).To be distinguished are §§ 94–101 StPO, which deal with the seizure of items of possible significance asevidence and §§ lllb-p StPO, which relate to safekeeping for the purpose of facilitating forfeiture (‘Verfall’)or confiscation (‘Einziehung’).In principle, the seizure of items, which may be of significance as evidence, can only be ordered by a judge:§ 98(i) StPO. However, the ‘Staatsanwaltschaft’ and their auxiliary officials can (exceptionally) make suchan order, if there is ‘Gefahr im Verzug’ (danger in delay). Cf Chapter XXII, Note 26.Certain items are excluded from seizure (eg, written communications between a suspect and his ‘Verteidiger’;documents and information in the possession of persons working in the media field, who require such foreditorial purposes: §§ 97(i), 97(v) StPO).By § 98(ii), 1st sentence StPO, officials who seize items without a judge’s order should seek judicialconfirmation within three days:– if neither the person affected nor an adult family member was present at the seizure; or– if the person affected or, in that person’s absence, an adult family member expressly objected to theseizure.Regarding the following measures see the appropriate §§:– data comparison and transmission (‘Abgleich und Übermittlung von Daten’): §§ 98a-c StPO;Where certain very serious offences are involved and there is ‘Gefahr im Verzug’ (danger in delay), the‘Staatsanwaltschaft’ can—subject to judicial confirmation within three days—order the use of specialcomputer-assisted search methods to trace and enmesh the perpetrator(s), ie, a comparison of personaldata (‘personenbezogene Daten’) based on particular search criteria (so-called ‘Rasterfahndung’ (grid search);§ 98a StPO) and the storage of personal information obtained at borders or other control points (socalled‘Schleppnetzfahndung’ (dragnet search); § 163d StPO).– seizure of post (‘Postbesdilagnahme’): §§ 99–100 StPO;– surveillance (monitoring) of telecommunications (‘Überwachung des Fernmeldeverkehrs’): §§ 100a–bStPO;316

Notes– observation and bugging: §§ 100c-d StPO;– search (‘Durchsuchung’) of the person or premises of the suspect: § 102 StPO;– search of other premises: § 103 StPO;– search of premises at nighttime: § 104 StPO;– use of undercover agents (‘verdeckte Ermittler’): §§ 110a-e StPO;– establishment of control points (‘Kontrollstellen’) in public places: § 111 StPO.See generally: Creifelds under ‘Beschlagnahme’, ‘Datenschutz’ and ‘Sicherstellung’; Roxin, Book I, Chapter 6,§34.26 See Creifelds under ‘Untersuchungshaft’; §§ 112ff StPO; Note 38 in this Chapter, below.‘Untersuchuncshaft’ must be based on a judge’s written arrest warrant (§ 114(i) StPO) specifying the suspect,details of the alleged offence, the ground for detaining the suspect in custody (‘Haftgrund’) and (in so far asstate security is not thereby endangered) the facts establishing a high suspicion that the suspect committedthe offence (‘dringender Tatuerdacht’): § 114(ii) StPO.A In accordance with the principle of proportionality (‘Verhältnismäßigkeitsgrundsatz’), ‘Untersuchungshaft’(investigative custody) cannot be ordered, if it is out of proportion to the importance of the matter andto the expected ‘Strafe’ or ‘Maßregel’: § 112(i), 2nd sentence StPO.Thus:– three preconditions must be fulfilled before ‘Untersuchungshaft’ can be ordered: there must be a‘dringender Tatverdachft’; there must be a ‘Haftgrund’; and it must be proportionate to order‘Untersuchungshaft’.– ‘Untersuchungshaft’ can only exceptionally be ordered on the basis of ‘Verdunkelungsgefahr’ (see Note38 B in this Chapter) where the possible punishment for the offence is less than six months’ imprisonmentor not more than 180 ‘Tagessätze’ (daily rates): § 113(i) StPO.– an arrest warrant must be quashed as soon as the preconditions for ‘Untersuchungshaft’ no longer existor if it transpires that further ‘Untersuchungshaft’ would be out of proportion to the importance of thematter and to the expected ‘Strafe’ or ‘Maßregel’: § 120(i), 1st sentence StPO.B A suspect has various means of challenging an order for ‘Untersuchungshaft’. He can make an applicationto the court at any time under § 117(i) StPO for so-called Haftprüfung’ (review of custody)—eg, for theorder to be quashed. Alternatively, on a subsidiary basis, a suspect can—even if he is not actually incustody—lodge a custody complaint (‘Haftbeschwerde’) against a decision by the court. If no relief isgranted, the complaint passes for decision to the next higher court §§ 117(ii), 304 StPO.Once a suspect has been in custody for three months, ‘Haftprüfung’ must be undertaken by the courtof its own motion (‘von Amts wegen’), unless the suspect is legally represented: § 117(v) StPO. Otherwise,the suspect is entitled to a defence lawyer (‘Verteidiger’) after three months in custody, if he or she doesnot already have one: § 117(iv) StPO.On application, an oral hearing (‘mündliche Verhandlung’) regarding ‘Haftprüfung’ must take place: §118 StPO.See Creifelds under ‘Haftprüfungsverfahren’; Schäfer, ZAP 24/97, Fach 22, p 281; Schleicher, ZAP 3/01,Fach 22, p 329.C § 116 StPO enables the judge to suspend execution of an arrest warrant based on ‘Fluchtgefahr’ (seeNote 38 B in this Chapter)—ie, grant bail—if the purpose of ‘Untersuchungshaft’ can be achieved byless incisive measures (eg, regular reporting, restrictions on movement, deposit of security): ‘Aussetzung(des Vollzugs) des Haftbefehls’/‘Haftverschonung’.In The Arrested Admiral Case (Sourcebook, Chapter 3), on the basis of the ‘Verhältnismäßigkeitssrundsatz ’ ,the possible ‘Haftverschonung’ (exemption from custody) under § 116 StPO was applied by analogy toa warrant based on § 112(iv) (now § 112(iii)) StPO, ie, in a case alleging murder.D So long as there is no judgment imposing a sentence of imprisonment (or a ‘Maßregel’ involvingdetention), a person can only be kept in ‘Untersuchungshaft’ for the same offence for more than sixmonths, if a judgment is not yet possible due to, and the continuation of custody (‘Fortdauer der Haft)is justified by, the particular difficulty or extent of the investigation or another important reason (‘diebesondere Scnwierigkeit oder der besondere Umfang der Ermittlungen oder ein anderer wichtiger Grund’): §121(i) StPO.Thus, once ‘Untersuchungshaft’ has lasted for 6 months, the arrest warrant must be quashed unless– there is ‘Haftverschonung under § 116 StPO; or– the OLG (on request by the competent court or the ‘Staatsanwaltschaft’) orders ‘Untersuchungshaft’to be continued: §§ 121(ii), 122 StPO.317

The German Legal System and Legal LanguageEThe maximum period for ‘Untersuchungshaft’ based on the ‘Haftgrurd’ of § 112a StPO (see Note 38 C inthis Chapter) is one year: § 122a StPO.F ‘Untersuchungshaft’ is only one of numerous compulsory measures (‘Zwangsmaflnahmen’) available incriminal proceedings, all of which involve an (authorised) infringement of a basic right(‘Grundrechtseingriff). Its purpose is to ensure the effective conduct of the criminal process (prosecutionand enforcement). See Roxin, Book I, Chapter 6 (§§ 29–36).27 See generally: Creifelds under ‘Verteidiger’; Roxin, Book I, Chapter 3 (§ 19).Regarding the liability of a ‘Verteidiger’ to his client see Köllner in ZAP 24/97, Fach 23, p 303.28 In civil proceedings, a ‘Beistand’ can appear with a party, but has no ‘Prozeßvollmacht’. See Chapter XIII D 1(f) (iv); § 90 ZPO.29 If, during the preliminary investigative proceedings (‘Ermittlungsverfahren’), it is proposed to examine acentral incriminating witness (zentraler Belastungszeuge’) in the absence of the suspect, the court must appointa ‘Verteidiger’.The judicial discretion to appoint a defender during the ‘Ermittlungsverfahren’ (§ 141(iii) StPO) is reduced toa duty to do so because Art 6(iii)d EuMRK gives an accused the right to question an incriminating witnessand expresses a general principle requiring a fair hearing.See ZAP 24/00, EN-Nr 802/2000.Moreover, whether or not a defender is appointed, an accused can insist on the attendance of an interpreter(‘Dolmetscher’) at court, if there are language difficulties (Article 6(iii)e EuMRK).See Chapter VIII, Note 18.30 The ‘Verteidiger’ is also entitled to inspect any items of evidence (‘Beweisstücke’) in the possession of theauthorities.The right of inspection of the file (‘Ermittlungsakte’) and items of evidence can be curtailed, if investigationsare still pending and the purpose of the investigation (‘Untersuchungszweck’) would be endangered: § 147(ii)StPO.However, a ‘Verteidiger’ must always be allowed access to the official record of the examination of thesuspect and any expert opinion (‘Sachverständigengutachten’): § 147(iii) StPO. See generally Burhoff, ZAP,Fach 22, p 345.31 In certain situations (involving a criminal or terrorist group (‘kriminelle oder terroristische Vereinigung’)), acomplete contact ban (‘Kontaktsperre’) can be imposed: §§31–38 EGGVG.32 In Germany, police law is governed by separate statutes in each of the ‘Länder’.Although there is no general federal police force in Germany, various federal authorities engage (broadlyspeaking) in police activities. Well known are the ‘Bundesgrenzschutz’ (federal border guard.). the‘Bundeskriminnalamt’ (federal office of criminal investigation; located in Wiesbaden) and the ‘Bundesamt fürVerfassungsschutz’ (federal office of constitutional protection; located in Cologne).It is important to understand that the German term ‘Polizei’ is used in two senses. The function (‘Aufgabe’) ofthe police in the classic, so-called ‘material’ sense is ‘die Abwehr von Gefahren für die öffenniche Sicherheit undOrdnung’ (the warding-off of dangers for public security and order) or just ‘Gefahrenabwehr’, ie, thepreservation of law and order.In the so-called ‘formal’ or ‘institutional’ sense, the term ‘Polizei’ is understood according to whether it actsas ‘Verwaltungspolizei’ (administrative police)—in which case the authorities involved are referred to as‘Polizeibehörden’ (police authorities) or ‘Ordnungsbehörden’ (order authorities)—or as ‘Vollzugspolizei’ (executivepolice)—also referred to as the ‘Polizeivollzugsdienst’ (executive police service) or just ‘Polizei’.The prevention and detection/investigation of crime is the domain of separate branches of the ‘Vollzugspolizei’,known respectively as the ‘Schutzpolizei’ (protective police) and ‘Kriminalpolizei’ (criminal police).Drews /Wacke/Vogel/ Martens broadly describe the difference between the ‘Verwaltungspolizei’ and the‘Vollzugspolizei’ as follows:‘Vollzugspolizei ist Gefahrenabwehr ‘vor Ort’, ‘Verwaltungspolizei Gefahrenabwehr’ ‘vom Schreibtisch aus’(‘Voltzugspolizei’ is the warding-off of dangers locally, ‘Verwaltungspolizei’ the warding-off of dangers fromthe desk; see Drews/Wacke/Vogel/Martens, Part 2, § 4 No 3).Thus, the ‘Vollzugspolizei’ usually becomes involved in situations where action needs to be taken immediately(‘sofort’).Although the ‘Verwaltungspolizei’ is no longer generally referred to as the ‘police’ in everyday speech, thesame legal principles apply to the ‘Verwaltungspolizei’ and the ‘Vollzugspolizei’ and they are often governedby one and the same law in the various ‘Länder’. The strict terminological distinction must, however, beborne in mind when one refers to these laws.See generally Drews/Wacke/Vogel/Martens, Part 1, §§ 1–3 and Part 2, §§ 4–6; Model/Creifelds/Lichtenberger, Part 2 C (158279177); Schmidt-Afimann, Section 2. See also Creifelds under ‘Polizei’,318

Notes‘Polizeirecht’, ‘Ordnungsbehörden’, ‘Kriminalpolizei’, ‘Bundesgrenzschutz’, ‘Bundeskriminalamt’ and‘Verfassungsschutz’.33 The police has a double function (‘Doppetfunktion’). It is competent both to deal, on a preventive basis, with‘Gefahrenabwehr’ (the warding-off or dangers, including crime) and to act in ‘Strafuerfolgung’ (the pursuit ofcrime).While the authority of the police in the former case is the police law of the relevant ‘Land’, in the latter casefederal law (the StPO) applies.Moreover, it is important to note that while measures of ‘Gefahrenabwehr’ taken by the police are subject tothe jurisdiction of the administrative courts under § 40(i) VwGO, measures of ‘Strafverfolgung’ are‘Justizverwaltungsakte’, open to examination by the OLG acting as a criminal court.See Drews/Wacke/Vogel/Martens, Part 3, § 9; Schmitt Glaeser, Part I, § 2 II B 2; Wesel (FR), Chapter 5(‘Polizeirecht’); Chapter XV, Note 2.34 See § 163(i) StPO.Similarly, the police is also responsible for the investigation of ‘Ordnungswidrigkeiten’ (minor offences): § 53OWiG.See also Chapter XVI, Note 9.35 See § 163(ii) StPO.36 A person caught in the act or being pursued (‘auffrischer Tat betroffen oder verfolgt’) can be provisionallyarrested by ‘jedermann’ (anyone), provided the person is suspected of being on the run (‘der Flucht verdächtig’)and cannot be immediately identified: § 127 (i) StPO.Usually, however, where there is ‘Gefahr im Verzug’ (ie, the situation is urgent and delay would be prejudicial),a ‘vorlâufige Festnahme’ is undertaken by the ‘Staatsanwaltschapft’ or police, provided the preconditions for a‘Haftbefehl’ or ‘Unterbringungsbefehl’ are fulfilled: § 127 (ii) StPO.See Note 49 in this Chapter.37 Which court has local jurisdiction (‘Gerichtsstand’) is ascertained by reference to §§ 7–21 StPO. The‘Gerichtsstand’ can be based (inter alia) on:– the place of commission of the offence (‘Tatort’): § 7(i) StPO;– the residence (‘Wohnsitz’) of the person to be prosecuted: § 8(i) StPO;– the place of seizure of the suspect (‘Ergreifungsort’): § 9 StPO.The court which opens the investigation (‘Untersuchung’, ie, the main proceedings) first takes priority: §12(i) StPO.See Roxin, Book I, Chapter 1 (§ 8).38 A A ‘Staatsanwalt’ usually applies for issue of a (written) ‘Haftbefehl’ to the judge at the ‘Amtsgericht’(district court) in whose area there is a ‘Gerichtsstand’ or in which the suspect is present § 125(i) StPO.That judge is referred to as the competent judge (‘der zuständige Richte’).There are two preconditions (‘Voraussetzungen’) for the issue of a ‘Haftbefehl’:(i) there must be a high suspicion that the suspect (‘Beschuldigter’) committed the offence (‘dringenderTaiverdachit’); and(ii)there must be a ‘Haftgrund’ ((factual) ground for detaining the suspect in custody.B There are four main ‘Haftgründe’: ‘Flucht’ (ie, the suspect is fugitive); ‘Fluchtgefahr’ (ie, there is a dangerof the suspect absconding (fleeing)); ‘Verdunkelungsgefahr’ (ie, there is a danger of an obstruction ofjustice (eg, possible tampering with evidence or collusion)); ‘Wiederholungsgefahr’ (ie, there is a dangerof repetition (in the case of certain serious crimes)). See § 112 StPO and this Note below.Additionally, ‘Untersuchungshaft’ may be ordered under § 112(iii) StPO for the seriousness of the offence(‘Scnwere der Tat’). This is the case where there is a high suspicion (see this Note, above) that thesuspect has:– established or participated in a terrorist organisation (‘Bildung/Beteiligung an einer terroristischenVereinigung’; § 129a(i) StGB);or has committed:– murder (‘Mord’; § 211 StGB);– manslaughter (‘Totschlag’; § 212 StGB); or– genocide (‘Völkermord’; § 220a (i) No 1 StGB),or has caused an explosion (‘Sprengstoffexplosion’) thereby endangering life or limb of others (§ 311 (i)-(iii) StGB).C The ‘Haftgrund’ of ‘Wiederholungsgefahr’ is dealt with in § 112a (i) StPO. By the first sentence of that319

The German Legal System and Legal Languageparagraph, a suspect can be taken into/kept in custody, if there is a high suspicion (see this Note,above) that either:1 the suspect has committed certain sexual offences (eg, rape (‘Vergewaltigung’); § 177 StGB); or2 has repeatedly or continuously (‘wiederholt oder fortgesetzt’) committed a particular, very grave offence(‘eine die Rechtsordnung schwerwiegend beeintrachtigende Straftat’) as follows:– breach of the peace (‘Landfriedensbruch’, § 125a StGB);– bodily harm (‘Korperverletzung’; §§ 224–227 StGB);– theft (Diebstahz; § 243 StGB);– robbery (Raub’, §§ 249–255 StGB);– blackmail (‘Erpressung’; § 253 StGB);– ancillary aggression against a driver or passenger (Rauberischer Angriff auf Kraftfohrzeugführer oder einenMitfahrer’; § 316a StGB);– handling ÇHehlerez; § 260 StGB);– fraud (‘Betrug’; § 263 StGB);– arson (‘Brandstiftung’; §§ 306–306c StGB); breach of certain provisions of the Narcotic Drugs Law(‘Betâubungsmittelgesetz’; §§ 29–30 BtMG);and:(a) particular facts (‘bestimmte Tatsachen’) establish the danger (‘Gefahr’) that, before the suspect is finallysentenced (‘vor rechtskräftiger Aburteilung’), the suspect will commit similar serious offences (‘weitereerhebliche Straftaten gleicher Art’) or continue the commission of the offence;(b) custody is necessary to avert the threatening danger (zur Abwendung der drohenden Gefahr erforderlich’);and(c) in cases under No 2, above, a sentence of more than one year’s imprisonment is to be expected.By § 112a (i), 2nd sentence StPO, one can, as a rule, assume a danger for the purpose of cases under No2, if, within the last 5 years, the suspect was convicted of, and sentenced to imprisonment for, a similaroffence.The ‘Haftgrund’ in § 112a (i) StPO is subsidiary to those in § 112: § 112a (ii) StPO.See also §§ 114,116–126 StPO and Note 26 in this Chapter, above.Regarding ‘Untersuchungshaft’—including, in particular, a critique of § 112 (iii) and § 112a StPO -seeRoxin, Book I, Chapter 6 (§ 30).D A person arrested ‘auf Grund eines Haftbefehls’ (on the basis of an arrest warrant) must ‘unverzüglich’(without delay):– receive details of the warrant (§ 114a StPO);– be brought before the competent judge (§ 115(i) StPO; ‘Vorfiihrung’ (presentation)); and–– be examined by the judge, at the latest the day after the ‘Vorfuhrung’ (§ 115(ii) StPO).At the examination (‘Vernehmung’), the suspect must– be informed of the incriminating circumstances;– be informed of his right to make a statement or to remain silent (‘Aussageverweigerungsrecht’);– be given an opportunity to refute the grounds for suspicion and custody and to put forward factsin his favour: § 115(iii) StPO.If the suspect– cannot be presented to the competent judge within a day after his seizure, he must be broughtbefore a judge at the nearest ‘Amtsgericht’ within that time: § 115a (i) StPO;– is not released by the judge (ie, the ‘Haftbefehl’ is confirmed), he must be advised of his right tolodge a ‘Beschwerae’ (complaint) or to apply for a review (re-examination) of custody (‘Haftprüfung’):§§ 115(iv), 117, 118 StPO. Such an application is possible at any time (‘jederzeit’; § 117(i) StPO) andcan be heard orally (§ 118(i) StPO): see Note 26 B in this Chapter.E If an arrest warrant or placement order already exists, a ‘Steckbrief (warrant of apprehension) can beissued (§131 StPO).F If there is no arrest warrant and a suspect fails to attend a ‘Vernehmung’, despite having received awritten summons (‘Ladung’) to do so, the judge or ‘StMtsanutâtschafrcan compel the appearance of thesuspect by means of a ‘Vorführungsbefehl’ (presentation order): § 133 StPO.However, on the basis of a ‘Vorfühningsbefehl’, a suspect cannot be held longer than until the end of theday following the ‘Vorführung’: § 135 StPO.G A suspect must be examined before conclusion of the investigations (‘Abschluß der Ermittlungen’) atthe latest, unless the investigation is terminated: § 163a (i) StPO.320

NotesIf it intends to issue proceedings, the ‘Staatsanwaltschaft’ must note conclusion of the investigations inthe file: § 169a StPO.H Where there is a first examination (‘erste Vernehmung’) of the suspect by the judge, ‘Staatsanwaltschaft’or police special requirements apply: §§ 136,163a (iii)/(iv) StPO.At the first examination, the suspect must be told what he is alleged to have done: § 163(a) (iv) StPO.He must be informed (in clear language) of his right to make a statement or to remain silent(‘Aussageverweigerungsrecht’) and that he can at any time consult a defender of his choice (also beforethe examination): § 136(i), 2nd sentence StPO (‘Recht auf Konsultation’).The suspect must be given an opportunity to dispel any grounds of suspicion existing against him andto assert any facts in his favour: § 136(ii) StPO. In particular, he must be advised that he can ask forexonerating evidence (‘Entlastungsbeweis’) to be taken, eg, a medical test or identity parade(‘Gegenüberstellung’): § 136(i), 3rd sentence StPO.Certain methods of questioning are forbidden: § 136a StPO.If there is reason to doubt the admissibility (‘Verwertbarkeit’) of statements obtained from the suspectduring the investigative proceddings, the defender must expressly make objection (‘Widerspruch’) atthe main hearing (‘Hauptverhandlung’). See Burhoff, ZAP, Fach 22R, p 207.I Regarding ‘Vorläufige Festnahme’ and ‘Vorführung’ see Roxin, Book I, Chapter 6 (§ 31). Regarding‘Vernehmung’ see Creifelds under ‘Vernehmungen im Strafverfahren’; Roxin, Book I, Chapter 5 (§ 25 III).See also Creifelds under ‘Festnahme’, ‘Haftbefehl’, ‘Steckbrief’ and ‘Vorführungsbefehl’.39 In accordance with the ‘Legalitätsgrundsatz’ (legality principle), the ‘Staatsanwaltschaft’ has a duty to do so:see Creifelds under ‘Anklageernebung und -zulassung’; §§ 170(i) and 199(ii) StPO. The ‘Anklageschrift’ mustspecify the accused, the alleged offence, the time and place of its commission, the statutory elements of theoffence and the applicable legal provisions: § 200(i) StPO.40 See § 170(ii) StPO.A In various types of case the ‘Legalitâtsgrundsatz’ gives way and the ‘Opportunitätsgrundsatz’ applies,enabling a prosecution to be dropped or, where proceedings have begun, for these to be terminatedby the court (‘eingestellt’).Thus, with the consent of the court, the ‘Staatsanwaltschaft’ can refrain from a prosecution (von derVerfolgung absehen’) on grounds of insignificance (‘Geringfügigkeit’) where a ‘Vergehen’ is involved, theperpetrator’s ‘Schuld’ is negligible and there is no public interest involved in the matter: § 153(i) StPO.Further, with the consent of the court, the ‘Staatsanwaltschaft’ can provisionally disregard raising anindictment (‘vorläufig von der Erhebung der öffentlichen Klage absehen’), if imposition of ‘Auflagen undWeisungen’ (conditions and directions) on the perpetrator would be appropriate, the perpetrator s‘Schuld’ is negligible and the public interest in a prosecution can thereby be disposed of: § 153a(i)StPO.‘Absehen von Strafoerfolgung’ and ‘Einstellung’ are also possible, for example, where crimes with aforeign element are involved, where state security takes precedence or where the accused has alreadybeen (or is expected to be) sentenced for another offence and the relevant ‘Strafe’ or ‘Maßregel’ hecould receive, if prosecuted, would not be of such significance by comparison. See §§ 153c, 153d and154(i) StPO.See generally: Creifelds under ‘Bagatellstrafsachen’, ‘Geringfügigkeit’, ‘Legalitätsprinzip’ and‘Opportunitätsprinzip’; Note 19 in this Chapter; Roxin, Book I, Chapter 2 (§14) and Chapter 7 (§38).B If, despite the ‘Legalitätsgrundsatz’, the ‘Staatsanwaltschaft’ declines to prosecute or terminates theinvestigation, the injured party can either:– within two weeks of the refusal initiate a special ‘Klageerzwingungsverfahren’ (procedure to compelprosecution) by means of a complaint (‘Beschwerde’) to the superior Staatsanwalt’ and, thereafter, tothe OLG; or– lodge a ‘Dienstaufsichtsbeschwerde’ (supervisory complaint) (also to the next superior ‘Staatsanwalt’).See §§ 171–177 StPO; Creifelds under ‘Anklageerzwingung’ and ‘Ermittlungsverfahren in Strafsachen II’.C Termination of an investigation does not prevent it being taken up again (re-opened) at any time. SeeChapter XVI, Note 5.However, if, in the ‘Klageerzwingungsverfahren’, the OLG rejects the application for prosecution, a newprosecution is only possible on the basis of new facts or evidence (§ 174(ii) StPO).D Persons who suffer financial loss due to prosecution measures can claim compensation under the‘Gesetz über die Entschädigung für Strafverfolgungsmaßnahmen’ (StrEG) of 8.3.1971. See Model/Creifelds/Lichtenberger, Part 3 D (278 and 283).41 See §§ 407ff StPO.321

The German Legal System and Legal LanguageThe application is equivalent to the lodging of a ‘Klage’: § 407(1), 4th sentence StPO.The ‘Strafbefehlsverfahren’ is a special summary written procedure where the accused is not heard before thejudge reaches his decision: §§ 407(iii), 408 StPO.The only types of punishment available are set out in § 407(ii) StPO. Imprisonment is not possible.The accused can lodge objection (‘Einspruch’) against a ‘Strafbefehl’ within two weeks of service, in whichcase a main hearing must be held: §§ 410(i), 411(i) StPO.See Creifelds under ‘Strafbefehl’; Roxin, Book I, Chapter 14 (§ 66); Chapter XVII I, below.42 See § 157 StPO.43 See § 203 StPO. This is the so-called ‘Eröffnungsverfahren’ or ‘Zwischenverfahren’ (interim proceedings). SeeCreifelds under ‘Anklageerhebung und -zulassung’ and ‘Eröffnungsverfahren’; Model/Creifelds/Lichtenberger,Part 3 D (279); Roxin, Book I, Chapter 7 (§ 40).Before deciding whether to open the main proceedings, the judge must give the accused an opportunity torequest the taking of evidence and to make objections: § 201(i) StPO.An ‘Eröffnungsverfahren’ and a written indictment (‘Anklageschrift’) are unnecessary, if the ‘Staatsanwaltschaft’applies for judgment in the so-called ‘beschleunigtes Verfahren’ (accelerated procedure). The facts must besimple and an immediate judgment possible: §§ 212, 212a StPO.The maximum possible punishments in the accelerated procedure are one year’s imprisonment or a ‘Maßregel’der Besserung und Sicherung’: § 212b(i) StPO.See Creifelds under ‘Beschleunigtes Verfahren’; Model/Creifelds/Lichtenberger, Part 3 D (281); Roxin, BookI, Chapter 12 (§59).44 See §§ 210(i) and 157 StPO.45 See § 207 StPO.46 See § 156 StPO.47 See § 210(ii) StPO.48 See §§ 214 and 217 StPO.In the ‘beschleunigtes Verfahren’ the notice period (‘Ladungsfrist’) is shortened to 24 hours, if the suspect doesnot attend voluntarily or is not brought before the court: § 212(a)(iii) StPO.See Note 43 in this Chapter.49 § 127b StPO.This measure forms part of the accelerated procedure. See Burhoff, ZAP 16/97, Fach 22, p 263; Notes 36 and43 in this Chapter.50 Exposition planned. See Model/Creifelds/Lichtenberger, Part 3 D (280–283); Roxin, Book I, Chapter 8 (§§41–45).51 A ‘Privatklage’ takes the place of a public prosecution, whereas a ‘Nebenklage ’ enables the party injured tojoin it.See Note 14 in this Chapter; Model/Creifelds/Lichtenberger, Part 3 D (284); Roxin, Book I, Chapter 13 (§§61–63).52 See Creifelds under ‘Sühneverfahren’.See also: § 279 ZPO; ‘Güteverhandlung’.53 See Model/Creifelds/Lichtenberger, Part 3 D (285–287); Roxin, Book I, Chapter 14 (§§ 64–66).54 See Note 41 in this Chapter.55 See Model/Creifelds/Lichtenberger, Part 3 D (288–289); Roxin, Book I, Chapter 11 (§§ 56–57).CHAPTER XVIII1 An ‘Arbeitsvertrag’ is an example of a ‘Dienstvertrag’ and the provisions in the BGB regarding‘Dienstverträge’ (§§ 611–630) are of subsidiary application.A ‘Dienstvertrag’ involves the provision of services for others, but usually on an individual basis, ie, withoutthe element of social dependency, which is characteristic of an ‘Arbeitsvertrag’.See Note 60 in this Chapter; Baumann (ER), Part III, § 12; Fikentscher, § 79 I; Model/Creifelds/ Lichtenberger,Part 6 A (601–637); Söllner, Part 1, § 2 and § 5II.Relevant statutes in the field of employment law are listed in Hanau/Adomeit, Part BIV; Söllner, Part 1, §6.322

Notes2 (a) The term ‘Arbeitnehmer’ includes ‘Arbeiter’ (workers) and ‘Angestellte’ (employees). Specializedcategories include:– ‘gewerbliche Arbeitnehmer’ (industrial/trade employees eg, ‘Werkmeister’ (foremen), ‘Techniker’ (technicians)and ‘Fabrikarbeiter’ (factory workers) ie, skilled and unskilled ‘blue-collar’ staff), governed by §§ 105–139m, ‘Gewerbeordnung’ (GewO; Business Order);– ‘kaufmännische Angestellte’ ((lower-ranking) commercial employees; (junior) ‘white-collar’ staff) eg,‘Gehilfen’ (assistants), governed by §§ 59–83 ‘Handelsgesetzbuch’ (HGB; Commercial Code);– persons undergoing vocational training (‘Berufsausbildung’)—ie, trainees and apprentices—, who arereferred to by a variety of titles, eg, ‘Auszubildende’, (Handwerks-) ‘Lehrlinge’, ‘Praktikanten’, ‘Volontäre’;and– public service employees (‘Angestellte des öffentlichen Dienstes’), eg, civil servants (‘Beamte’).The authorised representatives of personal companies or corporate bodies (eg, directors of a GmbH ormembers of the board of an AG) are not employees for the purposes of employment protection law and theemployment courts have no jurisdiction in matters concerning them: §§ 14(i) KSchG, 5(i) ArbGG.See Creifelds under ‘Angestellte’, ‘Arbeitsverhältnis’, ‘Arbeitsvertrag’, ‘Arbeitnehmer’, ‘Berufsbildung’,‘Handlungsgehilfe’ and ‘Offentlicher Dienst’. Hanau/Adomeit, Part E; Hofmann, Part F III; Söllner, Part 1, §31–III, § 4 and Part 4, § 28.(b) It is sometimes difficult to establish whether or not a person is an ‘Arbeitnehmer’. A person is not an‘Arbeitnehmer’, if he or she is self-employed (‘selbständig’) or similar to an employee (a so-called‘arbeitnehmerähnliche Person’), ie, someone who is not subject to direction (‘weisungsgebunden’) norpersonally dependent (‘persönlich abhängig’), but only commercially dependent (‘wirtschaftlich abhängig’).A person predominantly working for and paid by one employer can be regarded as an‘arbeitnehmerähnliche Person’, although the question ultimately depends on the individual circumstancesand market opinion (‘Verkehrsanschauung’). A particular criterion is the extent to which the relevantperson is incorporated (‘eingegliedert’) into the other party’s organisation (§ 7(i), 2nd sentence SGB(Book IV)).The effect of a person being considered an ‘arbeitnehmerähnliche Person’ is that, in principle, Germanemployment law does not apply. However– individual statutes can provide that they apply to ‘arbeitnehmerähnliche Personen’ (eg, § 5(i) ArbGG;§ 2 ‘Bundesurlaubsgesetz’ (Federal Holiday Law));– ‘Arbeitsschutzrecht’ (work protection law: see Chapter XVIII H, below) remains applicable, as itplaces obligations on employers, even if no formal, but merely a factual, employment relationship(a ‘faktisches Arbeitsverhältnis’) exists.See ‘Handbuch des Fachanwalts—Arbeitsrecht’, 2nd Edition (1994); Part A, Notes 37 and 38; ‘Arbeitsrecht’by Ernst Ruppert, 2nd Edition (1992), Lektion 9, 1.2; Zöllner/Loritz, § 4 VI 2. See also: Chapter XI,Note 40.(c) By the ‘Gesetz zu Korrekture in der Sozialversicherung und zur Sicherung der Arbeitnehmerrechte’—the socalled‘Korrekturgesetz’ (Law to correct Social Insurance and to Secure Employees’ Rights)—of 19.12.1998,as amended by the ‘Gesetz zur Förderung der Selbständigkeit’ (Law to Promote Self-Employment) of20.12.1999, measures have been introduced with effect from 1.1.1999 to bring persons, who are, inreality, employees within the scope of the social security system.The intention is to combat avoidance (‘Umgehung’) by those in ostensible self-employment(‘Scheinselbständigkeit’)—disguised employees—and by persons with various jobs, each paying lessthan DM 630 per month, under which level no national insurance contributions are due.Persons similar to employees, but formally self-employed, (‘arbeitnehmerähnliche Selbständige’) mustalso now contribute to the state pension scheme (‘Rentenversicherung’), even if they do not fall withinthe social insurance criteria. There is an exception for persons starting up in business (‘Existenzgründer’).By § 7(iv) SGB (Book IV), for social insurance purposes, a person is presumed to be employed, if threeof the following five criteria are fulfilled:– the person has no employees earning more than DM 630 per month;– the person usually and mainly works for one principal (‘Auftraggeber’);– the person provides services typical of an employee (‘typische Arbeitsleistungen’), is subject to directionby the principal and is incorporated into the principal’s organisation;– the person does not independently engage in business in the market;– the person leaves the employment of a principal and then undertakes apparently the same workfor that principal.Groups affected by the measures include manual workers (‘Handwerker’), freelance assistants (‘freieMitarbeiter’), home workers (‘Heimarbetier’) and commercial agents (‘Handelsvertreter’).323

The German Legal System and Legal LanguageA new enquiry procedure (‘Anfrageverfahren’) has been introduced, by which applications for clearance canbe made to the ‘Bundesversicherungsanstalt für Angestellte’ (BfA; Federal Institute of Insurance for Employees)in Berlin: § 7a SGB (Book IV).There is great concern that the measures will disencourage free enterprise and cause difficulty in findingstaff.See Marschner in ZAP 1/99, Fach 17, p 465; Söllner, Part 2, Section 1 (§§ 7–8); Creifelds under‘Sozialversicherung’; Note 13 in this Chapter.3 See Note 61 in this Chapter.4 See Brox (AR), Chapter 3 I, Chapter 7 A I–III and Chapter 7 B I–IV; Hanau/Adomeit, Parts E and J; Söllner,Part 4 (§§ 28,34–36); Creifelds under ‘Kündigung’ and ‘Kündigungsschutzfür Arbeitnehmer’.5 See Schuldt in ZAP 23/97, Fach 17, p 369.6 Usually, contracts are discharged by performance (‘Erfüllung’). However, the BGB allows for the unilateralcancellation (‘Kündigung’) or certain types of contract which create an ongoing obligation(‘Dauerschuldverhältnis’), ie, in the case of:– a lease/tenancy (‘Mietvertrag’; see §§ 542–544,553–554b, 564–565, 569, 584 and 594a BGB);– a loan (‘Darlehen’; see §§ 609,609a BGB);– a contract of employment (‘Arbeitsvertrag’; see below); and– a company (‘Gesllschaft’; see §§ 723–725 BGB).Moreover, the BGB contains provisions for termination of:– a contract of service (‘Dienstvertrag’) which is not a contract of employment: §§ 621, 627 BGB; and of– a contract for services (‘Werkvertrag’) (only) by the customer: § 649 BGB.7 A See Chapter X B 2 (b) (‘Nullity and challengability of a ‘Willenserklärung” and ‘Form and nullity of a‘Rechtsgeschäft’).The usual rule is that the effect of the challenge (‘Anfechtung’) of a ‘Rechtsgeschaft’ is that it is void fromthe start (‘ab initio’; § 142(i) BGB). However, for an employee, who has already commenced work, thiswould be unfair—his contractual rights (eg, to pay) would be wiped out and he would be left to makea claim for unjust enrichment.To overcome this situation, the concept of the ‘faktisches Arbeitsverhältnis’ (factual (‘de facto’) employmentrelationship) was developed by the judiciary—an ‘Anfechtung’ usually only results in a contract ofemployment being void (‘nichtig’) for the future. Parties’ rights, which existed up to that point, are notdestroyed. This is in keeping with the status of an ‘Arbeitsvertrag’ as a ‘Dauerschuldverhältnis’ (ongoingobligation).See Brox (AR), Chapter 3 II; Hanau/Adomeit, Part F III 2 and 5; Creifelds under ‘Dauerschuldverhältnis’;Chapter X, Note 146.B Similarly, it would be intolerable, if a personal company (‘Personengesellschaft’)—eg, a ‘BGB-Gesellschaft’,an OHG or a KG—which has started operating or commenced business, could be challenged or nullifiedretrospectively (‘rückwirkend’) according to civil law rules due to a legal defect.To prevent such a result, the judiciary has developed the concept of the factual or faulty company(‘fehlerhafte Gesellschaft’)—the company usually remains fully effective until such time as the relevantdefect (‘Mangel’) is pleaded, ie, the company can only be dissolved for the future.Not to be confused with this concept is the doctrine of the ostensible company (‘Scheingesellschaft’).According to this doctrine (of customary law), a person, who is responsible for creating or maintainingthe legal aura (‘Rechtsschein’) of a company where none exists, is liable for the consequences of suchaction.See Creifelds under ‘Faktische Gesellschaft’; Eisenhardt, Chapter 4, § 17; Kraft/Kreutz, Part E V; Hueck,Section 2, § 13 III; Chapter XIII, Note 57.8 The right to declare an ‘außerordentliche Kündigung’ is based on § 242 BGB and cannot be excluded bycontract.9 Similarly, the limitation of a contract of employment to a particular period (‘Befristung’) is only valid, if it isin writing.10 See Brox (AR), Chapter 7 II 2 and Söllner, Part4, § 35 III 2.There has to be a prior warning before a dismissal based on the employee’s conduct (‘verhaltensbedingteKündigung’) unless the conduct in question is especially grave (‘besonders schwerwiegend’).An ‘Abmahnung’ is also a preliminary step to an action for unfair competition. See Wurm/Wagner/ Zartmann,Section C, Part 6, Chapter 142; the Lawyers’ Handbook (Beck), Part B XI, III.324

Notes11 Instead of (merely) terminating an ‘Arbeitsverhàltnis’, an employer can issue a so-called ‘Änderungskündigung’:the ‘Kündigung’ is linked to (an offer by the employer of) an alteration in the terms of employment(‘Arbeitsbedingungen’).An ‘Änderungskündigung’ is a proper ‘Kündigung’ for all purposes.An ‘Ànderungskündigung’ is to be distinguished from a ‘Versetzung’ (transfer), ie, the allocation (‘Zuweisung’)to an employee by an employer of other work, in the context of the (permissible) exercise of an employer sright of direction (‘Direktionsrecht’).See Langer, ZAP 11/91, Fach 17, p 139; Heil, ZAP 13/98, Fach 17, p 417; Rölz and Weber in ‘Welt am Sonntag’,15.12.1996, p 60.12 See § 622 (iv)–(vi) BGB.13 § 23(i) KSchG.The ‘Arbeitsrechtliches Beschäftigungsforderungsgesetz’ (ArbBeschFG; Promotion of Employment Law) increasedthe threshhold figure (‘Schwellenwert’) from five to 10 employees with effect from 1.10.1996. However,following the change of government in October 1998, this has again been reduced to five with effect from1.1.1999 by the ‘Korrekturgesetz’ (see Note 2 in this Chapter).The ArbBeschFG also made controversial changes to the law regarding the rights of employees to continuedpay in case of illness (‘Lohnfortzahlung im Krankheitsfall’), as contained in the ‘Entgeltfortzahlungsgesetz’ (EFZG)1994 (viz a reduction from 100§ of salary to 80%). Again, these were reversed by the ‘Korrekturgesetz’.By § 3(i) EFZG, an employee has a claim to continued pay for up to six weeks, if he or she becomes incapableof working (‘arbeitsunfähig’) due to illness without fault on his or her part. The claim arises once the employeehas been employed for four weeks: § 3(iii) EFZG.The incapacity for work must be notified to the employer without delay (‘unverzüglich’; § 5(i), 1st sentenceEFZG) and, after 3 days’ illness, a medical certificate (‘ärztliches Attest’) must be presented to the employeron the next working day at the latest (§ 5(i), 2nd sentence EFZG).However, the certificate constitutes only ‘prima facie’ evidence (‘Anscheinbeweis’) and its evidential value(‘Beweiswert’) can be shaken, if serious doubts (‘ernsthafte Zweifel’) regarding the alleged incapacity exist.See Creifelds under ‘Entgeltfortzahlung im Krankheitsfall’; Langer, ZAP 2/1997, Fach 17, p 317; Haupt/Welslau,ZAP 6/97, Fach 17, p 339 and ZAP 16/98, Fach 17, p 437; Sartorius/Kremp, ZAP 7/00, Fach 17R, p 268.Under the ArbBeschFG—provisionally until 31.12.2000—(unprotected) contracts for a limited, temporaryperiod (‘befristete Arbeitsverhäàltnisse’) were permitted, it they did not exceed two years and were not renewedmore than three times. Workers over 60 years of age were excepted from the two year restriction. With effectfrom 1.1.2001, such contracts and part-time work (‘Teilzeitarbeit’) are now governed by the ‘Gesetz überTeilzeitarbeit und befristete Arbeitsverhältnisse’ (TzBfG).See Creifelds under ‘Zeitarbeitsverhältnis’; Rambach and Sartorius, ZAP 7/01, Fach 17, p 599.14 Internal business reasons (‘innerbetriebliche Gründe’)—eg, the commercial decision of an employer(‘Unternehmerentscheidung’), a lack of orders (‘Auftragsmangel’) or a decline in turnover (‘Umsatzrückgang’)—are, in principle, not normally reviewable by a court (‘nicht gerichtlich überprüfbar’), unless they are arbitrary(‘willkürlich’).However, the court can examine the underlying facts (‘Tatsachen’) and the employer’s submissions must besufficiently substantiated (‘ausreichend substantiiert’). In other words, an employer must be prepared tojustify his decision and be careful not to take a ‘broad-brush’ approach (no ‘pauschales Vorbringen’!).Thus, an employer, who asserts that the need for staff (‘Beschäftigungsbedürfnis’) has reduced because ofexternal circumstances (‘außerbetriebliche Umstände’), bears the burden of proof, ie, he must explain dieeffect of such circumstances on the level of employment in the particular ‘Betrieb’ and specifically showwhy the relevant job is no longer required (‘Wegfall des Arbeitsplatzes’) or a closure (‘Stillegung’) is necessary:§ l(ii), 4th sentence KSchG.See Langer, ZAP 11/1989, Fach 17, p 29, Part II; Sartorius/Kremp, ZAP 7/00, Fach 17R, p 271–272.15 See § 1 (iii) KSchG.A common form of ‘personenbedingte Kündigung’ is termination due to illness (‘krankheitsbedingteKündigung’).See Sartorius/Rambach, ZAP 9/01, Fach 17, p 621.16 See § 3 KSchG.17 By § 5(i) KSchG, an application can, exceptionally, be made for a ‘Klage’ to be admitted out of time(‘nachträgliche Zulassung’), if the employee was prevented from issuing proceedings within the three weekperiod, despite exercising the full measure of care, which could be expected of him in the circumstances.See Becker-Schaffner, ZAP 20/99, Fach 17, p 481.325

The German Legal System and Legal Language18 See § 7 KSchG. The alleged invalidity of an ‘außerdentliche Kündigung’ must be claimed in the same way:§13(i) KSchG.19 See §§ 9 and 10 KSchG. Regarding the ‘Arbeitsgericht’, its jurisdiction and procedure see Brox (AR), Chapter12; Hanau/ Adomeit, Part K and Söllner, Part 5 (§§ 39–40).20 The InsO replaces the former ‘Konkursordnung’ (Bankruptcy Order) and ‘Vergleichsordnung’ (CompositionOrder) and establishes a uniform insolvency procedure for personal and business debtors.See Creifelds under ‘Konkurs’.21 See Haupt, ZAP 24 / 99, Fach 17, p 499.22 See Brox (AR), Chapter 11AI–II; Hanau / Adomeit, Part D I; Söllner, Part 2, Section 4 (§§ 19–20).23 By § 5(ii) BetrVG, certain persons are deemed not to be employees within the meaning of the BetrVG, ie, thestatutory representatives of juristic persons; members of a personal company (‘Personengesellscnaft’); persons,whose activities primarily serve charitable or religious purposes; persons, who are occupied largely fortheir own good (eg, patiente, prisoners); dose family members, who live in the same household.24 See Söllner, Part 2, Section 4 (§23). See also §130 BetrVG.25 See Söllner, Part1, § 3 IV.26 For the ‘Mitbestimmungsrecht’ (right of co-decision) of the ‘Betriebsrat’ see Chapter XVIII E. See also Hanau/Adomeit, Part D III and IV and Söllner, Part 2, Section 4 (§§ 19–24).27 See § 8 BetrVG.28 See § 9 BetrVG.29 See § 5(iii) BetrVG.30 ‘Betriebe, die unmittelbar und überwiegend 1 politischen…konfessionellen, karitativen, erzieherischen,wissenschaftlichen oder künstlerischen Bestimmungen oder 2 Zwecken der Berichterstattung oderMeinungsäußerung…dienen’. See § 118(i) BetrVG.31 See Brox (AR), Chapter 11AIV; Hanau / Adomeit, Part D II; Söllner, Part 2, Section 4 (§ 211).32 See § 74(i), 2nd sentence BetrVG.33 See § 74(ii), 1st sentence BetrVG.34 See §74(ii), 2nd sentence BetrVG.35 See § 74(ii), 3rd sentence BetrVG.36 See Creifelds under ‘Betriebsvereinbarung’; Hanau/Adomeit, Part D II 3; Söllner, Part 2, Section 4 (§ 22); § 77BetrVG.A ‘Betriebsvereinbarung’ is only applicable on the level of the ‘Betrieb’. It is of direct and compulsory effect(‘gilt unmittelbar und zwingend’).Like a ‘Tarifvertrag’, a ‘Betriebsvereinbarung’ is a so-called ‘Gesamtvereinbarung’ (general agreement). It cancontain a normative and contractual part (see Note 52 in this Chapter). However, in the event of a conflictwith a ‘Betriebsvereinbarung’, a tariff agreement usually takes precedence (‘Vorrang des Tarifvertrags’).37 See Hanau/ Adomeit, Part D II 4 and § 76(vi) BetrVG.The ‘Einigungsstelle’ is competent to deal with regulatory questions (‘Regelungsfragen’) between employerand ‘Betriebsrat’, whereas the ‘Arbeitsgericht’ (employment court) handles legal questions (‘Rechtsfragen’).38 See § 76(ii) BetrVG.39 See § 76(v), 1st sentence and § 87 BetrVG.40 See Brox (AR), Chapter 11A III; Hanau / Adomeit Part D III; Creifelds under ‘Mitbestimmung’.41 See Söllner, Part 2, Section 4 (§ 21 III-VI); § 87(i) BetrVG.42 See § 99(i) and (ii) BetrVG.43 See § 102(i) BetrVG.44 See § 102(ii) BetrVG.45 See § 102(iii) BetrVG.46 See § 102(v) BetrVG.The employee must expressly claim this right before expiry of the notice period (‘Kündigungsfrist’), if heseeks to rely on it47 See §§ 81–66 BetrVG.48 See Hanau/ Adomeit, Part DIV; Söllner, Part 2, Section 4 (§ 24) and Chapter XVIII C.326

Notes49 See § 129(i) BetrVG 1952.50 See Brox (AR), Chapter 8 and Chapter 9 I–II; Hanau/Adomeit, Part C I; Söllner, Part 2, Section 2 (§§9–10).51 The main means by which an ‘Arbeitskampf’ (industrial action) can be conducted are ‘StreiK’ (strike) and‘Aussperrung’ (lock-out).See Brox (AR), Chapter 10; Hanau/Adomeit, Part CIII; Söllner, Part 2, Section 2 (§§11–13).52 The normative part of a tariff agreement contains legal norms (‘Rechtsnormen’) concerning the content,conclusion and termination of contracts of employment and such business-related matters, as are not usuallythe subject of a ‘Betriebsvereinbarung’: § l(i) TVG, § 77(iii) BetrVG.The norms apply directly and compulsorily (‘unmittelbar und zwingend’) to those persons, who are boundby the tariff agreement (‘tarifgebunden’ ie, the various members of the coalitions): § 4(i) TVG.Their effect on individual employment contracts is essentially that of a statute.The contractual part of a tariff agreement creates rights and duties only for the signatories to the agreement.On application by one of the parties to a tariff agreement, the Federal Minister of Employment can declarea tariff agreement to be generally binding (‘allgemeinverbindlich’), if not less than 50% of all employees in thearea covered by the agreement are employed by the employers’ side and such a declaration appears necessaryin the public interest: § 5(i) TVG. In this way, employers and employees, who were previously not‘tarifgebunden’ are incorporated into the tariff agreement: § 5 (iv) TVG.Disputes regarding tariff agreements are dealt with by the employment courts: § 2(i) Nr 1 ArbGG.See Brox (AR), Chapter 9 III–IV; Hanau/ Adomeit, Part C E; Söllner, Part 2, Section 3; Creifelds under‘Koalitionsfreiheit’, ‘Tarifvertrag’ and ‘Allgemeinverbindlichkeit’.53 See Brox (AR), Chapter 10 III 1 (b); Hanau / Adomeit, Part C III; Söllner, Part 2, Section 2, § 12II3.Industrial action can also found a claim for damages in tort (under § 823(i) BGB) for infringement of theright to an established and exercised business (‘Recht am eingerichteten und ausgeübten Gewerbebetrieb’). SeeSöllner, Part 2, Section 2, § 12 II 5; Chapter XVI, Note 36.54 See Söllner, Part 3, §25.55 For other examples of compulsory norms in employment law, see Brox (AR), Chapter 111.56 A ‘Zwangsmittel’ are set out in the ‘Verwaltungsvollstreckungsgesetz’ (Administrative Enforcement Law(VwVG)) of the ‘Bund’ (BVwVG) or of the relevant ‘Land’ and are distinguished according to whether1 money is claimed; or2 something is required to be done, tolerated or omitted (ie, the administrative act (VA) is directed toa ‘Handlung, Duldung oder Unterlassung’).Where a VA in category 2 is to be enforced, ‘Zwangsmittel’ usually comprise:– ‘Ersatzvornahme’ (substituted execution (of the measure) by the authority); or– ‘Zwangsgeld’ ((compulsory) fine).A ‘Zwangsgeld’ is an example of a so-called ‘Beugemittel’ (coercive measure). When used by a courtprocedurally, a ‘Beugemittel’ is referred to as an ‘Ordnungsmittel’. See Chapter XIII, Note 190; Creifeldsunder ‘Beugemittel’ and ‘Ordnungsmittel’.Another ‘Zwangsmittel’, restricted largely to the police, is the exercise of so-called ‘unmittelbarer Zwang’(direct force).B Administrative acts are normally only enforceable (‘vollstreckbar’) if:– they are ‘befehlend’ (require or forbid particular action); and– they have become ‘unanfechtbar’ (unchallengable (before an administrative court)); or– immediate enforcement (‘sofortige Vollziehung’) has been ordered; or– in other cases where a legal remedy would not have any suspensive effect (‘aufschiebende Wirkung’).However, even if there is no preceding administrative act, in a case of urgency (‘Eilfall’) administrativeforce (‘Verwaltungszwang’) can be exercised, if immediate enforcement (‘sofortige Volliehung’/‘sofortigerVollzug’) is necessary (‘notwendig’):– to prevent an act, which is illegal and falls within the ‘Tatbestand’ (content) of a crime or minoroffence (‘zur Verhinderung einer mit Strafe oder Bußgeld bedrohten Handlung’); or– to avert a danger, which is (directly) threatening (‘zur Abwendung einer (unmittelbar) drchenden Gefahr’);and the authority acts within its statutory powers (‘innerhalb ihrer gesetzlichen Befugnisse’): § 6(ii) BVwVG.See Creifelds under ‘Verwaltungsoollstreckungsgesetz’ and ‘Verwaltungszwang’; Chapter XIII, Note 164; ChapterXIV C 3 (Note 23) and XIV C 5. See also: Bull, Section V, § 17; Erichsen, Part 3, Section 1, § 20; Giemulla/Jaworsky/Müller-Uri, Book I, Chapter 8; Maurer, Part 5, § 20; Roxin, Book I, Chapter 6, § 31 A III.327

The German Legal System and Legal Language57 Both the threat of a ‘Zwangsmittel’ and the basic order (‘Grundverfügung’) it is meant to carry out are‘Verwaltungsakte’ (administrative acts) and can be challenged before an administrative courtThe threatened ‘Zwangsmittel’ must be specifically stated. A mere warning (‘Ermahnung’) is not sufficient.If immediate enforcement is ordered or legal remedies have no suspensive effect, the threat of a ‘Zwangsmittel’can be linked to the basic VA: § 13(ii) BVwVG.However, the ‘Verhältnismäßigkeitsgrundsatz’ (principle of proportionality) applies and more than one‘Zwangsmittel’ cannot be threatened at the same time: § 9(ii) and § 13(iii) BVwVG.See Creifelds under ‘Zwangsmittel’; Mampel in ZAP 23/97, Fach 19, p 377.58 See § 147(i) No 1 GewO.59 See § 147(iv) GewO.60 A ‘Dienstvertrag’ (contract of service) is to be distinguished from a ‘Werkvertrag’ (contract for services) and,indeed, from an ‘Arbeitsvertrag’ (contract of employment), to which the provisions in the BGB regarding the‘Dienstvertrag’ (§§ 611 ff) have only subsidiary application (‘hilfsweise Anwendung’). See Creifelds under‘Arbeitsvertrag’, ‘Dienstvertrag’, ‘Geschäftsbesorgungsvertrag’ and ‘Werkvertrag’; Chapter X C 3 (g) Title 6; ChapterX, Note 165.61 An employer has a similar ‘Fürsorgepflicht’ towards his ‘Handlungsgehilfen’ (trading assistants) / ‘kaufmännischeAngestellte’ (commercial employees) and ‘Handlungslehrlinge’ (trainees): § 62 HGB.Corresponding with an employer’s ‘Fürsorgepflicht’ is the employee’s duty of loyalty/fidelity (‘Treuepflicht’).See Creifelds under ‘Fürsorgepflicht’ and ‘Treuepflicht’; Hanau/Adomeit, Part E 10 (f); Söllner, Part 4 § 29 IIand § 31 II.62 See § 618(iii) BGB, which fixes die extent of the employer’s liability by reference to §§ 842–846 BGB.63 Three degrees of fault (‘Verschulden’; § 276 BGB) are distinguished:– slight negligence (‘leichte Fahrlässigkeit’); the employee is released from liability;– a medium degree of negligence (‘mittlere Fahrlässigkeit’); the loss is shared between employer andemployee;– intent (‘Vorsatz’) or gross negligence (‘grobe Fahrlässigkeit’); the employee bears the loss in full.64 ‘Schadensgeneigte Arbeit’ is a principle, which only operates internally between employer and employee, ie,it is a form of internal loss settlement (‘innerbetrieblicher Schadensausgleich’). Thus, third parties not having adirect claim against an employer (eg, because of § 831 BGB) must first obtain an assignment of the indemnityfrom the employee, before they can claim against the employer.Moreover, ‘schadensgeneigte Arbeit’ is a principle of employment law. Thus, insurers providing (compulsory)public liability cover (Haftpflichtversicherung) for motor vehicles cannot avoid liability to third parties byreference to the principle.See Creifelds under ‘Innerbetrieblicher Schadensausgleich’; Fikentscher, § 79 II.65 Persons, whose liability is limited under §§ 636,637 RVO, must reimburse the ‘Berufsgenossenschaft’ for allsums expended by it, if they acted deliberately or were grossly negligent: § 640 RVO.CHAPTER XIX1 See generally: Baumann (ER), Part III, § 11; Meyer, Part I, § 1A and B.The ‘Bund’ has concurrent legislative competence in the field of ‘Wirtschaftsrecht’: Article 74 Nos 11 and 16GG.However, in the fields of business protection (‘gewerblicher Rechtschutz’), copyright (‘Urheberrecht’) andpublishing law (‘Verlagsrecht’), the legislative competence of the ‘Bund’ is exclusive: Article 73 No 9 GG.2 For definitions of the controversial term ‘Wirtschaftsrecht’ see Creifelds under ‘Wirtschaftsrecht’; Model/Creifelds/Lichtenberger, Part 8 A (801).As an area of law, ‘Wirtschaftsrecht’ has its origins in the 20th century: see Schmidt-Aßmann, Section 4,Chapter 11.To be distinguished are the related terms:– ‘Wirtschaftswissenschaften’ (economics); and– ‘Wirtschaftsprüfer’ (chartered accountant).See Creifelds under ‘Wirtschaftsprüfer’.3 See Chapter XI.4 See Chapter XI.328

Notes5 The primary law in this field is the ‘Gewerbeordnung’ (Business Order (GewO)) 1869, variously amendedand reissued (last in 1987).See Baumann (ER), Part III, § 11 II; Chapter XVIII H.6 See Chapter XVIII.7 The law governing credit institutions is the ‘Gesetz über das Kreditwesen’ (KWG) 1976.See Model/Creifelds/Lichtenberger, Part 8 B (§§ 851ff).8 See Hubmann/ Getting, Sections 2–4; Meyer, Part 5, § 12; Rittner, Part 1, § 1 C II; Note 1 in this Chapter9 The main German statutes in this field are:– the ‘Gesetz gegen den unlauteren Wettbewerb’ (Law against unfair competition (UWG)) 1909; and– the ‘Gesetz gegen Wettbewerbsbeschränkungen’ (Law against restraints on competition (GWB)) 1957, reissuedin 1980.The UWG forms part of the law of competition in the narrow, private law, sense (‘Unlauterkeitsrecht’).See Rittner, Introduction I and Part 1, § 1 A.See also: Baumann (ER), Part III, § 11 III; Hubmann/ Getting, Section 5; Meyer, Part 6, § 13; Chapter VIII,Note 20 G.10 See Baumann (ER), Part III, § 11 II 2; Creifelds under ‘Verbände’.11 See, eg, Creifelds under ‘Gemeinschaftsrecht, europäisches’; Model/Creifelds/Lichtenberger, Part 8 A (813).12 Regarding the meaning of the term ‘Gewerbe’ for the purpose of the Commercial Code (HGB), see Gierke/Sandrock, Section I, Chapter 1, § 6.See also: Capelle/ Canaris, Part I, Section 1, § 21; Hofmann, Part B, Section 11.13 The following examples of ‘Urproduktion’ are given in Creifelds:– ‘Bergbau’ (mining);– ‘Landurirtschaft’ (agriculture);– ‘Forstwirtschaft’ (forestry);– ‘Garten—und Weinbau’ (horticulture and wine-growing);– ‘Tierzucht’ (animal breeding);– ‘Fischerei’ (fishing); and– ‘Jagd’ (hunting).14 The profession of lawyer is not a ‘Gewerbe’: § 2(ii) BRAO.15 Cf the wider term ‘Unternehmen’—see Chapter XVIII C.16 See Creifelds under ‘Gewerbe’ and ‘Gewerbebetrieb’.The law relating to persons engaged in handicraft (‘Handwerker’) is governed by the GewO, in so far as the‘Handwerksordnung’ (Handicraft Order (HandwO)) 1965 does not contain special provisions.Regarding the difference between ‘HandwerK’ and ‘Industrie’, see Creifelds under the respective terms. Seealso Creifelds under ‘Handwerkskammer’ and ‘Industrie—und Handelskammer’.17 See Note 5 in this Chapter.18 See §§ 24–34c GewO.19 See Creifelds under ‘Gewerbefreiheit’, ‘Stehendes Gewerbe’, ‘Gewerbeaufsicht’, ‘Gewerbeordnung’ and‘Gewerbezulassung’.20 See Baumann (ER), Part III, § 111; Schmidt-Aßmann, Section 4, Chapter II 2.21 See Schmidt-Aßmann, Section 4.22 See Creifelds under ‘Baurecht’, ‘Kartell’, ‘Umweltschutz’, ‘Steuern’ and ‘Subventionen’; Meyer, Part 6, § 14.Regarding tax law generally, see Tipke/Lang.23 See Creifelds under ‘Wirtschaftslenkung’.24 Particular measures in this field are the ‘Wirtschaftsstrafgesetz’ (Commercial Crime Law (WiStG)) 1954 andthe ‘Gesetz zur Bekämpfung der Wirtschaftskriminalität’ (Law to combat business crime (WiKG); No 1:1976; No2:1986).See Creifelds under ‘Wirtschaftskriminalität’ and ‘Wirtschaftsstrafrecht’.25 This is a potentially dangerous development.See the article entitled ‘Manager im Visier der Staatsanwälte’, in the Frankfurter Allgemeine Zeitung (FAZ) of24.3.2000 (p 22).26 See generally: Brox (HR), Part B (§§ 27–48); Gursky; Medicus (BT), Part 6, § 1171.27 See Brox (HR), Part B, Section 1, § 27 II.329

The German Legal System and Legal Language28 See Meyer, Part 3, § 8 BI.29 See Brox (HR), Part B, Section 1, § 2712; Gursky, Part I, Section 1 II B.30 As under § 1006 BGB, there is a rebuttable presumption that the person in possession of a ‘Wertpapier’ is therightful owner.31 See § 407 BGB.32 See Brox (HR), Part B, Section 1, § 28; Gursky, Part I, Section 1 III B.33 Bearer bonds for a sum of money issued in Germany can only be brought into circulation with state approval:§ 795 BGB.The objections available to the issuer of a bearer bond against a holder are limited: § 796 BGB. Moreover, acumbersome claims notification procedure (‘Aufgebotsverfahren’) is necessary before a bearer bond can bedeclared void: § 799 BGB.See Brox (HR), Part B, Section 4, § 45; Fikentscher, Section 13, § 96.34 See § 363 HGB.35 See § 10(i) AktG.See also the ‘Gesetz zur Namensaktie und zur Erleichterung der Stimmrechtsausübung’ (‘Namensaktiengesetz’) of18.1.2001.36 A cheque (‘Scheck’) and a bill of exchange (‘Wechsel’), which is drawn on a person other than the issuer(‘Aussteller’) – a so-called ‘Tratte’ – are special forms of ‘Anweisung’.An ‘Anweisung’ becomes effective on its delivery (‘Aushändigung’ /‘Begebung’) to the third party payee/recipient (‘Anweisungsempfänger’).Unlike a transfer from a bank account (‘Überweisung’) – which is a mandate (‘Auftrag’) in the context of agiro agreement (‘Girovertrag’) – an ‘Anweisung’ is abstract and itself creates no contractual relationship betweenthe parties, but merely gives rise to a double authorisation (‘Doppelermächtigung’), ie, the third party isempowered to demand performance from the drawee (‘Angewiesener’) and the drawee to effect performanceto the third party: § 783 BGB.The underlying relationship between the issuer and the third party is referred to as the ‘Valutaverhältnis’and that between the issuer and the drawee as the ‘Deckungsverhältnis’.See Creifelds under ‘Anweisung’, ‘Scheck’, ‘Tratte’ and ‘Wechsel’.Regarding ‘qualifizierte Legitimationspapiere’ or so-called ‘lame bearer securities’ (‘hinkende Inhaberpapiere’), seeBrox (HR), Part B, Section 4, § 46.37 See Brox (HR), Part B, Section 1, § 28 III.38 See Brox (HR), Part B, Section 1, § 27 II 2.39 See Brox (HR), Part B, Section 1, § 27 III; Creifelds under ‘Depotgeschäft’ and ‘Effekten’; Gursky, Part I, Section1 III E.See also: Chapter X, Note 211.40 Delivery of ‘Traditionspapiere’ only takes the place of delivery (‘Übergabe’) of the goods. Transfer of ownershipalso requires a real agreement (‘dingliche Einigung’) between the parties.Moreover, a transfer of ownership is not possible, if the transferor no longer has possession of the goods(‘Besitz am Gut’) or if the goods have meantime gone astray (‘abhanden gekommen’).See Brox (HR), Part B, Section 4, § 47 II 2.41 It can be difficult to distinguish between an ‘Inhaberzeichen’ (§ 807 BGB) and a (qualified) legitimatorydocument (§ 808 BGB).The difference is that, in the case of a (qualified) legitimatory document, the holder is not entitled to demandperformance: § 808(i), 2nd sentence BGB. 5, however, on presentation, the issuer decides to perform vis à visthe holder, the issuer is released from liability (except for gross negligence): § 808(i), 1st sentence BGB.See Brox (HR), Part B, Section 4, § 45 VI and § 46 III.CHAPTER XX1 See generally: Creifelds under ‘Internationales Privatrecht’; Fikentscher, Section 17, § 115; Schlosshauer-Selbach,Part 2, Section 31.2 See Collier, Part I, Chapter 6.The question of jurisdiction is not a procedural matter in this sense, but an independent, preliminary issue.330

NotesThus, it can be governed not only by the law of the forum, but can also be regulated by an internationalconvention (eg, the Brussels Convention (EuGVÜ)).See this Chapter, Section C 2, below; Chapter XIII, Note 28.Similarly, questions of the form of a legal transaction must be carefully separated from content (‘Inhalt’) andprocedural aspects. See Note 19 in this Chapter.The process by which different (sub-)issues arising in the same case are split according to the laws of differentstates (‘Rechtsspaltung’) is called ‘dépeçage’ (or the ‘mosaic method’).3 The prevailing view is that this must be undertaken according to the ‘lex fori’. See Schlosshauer-Selbach,Part 2, Section I; Collier, Part I, Chapter 3.4 Legal residence (‘Wohnsitz’) is no longer a connecting factor in German private international law.5 Called, respectively, ‘Sachnormverweisung’ or ‘Gesamtverweisung’.6 In such a case, there can, therefore, be no ‘renvoi’ to German law.On the other hand, if German law is the substantive law to be applied, but particular assets are subject tospecial provisions in their state of location (eg, real property), these are governed by foreign substantivelaw: Article 3(iii) EGBGB. In this situation, the specific foreign governing law (‘Einzelstatut’) prevails overthe general German one (‘Gesamtstatut’).Moreover:(a) an indirect (so-called ‘hidden’) ‘renvoi’ to German law can arise via the jurisdictional provisions of theforeign law, if that law contains no express provision specifying the applicable law;(b) by Article 6 EGBGB, foreign substantive law is not to be applied, if its application leads to a resultclearly incompatible with significant principles of German law (‘mit wesentlichen Grundsätzen des deutschenRechts offensichtlich unvereinbar’), ie, if its application infringes German public policy (‘ordre public’);(c) a similar function to ‘ordre public’ is played by the (unwritten) concept of the illegitimate avoidance(‘Umgehung’) or a particular substantive law, the intention being to cut out (‘ausschalten’) certain normsconsidered as undesirable (‘fraus legis’; cf ‘forum shopping’). However, it is invariably extremely difficultto pinpoint and prove the existence of a fraudulent motive (‘Arglist’);(d) if the application of various substantive laws leads to contradictions between the collision norms ofdifferent states (‘Normwidersprüche’), resulting problems can be resolved by adaptation (‘Anpassung’).7 The German view is, therefore, that ‘law’ means the foreign rules of private international law and ‘renvoi’.The question is: how would the matter be treated under the law of the other state?However, if there is a ‘renvoi’ to German law, the German substantive provisions (‘Sachvorschriften’) must beapplied by the German court: Article 4(i), 2nd sentence EGBGB. Thus, there is no ‘double renvoi’ as inEngland.See Collier, Part I, Chapter 3 (Re Annesley [1926] Ch 692).8 Domicile and nationality are used as different connecting factors for historical reasons, the root lying in adifferent understanding of the concept of ‘home’ (‘Heimat’) in common law and civil law countries.9 Usual residence is a more transitory/weaker bond than domicile. It involves a search for the‘Daseinsmittelpunkt’ or ‘faktischer Lebensmittelpunkt’ (actual focal point of a person’s affairs), as evidenced byobjective elements, such as the degree of social integration.Usual residence is an attempt to approximate (but not equate!) the continental concept of ‘Wohnsitz’ withdomicile as understood in common law countries.10 Article 14 EGBGB is the centre-piece of the German conflict of laws provisions. It lays down a ‘ladder’(‘Later’) of connecting factors for choice of law (not jurisdiction!), one of which is habitual residence. Domicileis not among them.11 A Article 15 EGBGB is the gateway to the relevant applicable law for marital property purposes(‘Güterstatut’), which is determined (‘bestimmt’) by the law applicable to the general effects of marriage(‘Ehewirkungsstatut’ or ‘Familienstatut’) at the time of conclusion of the marriage.Thus, if, when a marriage is entered into, the law governing the general effects of the marriage isforeign, the German marital property provisions (§ 1363ff BGB) are displaced/ ousted (‘verdrängt’) infavour of the relevant foreign law by Article 15.Unlike the law applicable to marital property, which is fixed once and for all at the moment the marriageis entered into (‘bei der Eheschließung’), the law governing the general effects of marriage is mutable(‘wandelbar’), ie, it can change during the marriage, if both spouses later jointly change their nationalityor usual residence or if the country, to which the spouses have their closest connection, changes.German law classifies claims to information (‘Auskunft’) under Article 15 EGBGB as substantive.However, the exact classification of claims to return of household items (‘Haushaltsgegenstände’) isdisputed; the better view is that it is a question of marital property governed by Article 15, rather thanthe law of the forum (§ 1361a BGB).331

The German Legal System and Legal LanguageB Another provision in the EGBGB, which refers to the general effects of marriage, is Article 17. Article17 specifies the applicable law concerning the preconditions (‘Voraussetzungen’) and implementation(‘Durchführung’) of a divorce as such – ie, the procedural ‘mechanics’ – and certain ancillary matters(‘Scheidungsfolgen’) as are not dealt with in other provisions (eg, Article 15).By Article 17 EGBGB, the law governing a divorce is that which applies to the general effects of therelevant marriage at the time the divorce petition becomes legally pending. If divorce is not possibleaccording to that law, but one of the spouses was German at the time of the marriage or is German atthe time of the divorce, German law applies.12 This was unified in the states of the EEC by the Convention on the Law Applicable to Contractual Obligations(the Rome Convention) 1980.See the article by Mohrbutter in ZAP 18/90, Fach 2, p 59.In England, the Convention was implemented by the Contracts (Applicable Law) Act 1990. See Collier, PartIII, Chapter 12.To be contrasted with international conventions relating to private international law, such as the RomeConvention and the Hague Convention on the Law Applicable to Maintenance Obligations of 2.10.1973, arethose which seek to establish uniform substantive rules of law (‘Einheitsrecht’) in particular fields, the intentionbeing to try to avoid the need for reference to rules of private international law. One such convention is theUN Convention on Contracts for the International Sale of Goods of 11.4.1980 (CISG; the Vienna Convention).Regarding the Vienna Convention, see Dannemann, Part in 4; Zweigert and Kötz, Part II, Chapter 43 V. Seealso: Charlesworth, Part 4, Chapter 18.With the ‘globalisation’ of commerce, international conventions will increasingly be concluded. They canhave positive, practical benefits. However, it should not be forgotten that remote encroachments on domesticlaw usually only last so long as the political mood is favourable. Moreover, instead of simplifying internationallegal affairs for the majority of the population, the multitude of legal sources can have the opposite effect.See Preface to Second Edition; Chapter XXI.13 Article 27 EGBGB enacts Article 3 of the Rome Convention.For examples of factors which English courts sometimes consider as giving rise to an implied choice of law,see Collier, Part III, Chapter 12 (e) (ii).14 The counterpart of Article 27(iii) EGBGB is Article 3(iii) of the Rome Convention.Regarding the distinction between compulsory norms (= mandatory provisions) and dispositive norms, seeChapter IX B.See also Article 6 EGBGB (exception on grounds of public policy).15 Article 28 EGBGB enacts Article 4 of the Rome Convention.Collier (Part III, Chapter 12 (e) (vii) (a)) criticizes the need for this statutory presumption and its complexity.He points out that, in the past, the English courts have made use or other presumptions to determine theproper law of a contract, eg:• the law of the place of contracting (‘lex loci contractus’);• the law of the place of performance (‘lex loci solutionis’); and• (in maritime contracts) the law of the flag.16 Preference is given to the law of the consumer’s usual residence.Article 29 EGBGB enacts Article 5 of the Rome Convention.17 Article 30 EGBGB enacts Article 6 of the Rome Convention.18 Article 32 EGBGB enacts Article 10 of the Rome Convention.19 The general rule regarding form in German private international law (Article ll(i) EGBGB) is that a legaltransaction (‘Rechtsgeschäft’) – Note: a ‘Rechtsgeschäft’ includes, but is wider than, a contract (‘Vertrag’) – isformally valid (‘formgültig’), if it fulfills the formal requirements of the law, which applies to such a transaction(the so-called ‘Geschäftsform’ (business form)) – ie, the applicable law, as determined by the German conflictsrules – or the law of the place where the transaction is undertaken (the ‘Ortsform’ (local form)).The rest of Article 11 EGBGB comprises special rules, which enact Article 9 of the Rome Convention.What amounts to a question of form, as opposed to one of the substance (‘Inhalt’) of a ‘Rechtsgeschäft’ or ofprocedure (‘Verfahren’), has to be established by way of characterisation (‘Qualifikation’) on the basis ofGerman law as the ‘lexfori’.20 Article 31 EGBGB enacts Article 8 of the Rome Convention.See the article by Michael Jefferson in the 1993 Student Law Review Yearbook (Cavendish), p 27.21 See Chapter XIII, Note 28; Thomas-Putzo, § 29.332

NotesThe question which law is applicable to locate the ‘Erfüllungsort’ is one for the private international law ofthe forum.22 See Creifelds under ‘Zuständigkeitsvereinbarung’; Thomas-Putzo, § 38.23 The relevant custom must be known to the parties or be one, of which they must be deemed to be aware. Ausage exists, if operators in the relevant branch of trade or commerce generally and regularly follow diesame practice: see Transporti Castelletti v Hugo Trumpy, ECJ, reported in (1999) Gazette, 96 / 26, p 29.See also Chapter XXII, Note 74.24 Article 38 EGBGB is a protectionist clause of questionable validity: see Schlosshauer-Selbach, Part 2, Section3 II 1.25 A In respect of torts with a foreign element, the applicable law is that of the place of commission of thetort (the ‘lex loci delicti commissi’/‘Tatort’). A tort is regarded as committed (‘begangen’) in either:– the place at which the defendant acts (the ‘Handlungsort’); or– the place at which the plaintiff suffers injury or damage (the ‘Erfolgsort’).This (unwritten) rule is reflected by Article 5 No 3 EuGVÜ, whereby the court of the place at which theharmful event occurred has (special) jurisdiction where a tort is committed by a person domiciled inanother member state of the European Union. The equivalent jurisdictional provision in the national(German) context is § 32 ZPO. Before 30.5.1999, the rule was subject to the following exception:…where the tort was committed abroad (ie, outside Germany) and both parties were Germans,having their usual residence (‘gewöhnlicher Aufenthalt’) in Germany, German law always applied:§ 1 ‘Rechtsanwendungsverordnung’ of 7.12.1942.Since 1.6.1999 (under the ‘Gesetz zum Internationalen Privatrecht für außervertragliche Schuldverhältnisse’),too, the law of die ‘Tutort’ (Article 40 EGBGB) is ousted by the law of the joint habitual residence of theparties unless there is a ‘significantly closer connection’ (wesentlich engere Verbindung’) to the law ofanother state.See Grüneberg, ZAP 13/00, Fach 9, p 567 (Section III).B The English position is, in effect, similar:Before the Private International Law (Miscellaneous Provisions) Act 1995, English law only applied totorts committed abroad (ie, outside England), if the conduct was actionable as a tort in England andthe defendant was (civilly) liable to damages under the foreign law: so-called ‘double actionability’.However, if there was an English connection (‘nexus’) between the parties prior to commission of thetort, the law of the place of commission (‘lex loci’) could be ignored in favour of English law as the lawof the forum (‘lex fori’): Johnson v Coventry Churchill International Ltd ([1992] 3 All ER14)).Since the 1995 Act, the requirement of ‘double actionability’ has been abolished, except for ‘defamationclaims’ (s 13). The general English rule now is that the applicable law is that of the country in whichthe ‘events constituting the tort’ occur (s 11=the ‘lex loci’), but this can be displaced, if it is ‘substantiallymore appropriate’ for the law of another country to be applied, due, for example, to (significant)‘factors relating to the parties’ (s 12).This new test clearly leaves room for interpretation, but it can safely be said that under both Germanand English law, the (normally applicable) ‘lex loci’ will bow to the home law (‘Heimatrecht’) of meparties, where it is the same for both of them.See Schlosshauer-Selbach, Part 2, Section 3 II 1; Collier, Part II Chapter 10 (e) (iii) and Part III, Chapter13 (b).26 See ZAP-Aktuell No 16,25.8.1999, p 811; Grüneberg, ZAP 13/00, Fach 9, p 567 (Section III).27 See the entries under ‘Beweisaufnahme’ in Appendix A.28 The others are:– rules of practical experience (‘Erfahrungssätze’);– customary law (‘Gewohnheitsrecht’);– norms/bye-laws laid down by autonomous (public) bodies (‘Statuten’).See Chapter XIII, Note 98.29 Foreign law – which does not include such public international law or European Union law as has beentransformed into national law – is treated not as a fact, but as a legal norm.The court has a duty to ascertain the applicable law and its content, proof of which can be obtained by wayof an expert opinion (‘Gutachten’).However, the parties are required to provide assistance (‘Mithilfe’) to the court as far as they can.30 See Schellhammer (ZP) (3rd edn (1987)), Book 2, Part 6, Chapter 5.31 Regarding the application of foreign law by the German courts, see Geimer, Part 9.333

The German Legal System and Legal LanguageCHAPTER XXI1 ‘Rechtshilfe’ refers to cooperation between courts (ie, judicial cooperation), whereas official (administrative)assistance between authorities (‘Behörden’) is called ‘Amtshilfe’. ‘Amtshtife’ is the wider term, although bothare directed to the carrying out of official acts (‘Amtshandlungen’).Thus, for example, within Germany:– the authorities of the ‘Bund’ and the ‘Länder’ have a constitutional duty to provide reciprocal– ‘Rechtshilfe’ and ‘Amtshilfe’: Article 35(i) GG;– the courts are obliged to cooperate with each other in civil and criminal matters: § 156 GVG;– a request for ‘Rechtshilfe’ from a superior (civil or criminal) court cannot be declined: § 158(i) GVG;– the enforcement of a sentence of imprisonment against an offender outside the area of a particular‘Landgericht’ can be sought from the local ‘Staatsanwaltschaft’: §§ 162–163 GVG;– a (civil or criminal) court can carry out official activities outside its own area: § 166 GVG;– police officers can pursue and seize a fugitive in another ‘Land’: § 167 GVG;– in an emergency (‘Notfall’), police and other forces can be brought in from outside a particular ‘Land’:Article 35(ii) and (iii) GG.‘Amtshilfe’ between German authorities is governed by §§ 4–8 VwVfG. In particular, ‘Amtshilfe’ is onlysupplementary assistance (‘ergänzende Hilfe’) and is not meant to relieve the authority receiving the requestof its own functions: § 4 VwVfG. The requesting authority bears sole responsibility for the legality of themeasure to be taken, whereas the recipient authority only has to carry it out: § 7(ii) VwVfG. If the permissibilityof the measure is queried, this must be assessed according to the law applicable to the requesting authority:§ 7(i) VwVfG.In relation to other member states of the European Union, the ‘EG-Amtshilfegesetz’ of 19.12.1985 authorisesexchange of tax information. The establishment of Europol in The Hague in 1999 will facilitate cooperationbetween European police forces. The ‘Eurojust’ network will encourage liaison between national prosecutingauthorities. With the expansion of the EU, a corresponding increase in cross-border ‘Amtshilfe’ /sharing ofdata in other fields (eg, environmental matters) is likely.See Creifelds under ‘Rechtshilfe’ and ‘Amtshilfe’; Chapter II, Note 2; Rosenberg/Schwab, Book I, Section 1, §21.2 See Chapter XXII C 6.3 See generally: Geimer; Schack.4 Of particular importance within the European Union is the EuGVÜ (Brussels Convention) 1968, where therelevant provisions on recognition and enforcement of court decisions between the member states arecontained in Title III (Articles 25–49). See Notes 8, 10 and 13 in this Chapter.The recognition and enforcement of court decisions is also the subject-matter of numerous bilateral treaties(‘Sonderverträgé’) with non-member states and various (multilateral) Hague Conventions on particular areasof law (eg, that of 2.10.1973 on the Recognition and Enforcement of Maintenance Decisions – see ChapterXIII, Note 171; not to be confused with the Hague Convention of the same date on the Law Applicable toMaintenance Obligations (see Chapter XX, Note 12) – and that of 25.10.1980 concerning the InternationalKidnapping of Children (‘Kindesentführung’)).In both England and Germany, the latter Convention was implemented in tandem with the Council ofEurope Convention of 20.5.1980 regarding Recognition and Enforcement of Custody Decisions concerningChildren (and the restoration of custody);—in England, by the Child Abduction and Custody Act 1985; inGermany, by the ‘Ausführungsgesetz’ of 5.4.1990.The ‘central authority’ in Germany to which applications are to be made is the ‘Generalbundesanwalt’ (GeneralFederal Attorney) at the BGH (located in Bonn). Local jurisdiction lies with the relevant ‘Familiengericht’(family court).The scope and provisions of both Conventions are discussed by Collier, Part V, Chapter 20, p 338–343.5 So the UN Convention on the Making of Maintenance Claims Abroad of 20.6.1956, which is supplementedin Germany by the Foreign Maintenance Law (‘Auslandsunterhaltsgesetz’ (AUG)) of 19.12.1986.Within the European Union, Article 65 EC Treaty refers to the smooth functioning of the internal market(‘das reibungslose Funkionieren des Binnenmarktes’) as the justification for measures of judicial cooperation incross-border civil matters (‘justitielle Zusammenarbeit in Zivilsachen mit grenzüberschreitenden Bezüzgen), whichalso includes the promotion of compatibility between the procedural (and conflict) rules of the variousmember states (‘Förderung der Vereinbarkeit der Verfahrensvoschriften’).6 Common to all such treaties or conventions is that they are measures of public international law.Regarding their (growing) impact on English domestic law, see Collier, Part VII, Chapter 23 (c).7 The presiding judge must send an outgoing request (‘Ersuchen’) to the competent (foreign) authority334

Notes(‘zuständige Behörde’) or to the competent (German) federal envoy (diplomatic representative) in accordancewith the ‘Rechtshilfeordnung in Zivilsachen’ (ZRHO) of 19.10.1956 (reissued in 1976).However, with effect from 31.5.2001, service of judicial and non-judicial documents in civil or commercialmatters in other member states of the EU is governed by EU Regulation 1348/2000, which requires a requestfor service to be made to central (transmitting) authorities (‘Zentralstellen’) on a standard form in the (or a)language of the recipient state.In so far as it applies, EU Regulation 1348/2000 overrides the Hague Convention on the Service Abroad ofJudicial and Extra-judicial Documents in Civil or Commercial Matters (‘Haager Zustellungsübereinkommen’)of 15.11.1965.See ZAP-Aktuell, 19/00, p 1173.If a ‘Klage’ (writ) is to be served abroad, the period for response (‘Einlassungsfrist’) must be set by the judge,together with the (initial or main) hearing date (‘Termin’): § 274(iii) ZPO.8 See Chapter XIII, Note 144.9 The Hague Convention on the Taking of Evidence Abroad in Civil or Commercial Matters (‘HaagerÜbereinkommen über die Beweisaufnahme im Ausland’) of 18.3.1970 takes precedence.Under the Convention, a request for legal assistance (‘Rechtshilfeersuchen’) must be sent to a central authority(‘zentrale Behörde’), which, in Germany, is usually the Ministry of Justice in the relevant ‘Land’. It must be inGerman or accompanied by a German translation. The request is then dealt with by the local ‘Amtsgericht’.10 See Chapter XIII, Note 171.11 See Notes 4, 7 and 9 in this Chapter. See also: Chapter XIII, Note 171.12 Bilateral and multilateral treaties and conventions are listed chronologically in an appendix to Schack.13 Of particular practical importance is the Law to Implement International Conventions on Recognition andEnforcement (‘Anerkennungs- und Vollstreckungsausführungsgesetz’, AVAG) of 30.5.1988.AVAG applies, for example, whenever recognition or enforcement of a decision in a civil or commercialmatter is sought under EuGVÜ or where recognition or enforcement of a maintenance decision is soughtunder the Hague Convention of 2.10.1973.AVAG also extends the German default notice procedure (‘Mahnverfahren’) to claims in foreign currency: §688(iii) ZPO, § 34(i) AVAG.See Michael Johannes Schmidt in ZAP 24/95, Fach 14, p 195; Chapter XIII, Note 22.14 See generally Creif elds under ‘Auslieferung’.15 See Chapter VIIL Note 34.16 These are usually bilateral, but within Europe a multilateral European Convention on Extradition (of13.12.1957) is in force.17 The ‘Gesetz über die Internationale Rechtshilfe in Strafsachen’ (Law concerning International Legal Cooperationin Criminal Matters) of 27.6.1994.In the United Kingdom, the principal statute is the Extradition Act 1989.18 In England, this is called the ‘double criminality rule’.19 See Creifelds under ‘Auslànder’ 5 and ‘Asylrecht und Asylverfahren’; Andrick, ZAP, Fach 19, p 265.CHAPTER XXII1 See generally Baur, § 2.2 See Article 98 GG; Jauernig (ZP), Book 1, Chapter 2 (§ 8); Model/Creifelds/Lichtenberger, Part 3 A (209);Youngs (CL), Chapter 1, Part XVII3 See § 1 DRiG.4 See § 45a DRiG. See also Chapter XVII A (Note 4).5 See § 44(i) DRiG. See also Chapter VIIIC (Note 36).Selection of judges must be governed by rules laid down in advance. Ad hoc selection is arbitrary (‘willkürlich’)and unconstitutional. See ZAP-Kolumne 17/95, p 881.6 See §§ 36 and 108 GVG.7 See §§ 44(ii) and 45 DRiG.8 See § 28(ii) DRiG.335

The German Legal System and Legal Language9 See §§ 30 and 112 GVG. See also Creifelds under ‘Ehrenamtliche Richter’.10 A ‘Referendar’ can be entrusted with the functions of an ‘Amtsanwalt’ or, exceptionally, with those of a‘Staatsanwalt’ (in the latter case under supervision): § 142 (iii) GVG.Together with reforms to German university education, it is planned to replace the State funding of the‘Referendarzeit’ by the self-regulation (‘Selbstregulierung’) of practical training (‘Praxisausbildung’). In particular,a reduction of theoretical learning at university and an attendant sacrifice of basic historical, philosophicaland sociological subjects are intended to produce less academic jurists. However, whether in the long termthis will improve the quality of training, rather than just save money, is questionable.See the following articles in the Frankfurter Allgemeine Zeitung (FAZ): ‘Grundlage ist eine solide theoretischeAusbildung’ (Wolfgang Ernst; 2.11.1999); ‘Amputierte’ (Michael Stolleis; 12.6.2001); ‘Dr jur ing. (FH)’ JürgenKaube; 13.6.2001).11 See §§ 5(i) and 9 DRiG. Lawyers from other EU (EEC) countries do not have the ‘Befähigung zum Richteramt’,even if they pass the ‘Eignungsprüfung’. Moreover, passing the ‘Eignungsprüfung does not enable such lawyersto become a notary (‘Notar’). See Chapter XXII D 3 and E (Note 119).A ‘Rechtsanwat’ in spe, who has passed the second state examination, is entitled to carry the title ‘Assessor’.12 See § 7 DRiG.13 See § 3 DRiG.14 See §§ 10–13 DRiG.15 See Article 95(ii) GG; § 1 ‘Richterwahlgesetz’.16 See Article 94(i) GG; § 5 BVerfGG; Creifelds under ‘Richterwahl’. See also the comments above Article 93 GGin the Sourcebook, Chapter 2.17 See § 25 DRiG and Article 97(i) GG. Withdrawal of appointment (‘Rücknahme der Ernennung’) is also possibleon certain grounds: § 19 DRiG.18 See § 30 DRiG.19 See §§ 61 and 77 DRiG.Apart from a possible appeal (‘Rechtsmitte’), as laid down in the relevant procedural code – and the ultimateremedy of a constitutional complaint (‘Verfassungsbeschwerde’) – a person dissatisfied with the conduct of ajudge or a particular decision can pursue the following remedies (‘Rechtsbehelfe’):– ‘Ablehnungsgesuch’ (application for rejection) (eg, under § 42ff ZPO);– ‘Dienstaufsichtsbeschwerde’ (supervisory complaint) pursuant to § 26 DRiG and § 14 of the ‘Verordnungzur einheitlichen Regelung der Gerichtsverfassung’ (GVVO) of 20.3.1935;– a so-called ‘Untàtigkeitsbeschwerde’ (complaint of inactivity), which some courts exceptionally allow;– an informal request to the court to reconsider its decision (‘Gegenvorstellung’)’,– failing other remedies and provided damage (‘Schaden’) due to the judgment can be shown, a claim forstate liability (‘Staatshaftung’), if, when passing judgment (‘bei dem Urteil’), a judge neglects his officialduty to such an extent that the infringement constitutes a crime: § 839(ii), 1st sentence BGB (in conjunctionwith Article 34 GG). However, § 839(ii), 2nd sentence BGB expressly excludes from state liability arefusal or delay by a judge in the exercise of his office, even if it is contrary to duty (‘pflichtwidrig’).See Schneider, ZAP 9/94, Fach 13, p 279; ZAP 19/95, Fach 13, p 373; ZAP 18/96, Fach 13, p 447; ZAP-‘Justizspiegel’, 10/98, p 474.In ZAP-‘Justizspiegel’ 10/00, p 638, Schneider revisits the topic of wrongful conduct (‘Fehlverhalten’) byjudges. He draws attention to the theory of the ‘core area’ (‘Kernbereich’) of judges’ activities, which isoccasionally relied on to counteract attempts to limit judicial independence (‘richterliche Unabhängigkeit’),thereby eroding the possibility of a warning (‘Ermahnung’) to a judge under § 26(ii) DRiG to fulfill hisjudicial functions properly.According to Schneider, serious mistakes in the handling of cases by judges are the order of the day inGermany and the proposed law to reform the ZPO (‘Zivilzprozessreformgesetz’) will merely worsen thesituation (see ZAP-Kolumne 10/00, p 626).Due to resistance from practising lawyers and judges, however, the implementation of a ZPO reform haslargely failed: see ZAP-Aktuell, 7/01, p 363.20 See Jauernig (ZP), Book 1, Chapter 2 (§ 15); Model/Creifelds/Lichtenberger, Part 3 A (210); Creifelds under‘Rechtspfleger’.21 See Chapter XIII D 8 (c)(vii).22 And the remuneration of a ‘Rechtsanwalt’ under § 19 BRAGO.See also Chapter XIII D1 (f) (v).23 Those marked with an * above.336

Notes24 See §§ 14–19b RPflG.25 See § 4(ii) RPflG.26 See Article 13(ii) GG; § 105(i) StPO.In the event of ‘Gefahr im Verzug’ (danger in delay), searches of premises can (exceptionally) be ordered byother authorities, but not without prior notification to a judge.See Chapter XVII, Note 25; ZAP-Aktuell, 5/01, p 247; ZAP EN-Nr 184/2001.27 See § 5(i) RPflG. Whilst a judge can effectively carry out a matter transferred to a ‘Rechtspfleger’, a judge’smatter undertaken by a ‘Rechtspfleger’ contrary to the RPflG is invalid (see § 8(i) and (iv) RPflG).28 See Chapter XIII, Note 141.To be distinguished is the so-called ‘Vollstreckungserinnerung’ under § 766 ZPO against a measure (‘Maßnahme’)taken by a ‘Rechtspfleger’ or judge in enforcement proceedings. This is decided upon by the judge.29 See § ll(i) and (ii) RPflG.A decision by the judge to allow the ‘Erinnerung’ can be (further) challenged by an immediate complaint(‘sofortige Beschwerde’) under § 793 ZPO: § ll(iii) RPflG.30 See generally Youngs (CL), Chapter 3.31 See Article 95(i) GG; Baumann (ER), Part VI, § 17II; Chapter E, Note 16.32 See Model/Creifelds/Lichtenberger, Part 3 B (215–229).33 See Jauernig (ZP), Chapter 1, § 3 IV; Chapter XIII, Note 32; the ‘Grundbuchordnung’ (GBO) regarding landregistration matters.34 See Creifelds under ‘freiwillige Gerichtsbarkeit’; Jauernig (ZP), Book I, Chapter 4, § 27IV; cf § 169 GVG.35 See § 12 GVG.36 See § 8 EGGVG.37 In criminal matters, the jurisdiction of the courts is, broadly, as follows:A single judge (‘Einzelrichter’) at the district court (‘Amtsgericht’) can deal with misdemeanours (‘Vergehen’),which are pursued privately or for which a punishment not exceeding two years imprisonment is to beexpected (§ 25 GVG).Other misdemeanours and all felonies (‘Verbrechen’) are handled by the ‘Amtsgericht’ itself (§ 24(i) GVG)sitting as a lay magistrates’ court (‘Schöffengericht’; § 28 GVG) composed of a district court judge and two laymagistrates (§ 29(i) GVG) unless:• certain very serious felonies (usually involving death) are involved, in which case the regional court(‘Landgericht’) – sitting as a so-called ‘Schwurgericht composed of three judges and two lay magistrates (§76(i) GVG)-has jurisdiction at first instance (§ 74(ii) GVG);• particular matters involving state security or extremely serious crimes having constitutional implicationsare concerned, in which case jurisdiction is split between the ‘Landgericht’ (§ 74a GVG) and the upperregional court (Oberlandesgericht’; § 120 GVG);• the punishment to be expected is imprisonment (‘Freiheitsstrafe’) for more than four years or placementin a psychiatric hospital or in secure custody (‘Sicherungsverwahrung’);• due to the particular importance of the case, the state attorney (‘Staatsanwalt’) lodges the indictment(‘Anklage’) at the ‘Landgericht’.The maximum punishment, which can be imposed by a district court (‘Amtsgericht’), is four yearsimprisonment. It has no power to order placement in a psychiatric hospital or in secure custody (§ 24(ii)GVG).In the regional court (‘Landgericht’), there are two main criminal divisions:• the small criminal chamber (‘kleine Strafkammer’), composed of a presiding judge and two lay magistrates;and• the grand criminal chamber (‘grosse Strafkammer’) composed of three judges and two lay magistrates (§76(i) GVG).The ‘Strafkammern’ at the ‘Landgericht’ are competent to handle:• felonies (‘Verbrechen’) not falling within the jurisdiction of the district or upper regional courts (§ 74(i),1st sentence GVG);• cases in which the punishment to be expected is imprisonment for more than four years or placement ina psychiatric hospital or in secure custody or in which, due to the particular importance of the case, thestate attorney lodges the indictment at the ‘Landgericht’ (§ 74(i), 2nd sentence GVG);• complaints (‘Beschwerden’) against directions by a judge at first instance or against first instance decisionsother than judgments (§ 73(i) GVG);337

The German Legal System and Legal Language• appeals (‘Berufungen’) against judgments at first instance (§ 74(iii) GVG).A commercial criminal chamber (‘Wirtschaftsstrafkammer’) at the ‘Landgericht’ exists to deal with certain‘white-collar’ offences (§ 74c GVG).See Creifelds under ‘Schöffengericht’, ‘Schwurgericht’, ‘Strafkammer’ and ‘Wirtschaftsstrafsachen’; Chapter XVII,Note 4.38 A further example is the (disciplinary) jurisdiction of the ‘Anwaltsgerichte’ (lawyers’ courts). See ChapterXXIID 7, below.The European Court of Justice also appears to have the status of such a court see the comments underArticle 101(ii) GG in the Sourcebook, Chapter 2.39 See § 1 ‘Arbeitsgerichtsgesetz’ (ArbGG); Article 95(i) GG; Youngs (CL), Chapter 3, Part X. See also: ChapterXVIII (Note 19) ante.40 See Article 96(i) and (iv)GG.41 See Youngs (CL), Chapter 3, Parts VII and IX.42 An OVG is sometimes known as a ‘Verwaltungsgerichtshof (VGH).43 Regarding the VwGO, see Chapter XV A ante.44 See Model/Creifelds/Lichtenberger, Part 3 A (204).45 ‘Rechtsprechung’ can also just mean ‘case-law’, the proper term for which is, however, ‘Fallrecht’. See Honsell,§ 2 III46 See Chapter XXII C 2.47 See Chapter XVII B.48 See Chapter XIII D 8.49 See Chapter XXIID and E.50 See Chapter XXII A.51 See Creifelds under ‘Rechtspflege’, ‘Justiz’, ‘Justizverwaltung’ and ‘Justizverwaltungsakte’; Chapter XV, Note 2.The police is not a judicial authority when it acts in the warding-off of disturbances of, or threats to, publicsecurity or order (‘Gefahrenabwehr’). See Chapter XVII, Note 33.52 See generally: Creifelds under ‘Rechtsanwalt’; Jauernig (ZP), Book 1, Chapter 2 (§ 16); Model/Creifelds/Lichtenberger, Part 3 A (211); the Lawyers’ Handbook, Parts E-J.53 See § 2 BRAO.54 See § 3(i) BRAO.For a critique of §§ 1–3 BRAO as giving an antiquated professional image (‘Berufsbild’) of the ‘Rechtsanwalt’,see the Lawyers’ Handbook, Part H I, Section II 1 (c).55 See § 3(iii) BRAO.56 The EuRAG is (superficially) a welcome relief for EU lawyers from other member states, who seek toestablish themselves as lawyers outside their state of origin (‘Herkunftsstaat’). It is a faithful product of thecurrent liberal regime. However, there are uncertainties in the detail and tricky bureacratic hurdles remain.See Clausnitzer, ZAP 24/00, Fach 25, p 97.57 See § 5 BRAO.58 See § 18(i) BRAO.This is the so-called ‘localisation principle’ (‘Lokalisationsprinzip’). It has become much disputed and hasbeen abolished after the year 2000. See Note 73 in this Chapter.59 See § 19(i) BRAO.Admission must be refused (‘ist zu versagen’), if one of the (11) grounds listed in § 7 BRAO exists.Admission can also subsequently be withdrawn or revoked on similar grounds under § 14 BRAO. § 7 Nos1–6 BRAO deal with the applicant’s personality and character, § 7 No 7 with his medical condition and § 7No 8 with the question of when (ie, under what circumstances) the exercise of a second occupation(‘Zweitberuf’) is, exceptionally, incompatible with the profession of lawyer (‘unvereinbar mit demAnwaltsberuf’).§ 7 No 8 BRAO is an unclear provision and open to substantial interpretation. Each case of ‘nebenberuflicheTätigkeit’ (extra-professional activity) must be considered on its particular facts. Relevant criteria include:– The ‘Funktionsfähigkeit der Rechtspflege’ (the smooth functioning of the administration of justice). This isparamount, although it must be balanced with the basic right of freedom to exercise one’s profession(Berufsausüzbungsfreiheit’; Article 12 GG).– A possible conflict of interests (‘Interessenkollision’). Any risk of such a conflict must be distinct and real:338

Notessee ‘BRAK-Mitteilungen’ 2/01, p 90.– Whether the applicant retains the ability to exercise the profession (‘Ausübungsmöglichkeit’) to anappreciable extent and not just occasionally (‘in einem nennenswerten Umfang und jedenfalls mehr alsgelegentlich’).The question of the right of admission of public service employees (ie, their dependence on the state(‘Staatsnähe’)) and of lawyers employed by private organisations (‘Syndikusanwälte’) occasionally posesproblems.Regarding the various grounds upon which admission can be refused (‘Versagungsgründe’) see the Lawyers‘Handbook, Part H I, Section II 3, 4, 6 and 7 (d).60 See § 27(i) BRAO.61 See § 25 BRAO.By judgment of the BVerfG dated 13.12.2000, the principle of exclusive (single) admission has been declaredincompatible with Article 12(i) GG. The principle continues to apply for a transitional period until 30.6.2002,out lawyers admitted at an OLG can apply for simultaneous admission to the courts of first instance withinits area already as from 1.1.2002.62 See § 226 BRAO.This right of simultaneous admission extends to all ‘Länder’ as from 1.7.2002.See ZAP-Aktuell, 1 /01, p 2; Reinelt, ZAP 1/01, Fach 23, p 517.63 See § 172(i) BRAO.64 See the Lawyers’ Handbook, Part E.65 See § 44 BRAO.66 See § 45 BRAO.The aim of § 45 is the separation of a lawyer’s activity from other professions (‘Trennung vonRechtsanwaltstätigkeit und anderem Beruf).Thus, a ‘Rechtsanwalt’ is prohibited from dealing with a matter later as a ‘Rechtsanwalt’, if he has previouslydealt with it in another professional capacity (and vice versa), unless the professional activity has alreadyended: § 45(i) No 4 and § 45(ii) No 2 BRAO.Firms with offices in more than one place (‘überörtliche Sozietäten’) and multi-disciplinary practices willhave to be particularly vigilant to comply with these restrictions.See the Lawyers’ Handbook, Part H I, Section III 4 (f).67 See §46 BRAO.A ‘Syndikusanwalt’ is also prevented from handling the same matter in another professional capacity.68 See § 49(i) BRAO; Chapter XVII C.69 See § 50(i) and (ii) BRAO.See also § 17 BerufsO.70 See § 51 BRAO.A ‘Rechtsanwalt’ must account to his client (and/or the person liable for his fees) when the retainer ends, atthe latest: § 23 BerufsO.71 A ‘Rechtsanwalt’ is forbidden from acting, if he/she has already advised or represented the other (opposing)party in the same legal matter (‘in der selben Rechtssache’).Representation is understood in a wide sense and includes serving a party (‘dienen’) by advice or support(‘Rat oder Beistand’) of any kind.The prohibition also prevents a ‘Rechtsanwalt’ from acting, if he has already been professionally involved(‘beruflich befaßt’) with the same matter in another way (‘in sonstiger Weise’): § 3 BerufsO.Indeed, on 6.11.2000, the BGH held that, if there is a change of firm (‘Kanzleiwechsel’) by an employedlawyer, whose name is shown on the firm’s notepaper, the new firm must lay down instructions in anymatter in which the old firm acts for the other side, even if the relevant lawyer did not and does not handlethe matter himself. See ‘BRAK-Mitteilungen’ 2/01, p 82.72 Lawyers are currently making use of the very liberal regulatory environment to extend the limits of publicityall the time.Thus, for example, the courts have approved despatch of glossy brochures, publicity by way of sponsoring,stands at trade fairs and the invitation to an hotel for an ‘information meeting’.See ZAP EN-Nr 425/00,456/00,459/00 and 485/01.73 A ‘Rechtsanwalt’ admitted at a particular ‘Landgerichf’ is now entitled to appear (throughout Germany)339

The German Legal System and Legal Languagebefore the civil chamber of any other ‘Landgerich’ and before all ‘Familiengerichte’ (Family Courts; these aredivisions of the ‘Amtsgerichte’: see § 23b GVG).The new rule applies as from 1 January 2000 in the ‘Länder’ of former West Germany and will come intoforce in the new ‘Länder’ on 1st January 2005.For further details, see the articles by Jörn Loewer in ‘BRAK-Mitteilungen’ 4/94, p 186 at p 192 and WilhelmFeuerich in ZAP 20/94, Fach 23, p 183.On 5 December 1995, the Federal Constitutional Court decided that the extension of § 78 ZPO to the new‘Länder’ breaches Article 12(i) GG. The court ordered that, until 31 December 2004, it suffices, if a lawyerinstructed in an ‘Anwaltsprozeß’ in former East Germany is admitted at a ‘Landsgericht’ or ‘Amtsgericht’ inany one of the new ‘Länder’. See ZAP EN-Nr 402/96.74 The codes are set out in ‘BRAK-Mitteilungen’ 6/96, p 241–252 and 3/99, p 123–134.Regarding the ‘Berufsordnung’, see the article by Wolfgang Hartung in ZAP 1/98, Fach 23, p 311.Regarding the liability of a ‘Rechtsanwalt when acting in conjunction with a foreign lawyer (ad hoc orcontinously) and the standard of care required when dealing with foreign law, see the articles by Oliver Siegin ZAP 4/98, Fach 23, p 341 and ZAP 24/96, Fach 23, p 239.Being an independent contractor, a lawyer normally has no duty to advise on foreign law (cf privateinternational law). However, a lawyer s liability to the client depends on the scope of the retainer(‘Anwaltsvertrag’). Its interpretation can give rise to a (contractual) duty of supervision or even to a duty tocheck foreign law (‘Prüfungspflicht’; §§ 157,242 BGB).The risk of a claim (under PVV and/or § 278 BGB) can be reduced, if there is a separate contractual relationshipbetween the client and the foreign lawyer.For an instructive recent English case, see Gregory v Shepherds, Ch D, reported in (1999), Gazette, 96/08, p 29and (2000), Gazette 97/26, p 39 (CA).See also the judgment of the ECJ in MSG v Les Gravières Rhénanes, which is discussed in ‘BRAK Mitteilungen’1/98, p 14. The case concerned Articles 5 No 1 and 17(i), 2nd sentence EuGVÜ. The court held that, inaccordance with Article 17(i), an agreement on jurisdiction (‘Gerichtsstandsvereinbarung’) can be concludedbetween commercial parties on the basis of an (international) trade custom (‘Handelsbrauch’), provided theagreement complies with the appropriate form. However, a mere fictitious agreement regarding the placeof performance (‘Erfüllungsortvereinbarung’), the real purpose of which is purely to lay down a particularjurisdiction is not sufficient to establish jurisdiction under Article 5 No 1 EuGVÜ. Such an agreement mustcomply with Article 17(i).The case shows how careful lawyers need to be when dealing with a matter involving an internationalelement and when interpreting an international convention. It should not be automatically assumed that arule of national customary law (here, the German rule regarding the ‘kaufmännisches Bestätigungsschreiben’)has been adopted internationally See Chapter X, Note 71; Chapter XX D 2.75 A ‘Rechtsanwalt’ who acts as intermediary (‘Vermittler’), arbitrator (‘Schiedsrichter’) or mediator (‘Schlichter’)is also subject to the ‘Berufsordnung’: § 18 BerufsO.The ‘Berufsordnung’ extends to all forms of professional cooperation: §§ 30, 33 BerufsO.76 If the other side is legally represented, § 13 BerufsO requires a ‘Rechtsanwalt’ to notify the other side’slawyer in advance before obtaining a judgment in default. However, this provision has been declaredunconstitutional.See ‘BRAK-Mitteilungen’ 1 /00, p 36 and 5/00, p 210.77 The national ‘Berufsordnung’ is of corresponding application to European lawyers and other (foreign) persons,who are members of a RAK and who carry out activities in Germany (§ 34 BerufsO).Differences in the CCBE and the national rules can give rise to misunderstandings.Eg, English lawyers must be careful to clarify the position beforehand, if they wish communications withGerman lawyers to remain confidential or ‘without prejudice’ or if they wish to exclude or limit theirpersonal liability for fees (see Rules 53 and 5.7, CCBE Code).The German version of the CCBE Code is annexed to § 29 BerufsO.78 See Creifelds under ‘Berufsgeheimnis’, ‘Gebührenüberhebung’ and ‘Parteiverrat’.79 This is a mutual obligation: it requires that full information is given by die client and that proper questionsare put by the ‘Rechtsanwalt’.See Borgmann, ‘BRAK-Mitteilungen’ 2/01, p 72.80 See Rinsche, ZAP 7/97, Fach 23, p 249; Reinelt, ZAP 11/00, Fach 23, p 493.See also: Grams, ‘BRAK-Mitteilungen’ 1/0l, p 28 and 2/01, p 76.81 See § 60(i) BRAO.82 See § 62(ii) BRAO.340

Notes83 See §§ 63 and 78 BRAO.84 See § 174 BRAO.85 See §§ 175–176 BRAO.The offices of BRAK are at Littenstrasse 9, D-10179 Berlin.The offices of the German Lawyers’ Association (‘Deutscher Anwaltverein’ (DAV)) are two doors away atLittenstrasse 11, D-10179 Berlin.86 See §§ 179 and 187 BRAO.87 See generally: the Lawyers’ Handbook, Part H I, Section III 6; Feuerich, ZAP 20/94, Fach 23, at p 191; Kleine-Cosack, ZAP 13/00, Fach 23, p 507.88 See §§ 73(ii) and 74 BRAO.Within a month of the service of the notice of reprimand (‘Rügebescheid’), a ‘Rechtsanwalt’ can lodge objection(‘Einspruch’) with the ‘Vorstand’ of the RAK.If the ‘Vorstand’ rejects the objection, the ‘Rechtsanwalt’ can make a (private) application for decision to the‘Anwaltsgericht’: § 74a BRAO. On such an application, the decision of the ‘Anwaltsgericht’ is final.89 The application is made in the form of an ‘Anschuldigungsschrift’ (bill of accusation).Application for the initiation of proceedings can also be made to the ‘Staatsanwalt’ by a ‘Rechtsanwalt’ directly,in order to cleanse himself from the suspicion of a breach of duty: § 123(i) BRAO.90 See §§ 114 and 150 BRAO.91 See § 7(i) BRAGO.92 See § 8(i), 1st and 2nd sentences BRAGO and §§ ll(i) and (ii) ‘Gerichtskostengesetz’ (GKG).93 See § 8(i), 3rd sentence and § 8(ii) BRAGO and § 18 KostO.94 See § 31(i) BRAGO.95 See § 118(i) BRAGO. If proceedings before a court or authority follow, the ‘Geschäftsgebühr’ is creditedtowards the ‘Gebühren’ then due: § 118(ii) BRAGO.For a survey of fees, which can be charged for ‘außergerichtliche Tätigkeit’ in landlord/tenant matters, see thearticle by Heinz Hansens in ZAP 5/00, Fach 24, p 549 (Section I).96 This includes information to the client, the drafting, lodging or signing of pleadings (‘Schriftsätze’) or letters(‘Schreiben’) and the drafting of documents (‘Urkunden’).97 Such as: negotiations or discussions before a court or authority or with the other side or a third party; thedrafting of a ‘Gesellschaftsvertrag’ (company agreement/articles of association).If a ‘Rechtsanwal’ is involved in the reaching of a settlement (‘Vergleich’; for meaning see § 779 BGB), he can(also) charge a ‘Vergleichsgebühr’. The ‘Vergleichsgebühr’ amounts to fifteen-tenths of a ‘Gebühr’ where nocourt proceedings are pending. See § 23(i) BRAGO.98 See § 114(i) BRAGO.99 See § 119(i) and § 119(ii) BRAGO.100 See §§ 83–108 and § 116 BRAGO.A defence lawyer appointed by the court (‘Pflichtverteidiger’) is usually entitled to a fee amounting to 4times the minimum statutory scale figure for a privately selected attorney (‘Wahlverteidiger’), but not morethan half the possible maximum sum: § 97(i) BRAGO. The fee is payable out of public funds, ie, from thestate treasury (‘Staatskasse’).If the matter is particularly extensive or complex, the lawyer can apply for lump sum remuneration(‘Pauschvergütung’) going beyond the fee limit in § 97 (§ 99 BRAGO).See Burhoff, ZAP 14/01, Fach 24, p 625.101 See § 49b (i) BRAO and § 3(i) BRAGO.A ‘Rechtsanwalt’ can conclude an oral or written fee agreement (‘Gebühren-’ or ‘Honorarvereinbarung’) withhis client in any field of activity. The client remains liable to pay the ‘Rechtsanwalt’ any difference over andabove the statutory (BRAGO) rate—it is not reimbursable (‘erstattungsfähig’) from third parties.Regarding the various forms of fee agreement which are possible in practice, see Wagner, ZAP 7/99, Fach24, p 459.See also: Chapter XIII, Note 55; Note 101 in this Chapter.102 See § 49b(ii) BRAO.The usual rule is that German lawyers’ fees for (civil) court work or work preparatory thereto are fixed(‘fest’) according to BRAGO and compensate the lawyer for the whole of his activity in the matter until itsconclusion (§ 13 BRAGO). One speaks of the statutory fees (‘gesetzliche Gebühren’).341

The German Legal System and Legal LanguageHowever, in principle, § 3 BRAGO allows a fee agreement (‘Honorarvereinbarung’) to be reached (eg, on thebasis of an hourly rate (‘Stundensatz’), a fixed fee (‘Pauschalvergütung’) or an additional amount(‘Zusatzhonorar’)).The relevant fee can be demanded by the lawyer, if the agreement is in writing and contained in a separatedocument. Otherwise (ie, if it is oral), it only binds the client, if the client has paid monies voluntarily andwithout reservation (‘freiwillig und ohne Vorbehalt’).Instead, the lawyer and client can leave the fee to be set at the discretion of die RAK, but, whichever methodis chosen, the fee can, by way of court action, be reduced to the statutory level, if it is unreasonably high(‘unangemessen hoch’).On the other hand, a fee agreement, which is dependant (conditional) on the outcome or success ofproceedings (‘vom Ausgang oder vom Erfolg abhängig’) – ‘Erfolgshonorar’ – or which provides for a proportion(percentage) of the amount in dispute – ‘quota litis’ – to be due, is forbidden. This rule used to be containedin § 52 of the (meantime defunct) ‘Grundsätze des anwaltlichen Standesrechts’ (Principles of Lawyers’Professional Ethics/BRAK Directives (‘Richtlinien’) of 21.7.1973). It has now been reissued in § 49b (ii) BRAO.Any difference between a fee provided for in a fee agreement and the statutory level is not reimbursable(‘erstattungsfähig’) from third parties ie, the client is left to pay it himself and can only recover his legal costsfrom the other side at the BRAGO rate, if he wins.Once a lawyer has become active in a matter and is then instructed to take further steps in the same matter,he receives no more fees than he would receive, if he had been instructed to do so from the start: § 13(v)BRAGO. In other words, there can be no double-charging (‘Doppelhonorierung’), nor may a lawyer concludea fee agreement mid-way through a case started on a BRAGO basis; he is locked in (‘once BRAGO, alwaysBRAGO’).A lawyer, who has grounds to believe that his client might be in need of legal aid (‘Prozesskostenhilfe’) mustbe particularly careful. Firstly, he has a duty to draw the possibility of PKH to the attention of the client: § 16BerufsO. Secondly, it is unethical for a lawyer, who has applied for PKH or who knows that his clientwishes to seek it, to conclude a fee agreement with die client, even if it is before his appointment (‘Beiordnung’).The undercutting of BRAGO fees (‘Gebührenunterschreitung’) is forbidden, except for out of court activity: §49b (i) BRAO, § 3(v) BRAGO. See also § 21(i) BerufsO.See Wagner, ZAP 7/99, Fach 24, p 459 (Section III).103 See § 3(ii) BRAGO.104 See § 19(i) BRAGO.105 See § 13(i) and (ii) BRAGO. Fees are due in accordance with § 16 BRAGO and can only be demandedfollowing the delivery of a signed ‘Berechnung’ (bill of costs): § 18 BRAGO. For VAT (‘MwSt’) anddisbursements (‘Auslagen’: postage, typing, travel expenses) see §§ 25–30 BRAGO.106 See § ll(i), sentences 2 and 3 BRAGO.107 See § 20(i) BRAGO.108 See § 120(i) BRAGO.109 See § 21 BRAGO.110 See § 12(i) BRAGO.111 See § 132 BRAGO.Application for an entitlement voucher (‘Berechtigungsschdn’) must be made to the local ‘Amtsgericht’: § 4BerHG.A fee agreement between a ‘Rechtsanwalt’ and a person seeking ‘Beratungshilfe’ is void: § 8(ii) BerHG.112 See § 123 BRAGO and §§ 114–127a ZPO (Chapter XIII, Note 26 ante). See also Jauernig (ZP), Book 4, Chapter17 (§96).113 See ‘BRAK-Mitteilungen’ 5/00, p 260.114 Although called a partner, a member of a ‘Partnerschaftsgesellschaft’ basically has the status of a ‘Gesellschafter’within §§ 705ff BGB.115 The ‘Gesellschaftsoermögen’ therefore remains available as a safety net.Moreover, § 735 BGB imposes a statutory obligation on members of a ‘BGB-Gesellschaft’ to replenish theassets of a ‘BGB-Gesellschaft’, if they are insufficient to cover losses. However, this duty (‘Nachschußpflicht’)can be excluded in the company agreementTowards third parties, members of a civil law partnership are at the greatest risk of personal liability. Anvlimitation is a matter of contract (eg, by way of the specific instruction of an individual partner(‘Einzelmandat’)).The privileged position of members of a ‘Partnerschaftsgesellschaft’, who take no active part in a particular342

Notesmatter – which is accorded to them by § 8(ii) Part GG – is not justified. In truth, it makes a mockery of thebasic principle of joint (personal) responsibility for partnership obligations, as codified in § 8(i) Part GG.See Chapter XI, Note 51.116 (a) For further details, see the article by Dr Fritz Kempter in ‘BRAK-Mitteilungen’ 3/1994, p 122.Regarding ‘Haftungsbeschränkung’ and ‘Haftungskonzentration’, see the article by Oliver Sieg andKatharina Holtmann in ZAP 9/99, Fach 23, p 387, Section V.(b) Lawyers can also now practise in the form of a limited company (GmbH). The BRAO has been amendedto permit this with effect from 1.3.1999 (§§ 59c-m BRAO). The name of the company must include theword ‘Rechtsanwaltsgesellschaft’ in its title and only persons professionally active in the company canbe shareholders. Lawyers must hold the majority of the shares and must predominate in themanagement of the company. They must be free from influence by shareholders in the carrying out oftheir professional activities. The minimum professional liability insurance required is DM 5 millionper incident and DM 20 million per year. Applications for registration must first be submitted to the‘Rechtsanwaltskammer’.See Frank Johnigk, ZAP 20/98, Fach 23, p 375; Ralf Büring and Stefan Peitscher, ZAP 3/00, Fach 23, p447.Legal practice in the form of a public limited company (‘Aktiengesellschaft’ (AG)) is only a matter oftime. Indeed, the Supreme Regional Court of Bavaria (‘Bayrisches Oberstes Landgericht’) has alreadyreached a decision in favour of this. See ZAP-Aktuell, 12/00, p 768; Römermann, ZAP, Fach 23, p 461.(c) For a useful résumé of the possible forms of cooperation/union (‘Zusammenschluss’) between lawyerssee Eberhard Assmann in ZAP 18/99, Fach 20, p 362 (Section II). See also: Mario Axmann in ‘BRAK-Mitteilungen’ 4/2000, p 189.Note the difference between a ‘Sozietät’ or ‘Anwalts-/Notargemeinschaft’, which practises under a commonfirm name and is, in reality, a full civil law partnership (‘BGB-Gesellschaft’) and the mere‘Bürogemeinschaft’, where lawyers share office facilities and overheads (internally) whilst remainingprofessionally independent insofar as the outside world is concerned.With regard to the liability of lawyers practising in the form of a ‘Sozietät’, what is normally decisive ishow the relevant lawyers appear/present themselves to the public (their ‘Auftreten im Rechtsverkehr’)rather than the internal organisation of the practice.See Sieg, ZAP, Fach 23, p 535, Section III, Part 6 (p 548); Grunewald, ZAP, Fach 23, p 551.117 See Model/Creifelds/Lichtenberger, Part 3 A (213) and Creifelds under ‘Notar’, ‘Anwaltsnotar’ and ‘Form’12 and 3.118 See §§ 1 and 12 BNotO.119 See § 4 BNotO.120 See § 14 BNotO.Only persons, who are German citizens and have the ‘Befähigung zum Richteramt’, may be appointed: § 5BNotO. This is a fundamental barrier to full provision of legal services by lawyers from other EU countries.The chances of reform are slim.See Note 11 in this Chapter.121 See §§ 8, 36 and 45 BeurkG and § 25 BNotO.See also Chapter X, Note 256.122 See §§ 20–22 BNotO.123 See § 19 BNotO.On the basic principles of notarial liability see the article by Franz-Josef Rinsche in ZAP 16/97, Fach 23, p273.124 See §§ 65–91 BNotO.125 See Chapter XXII D 8 and §§ 140–157 KostO.126 See §§ 437–440 ZPO.343

APPENDIX AVOCABULARY: SELECTED GERMAN AND LATIN WORDS ANDPHRASES (WITH THEIR ENGLISH/LEGAL MEANINGS)AbänderungsklageAberratio ictuswrit claiming the adjustment/amendment of a judgmentfor payment of a regular sum (eg, maintenance). SeeCreifelds under ‘Abänderungsklage’ and Chapter XIII C E(Note 15)(significant) aberration in a criminal act, ie, it goes seriouslywrong; it excludes ‘Vorsatz’; cf ‘Error in persona’ and ‘Errorin obiecto’. See Chapter XVI C 3 (d)Abdingbardispositive norms are ‘abdingbar’, ie, can be derogated(departed) from by agreement. See Creifelds under‘Abdingbar’ and Chapter IX BAbfall refuse, rubbish, waste. See Chapter VI Note 5AbfindungAbgabeAbgabenordnung (AO)AbgebenAbgrenzenAbgrenzungAbhanden kommenAbhilfeAb initioAbkömmlingAblehnenAblehnung(sgesuch)AblösungAbmahnungpay-off; one-off payment, (lump-sum) settlement,severance payment (on redundancy). See Creifelds under‘Abfindung’ and ‘Abfindungsguthaben’; Chapter X, Note 334;Chapter XI C 3 (b) (iv); Chapter XVIII B 3the giving away of something, delivery; placement intocirculation (of a ‘Willenserklärung’); casting (of a vote); levy,tax. See Chapter X B 2 (b)(Federal) Collection of Taxes Order. See Creifelds under‘Abgabenordnung’; Chapter XIII D 8 (a); Chapter XIV B 1to give something away, deliver; to place into circulation(eg, a ‘Willenserklärung’); to cast (a vote)to separate, demarcateseparation, demarcation. See Chapter XIII D 2 (c) (iii) (Note101)to go astray. See Chapter X D 3 (c) (iii) (bonafide acquisitionof ownership to movables); Chapter XIX B; Chapter XIX,Note 40remedial action, redress (eg, where a ‘Behörde’ regards a‘Widerspruch’ against a VA as justified). See Creifelds under‘Abhilfe’, Chapter X C 3 (g) Exposé; Chapter XIII D 3 (c)and Chapter XV C (Note 9)from the beginning/start. Also ‘von Anfang an’. See ChapterX F 3 (c) (iv); Chapter XVIII, Note 7issue, offspring, ie, (legitimate or illegitimate) children. SeeChapter X F 3 (a) (i)to decline, refuse, object to, rejectrefusal (of), (motion of) objection, challenge (to). SeeChapter XIII, Note 134; Chapter XXII, Note 19; ‘Besorgnisder Befangenheit’. Cf ‘Aufsichtsbeschwerde’see ‘Tilgung’prior warning (eg, before summary dismissal of anemployee). See Chapter XVIII B345

The German Legal System and Legal LanguageAbnahme acceptance (of a ‘Werk’ by the customer). See Chapter X,Note 125 GAbnutzungwear and tear. See Chapter X F 4 (e)Absatz marketing, sales. See Chapter XII, Note 42AbschiebungAbsduagszahlungAbschlußAbschlußfreiheitAbschnittAbschriftAbsehen von(Strafoerfolgung/Strafe)(physical) removal (of a person on deportation). See ChapterXXI Cpayment on account. See § 632a BGBconclusion (of a matter or contract). See Chapter X B 2 (e);Chapter XI C 2 (e); Chapter XVII, Note 38 Gfreedom to conclude a contract with whomever one pleases.See Chapter X, Note 23section (part of statute). Cf ‘Vorschrift’: an individualprovision in a statute, which incorporates the terms‘Paragraph’ (§) and ‘Artikel’ (eg, in theGG)copy. Can be ‘einfach’ (normal, simple) or ‘beglaubigt’(certified). See Chapter XIII D 1 (g) (ii) and D 2 (c) (i) and cf‘Ausfertigung’to disregard (refrain from) eg, prosecution, imposing (nonimpositionof) a ‘Strafe’. See Creifelds under ‘Absehen vonStrafe’; Chapter XVI D; Chapter XVII, Note 40Absicht(pure) intent. See Chapter XVI C 3 (c)AbsichtlichdeliberatelyAbsolutes Recht absolute right. Cf ‘Relatives Recht’ and see Chapter X B 1 4Abstammento descend fromAbstammung descent (from), extraction. See Chapter X E; Chapter X F 3(a) (i)Abstimmungvote, ballot; plebiscite. See Chapter II F (Note 20) and also‘Volksabstimmung’AbstraktabstractAbstrakte Normkontrollesee ‘Normkontrolle’Abstraktionsgrundsatzabstraction principle. See Chapter X C 2 2 and X D 2 (v)Abteilung department. See Chapter XXII D 7Abtretungassignment. See Creifelds under ‘Abtretung’ and cf‘Schuldübernahme’. See also Chapter X C 3 (d) and (e) andChapter X, Note 241Abtretungserklärungdeclaration of assignment. See Chapter X D 3 (h)Abwägungbalancing. See Creifelds under ‘Abwägungsgebot’; ChapterVIII, Notes 7, 10 and 20; Chapter X B 2 (e); Chapter XIV,Note 23 C; Chapter XVI, Notes 33 and 35Abwälzento shift onto (someone else). See Chapter X C 3 (g) Exposé (c)Abwehrwarding-off, repulsionAbweheklagedefensive counter-action. Also ‘actio negatoria’Abwehrrecht(e)defensive right(s). See Chapter VIII A346

Appendix A: VocabularyAbweichung deviation, divergence (from). See Chapter X, Note 189Abweisento dismiss, reject (an application or ‘Klage’)Abweisungdismissal, rejection (of an application or ‘Klage’). SeeChapter XIII, Note 107Abwendento avert. See Chapter XVII, Note 38 CAbwicklungsverhältniswinding-up relationship. See Chapter X, Note 126 FAbzahlungskaufinstalment purchase. In English law, an instalmentpurchase can be either a ‘credit sale agreement’ or a‘conditional sale agreement’. See Chapter X D 2 (iv)Actio libera in causaact free in origin. See Chapter XVI C 3 (b)Actio negatorianegatory action. See § 1004 BGBAdäquanztheorietheory of foreseeability (adequacy theory). It is thedominant theory of causation in civil law. See Chapter XVIC 1 (a) (Note 21) and cf ‘Äquivalenztheorie’Adressataddressee. See Chapter VIII AAequitas fairness; equity. See Chapter I (Note 6)AktefileAkteneinsichtinspection of the file(s). See Chapter XIV B 3; Chapter XVIIC; Chapter XXII D 5. Regarding the various rights ofinspection in civil, criminal and administrative matters,see Creifelds under ‘Akteneinsicht’Aktieshare (in an AG). See Chapter XII, Note 10; Chapter XIX BAktiengesellschaft (A.G.)public limited company. See ‘Gesellschaft’ and ‘Vorstand’Aktiengesetz (AktG)Law relating to public limited companies. See Chapter XI AAkzessorietätaccessory relationship. See Creifelds under ‘Akzessorietät’I; Chapter X D 3 (h) (Note 280); Chapter XI B 3Alle Angelegenheitenall local matters. See Chapter VIder örtlichen GemeinschaftAlleineigentum sole ownership. See Chapter X, Note 231AllgemeingeneralAllgemeinegeneral terms, (standard) conditions of business; alsoGeschäftsbedingungen‘Vertragsbedingungen’. See Chapter X B 2 (d) and (e),Creifelds under ‘Allgemeine Geschäftsbedingungen’ and theAGBGAllgemeine Rechtsgrundsätze general principles of law. See Chapter XVI, Note 4Allgemeiner Teil (AT)general part. See Chapter X BAllgemeines Bürgerliches General Civil Code (for Austria; 1811). See Chapter I (after Note 13)Gesetzbuch (AGBGB)Allgemeines Landrecht für die General Law for the Prussian States (1794). See Creifeldspreußischen Staaten (ALR) under ‘Allgemeines Landrecht’ and Chapter I (after Note 13)Allgemeines Persönlichkeitsrecht general right of personality (privacy). See Chapter VIII,Note 20 B; Chapter X, Note 266 C347

The German Legal System and Legal LanguageAllgemein verbindlichof general effect; generally binding. See Chapter VII C, Note13; Chapter XVIII, Note 52Allgemeinverfügung (a VA giving a) general direction. See Chapter XIV C 1Alleinerbesole heir. See Chapter X F 4 (a)Als eigene Angelegenheitas one’s (its) own matter. See Chapter V BAmtAmtlichAmtliche VerwahrungAmtsanwaltAmtsbetrieboffice (usually part of a ‘Behörde’), position. See Creifeldsunder ‘Amt’; Chapter II, Note 9official (adj)official custody. See Chapter X F 3 (c) (ii) and 5 (e)district public prosecutor (at the AG). See Chapter XVII Bconduct of a matter by the court (rather than by the parties:‘Parteibetrieb’). See Chapter XIII C C; Chapter XIII D 1 (g) (ii)Amtsenthebung removal from office. See Chapter XXII A (Note 18)Amtsgericht (AG)district court. See Creifelds under ‘Amtsgericht’; ChapterXIII D 2 (d) and Chapter XXII C 2Amtshandlung official act. See Chapter XXI, Note 1Amtshilfeofficial assistance (between ‘Behörden’). See Chapter XXI,Note 1. Cf ‘Rechtshilfe’Amtspflichtofficial duty. See Chapter X, Note 224; Chapter XXII EAnaloganalogouslyAnalogieanalogy. See Creifelds under ‘Analogie’; Chapter X, Notes38 and 47 E; Chapter XVI A; ‘entsprechende Anwendung’Änderungvariation, amendment. See Chapter X C 3 (g) Exposé (d).See also ‘Veränderung’Änderungskündigunga ‘Kündigung’ coupled with a proposed alteration in termsof employment or in a tenancy agreement (‘Mietvertrag’).See Creifelds under ‘Änderungskundigung’; Chapter X C 3(g) Exposé; Chapter XVIII, Note 11Andeutungindication, hint. See Chapter X F 3 (c) (iii)Androhungprior threat/warning (of a particular measure). See ChapterXIII, Note 190Aneignungacquisition of ownership to ownerless movables(appropriation). See Chapter X D 3 (c) (ii)Anerkenntnisacknowledgement (of a claim). See Chapter XIII D 2 (c) (iv)Anerkennungacknowledgement; recognition. See Chapter XXI AAnfall der Erbschaftdevolution of the estate (on the heir(s)). See Chapter X F 4 (a)Anfangsverdachtinitial suspicion (of the commission of an offence). Such asuspicion is necessary for the commencement of a criminalinvestigation (‘Ermittlungsverfahren’). See Chapter XVII,Note 20Anfechtbar(keit)voidable, challengable; voidability, challengability SeeChapter XIV C 3. See also ‘Anfechtung’Anfechtento challenge, contest, impugn348

Appendix A: VocabularyAnfechtungAnfechtungsgrundAnfechtungsklagechallenge, contestation. See Creifelds under ‘Anfechtung vonWillenserklärungen’; Chapter X B 2 (b); Chapter X F 3 (c)(iv); Chapter X F 4 (f); Chapter X F 5 (a) (ii)ground for challenge. See Chapter X F 5 (a) (ii)writ of challenge (eg, against a VA). See Chapter X F 4 (f);Chapter XIV C 3; Chapter XV B and C; Creifelds under‘Verwaltungsstreitverfahren’ I (a)Angedroht threatened. See Chapter XVIII H (Note 57)Angebotoffer. See Chapter X B 2 (c)Angehörigerdependant (of a person). See Chapter X F 4 (g) (i)Angeklagterdefendant, accused (after the opening of proceedings),person indicted. Cf ‘Beschuldigter’ and see Chapter XVII EAngelegenheit matter. See Chapter XIII, Note 96Angemessenfair; appropriate. See Chapter X, Note 126 F; Chapter XVID; Chapter XVIII B 3Angeschuldigterperson charged. Cf ‘Beschuldigter’ and see Chapter XVII EAngestellteremployee. See ‘Arbeitnehmer’Angriffs-und Verteidigungsmittel means of attack and defence. See Chapter XIII D 2 (c) (vi)Anhängigpending (before a court). See Chapter XIII D 2 (c) (i) and cf‘RechtshängigAnhaltspunktclue, indication. See Chapter XIII, Note 67; Chapter XVI,Note 9; Chapter XVIIBAnhörunghearing, listening. See Creifelds under ‘Anhörung’, ChapterXIII D 2 (c) (vi); Chapter XIV B 3; Chapter XV D. Cf‘Vernehmung’Anklagesee ‘Anklageschrift’Anklagebehördeprosecution authority. See Chapter XVII BAnklagegrundsatzprinciple that a public prosecution is necessary before ajudicial investigation of an alleged crime can take place. SeeChapter XVII AAnklagemonopolprosecution monopoly. See Chapter XVII BAnklagento prosecute, accuse; cf ‘Beschuldigen’ and ‘Vorwerfen’Anklageschrift(bill of) indictment. See Creifelds under ‘Anklageschrift’. Seealso ‘Angeschuldigter’, ‘Angeklagter’ and Chapter XVII EAnknüpfungspunktconnecting factor. See Chapter XX BAnlageinvestmentAnlagevermögenfixed assets. See Creifelds under ‘Anlagevermögen’Anlaßcause, reason, occasion, opportunity (for). See Chapter XVII DAnleihe(government) bond, (gilt-edged) debenture stock. See ChapterXIX BAnmeldento notify, report Also to announce or register (oneself orsomething).Anmeldepflichtsee ‘Anzeigepflicht’349

The German Legal System and Legal LanguageAnmeldungnotification, report. See Chapter XI C 3 (b) (i)Annähern to become dose (approximate) to. See Chapter XXII D 9Annahmeacceptance. See Chapter X B 2 (c); Chapter X F 5 (a)Annahme als Kindadoption. See Chapter X E and Creifelds under ‘Adoption’Anordnungorder (direction) eg, of a court during proceedings. SeeChapter VIII B (Note 10); Chapter X D 2 (v); Chapter X F 3(b); Chapter XIII D 1 (g) (i); Chapter XIV, Notes 23 and 33Anpassungadaptation. See Chapter X, Note 47 DAnrechnento credit, set-offAnschauung opinion, point of view. See Chapter I, Note 16Anscheinsbeweis‘prima facie’ evidence. It can ease the burden of proof(‘Beweislasit’). See Chapter X, Note 222; Chapter XIII, Note10. Cf ‘Indizienbeweis’Anscheinsvollmacht ostensible authority. See Chapter XIII, Note 57Anschlussberufungconnected (cross-) appeal. See Chapter XIII D 3 (a)Anschuldigento charge (in an indictment (‘Anklage’))Anschwärzungblackening (of the name) of a business. See Chapter VIII, Note20 GAnspruchclaim; right (to); cause of action. See Chapter X B 14 and B4 ExposéAnspruch auf einen gesetzlichen right to a proper (statutory) judge. See Creifelds underRichter‘Gesetzlicher Richter’ and Chapter VIII C (Note 36)Anspruch auf rechtliches Gehör right to be heard; right to a proper hearing (in accordancewith law), due process. Also ‘audi alteram partem’. See Creifeldsunder ‘Rechtliches Gehör’ and Chapter VIII C (Note 36)Anspruchsgrundlage(legal) basis (substantive ground) for an ‘Anspruch’. SeeChapter X B 1 4Anspruchsnorma norm containing an ‘Anspruchsgrundlage’. Cf ‘Hilfsnorm’Ansprucksvoraussetzung(pre)condition for a claim, ie, a preliminary requirementfor the applicability of a particular ‘Anspruchsgrundlage’.See Chapter X B 1 4 and 5; Chapter XIII, Note 97Anstalt institution. See Chapter II C; Chapter XIV, Note 14Anstanddecency, good manners. See Chapter X F 4 (g) (iv)Anstellento employAnstiftungincitement, instigation. A person, who intentionally inducesanother to commit an offence, which that other thenintentionally commits, is punishable as a perpetrator, ie, inthe same way as the principal offender. See Creifelds under‘Anstiftung’; § 26 StGB. Cf ‘Beihlfe’, ‘Mittäterschaft’Anteil part; share. See Chapter X F 4 (b); Chapter XI A 3Antragapplication (for), motion. See Chapter XIII D 2 (c) (iii) and(iv) (Note 107)Antragsdeliktoffence requiring an application for prosecution. SeeChapter XVII Note 9350

Appendix A: VocabularyAntragsteller applicant, petitioner. See Chapter XIII D 6 (b) 3Antragsgegner respondent. See Chapter XIII D 6 (b) 3Anwachsungaccretion. See Chapter X F 4 (c)Anwaltsee ‘Rechtsanwalt’Anwaltsgerichtlawyers’ court. See Creifelds under ‘Ehrengerichtsbarkeit’;Chapter XXII D 7Anwaltsprozeßlawyers’ action. Cf ‘Parteiprozeß’. See Chapter XIIID 1 (f) (iv)Anwaltsvertrag contract with a lawyer, retainer. See Chapter X, Note 166;Chapter XXII, Note 74. See also ‘Mandat’Anwaltszwangcompulsory instruction of lawyer. See Chapter XIII D 1 (f)(iv) and Chapter XXII, Note 73Anwartschaft(srecht) (right of) expectancy. See Chapter X B 2 (d); Chapter X D 2(iv); Chapter X Note 256; Chapter X F 4(e)Anweisungdocumentary instruction; direction. See Chapter X C 3 (g)(Title 21); Chapter XIX, Note 36Anweisungsempfängerrecipient of an ‘Anweisung’, payeeAnwendung (practical) application. See Chapter X C 2 2 (Note 105)Anwendungsbereicharea of applicationAnwesenheit(srecht)presence, attendance; right to be present. See Chapter XVII CAnzahlungdeposit (on a transaction). Cf ‘Hinterkgung’Anzeige(criminal) complaint, information, notice, report;advertisement. See ‘Strafanzeige’Anzeigepflichtduty of notification, duty to report. See Chapter X C 3 (g)Exposé (c); Chapter XIX A 2Apostilleattestation/authenticity/legalisation clauseÄquivalenztheorieequivalence theory (of causation); dominant in criminal,but not in civil law, where the theory of foreseeability(‘Adäquanztheorie’) applies. See Chapter XVI C 1 (a)ArbeitworkArbeiter(manual) worker. See ‘Arbeitnehmer’Arbeitgeberemployer. See Chapter XVIII AArbeitgebervereinigung (-verband) employer association, federation. See Chapter XVIII DArbeitnehmeremployee; can be ‘Arbeiter’ or ‘Angestellter’. See ChapterXVIII AArbeitsbedingungen terms of employment. See Chapter XVIII, Note 11Arbeitsgericht (ArbG)employment court. See Chapter XVIII BArbeitsgerichtsbarkeitemployment jurisdiction. See Creifelds under‘Arbeitsgenchtsbarkeit’ and Chapter XXII C 3Arbeitsgerichtsgesetz (ArbGG) Law relating to the Employment Courts. See Chapter XXII C 3Arbeitskampfindustrial action. Conducted in two main forms: ‘Streik’and ‘Aussperrung’. See Creifelds under ‘Arbeitskampf’ andChapter XVIII D (b) and G351

The German Legal System and Legal LanguageArbeitsplatzArbeitsschutzrechtworkplace; jobwork protection law. See Creifelds under ‘Arbeitsschutz’ andChapter XVIII HArbeitssicherheitsgesetz (ASiG) Work Safety Law. See Chapter XVIII HArbeitsstättework place. See Chapter XVIII HArbeitsstättenverordnungWork Places Order. See Chapter XVIII H(ArbStättVO)Arbeitsunfähigkeit incapacity for work. See Chapter XVIII, Note 13Arbeitsunfallaccident at work. See Chapter XVIII HArbeitsverhältnisemployment relationship. Also ‘Dienstoerhältnis’Arbeitsvertragcontract of employment. See Chapter XVIII A and B andalso ‘Dienstuertrag’Arglistcraftiness; fraud. See ‘Arglistige Täuschung’Arglistige Täuschungfraudulent deception, fraudulent misrepresentation. An‘arglistige Täuschung’ exists, if an ‘Irrtum’ (error, mistake) isintentionally caused or upheld by– a ‘Vorspiegeln falscher Tatsachen’ (pretence of false facts); or– a ‘Verschweigen wahrer Tatsachen’ (concealment of true facts)and there is a duty to give the other party the necessaryclarification (‘Aufklärungspflicht’; § 242 BGB). See ChapterX B 2 (b) (Nullity and challengability of a ‘Willenserklärung’);Chapter X, Notes 189 and 220. Cf ‘Betrug’Argumentum e contrariosee ‘Umkehrschluß’Arrestsummary means of securing the enforcement of a‘Geldforderung’ by seizure of assets. It can be personal. SeeCreifelds under ‘Arrest’, §§ 916–945 ZPO; Chapter XIII D 8(c) (v) and D 8 (f). a ‘Festnahme’Arzthaftung medical liability (negligence). See Chapter X, Note 222 B;Chapter XIII B 7 (Note 10 4); ‘grober Behandlungsfehler’Arztuertragcontract (of medical treatment) with a doctor. See ChapterX, Note 166; ‘Behandlungsvertrag’Asylrechtright of asylum. See Creifelds under ‘Asylrecht undAsylverfahren’ and Chapter VIII C (Article 16a GG)Asylverfahrensgesdz (AsylVfG) Law on Asylum Procedure. See Chapter XXI CAuctoritas non ventes facit legem authority, not die truth, makes law. See Chapter I (Note 10)Audi alteram partemsee ‘Anspruch auf rechtliches Gehör’Auf Befehl on orders. See Chapter XVI C 2 (b) (Note 34)Auf eigene Gefahrat one’s own riskAuf eigene Rechnung for one’s own account. See Chapter XI, Note 42Aufenfhaltresidence, stay. It can be ‘vorüber gehend’ (temporary),‘gewöhnlich’ (habitual, usual) or ‘dauernd’ (continuous,permanent). Cf ‘Wohnsitz’. See Chapter X B 12; ChapterXX C (Note 9) and Note 25Aufenthaltserlaubnisresidence permit. Also ‘Aufenthaltsgenehmigung’352

Appendix A: VocabularyAufenthaltsortplace of residence, location. See Chapter XIIID 8 (d) and (e)Aufälligconspicuous. See Chapter X, Note 58 BAuffangtatbestand mopping-up provision. See Chapter X B 2 (e); Chapter X,Note 220AuffassungopinionAuf freiem Fußat large/liberty (criminal law sense)Aufgabe function, job. See Chapter XVII D (Note 32)Aufgebot public notification of a claim. See Chapter XIII D 9Aufgrundon the basis of, due to. See Chapter VIII BAufhebento repeal, quash, annul, terminateAufhebungquashing, annulment; termination (eg, of a ‘Gemeinschaft nachBruchteilen’). See Chapter X C 3 (g) (Title 15); Chapter X F 3(c) (ii); Chapter XI A 3; Chapter XIII C H; Chapter XIII D 3(b); Chapter XTV C 3; Chapter XV B; Chapter XVIII BAufhebungsvertragannulment agreement. See Chapter X, Note 150; ChapterXVIII, Note 5Aufklärung clarification; enlightenment. See Chapter I (Note 13);Chapter XIII B 2 (b); Chapter XIII D 2 (c) (vi)Aufklärungspflicht duty to clarify, duty of disclosure. See Chapter X, Note 135B, Chapter XXII D 5Auflagebinding condition, direction, requirement (laid down by aperson or ‘Behörde’); also edition (of book). See Chapter XF 4 (h); Chapter XIV, Note 23CAuflassungconveyance (of a piece of land), ie, ‘Einigung’ in the case ofimmovables. See Chapter X D 3 (c) (ii) (Note 256) and §925(i) BGBAuflösungtermination (dissolution) (of a company) eg, through‘Kündigung’Auflösungsklagewrit claiming ‘Auflösung by court decision. See Chapter XIC 3 (b) (iv)Aufrechnungset-off. See Chapter X B 4 and C 3 (c) (Title 3). See also‘Vorbehaltsurteil’Aufruf der Sacheannouncement of the matter (in court). See Chapter XIII D2 (c) (vi)Aufschiebende Wirkung suspensive effect. See Chapter XIV C 3Aufsichtsupervision. See Chapter VI; Chapter X F 5 (b); ChapterXXII D 6. See also ‘Staatsaufsicht’Aufsichtsbeschwerdecomplaint to the next higher (supervisory) ‘Behörde’(‘Dienstaufsichtsbeschwerde’). It can relate to conduct of a‘Beamter’ or, indeed, of a judge. See Chapter XV A; ChapterXVII, Note 40 B; Chapter XXII, Note 19Aufsichtspflichtduty of supervision. See Chapter X, Note 222 BAufsichtsratsupervisory board. It is a compulsory organ of an AG,‘Kommanditgesellschaft auf Aktien’ and ‘Genossenschaft’; in a353

The German Legal System and Legal LanguageGmbH it is voluntary, except when there are more than500 employees. See Creifelds under ‘Aufsichtsrat’ andChapter XVIII FAufteilen to break up/down, split. See Chapter XIII, Note 96AuftragAuftraggeberAuftragsangelegenhetien(gratuitous) (contract of) instruction (without payment);assignment; brief; commission; job; mandate; order. SeeCreifelds under ‘Auftrag’, ‘Geschäftsbesorgungsvertrag’ andcf ‘Vertretung’; Chapter X, Note 166; Chapter X C 3 (g) (Title10). See also ‘Beauftragte’. An ‘Auftrag’ is usually the(internal) legal relationship underlying a ‘Vollmacht’.instructing person, mandatary, principal. In a non-technicalsense, the equivalent of ‘Kunde’ (customer). See ChapterXVIII, Note 2 (c). See also ‘Mandant’matters to be carried out on behalf of the mandatary. Also‘Übertragene Aufgaben’, See Creifelds under‘Auftragsangelegenheiten’ and Chapter VIAuftragsbestätigungconfirmation (acceptance) of order. See Chapter X B 2 (c):‘Rules governing offer and acceptance’ (Note 71)Auftragsmangel lack of orders. See Chapter XVIII, Note 14AuftragsverwaltungAuftretenAufwendenAufwendungAugenscheinAusbildungAusdrücklichAus erheblichen GründenAus wichtigem GrundAusbürgerungAuseinandersetzungAusfertigenAusfertigungadministration by a/the ‘Land’/‘Länder’ on instruction bythe ‘Bund’. See Chapter II Cappearance, behaviour. See Chapter XIII, Note 57; ChapterXXII, Note 116to expend (for), spend (on)expenditure, disbursement. See Chapter X C 3 (g) (Title10) and Creifelds under ‘Aufwendungen’. Cf ‘Verwendung’(evidence by) inspection. See ‘Beweis’training, education. See Chapter VII C (Note 18); ChapterXXII, Note 10express(ly)on significant grounds. See Chapter XIII D 1 (g) (iii)for (an) important reason. See Chapter XVIII Bremoval of citizenship (against one’s will). It is forbiddenby Article 16(i) GG. See Creifelds under ‘Entlassung aus derStaatsangehörigkeit’ and Chapter VIIICcomposition, division (among), split-up, severance,partitioning (between); argument. See Chapters X C 3 (g)(Title 14); Chapter X F 4 (b); Chapter XI C 3 (b) (iv) and (v)to draw up, issue (a document)drawing-up, issue; duplicate, (official) copy of an officialdocument (eg, a court decision). It bears an official seal(‘Dienstsiegel’) and replaces the original (‘Urschrift’) for legalpurposes. See Creifelds under ‘Ausfertigung einer Urkunde;§§ 47 and 49(i) BeurkG; Chapter XIII D 1 (g) (ii); ChapterXXII E. Cf ‘Abschrift’354

Appendix A: VocabularyAusforschungsantragapplication (for evidence) made only to fish for possibleinformation. See Chapter XIII, Note 67Ausführung the administration, carrying out, execution,implementation (of); version. See Creifelds under‘Ausführung von Gesetzen’ and Chapters V B and VII AAusführungsgesetz executing, implementing law. See Chapter II, Note 34;Chapter XIII, Note 171; Chapter XXI, Note 4 and Section B.Ausgebento spend (money), issue (shares)Ausgleichento equalize, settle (a debt)Ausgleichsforderung claim to equalization, balancing claim. See Chapter XIII D 6 (b) 2Ausgleichungequalization (between heirs). See Chapter X F 4 (b) and (g)(iv)Aushandelnto negotiate. See Chapter X B 2 (e)Aushändigung hand-over, delivery (of). See Chapter XIX, Note 36Aushangnotice. See Chapter X B 2 (e)Aushöhlento erode. See Chapter X B 2 (e)Aushöhlung (inner) erosion, hollowing out. See Chapter VIII, Note 13Auskunftinformation. See Creifelds under ‘Auskunft, behördliche’;Chapter X, Note 215; Chapter X F 4 (g); Chapter XIII, Note96; Chapter XIV B 3; Chapter XX, Note 11;‘Unterhalt’Auslage(n) disbursement(s). See Chapter XXII D 8 (d) (Note 104)Auslandabroad; foreign country. See Chapter XXI A. Cf ‘Inland’Ausländergesetz (AuslG)Law regarding Foreigners. See Chapter XXI CAusländisches Rechtforeign law. See Chapter XX EAuslandsunterhaltsgesetz (AUG) Foreign Maintenance Law. See Chapter XXI, Note 5.Auslegento interpret (a meaning); to advance (money)Auslegunginterpretation (of a meaning). See Chapter X C 2 2 (Note105); Chapter X F 3 (c)(iii)Auslegung geht Anfechtung vor interpretation has priority over challenge. See Chapter X,at Note 45; Chapter X F 3(c) (iii)Auslegungsregelrule of interpretation/construction. See Chapter X B 2 (c)(Failure to reach an ‘Einigung’); Chapter X F 3 (c) (iii)Auslieferungextradition. See Creifelds under ‘Auslieferung’; Chapter VIIIC (Article 16(ii) GG); Chapter XVI, Note 3 D; Chapter XXI CAuslobungpublic offer of reward. See Creifelds under ‘Auslobung’ andChapter X C 3 (g) (Title 9)AusnahmeexceptionAusnahmebemlligung(special) approval by way of exception. See also ‘Befreiung’and ‘Dispens’Ausnahmefallexceptional caseAusnahmegerichtexceptional court (for a particular case). See Creifelds under‘Ausnahmegeridite’ and ‘Sondergeridit’ and Chapter XXII C 3355

The German Legal System and Legal LanguageAusnahmsweise by way of exception, exceptionally. See Chapter VII C (Note 16)Ausnutzento abuse, exploit. See Chapter X, Notes 58 and 220. Seealso ‘Mißbrauchen’Ausnutzungexploitation. See Chapter X B 2 (e)Ausreichend sufficient(ly). See Chapter XVIII, Note 14Aussagestatement, declaration. In criminal proceedings, a suspecthas no duty to make a statement (‘Aussagepflicht’). Cf theposition of a witness. See Creifelds under ‘Aussagepflicht’and ‘Zeugnisvenveigerungsrecht’. See also ‘Erklärung’Aussageverweigerungsrecht right to refuse to make a statement. See ‘Aussage’; ChapterXVII, Note 38 D and HAusscheidento leave; departure of member from a company. See ChapterXI C 3 (b) (iv); Chapter XXII D 9Ausschlagungdisclaimer (of an inheritance). See Chapter X F 5 (a)Ausschlagungsfristperiod for disclaimer. See Chapter X F 5 (a)Ausschließlichexclusively), sole(ly). See Creifelds under ‘AusschließlicheGesetzgebung’ and Chapter II BAusschließungexclusion. See Chapter X F 4 (f); Chapter XI C 3 (b) (iv);Chapter XXII D 7Ausschuß committee; board. See Chapter III, Note 3Außenprüfungexternal audit (by a tax office). See Creifelds under‘Außenprüfung’Außenverhältnisexternal relationship. See Chapter XIII D 1 (f) (iv) (the term‘Vollmacht’)Außenwirkungexternal effect. Also ‘Wirkung nach außen’Außergerichtlichextrajudicial(ly). See Chapter XXII D 8 (b); ‘Prozeßkosten’Außerordentlichextraordinar(il)y; summary. See ‘Kündigung’Äußerung statement, remark, utterance. See Chapter VIII, Note 20 B;Chapter XIII, Note 3; Chapter XIII D 2 (c) (vi); Chapter XVI,Note 35. See also ‘Bemerkung’, ‘Erklärung’, ‘Stellungnahme’Aussetzento suspend, stay (proceedings)Aussetzungsuspension, stay (eg, of proceedings, of enforcement, ofan arrest warrant). See Creifelds under ‘Aussetzung einesVerfahrens’; Chapter XIII D 1 (g) (i); Chapter XIV, Note 23C; Chapter XVII, Note 26 CAussicht auf Erfolg chance (prospect) of success. See Chapter XIII, Note 134Aussichtslos without prospect See Chapter XIIID 6 (b) 3Aussperrunglock-out. See ‘Arbeitskampf’Ausstottung endowment, dowry. See Chapter X F 4 (b); Chapter XIII D 6(b) 2Ausstellerissuer, drawer (eg, of a bill of exchange). See Chapter XIXNote 36 and at Note 41Ausstrahlungswirkungradiation effect (of basic rights on private law). See ChapterVIII, Note 7. See also Chapter I, Note 10.356

Appendix A: VocabularyAusüben to exercise. See Chapter XXII D 2 and Note 59Ausübung exercise (of). See Chapter XXII, Note 59Auswärtiges AmtForeign Office. See Chapter XIV AAusweisidentity card/document, passAusweisungdeportation. See Chapter XXI CAuswirkungeffect (on), repercussion. See ‘Zustimmungsgesetz’Auszahlungpayment out. See Chapter X C 3 (g) Exposé (‘Darlehen’)Auszubildendertrainee. See Creifelds under ‘Berufsbildung’; Chapter XI C2 (d); Chapter XVIII, Note 2 (a)Bankgeschäfte banking business, transactions. See Chapter X, Note 211Bankrechtlaw of banking. See Chapter XIXBauantragapplication for permission to buildBaubetreuerproject manager, consultant. See Creifelds under‘Baubetreuung(svertrag)’Baugenehmigung building consent, planning permission. See Chapter XIV C 5Bauherrthe person, who commissions a particular building project,ie, the building owner, proprietor (for whom the work isundertaken)Baurecht building law. See Chapter XIX A 3Baustellebuilding siteBauträgerproperty developer. Like a ‘Makler’, a ‘Bauträger’ is subjectto the ‘Makler-und Bauträger Verordnung’. See Creifeldsunder ‘Baubetreuung(svertrag)’ and ‘Makler’Bauunternehmerbuilding contractorBayern Bavaria. See Chapter V A and Chapter XXII C 2 (at Note 36)Beamtenhaftung liability of civil servants. See Chapter X, Note 224Beamtercivil servant officer. See Chapter XIV C 1 (Note 12); ChapterXVII, Note 22; Chapter XXII ABearbeiterperson dealing with/handling/responsible for a matterBeauftragento appoint, instructBeauftragtea person instructed/charged with doing something; anenvoy. See Chapter II, Note 11; Chapter X C 3 (g) (Title 10).A ‘Beauftragter’ acts on the basis of an ‘Auftrag’ and isthereby subject to comprehensive rights and obligations(§ 662ff BGB). Cf a ‘Vertreter’ (agent), who also usually actson the basis of an ‘Auftrag’, but (additionally) in the nameof the principal.Bebauungsplan(local) building plan. See Chapter XV ABedachtebeneficiary. See Chapter X F 4 (h)Bedenkenreservation (regarding)Bedeutungimportance, meaningBedingt durchconditional on; due to. See Chapter X D 2 (iv)357

The German Legal System and Legal LanguageBedingungBedürfnis(prüfung)BeeinträchtigenBeeinträchtigungcondition (future uncertain event); can be ‘aufschiebend’(suspensive) or ‘auflösend’ (resolutive). See Creifelds under‘Bedingung’ and Chapter X B 2 (d)(test of) need. See Chapter XXII Eto hamper, impairimpairment, interference. See Chapter VIII A; Chapter VIII,Note 20 C; Chapter X, Note 266 C; Chapter X F 3 (e)Befähigungcapacity (to hold an office or exercise a profession),qualification. See Chapter XXII A (Note 11) and Creifeldsunder ‘Befähigung’Befähigungsnachweisevidence of ability/capacity, certificate of qualification. SeeChapter XIX A 2Befangenheitbias, prejudice. See ‘Besorgnis der Befangenheit’Befehl order. See Chapter XVI C 2 (b) (Note 34)Befehlend(a VA) requiring or forbidding particular action. SeeChapter XVIII H (Note 56 B)Beforderung carriage, transport(ation); promotion. See Chapter X B 2(e); Chapter X, Note 166Befreiungexemption, release. See Chapter X C 3 (g) Exposé (c);‘Dispens’Befriedigungsatisfaction. See Chapter X D 3 (h); Chapter X F 5 (b)Befristetlimited to a particular period. See ‘Kündigung’Befugnisauthority, power. See Chapter II, Note 3 ABegehungsdeliktcrime by active conduct. See Chapter XVI C 1 (b)Beglaubigento certifyBeglaubigte Abschriftcertified copy. See ‘Abschrift’Beglaubigungcertification. See Chapter XXII EBegriffterm, concept.Begriffsjurisprudenzconceptual jurisprudence. Cf ‘Interessenjurisprudenz’ andsee Chapter IBegründet(heit)(actually) well-founded(ness). Cf ‘Zulässig(keit)’,‘Schlüssig(keit)’ and see Chapter XIII D 2 (c) (iii)Begründungestablishment (of); reasoning, reasons forBegründungszwangduty of a court to give reasons for a decision. See ChapterXIII, Note 120 and Creifelds under ‘Begründung vonEntscheidungen’Begünstigento favourBegünstigend favourable, advantageous. See Chapter XIV C 5BegünstigterbeneficiaryBehandlungsvertragSee ‘Arztvertrag’Behauptungallegation. See Chapter VIII, Note 20 EBehauptungslast(the) burden of allegation (‘Darlegungslast’). See ChapterXIII, Notes 10 and 67358

Appendix A: VocabularyBehebenBeherrschenBehördeBeibringungsgrundsatzBeihilfeBeihtifeBeiseite schaffento remedy, repair (a defect). Also ‘Beseitigen’, ‘Nachbessern’to dominate, control, commandauthority. See Chapter II C and Creifelds under ‘Behörden’see ‘Verhandlungsgrundsatz’aiding and abetting (the commission of an offence);participation as an accessory (‘Gehilfe’). See Creifelds under‘Beihilfe’; § 27 StGB. Cf ‘Anstiftung’, ‘Mittäterschaft’advisory committee, consultative councilto fraudulently remove (something), ie, to place it asidewith the intention of concealing it. See Chapter X F 3 (e)Beistandparty’s assistant; aid, support. See Chapter XIII D 1 (f) (iv);Chapter XVII, Note 28Beitrag contribution. See Chapter X F 4 (b), Chapter XI B 1Beitrittaccession. See Chapter V A. See also‘Schuldbeitritt’Bekanntgabenotification. See Chapter XIV C 3 and cf ‘Bekanntmachung’Bekanntmachungpublication, announcement, notification. See Chapter XIC 2 (b) (Note 32). See also ‘Verkündung’, ‘Veröffentlichung’and Creifelds under ‘Bekanntmachung’Bekenntnisconfession, creed. See Chapter VIII C (Article 4(i) GG)Beklagter defendant. See Chapter XIII (at Note 107)Bekräftigento affirm, confirm, corroborate, endorse (a statement)Bekräftigungaffirmation (in lieu of oath). See § 484 ZPOBelastento burden, encumber; incriminate; debit. See Chapter X D 2 (v)Belastend burdensome, disadvantageous. See Chapter XIV C 5Belastungszeuge incriminating witness. See Chapter XVII, Note 29Belegvoucher, receiptBelegento substantiate, verify (by means of documentation)Belehrento advise, instruct, cautionBelehrungadvice, instruction, caution. See Chapter XXII EBeleidigunginsult (§ 185 StGB). It can consist of a ‘Werturteil’ (valuejudgment,opinion) and be oral or written. See Creifeldsunder ‘Beleidigung’; Chapters VIII, (Note 20 D), XVI B (Note13), XVI C 2 (b) (Note 35) and XVII (Note 9)Beleihung loan, secondment See Chapter II, Note 11Bellum omnium contra omnes (a) war of all against all. See Chapter I, Note 10Bemerkungcomment, remark. See Chapter VIII, Note 20 BBenachrichtigungnotification. See Chapter XIII D 8 (c) (v)Benachteiligung disadvantage, discrimination. See Chapter X B 2 (e); §§611a-612a BGBBenennento nameBeratento advise359

The German Legal System and Legal LanguageBeratung consultation. See Chapter XXII D 8Beratungshilfeassisted legal advice (support) (for less well-off persons).Cf ‘Prozeßkostenhilfe’Beratungshilfegesetz (BerHG) Law relating to (the grant of) assisted legal advice. SeeChapter XXII C 5 and D 8Berechtigterperson entitled; also ‘Inhaber des Rechts’ (owner of the right).See Chapter X D 2 (v) and ‘Verfügungsbefugnis’Berechtigungentitlement. See Chapter XIX B (at Note 30). See also‘Inhaberschaft’Berechtigungsschein entitlement voucher. See Chapter XXII, Note 110Berichterstatter(court) rapporteurBerichtigungcorrection. See Chapter VIII, Note 20 EBerufoccupation, profession. See Creifelds under ‘Beruf (freieWahl und Ausübung)’; Chapter VIII C; Chapter XIX A;Chapter XXII D 2Berufsausübung exercise of a profession. See Chapter VII C (Note 18);Chapter XXII, Note 59Berufsgenossenschaftoccupational cooperative. See Chapter XVIII HBerufshaftpflichtversicherung professional liability insurance. See Chapter XXII D 4Berufsordnung professional code. See Chapter XXII D 5Berufsordnungsrechtlaw concerning the regulation of professional conduct. SeeChapter XXII D 5Berufspflicht professional duty. See Chapter X, Note 222 B; Chapter XXII D 5Berufsrichterprofessional judge. See Chapter XXII ABerufsstandprofessional class. See Chapter XI ABerufsverbotoccupational ban. See Creifelds under ‘Berufsverbot’ and‘Rechtsamvalt’ IV; Chapter XXII D 7Berufung(general) appeal. See Chapter XIII D 3 (a)Berufungsantragappeal application. See Chapter XIIID 3 (a)Berufungsbegründungparticulars of appeal. See Chapter XIII D 3 (a)Berufungsbeklagterrespondent. See Chapter XIII D 3 (a)Berufungsfristtime limit for lodging ‘Berufungsschrift’. See Chapter XIII D 3 (a)Berufungsgrundfactual and/or evidential basis for a ‘Berufung’. See ChapterXIII D 3 (a)Berufungsklägerappellant. See Chapter XIII D 3 (a)Berufungsschriftnotice of appeal. See Chapter XIII D 3 (a)Berufungssummeappeal value, amount. See Chapter XIII D 3 (a)Beschädigento damage. See Chapter X F 3 (e)Bescheidofficial notice, decision, notification (from a ‘Behörde’). SeeChapter XIV, Note 12; § 113(iv) VwGOBeschlagnahmeseizure (in the public law sense). See Chapter XVII B. Seealso ‘Einziehung’. Cf ‘Arrest’360

Appendix A: VocabularyBeschlagnahmenBeschleunigungBeschlußBeschlussfähigBeschränkenBeschränkte persönlicheDienstbarkeitBeschränkungto seize, confiscate, impoundacceleration. See Creifelds under ‘Mündliche Verhandlung’and Chapter XIII B 6(company) resolution; (court) order, decision. See Creifeldsunder ‘Beschluß’, ‘Beschlußverfahreri; Chapter XI C 3 (b) (ii);Chapter XII D; Chapter XIII C D; Chapter XIII D 2 (c) (vi);Chapter XV Dcompetent to reach a decision, pass a resolution,constituting a quorumto limit, restrict.limited personal servitude. See Chapter X D 3 (e)limitation, restriction. See Chapter XI, Note 25; ChapterXIII D 1 (f) (iv) (The term ‘Vollmacht’)Beschuldigen to accuse, charge (with), incriminate. See Chapter XVII E;cf ‘Anklagen’ and ‘Vorwerfen’BeschuldigterBeschwerBeschwerdeBeschwerdeführerBeschwertesuspect, person accused (of). See also ‘Verdachtigter’ andChapter XVII E. After an ‘Anklageschrift’ is lodged:‘Angeschuldigter’; after proceedings opened: ‘Angeklagter’grievance, gravamen. See Chapter XIII D 3 (a)complaint; can be ‘einfache Beschwerde’ (simple complaint)or ‘sofortige Beschwerde’ (immediate complaint). See ChapterXIII D 3 (c) and D 8 (b) (xi); Chapter XVII, Note 26 Bcomplainanta person charged (to effect a disposition in a will). SeeChapter X F 4 (h)Beseitigento remove, dispose of, overturn. See Chapter XIII C E (Note15). Also ‘Beheben’, ‘Nachbessern’Beseitigung disposal, removal, rectification. See Chapter VIII (Note 20C); Chapter X, Note 189 C; Chapter X D 3 (c) (iv); ChapterX C 3 (g) Exposé (c); Chapter XV C (at Note 15)Besetzungoccupation, composition, constitution (eg, of a court). SeeChapter XIII, Note 136; Chapter XXII, Note 5Besitzpossession(s). See Chapter X D 2 (i) and cf ‘Recht zum Besitz’.See also Chapter X, Notes 248 and 266Besitzkonstitut constructive possession (arrangement). See Chapter X D 3(c) (ii) and ‘Sicherungsubereignung’Besitzmittlungsverhältnis possession mediation relationship. See Chapter X, Note 257Besoldungsee ‘Gehalt’Besonderer Teil (BT)special part. See Chapters X C 1 and XVI ABesorgnis der Befangenheitapprehension/concern/ fear /risk of bias (prejudice). Ajudge or official of the business office of the court can berejected for suspicion of bias (‘Besorgnis der Befangenheit’),if a reason exists, suitable to justify mistrust against thatperson’s impartiality: § 42(ii) ZPO. The rejection361

The German Legal System and Legal LanguageBesprechungBestandskraftapplication/motion of challenge (‘Ablehnungsgesuch’) mustbe substantiated (§ 44(ii) ZPO). It can no longer be madeonce the party seeking the rejection has submitted to ahearing or has made applications (§ 43 ZPO), unless thegrounds arose or became known later (§ 44(iv) ZPO). Adistrict court judge sitting alone can grant the motionhimself, if he considers it well founded. Otherwise themotion passes for decision to the ‘Landgericht’, or, inchildren or family matters, to the OLG (§ 45(ii) ZPO). Whilethe motion is pending, a judge can only undertake suchprocedural steps as are incapable of postponement(‘unaufschiebbar’; § 47 ZPO). See Chapter XIII, Note 136;Chapter XXII, Note 19.discussion, meeting. See Chapter XXII D 8 (b)finally binding nature, legal force (authority) of a VA. SeeChapter XIV C 4 and cf ‘Rechtskraft’Bestandskräftig possessing ‘Bestandskraft’. See Chapter XIV C 4Bestandteilpart (of a ‘Sache’); component. See Chapter X B 2 (e);Chapter X D 1; Creifelds under ‘Bestandteil’. Cf ‘Zubehör’Bestätigento confirm. See Chapter X B 2 (c) (Rules governing offerand acceptance) (Note 71)Bestehento exist, existence; to pass (test); insist (on)Bestellento orderBestellerperson who orders something, client, customer. SeeChapter X C 3 (g) (Title 7)Bestellungorder, appointment. See Chapter XVII CBestimmbarcapable of specification, ascertainable. See Chapter X, Notes65 and 237Bestimmento specifyBestimmtspecific; definite(ly), certain(ly). See Chapter X B 2 (c) (Rulesgoverning offer and acceptance’); Chapter X, Note 237;Chapter XIII, Note 96; Chapter XIV C 2Bestimmtheitsgrundsatzprinciple that a matter must be defined as exactly aspossible. See ‘Spezialitätsgrundsatz’, Chapter X D 2 andChapter XVIABestimmungprovision, term; specification, setting (of). See Chapter XC 3 (b) (Title 1)Bestreitento dispute (facts). See Chapter XIII D 2 (c) (iv)Betäubungsmittelgesetz (BtMG) Narcotic Drugs Law. See Chapter XVII, Note 38 CBeteiligter person involved; participant. See Chapter XIII (Note 37),Chapter XIV B 3 and Creifelds under ‘Beteiligter’Beteiligunginvolvement, participation, shareholding), interest (in)Beteiligungskapitalprivate equity (finance)Betreibento engage in, run (a business). See Chapter XI ABetreuento look after, care for, attend to; to deal with, be in charge of362

Appendix A: VocabularyBetreuerattendant, companion, guardian (of an adult). See ChapterX E (Section 3)Betreuungcare (and attendance), companionship. It replaced‘Entmündigung’ after 1.1.1992. See Chapter XIII A (Note 1)Betriebactual business unit (trading or manufacturing); workplace,office, firm. See Chapter XVIII C and cf ‘Unternehmen’Betriebsänderung change in a business. See Chapter XVIII B 4Betriebsbedingtdue to circumstances in the ‘Betrieb’. See Chapter XVIII BBetriebspartnerbusiness partner. See Chapter XVIII DBetriebsratworks council. See Creifelds under ‘Betriebsrat’, ChapterXVIII C and cf ‘Personalrat’Betriebssicherheitsafety at the workplace. See Chapter XVIII HBetriebsübergang transfer of a business. See Creifelds under‘Betriebsübergang’; Chapter XVIII B 4Betriebsoereinbarung(written) business agreement (relating to a ‘Betrieb’). SeeChapter XVIII DBetriebsverfassungsgesetz(BetrVG)Law relating to the constitution of a ‘Betrieb’ (1952 and1972). See Chapter XVIIICBetrug deceit, fraud. A person is punishable for ‘Betrug’ under §263 StGB, if he intentionally (‘vorsätzlich’):– causes or upholds another person’s error/mistake(‘Irrtum’);– by means of deception (‘Täuschung’);– with the intention of obtaining an illegal pecuniaryadvantage (‘rechtswidrigen Vermögensvorteil’) for himselfor a third person (‘Bereicherungsabsichf’); and– thereby causes damage to the assets (‘Vermögen’) of theperson deceived or a third person in the form of adisposition over such assets (‘Vermögensverfügung’).See Creifelds under ‘Betrug’; ‘arglistige Täuschung’; ChapterXVII, Note 38 CBeugemittel(officially imposed) coercive measure. See Chapter XIII,Note 190; Chapter XVIII, Note 56 ABeurkundento document, authenticate, legalize. See Chapter XXII EBeurkundungdocumentation, authentication, legalization. See ChapterXXII EBeurkundungsgesetz (BeurkG) Law relating to ‘Beurkundungen’. See Chapter XXII EBeurteilungsspielraum room for judgment. See Chapter XIV C 6Bevollmächtigte beim Bund minister of a ‘Land’ responsible for federal matters. SeeChapter V BBevollmächtigterauthorised person; attorney. See Chapter XIII D 1 (f) (iv)Bevorzugungpreference. See Chapter VIII CBewährungprobation. See Chapter XVI DBewährungszeitperiod of probation. See Chapter XVI D363

The German Legal System and Legal LanguageBeweglich movable (adj), mobile. See Chapter X D 1Bewegliche Sachemovable (noun). Old expression: ‘Fahrnis’. See Chapter XC 3 (g) Exposé (a)Beweisevidence. It can be direct (‘unmittelbar’) or indirect(‘mittelbar’). See Baur/Grunsky, § 14 A 1 2, Creifelds under‘Beweis’ and ‘Indizienbeweis’. See also Chapter XIII B 7 andChapter XIII D 2 (b)Beweisaufnahme(the) taking of evidence. Also referred to as ‘Beweiserhebung’.If immediate evidence is available, the ‘Beweisaufnahme’ isordered (‘angeordnet’) informally. Otherwise, it requires aformal ‘Beweisbeschluß’ (§ 358 ZPO). See Jauernig (ZP), Book2, Chapter 8, § 51 and, in this text, Chapter XIII B 7 (Note9), Chapter XIII D 2 (b) and Chapter XIII D 2 (c) (iii) (Note99). Regarding the procedure in criminal proceedings, see§§ 244–257 StPOBeweisbedürftig(keit)requiring (to be proved by) evidence (requirement). SeeChapter XIII D 2 (c) (iii) (Note 97)Beweisbeschluß(formal) order directing the taking of evidence(‘Beweisaufnahme’). By § 359 ZPO, it must indicate the‘Beweisthema’, the ‘Beweismittel’ and the ‘Beweisführer’Beweis des ersten Anscheins see ‘Anscheinsbeweis’Beweiserhebungsee ‘Beweisaufnahme’Beweisfällig liable to supply proof. See Chapter XIII B 7 (Note 10)Beweisführerthe party bringing evidence (‘beweisführende Partei’)Beweisgebühr evidence fee. See Chapter XXII D 8Beweisgegenstandsubject of evidence. Also ‘Beweisthema’Beweiskraftevidential force/strength. See Chapter XXII EBeweislastthe burden of evidence (proof). See Chapter X, Note 126 Iand J; Chapter XIII B 7 (Note 10)BeweislastumkehrSee ‘Umkehr der Beweislast’Beweislosigkeit lack (failure) of proof. See Chapter XIII B 7 (Note 10)Beweismittelthe means by which evidence can be brought; item ofevidence. In civil proceedings, the ZPO lays down (§§ 371– 455 ZPO) five different types of ‘Beweismittel’:– ‘Augenscheinsbeweis’ (visual evidence);– ‘Zeugenbeweis’ (witness evidence);– ‘Sachuerständigenbeweis’ (expert evidence);– ‘Urkundenbeweis’ (documentary evidence); and– ‘Parteivemehmung’ (examination of a party). The‘Beweismittel’ can be introduced– in accordance with the principle of ‘Strengbeweis’ (strictevidence)– into the part of the proceedings known as the‘Beweisverfahren’. To be compared with the principle of‘Strengbeweis’ is the principle of ‘Freibeweis’ (freeevidence), where the court is not bound to particular‘Beweismittel’.364

Appendix A: VocabularySee Creifelds under ‘Freibeweis’ and Jauernig (ZP), Book 2,Chapter 8, § 49 III and §§ 51–56. In criminal proceedings,the suspect (‘Beschuldigter’) can make a statement(‘Aussage’), but is not a ‘Beweismittel’. See Roxin, Book I,Chapter 5, § 25Beweisregel rule of evidence. See Chapter XIII B 7Beweisstück item of evidence. See Chapter XVII, Note 30Beweisthemasee ‘Beweisgegenstand’Beweisverfahrenproceedings for the taking of evidence (by means of whicha party introduces a particular ‘Beweismittel’ into theproceedings). In civil proceedings, the ‘Beweisverfahren’commences with a ‘Beweisantritt’ (‘Beweisangebot’), alsoreferred to as a ‘Beweisantrag’ (application to presentevidence). A ‘Beweisantrag’ can only exceptionally berefused: see Baur/Grunsky,§ 14 A III 3; § 86(ii) VwGO.Regarding the treatment of such an application in criminalproceedings see Creifelds under ‘Beweisantrag imStrafprozeß’Beweiswürdigung assessment of evidence. See Chapter XIII B 7Bewertung evaluation. See Chapter XIV, Note 33Bewilligungallowance, approval, consent, licence. See Chapter XIV C6; Chapter XXI CBewirkungthe effecting of. See Chapter X C 3 (Note 114); Chapter XIIID 1 (f) (i)Bewußtconscious. See Chapter XVI C 3 (c)Bewusstseinsstörungdisturbance of consciousness. See Chapter X F 3 (c) (i)Beziffern to state in figures. See Chapter XIII, Note 96Bezirkarea, district. See Chapter V BBezugnahme (auf) reference (to) (documents). See Chapter XIII, Note 64Bezugsrechtdrawing right (to new shares) (of a shareholder in an AG).See Creifelds under ‘Bezugsrecht’Bildung(swesen)education (system). See Chapter II, Note 7; Chapter VI,Note 5Billig(keit)cheap(ness); equitable, fair; equity, fairness. See ChapterX, Notes 58 A and 227 (b); Chapter XXII D 8 (e). See also‘Unbillig’Bindento bind. Cf ‘Beschränken’ and ‘Knebeln’Bindungbinding, tie. See Chapter II F; Chapter X F 3 (e); ChapterXIII C G; Chapter XIV (Note 34)Bis de eadem re ne sit actiono action lies twice in the same matter. See Chapter XIII CE (Note 15). In criminal law: ‘Ne bis in idem’Blutprobe blood sample. See Chapter XVII, Note 24Bonitätcredit-rating, credit-worthinessBörsengangfloatation (on the Stock Market)365

The German Legal System and Legal LanguageBörsennotierungBösgläubig(keit)BrandstiftungBriefgrundschuldBriefhypothekBruchteilBuchBuchhypothekBundBundesamt für…Bundesamt fürVerfassungsschutzBundesanstalt für…Bundesanstalt für ArbeitBundesanwaltBundesarbeitsgericht (BAG)Bundesaufsichtsamt fürdas KreditwesenBundesbahnBundesbahndirektionBundesbankStock Market listing, quotation(in) bad faith. See Chapter X D 3 (c) (iii) (bona fide acquisitionof ownership to movables); Creifelds under ‘Böser Glaube’arson. See Chapter XVII, Note 38 Ccertificated land chargea mortgage, for which a mortgage certificate(‘Hypothekenbrief’) has been issuedfraction, part. See Chapter X F 4 (c)Book (of a law). See eg, Chapter X Aa mortgage, which takes the form of an entry in the LandRegister. See Chapter X D 3 (h). Cf ‘Briefttypothek’confederacy, federation, league. See ‘Bundesrepublik’Federal Office for/of…See ‘Bundesoberbehörde’Federal Office of Constitutional Protection; in Cologne. SeeChapter XVII D (Note 32)Federal Institute for/of…See ‘Bundesoberbehorde’; Chapter IVFederal Institute of Employment (in Nürnberg). SeeChapter II C (Note 11); Chapter IV (Note 2)federal prosecutor (at the BGH). See Chapter XVII BFederal Employment Court. See Chapter XXII C 3. Theaddress of the court is: Hugo-Preuß-Platz 1, 99084 Erfurt.Federal Supervisory Office for the Credit System; in Berlin.See Chapter IV, Note 2Federal Railway(s). Since 1.1.1994 a public limitedcompany: ‘Deutsche Bahn AG’. See Creifelds under‘Bundesbahn’ and ‘Deutsche Bahn AG’; Chapter II, Note 15;Chapter XIV AFederal Railway Directorate. See Chapter IVFederal Bank (in Frankfurt am Main). Its activities will bephased out in the course of the establishment of theEuropean Central Bank. See Chapter II, Note 11; ChapterIV, Note 2Bundesbehörde(middle) federal authority eg, ‘Direktion’. See Chapter IVBundeseigene Verwaltung (own) administration by the ‘Bund’. See Chapter II C;Chapter IV; Chapter XIVABundesfinanzhof (BFH)Federal Finance (Tax) Court. See Chapter XXII C 4. Theaddress of the court is: Ismaninger Straße 109, 81675MünchenBundesgebietfederal territory. See Chapter II F (Note 20); Chapter IVBundesgebührenordnung für Federal Lawyers’ Fee Order. See Chapter XXII D 8Rechtsanwälte (BRAGO)Bundesgerichtshof (BGH)Federal Supreme Court. See Chapter XXII C 2. The addressof the court is:Herrenstraße 45a, 76133 Karlsruhe366

Appendix A: VocabularyBundesgesetzBundesgrenzschutz (BGS)BundeskanzlerBundeskanzleramtfederal statute. Cf ‘Landesgesetz’Federal Border Guard. See Chapter XVII DFederal Chancellor. See Chapter inFederal Chancellor’s Office; Chancellery; in Berlin. SeeChapter IVBundeskartellamt Federal Cartel Office; in Bonn. See Chapter IV, Note 2;Chapter XIX ABundeskriminalamt (BKA)BundesministerBundesministeriumBundesnachrichtendienst (BND)Bundesnotarordnung (BNotO)BundesoberbehordeFederal Office of Criminal Investigation; in Wiesbaden. SeeChapter XIV A; Chapter XVII D (Note 32)federal ministers). See Chapter IIIfederal ministry. See Chapter IV; Chapter XIV AFederal Intelligence Service. It is responsible for thecollection of information and data (‘Nachnchtenbeschaffung’/‘Datenerhebung’) regarding foreign countries. It is an upperfederal authority (‘Bundesoberbehörde’) under the controlof the Federal Chancellor’s Office (‘Bundeskanzleramt’). SeeCreifelds under ‘Bundesnachrichtendienst’. See also‘Datenerhebung’Federal Notaries Order. See Chapter XXII Eupper federal authority. See Chapter IV; ‘Bundesamt für…’,‘Bundesanstalt für…’BundespostFederal Post Office. (Now a public limited company:‘Deutsche Post AG’). See Chapter E, Note 15; Chapter XIV ABundespräsidentFederal President See Chapter IIIBundespräsidialamtFederal Presidential Office; in Berlin. See Chapter IVBundesrat Federal Council. See Chapter III (Note 3)BundesrechnungshofFederal Accounts Court; in Bonn. See Chapter IVBundesrecht bricht Landesrecht federal law takes precedence (lit. breaks) the law of a ‘Land’(Article 31 GG). See Chapters E B, VIII A and XIV ABundesrechtsanuxiltskammer(BRAK)Federal Lawyers’ Chamber. It issues a magazine (the ‘BRAKMittettungen’) containing professional information, whichis sent quarterly to members of the (regional)‘Rechtsanwaltskammern’. See also Chapter XXII D 6Bundesrechtsanwaltsordnung Federal Lawyers’ Order. See Chapter XXII D 1(BRAO)BundesregierungFederal Government. See Chapter IIIBundesrepublik (Deutschland) Federal Republic (of Germany). See Chapter II ABundesrichterjudge of one of the supreme federal courts (see Article 95 GG)Bundessozialgericht (BSG)Federal Social (Security) Court. See Chapter XXII C 4. Theaddress of the court is: Graf-Bernadotte-Platz 5, 34119 Kassel.Bundesstaatfederal state. See Chapter II ABundestagFederal Parliament. See Chapter IIIBundestreue (duty of) federal loyalty. See Chapter II, Note 2367

The German Legal System and Legal LanguageBundesunterbehördeBundesverfassungsgericht(lower) federal authority. See Chapter IVFederal Constitutional Court. See Chapter in and ChapterVII CBundesverfassungs-Law relating to the Federal Constitutional Court. Seegerichtsgesetz (BVerfGG)Chapter in and Chapter VII CBundesversammlungFederal Assembly. See Chapter IIIBundesversicherungsanstalt Federal Institute of Insurance for Employees. See Chapterfür Angestellte (BfA)XVIII, Note 2Bundesverwaltungsgericht(BVerwG)Federal Administrative Court. See Chapter XXII C 4. Theaddress of the court is: Haidenbergstraße 31, 10623 BerlinBundeswehr (Federal) Defence Service. See Chapter XIV, Note 1Bundeswehrverwaltungfederal military administration. See Chapter XIV ABundeszentralregisterCentral Federal Register. It is kept by the General FederalProsecutor (‘Generalbundesanwalt’) and contains details offinal criminal convictions and certain administrativedecisions. It is located in Bonn. Information from theregister can be supplied in the form of a certificate ofconduct (‘Führungszeugnis’) on personal applicationBundeszwangcoercion by the ‘Bund’. See Chapter II, Note 2 and ChapterVII, Note 2Bürge guarantor. See Chapter X C 3 (g) (Title 18)Bürgerliches GesetzbuchCivil Code. See Chapter XBürgerliches Rechtcivil law. See Chapter IX ABürgermeisterMayor. See also ‘Oberbürgermeister’Bürgschaftcontract of surety, guaranty. See Creifelds under ‘Bürgschaft;Chapter X C 3 (g) (Title 18) and Exposé. Cf ‘Garantievertrag’.See also ‘Selbstschuldnerische Bürgschaft’Bürgschaftserklarung declaration of surety. See Chapter X, Note 177Bußgeldbescheidnotice of (a) fine. See ‘Geldbuße’Bußgeldverfahren fine proceedings. See Chapter XVI, Note 9Caveat emptor let the buyer beware. See Chapter X, Note 185Cessio legissee ‘gesetzlicher Forderüngsubergang’Chancengleichheit equality of opportunity. See Chapter VIII, Note 22Clausula rebus sic stantibus an (implied) clause to the effect that matters are to remainas they are. See ‘Geschäftsgrundlage’. See also Seidl-Hohenveldern, Part II, Chapter 2, § 22Conditio sine qua nonan essential condition (for); lit a condition without which(the result is) not (possible). See ‘Äcfuivalenztheone’Constitutum possessoriumsee ‘Besitzkonstitut’Contra proferentema principle of interpretation to the effect that a standardbusiness term, which is unclear, is to be construed narrowlyagainst the person relying on it See Chapter X B 2 (e)Corpus iuris civilisbody (collection) of civil law. See Chapter I368

Appendix A: VocabularyCulpa in contrahendo (cic)fault/blame during (in the course of (preliminary))negotiations. It is an (unwritten) principle developedoutside the BGB and provides a remedy for fault up to thetime of conclusion of a contract. Also called ‘Verschuldenbei Vertragsschluß’. See Chapter X B 1 4 (Note 18) andChapter X C 3 (a) (Note 126 D) and (b) (Note 135)Da mihi factun, dabo tibi ius see ‘Verhandlungsgrundsatz’Darlegungexposition, statement, submissionDarkgungslastsee ‘Behauptungslast’Darlehenloan. See Creifelds under ‘Darlehen’; Chapter X C 3 (g) (Title5) and Exposé; Chapter X, Note 235Darlehensgeberlender. See Chapter X C 3 (g) ExposéDarlehensnehmerborrower. See Chapter X C 3 (g) ExposéDarstellung presentation, version (of facts). See Chapter XIII, Note 67Daseinsvorsorge(future) welfare provision (for members of the public). See‘Leistungsverwaltung’Daten data; factual information. See Chapter XVII, Note 25Datenerhebungcollection of data. See ‘Bundesnachrichtendienst’. Collectionand processing of data is also the domain of the police—see Creifelds under ‘Datenerhebung und-verarbeitung’Datenschutz data protection. See Chapter XVII, Note 25Dauer duration. See Chapter XIX A 2Dauerschuldverhältnis continuing/ongoing obligation. See Chapter X Note 127;Chapter X C 3 (g) Exposé (f); Chapter XI, Note 42; ChapterXVIII, Notes 6 and 7Deckungsverhältnisprimary (covering) relationship. See Creifelds under‘Deckungsverhältnis’ and cf ‘Valutaverhältnis’, See also‘Anweisung ’Deliktdelict (civil or criminal). See Creifelds under ‘Delikt’Deliktsfähigkeitcapacity to commit a delict. See Creifelds under‘Deliktsfähigkeit’ and, for the position in criminal law,Chapter XVI C 3 (b)Dem Grunde nachDe minimis (non curat lex)DemnächstDepositengeschäftDepotgeschäft(claim) on the basic question, issue (of liability). See‘Zwischenurteil’the law does not bother itself with trifling matter. See‘Unerheblich’shortly, soon. See Chapter XIII D 1 (g) (ii)see ‘Einlagengeschaft’a transaction of custody of securities by a bank. See ChapterX, Note 211Deutscher Bund German Confederation. See Chapter I (Note 7)Deutsches Richtergesetz (DRiG) German Judges Law. See Chapter XXII ADiebstahltheft. Where there are no aggravating circumstances, thepossible punishment is a sentence of up to five years’imprisonment or a fine: § 242 StGB. Cf ‘Unterschlagung’.See also Chapter XVII, Note 38 C369

The German Legal System and Legal LanguageDienen to serve. See Chapter XXII, Note 71Dienstaufsicht(official) supervision of conduct during service. See ChapterXXII C 6Dienstaufsichtsbeschwerdesee ‘Aufsichtsbeschwerde’Dienstbarkeitservitude. See Chapter X D 3 (e)Dienstberechtigterperson entitled to (the) services. See Chapter XVIII HDienstherr master. Also ‘Dienstberechtigter’. See Chapter X, Note 224Dienstleistungservice, provision/supply of a service. See Chapter X, Note166; Chapter XI, Note 42Dienstleistungsunternehmen service enterprise/industry. See Chapter XI, Note 31Dienstsiegelofficial seal. See ‘Ausfertigung’Dienstvertragcontract of service. Cf ‘Werkvertrag’ (contract for services),‘Arbeitsvertrag’ (contract of employment) and see ChapterX C 3 (g) (Title 6) and Chapter XVIII HDiligentia quam in suissee ‘Sorgfalt in eigenen Angelegenheiten’Dinglicher Anspruchreal claim. See Chapter X D 3 (c) (iv)Dingliches Rechtreal right, right ‘in rem’. See Chapter X D 2; Chapter X D 3 (h)Dinglicher Verwaltungsakt real VA. See Chapter XIV C 1Direktiondirectorate. See ‘Bundesbehörde’Direktionsrecht(employer’s) right of direction. See Creifelds under‘Direktionsrecht’; Chapter XVIII, Note 11Dispensdispensation. See Chapter XIV C 6 and also‘Ausnahmebewilligung’ and ‘Befreiung’Dispositionarrangement, disposition. See Chapter X, Note 135 BDispositionsgrundsatzprinciple that the parties are masters of the proceedings;also ‘Verfügungsgrundsatz’. See Chapter XIII B 3; ChapterXV DDispositivdispositive. See Chapter IX BDissenssee ‘Einigungsmangel’Dolmetscher interpreter. See Chapter VIII, Note 18Dolus directusdirect intent. See Chapter XVI C 3 (c)Dolus eventualiseventual intent. See Chapter XVI C 3 (c)Dominiumsee ‘Eigentum’Doppelfunktiondouble (dual) function. See Chapter V B and Creifeldsunder ‘Doppelfunktion von Verwaltungsbehörden’. See alsoChapter XVII (Note 33)Do ut des I give, so that you give. See Chapter X Note 106Draufgabe bonus. See Chapter X C 3 (b) (Title 4)Dringender Tatverdachthigh (urgent) suspicion that the suspect committed theoffence. See Chapter XVII D (Note 38 A)Dringlichurgent. See Chapter X F 5 (a) (i)Dritterthird party. See, for example, Chapter X C 3 (a) and (b)370

Appendix A: VocabularyDrittorganschaftDrittschuldnerDrittsicherungDrittwirkung(principle of the) direction (of a company) by a third party.See Chapter XI Athird party debtor. See Chapter XIII D 8 (c) (v)(grant of) security by a third party. See Chapter X D 3 (h)effectiveness in third party relations; effect on third parties.See Chapter VIII ADrohungthreat. See Chapter X B 2 (b) (‘Nullity and challengabilityof a ‘Willenserklärung’); Chapter X, Note 58 C; Chapter X F3 (c (iv)Druckschrift(type of) print, printed publication. See Chapter VIII, Note20 EDuldento allow, suffer to happen; can also mean ‘sufferance’(noun). See Chapter XIII D 2 (c) (ii); Chapter XIII D 8 (d)Duldungtolerance, leaveDuldungspflichtduty of toleration. See Chapter X D 3 (c) (i)Duldungsvollmacht allowed authority. See Chapter XIII, Note 57Durchthrough. See Chapter VIII BDurchbrechen to break through pierce, breach. See Chapter X, Note 245;Chapter XIII C E (Note 15)Durchführungimplementation. See Chapter X B 2 (e)Durchgriffserinnerungpiercing ‘Erinnerung’, ie, one passed by the judge to thecourt. See Chapter XXII BDurchgriffshaftungthe exceptional personal liability of members of a juristicperson. See Chapter XI, Note 16Durchschnittskundeaverage customer. See Chapter X B 2 (e)Durchsetzungthe carrying out, enforcement realisation (of). See ChapterIX B; Chapter XXI BDurchsuchungsearch (of premises or persons). See Creifelds under‘Durchsuchung’; Chapter XIII D 8 (c) (v); Chapter XVII B;Chapter XXII B. Cf ‘Untersuchung’Echtgenuine. See Chapter XVI C 1 (b)Echtheitgenuineness. See Chapter XXII EEffektensecurities (banking sense), stock. See Chapter XIX BEhe(state of) marriage. See Creifelds under ‘Ehe’, Chapter VIIIC and Chapter X EEhegattespouse. See Chapter X F 3 (a) (i)EhegesetzMarriage Law (20.2.1946). See Chapter X EEhelichlegitimate (child). See Chapter X E and Creifelds under‘Eheliche Kinder’Eheliche Lebensgemeinschaft (community of) married life. See Chapter XI A 2. Also‘Lebensgemeinschaft der Ehegatten’Ehesachemarriage/matrimonial matter (eg, ‘Scheidung’). See‘Familiensache’ and Creifelds under ‘Ehesachen’371

The German Legal System and Legal LanguageEhevertragEhreEhrenamtlichEidEidesstattlicheOffenbarungsversicherungEidesstattliche VersicherungEigenkapitalEigenschaftEigentum(matrimonial) agreement (by which spouses can regulatetheir property status). See ‘Güterrecht’; Chapter X, Note 23honour. See ‘Beleidigung’; Chapter VIII, Note 20 F; ChapterXVI, Note 13honorary, lay. See Chapter XXII Aoath. See Chapter XXII B and Eassurance of means in lieu of oath. See Chapter XIII D 8 (e)assurance, declaration in lieu of oath. See Creifelds under‘Eidesstattliche Versicherung’; Chapter XIII D 8 (a) and (d);Chapter XXII Eown capital (resources); equity share capital (of a company)characteristic, quality. See ‘zugesicherte Eigenschaft’ownership; property. See Article 14(i) GG; Creifelds under‘Eigentum’, ‘Eigentumserwerb’, ‘Eigentumsgarantie’,‘Eigentumsherausgabeanspruch’, ‘Eigentumsstörungen’ and‘Eigentumsübertragung’; Chapter VIII C and Chapter X D 1and D 3 (c)Eigentumsähnliches Recht quasi-proprietary right. See Chapter X, Note 231Eigentum verpflichtetownership obliges (Article 14(ii) GG). See Chapter VIII Cand Chapter X D 3 (c) (i)Eigentumsvorbehaltreservation of title (clause). See Creifelds under‘Eigentumsvorbehalt’; Chapter X D 2 (iv); Chapter X Notes245 and 264Eigentümer-Besitzer-Verhältnis relationship between the owner and person in possessionof a ‘Sache’. See Chapter X D 3 (c) (iv) (Note 266)Eigentümergrundschuldowner’s land charge. See Chapter X D 3 (h)Eigentümerhypothekowner’s mortgage. See Chapter X D 3 (h)Eigenvermögenpersonal assets (eg, of an heir). See Chapter X F 5 (a) and (b)Eignungsprüfungaptitude test (for lawyers from other EC countries enablingadmission as a ‘Rechtsanwalt’). See Chapter XXII D 3Einberufento convene (a meeting). See ‘Vermittlungsausschuß’Einbeziehento cover, include. See Chapter X, Note 135 AEinbringung bringing in. See Chapter X C 3 (g) (Title 13)Einbürgerungnaturalisation. See Creifelds under ‘Einbürgerung’; ChapterXIV C 5Eindeutigdear, definite, unequivocal. See Chapter X F 3 (c) (iii)Einfachsimple; simply See ‘Gesetz’Einführungsgesetz zum BGB Introductory Law to the BGB. See Chapter XX(EGBGB)Einführungsgesetz zum GVG Introductory Law to the GVG. See Chapter XXII C (Note 36)(EGGVG)Eingangsstempel date-of-receipt stamp. See Chapter XIII, Note 90372

Appendix A: VocabularyEingehenEingetragener Verein (e.V.)EingliedernEingriff(e)EingriffsbefugnisEingriffskondiktionEingriffsverwaltungEinheitlichto enter, go into, conclude (a matter or relationship)see ‘Verein’to incorporate (into). See Chapter IVattack(s); interference; infringement; intervention. SeeChapters VII C and VIII Asee ‘Gesetzesvorbehalt’type of ‘Nichtleistungskondiktion’, where the recipientobtains a benefit by infringing the claimant’s rights. SeeChapter X C 3 (g) (Title 24)intervention administration. See Chapter II C (Note 12) andcf ‘Leistungsverwaltung’uniform, united, unanimous(ly). See Creifelds under‘Einheitlichkeit der Rechtsprechung’; Chapter III, Note 3 andChapter XIII D 3 (b)Einheitsrecht uniform law. See Chapter XX, Note 12Einigungconsensus, (real) agreement. See Creifelds under ‘Einigung’and see also ‘Auflassung’, ‘Willensübereinstimmung’. SeeChapter X B 2 (c)Einigungsmangelfailure to reach an ‘Einigung’ (on ‘Nebenpunkt’). It can be‘offen’ or ‘versteckt’. See Creifelds under ‘Vertrag’ I (§§ 154–155 BGB) and Chapter X B 2 (c)Einigungsstelleconciliation body (dealing with problems in a ‘Betrieb’).See Chapter XVIII DEinigungsvertrag Treaty of Union. See Chapter V, Note 1EinkommenincomeEinlagedeposit (banking sense). Company law sense: contributionof a member to a company, stake. It can be a contributionin cash (‘Bareinlage’) or a contribution in kind (‘Sacheinlage’).It is the basis for the ‘Geschäftsanteil’ or ‘Kapitalanteil’Einlagengeschäftdeposit business, ie, the acceptance of monies belongingto others (‘fremde Gelder’) by way of deposit. Also‘Depositengeschäft’. It is a type of banking transaction(‘Bankgeschäft’) undertaken by a credit institution(‘Kreditinstitut’) and is governed by the ‘Kreditwesengesetz’Einlassento engage (in an action); to enter appearance; to respondto a writ (as defendant)Einlassungengagement (in an action); entry of appearance; responseto a writ (by a defendant). See Chapter XIII D 2 (c) (iv)Einlassungsfristperiod during which an ‘Einlassung’ is possible, period forengagement (in an action). See Chapter XIII D 2 (c) (vi);Chapter XXI, Note 7Einredeobjection. See also ‘Einwendung’; Chapter X B 1 4; ChapterX B 4 Exposé; Chapter X D 3 (h); Creifelds under ‘Einrede’Einreichunglodging (of a writ). See Chapter XIII D 2 (c) (i)Einrichtung(public) facility, institution, amenity, establishment. SeeChapter II C373

The German Legal System and Legal LanguageEinschränkento limit, restrict. See Chapter VIII BEinschränkungrestriction, limitationEinschreitento intervene (normally a ‘Behörde’). See Chapter XVII BEinseitig one-sided, unilateral. See Chapter X B 1 7; Chapter X F 3(e); Chapter X, Notes 31, 106 and 126 EEinspruchobjection, protest. See Creifelds under ‘Einspruch’. See also‘Einwendung’, ‘Einrede’, ‘Widerspruch’ and ‘Rüge’Einspruchsgesetza proposed ‘Gesetz’, against which the ‘Bundesrat’ can objectunder Article 77(iii) GG, but which does not have to beapproved by it. Cf ‘Zustimmungsgesetz’Einstellento recruit, take into employment. Also to cease, stop, drop(a matter, investigation, enforcement)Einstellungrecruitment; cessation, suspension; attitude. See ChaptersXIII D 8 (b), XVII E, XVIII EEinstehenmüssen (für)to take responsibility (be liable) (for). Also ‘Haften (für)’and ‘Haftung’Einstimmigunanimous(ly). See Chapter X F 4 (b)Einstimmigkeitsprinzipunanimity principle. See Chapter XI B 2; Chapter XII DEinstweilige Anordnungtemporary order. See Creifelds under ‘EinstweiligeAnordnung’; Chapter VIII B (Note 10); Chapter XIII D 6 (b)1; Chapter XIV, Notes 23 E and 33Einstweilige Verfügung injunction. See Creifelds under ‘Einstweilige Verfügung’; §§916–945 ZPO; Chapter XIII, Note 149; Chapter XIII D 8 (d)and (f)Eintragungentry (in a register); registration. See Chapter XIII D 8 (e)Eintrittentry. See Chapter XI C 3 (b) (iii)Eintrittsprinzipprinciple of representation (in the law of succession). SeeChapter X F 3 (a) (i)Einvernehmensee ‘Einverständnis’Einverständnisagreement, consent. Also ‘Zustimmung’. See Chapter X B 2 (e)Einwandererimmigrant. See also ‘Siedler’Einwanderungimmigration. Cf ‘Zuwanderung’Einwendungobjection. See Creifelds under and cf ‘Einrede’. See alsoChapter XIII, Note 97; Chapter XIII D 2 (c) (iv) (Note 107)Einwilligung(prior) consent. See ‘Rechtfertigungsgrund’Einwirkungeffect, influence, nuisance. See Chapter X D 3 (c) (i)Einwohner inhabitant, resident (of a local authority). See Chapter II C;Chapter VIEinzelfall(specific, particular) individual caseEinzelgeschäftsführungindividual management (ie, by particular persons). SeeChapter XI BEinzelkaufmannsole trader. See Chapter XI AEinzelrichtersingle judge. See Creifelds under ‘Einzelrichter’; ChapterXIII D 2 (c) (i); Chapter XXII, Note 37. See also ‘Strafrichter’374

Appendix A: VocabularyEinziehungElterliche SorgeElternEmpfängerEmpfängerhorizontEmpfangsbedürftigEmpfangsbekenntnisEndgültigEndurteilEngste VerbindungEnteignungconfiscation; forfeiture (of a ‘Gegenstand’); revocation,withdrawal. See Chapter X, Note 343; Chapter X F 5 (d);Chapter XVI D. See also ‘Beschlagnahme’parental care. See Creifelds under ‘Elterliche Sorge’ andChapter X Eparents. See Chapter X B 2 (a)recipientthe recipient’s point of view. See Chapter X B 2 (b)(Interpretation of a ‘Willenserklärung’)requiring receipt. See Chapter X B 2 (b) (Validity of a‘Willenserklärung’)acknowledgement of receipt. See Chapter XIII D 1 (g) (ii)and D 2 (i)final(ly)final judgment. See ‘Urteil’closest connection. See Chapter XX Dexpropriation, dispossession, compulsory acquisition. SeeCreifelds under ‘Enteignung’; Chapter VII C (Note 18);Article 14(iii) GGEnterbungdisinheritance. See Creifelds under ‘Enterbung’; Chapter XB 4 (c); Chapter X F 4 (f); § 1938 BGB. Cf ‘Entziehung desPflichtteils’ (withdrawal of compulsory portion): §§ 2333–2336 BGBEntfaltungdevelopment, unfolding. See Chapter VIII CEntgelt(lich) charge, remuneration; for money, reward. See Chapter X,Note 166; Chapter X C 3 (g) (Title 10)Entlassungdismissal (of an employee), lay-off, redundancy. See‘Kündigung’Entlastungsbeweis exonerating evidence. See Chapter X, Notes 126 I and 135A; Chapter XVII, Note 38 HEntschädigungcompensation (eg, for ‘Enteignung’; for other examples seeCreifelds under ‘Entschädigung’). Cf ‘Schadensersatz’Entscheidungdecision. See Creifelds under ‘Entscheidung’, ‘Bescheid’;Chapter XIII C A; Chapter XXI AEntscheidungserheblichsignificant for/vital to a decision. See Chapter VII, Note12; Chapter XIII D 2 (c) (vi)(Sich) Entschuldigento apologise, excuse (oneself)Entsorgung disposal. See Chapter VI, Note 4Entsprechento correspond (to), be commensurate (with)Entsprechende Anwendung corresponding (analogous) application, application byanalogy. See ‘Analogie’Entwurfdraft (of a document)Entziehungwithdrawal (of a right or licence to do something). SeeChapter X F 4 (g) (v); Chapter XVI D. Cf ‘Enterbung’375

The German Legal System and Legal LanguageEntziehungsanstalt(drug) rejection institution. See Chapter XVI DEnumerationsprinzip enumeration principle. See Chapter VII C (Note 10)Erbbaurechtheritable building right It is an heritable right to erect/keepa building on a piece of land and is granted to a person fora certain period. An ‘Erbbaurecht’ is treated as a real right. Itis comparable to a legal (building) easement in English law.See Creifelds under ‘Erbbaurecht’ and Chapter X D 3 (d)Erbeheir, beneficiary. See Creifelds under ‘Erbe’ and Chapter X FErbeinsetzungappointment as heir. See Chapter X F 4 (c)Erbengemeinschaftcommunity between heirs. See Chapter X F 4 (b); ChapterXI A 3; Creifelds under ‘Erbengemeinschaft’Erbfähigkeitcapacity to inherit. See Chapter X F 3 (a) (i)Erbfallevent of succession, death. See also ‘Tod’Erbfolge succession. See Creifelds under ‘Erbfolge’ and Chapter X F.See also ‘Rechtsnachfolge’Erblasser testator. See Creifelds under ‘Erblasser’; Chapter X F 2Erbrechtlaw of succession; right of inheritance. See Creifelds under‘Erbrecht’, Chapter X F and Article 14(i) GGErbschaftestate, inheritance. See ‘Nachlaß’ and Creifelds under‘Erbschaft’Erbschaftskaufpurchase of an ‘Erbschaft’. See Chapter X FErbscheincertificate of inheritance, probate. See Creifelds under‘Erbschein’; Chapter X F 1 and 5 (d); Chapter XXII EErbteilpart, share of an estate. See Chapter X F 3 (a) (ii) and 5 (d)Erbunwürdig(keit)unworthy(iness) to inherit. See Chapter X F 4 (f)Erbvertragcontract of succession, estate contract. See Creifelds under‘Erbvertrag’; Chapter X F 3 (b) and (e); Chapter XXII B and EErbverzichtwaiver of inheritance. See Creifelds under ‘Erbverzicht’;Chapter X F 4 (f)Erfolgsuccess; (particular) result. See Chapter X, Note 166 andChapter XVI C 1 (a)ErfolgreichsuccessfulErfolgsdeliktcrime requiring a particular result. See Chapter XVI C 1 (a)Erfolgshaftungliability for the resultErfolgshonorar success fee. See Chapter XXII, Note 97Erfolgsortthe place at which the (particular) result occurs. See ChapterXX, Note 24Erfolgsqualifiziertes Delikta (qualified) offence, which attracts a heavier punishment inthe event of certain consequences. See Chapter XVI, Note 19Erforderlichnecessary. See Chapter VIII BErforschento investigate, explore. See Chapter XVII DErfüllungperformance, fulfilment. See Creifelds under ‘Erfüllung’and Chapter X C 3 (a) and (c) (Title 1)376

Appendix A: VocabularyErfüllungsgehilfeErfüllungsortErfüllungsortvereinbarungcompletion assistant, ie, a person who assists in theperformance of an obligation (§ 278 BGB). An independentsub-contractor can be an ‘Erfüllungsgehilfe’. See Chapter X,Notes 126 H and 135 A; Chapter XXII, Note 74; Creifeldsunder ‘Erfüllungsgehilfe’. Cf ‘Verrichtungsgehilfe’see ‘Leistungsort’agreement regarding the ‘Erfüllungsort’. See Chapter XXIINote 74Erfüllungsübernahme(internal) promise of performance (between an ‘old’ and‘new’ debtor). See Chapter X, Note 136Ergänzende Auslegung supplementary interpretation. See Chapter X, Note 47;Chapter X B 2 (e); Chapter X F 3 (c) (iii)Ergänzungsupplement. See Chapter X C 3 (g) Exposé (d)Ergreifungsort place of seizure (of a suspect). See Chapter XVII, Note 37ErheblichErhebungErinnerungErkennbarErkenntnisverfahrenErkennungsdienstlicheMaßnahmenErklärenErklärungErklärung mit NichtwissenErklärungsbewußtseinErklärung über persönliche undwirtschaftliche VerhältnisseErlaßErlaubnisErlaubnisvorbehaltsubstantial, considerable. See Chapter XIII D 2 (c) (iii) (Note97)making, raising (of a complaint); issue (of a writ); levying(eg, of taxes). See Chapter XIII D 2 (c) (i)legal remedy eg, against decision of a ‘Rechtspfleger’. It goesinitially back to the ‘Rechtspfleger’ and then to the judge.See § 11 RPflG; Chapter XIII, Note 141. Cf‘Durchgriffserinnerung’ and ‘Vollstreckungserinnerung’. Seealso Creifelds under ‘Erinnerung’apparent, recognisable. See Chapter X B 2 (b) (Interpretationof a ‘Willenserklärung’); Chapter X, Note 135 A; ChapterXIII D 2 (c) (vi)proceedings leading to a judgment, judgment proceedings.See Chapter XIII C A, Chapter XVII (Note 20) and cf‘Vollstreckungsverfahren’measures to ascertain identity (of a suspect). See ChapterXVII, Note 24to declare; explaindeclaration, statement; explanation. See Chapter X B 2 (b)(The term ‘Willenserklärung’). See also ‘Aussage’, ‘Äußerung’declaration of ignorance. See Chapter XIII D1 (g) (i)consciousness of (making) a declaration. See Chapter X(Note 38)declaration regarding personal and economic circumstances(for the purposes of an application for legal aid(‘Prozesskostenhilfe’))remission (of debt); decree; issue (of a VA). See Chapter XC 3 (c) (Title 4), Chapter X, Note 241 and Chapter XV Bpermission, allowance, leave, authority. See Creifelds under‘Erlaubnis (behördliche)’; Chapter XIV C 6; Chapter XIX A 2.See also ‘Ermessen’reservation of the right to grant an ‘Erlaubnis’377

The German Legal System and Legal LanguageErledigenErlöschento complete, conclude, finish (off), settle, sort out. SeeChapter XIV, Note 19to become extinct, discharged, end; extinction, discharge,end (of). See Chapter X C 3 (c)Ermächtigungauthorisation; authority (to exercise a particular right);empowerment. See Creifelds under ‘Ermächtigung’,Chapter VIII B and Chapter X, Note 243. See also ‘Vollmacht’and ‘Zustimmung’Ermächtigungsgesetz Enablement Law. See Chapter II (Note 5)Ermächtigungsgrundlagesee ‘Gesetzesvorbehalt’Ermessendiscretion. Can be ‘gebunden’ or ‘frei’. See Creifelds under‘Ermessen (Verwaltungsermessen)’ and Chapter XIV C 6. Cf‘Unbestimmter Rechtsbegriff’Ermessensfehlerfaulty exercise of ‘Ermessen’. ‘Ermessensfehler’ by theexecutive can be checked by the VG (§ 114 VwGO). SeeChapter XIV C 6Ermessensmißbrauch abuse of ‘Ermessen’. See Chapter XIV C 6Ermessensnichtgebrauch non-use of ‘Ermessen’. See Chapter XIV C 6Ermessensreduzierung reduction of ‘Ermessen’ (to zero). See Chapter XIV C 6(auf Null)Ermessensüberschreitung excess of ‘Ermessen’. See Chapter XIV C 6Ermessensunterschreitungunder-use of ‘Ermessen’; also called ‘Ermessensnichtgebrauch’Ermittlung investigation, inquiry. See Creifelds under‘Ermittlungsverfahren in Strafsachen’; Chapter XVI, Note 40;Chapter XVII BErmittlungsrichter investigative judge. See Chapter XVII, Note 23ErnennungErnsthaftEröffnenEröffnungEröffnungsverfahrenErörterungsgebührErpressungErrichtenErrichtungError in obiectoappointment, nomination (as a ‘Beamter’ or to a publicoffice). See Creifelds under ‘Ernennung’; Chapter XIV C 5;Chapter XXII Aserious(ly)to open (proceedings)opening (eg, of a will by the Probate Court). See Chapter XF 5 (e)(interim) proceedings dealing with the opening of main(criminal) proceedings. Also called ‘Zwischenverfahren’. SeeChapter XVII E (Note 43)(lawyer’s) fee for (merely) raising a matter. See Chapter XXIID 8blackmail, extortion. See Chapter XVII, Note 38 Cto set up, formestablishment, formation, execution (of a will). See ChapterX F 3 (c) (i); Chapter XI B 3 (b)an error regarding the object of a criminal act; it has noeffect on the ‘Schuld’ of the ‘Täter’. Cf ‘Aberratio ictus’378

Appendix A: VocabularyError in personaErsatzerbeErsatzvornahmeErsatzzustellungErscheinenErschöpfung des RechtswegsErsetzenErsitzungErstarkenErstattenan error regarding the person against whom a criminal actis committed; it has no effect on the ‘Schuld’ of the ‘Täter’.Cf ‘Aberratio ictus’substitute heir. See Chapter X F 4 (d)substituted execution (of a measure by an authority). SeeChapter XVIII Hsubstituted service. See Creifelds under ‘Ersatzzustellung’and Chapter XIII D 2 (c) (i) (Note 89)to appear, appearanceexhaustion of normal legal channels. See Chapter VII C(Note 14)to replaceacquisition of ownership to movables through the passageof time, prescription. See Creifelds under ‘Ersitzung’ andChapter X D 3 (c) (ii)to strengthen (into). See Chapter X D 2 (iv)to refund, replace. Also to file (an ‘Anzeige’). See ChapterXVII AErteilen to grant (a licence or permission). See Chapter X, Note 343;Chapter XIV C 6Erteilunggrant, issue. See Chapter X F 5 (d)Ertragyield, output, return (on investment). Also ‘Rendite’Erwachseneradult, grown-upErwägung consideration. See Chapter VIII, Note 22Erwartungexpectation. See Chapter X F 3 (c) (iv)Erweiterungaddition; extension. See Chapter X B 2 (e)Erwerbacquisition. See Chapter X D 3 (c) (ii) and (iii)Erwerbertransferee; acquirorErwirkung procurement, obtaining (of). See Chapter XIII, Note 39Erzeugnisproduct, produce. See Chapter X D 3 (c) (iii) (Statutoryacquisition of ownership to movables)Erziehungsmaßregel educational measure. See Chapter XVI, Note 40Essentialia negotiisee ‘Wesentliche Bestandteile’Europäische Gemeinschaft(en)(EG)Europäische Menschenrechtskonvention(EuMRK)Europäisches Übereinkommenüber die gerichtlicheZuständigkeit und dieVollstreckung gerichtlicherEntscheidungen in Zivil—undHandelssachen (EuGVÜ)European Community(ies). Established in parallel with theMaastricht Treaty on European Union of 7.2.1992European Convention on Human Rights (ECHR). SeeChapter II, Note 34; Chapter VIII, Note 18European Convention on Jurisdiction and the Enforcementof Decisions in Civil and Commercial Matters (the BrusselsConvention 1968; amended by conventions signed in SanSebastian and Lugano in 1988 and 1989). It was incorporatedinto UK law by the Civil Jurisdiction and Judgments Act1982 (and 1991). In Germany, it is implemented by AVAG.379

The German Legal System and Legal LanguageEuropäische Union (EU)Europäisches Übereinkommen überdas auf vertragliche Schuldverhältnisse anzuwendendeRecht (EVÜ)Europäische Wirtschaftsgemeinschaft(EWG)See Chapter X, Note 8; Chapter XIII, Notes 28,148 and 171;Chapter XXI, Note 13; Chapter XXII, Note 74European Union. Established by the Maastricht Treaty of7.2.1992 (as amended by the Amsterdam Treaty of2.10.1997) and based on the European Community. SeePreface; Chapter XIV A; Chapter XXIEuropean Convention on the Law applicable to ContractualObligations 1980 (the Rome Convention). See Chapter XX,Note 12European Economic Community (EEC). Originallyestablished by the EEC Treaty of 27.3.1957. Now known asthe European Community. See Chapter XIXEuropäische Zentralbank (EZB) European Central Bank (in Frankfurt am Main). Its forerunnerwas the European Monetary Institute. See Creifelds under‘Europäisches Währungsinstitut’. See also ‘Bundesbank’EventualantragSee ‘Hilfsantrag’Existenzgründer person starting up in business. See Chapter XVIII, Note 2Ex nunc from now on, for the future. See Chapter X, Note 138;Chapter XIV, Note 23 C Cf ‘Ex tunc’Ex tunc from then, from the start, retrospectively. See Chapter X,Note 48. See also ‘Rückwirkend’Fabrikantmanufacturer. See also ‘Hersteller’Fachanwalt specialist lawyer. See Chapter XXII D 5Fachkräfte für Arbeitssicherheit qualified work safety personnel. See Creifelds under‘Fachkräfte für Arbeitssicherheit’ and Chapter XVIII HFahrerlaubnisdriving licence. See Creifelds under ‘Fahrerlaubnis’; ChapterXVI D; ‘Führerschein’Fahrlässigkeitnegligence. See Chapter X, Note 219; ‘Verschulden’; ‘Schuld’Fahrnissee ‘Bewegliche Sache’Fahrverbotdriving ban. See Creifelds under ‘Fahrverbot’ and ChapterXVI (Note 63)Faktisches Arbeitsverhältnis factual (de facto) employment relationship. See ChapterXVIII, Note 7Faktischer Vertrag factual (de facto) contract. See Chapter X, Note 70Faktische Vollziehungfactual enforcement. See Chapter XIV, Note 23 CFallcase; matterFälligdue (for performance, payment)Fälligkeittime at which a ‘Leistung’ (debt, payment) is due; maturity.See Chapter X (Note 98); Chapter X C 3 (g) Exposé‘Darlehen’; ‘Leistungszeit’; ‘Verzug’Fallrechtcase-law (system). See Chapter I, Note 6; Chapter XXII,Note 45; Creifelds under ‘Fallrecht’ and cf ‘Präjudizien’Falsa demonstratio(non nocet)a false description of an item (does not harm). See Creifeldsunder ‘falsa demonstratio non nocet’; Chapter X, Note 46; cf§ 155 BGB380

Appendix A: VocabularyFalsche VerdächtigungFalschlieferungFälschungFalsus procuratorFamilieFamiliengerichtFamilienrechtFamiliensachefalse suspicion. See Chapter VIII, Note 20 Ewrong delivery See Chapter X, Note 185 B. Cf ‘Sachmangel’forgerySee ‘Vertreter ohne Vertretungsmacht’family. See Creifelds under ‘Familie’ and Chapter VIII CFamily Court. See Creifelds under ‘Familiengericht’; ChapterXXI, Note 4; Chapter XXII (Note 73)family law, right. See Chapter X B 1 4 and Efamily matter (dealt with by the ‘Familiengericht’ (FamilyCourt): § 23b GVG). See Creifelds under ‘Familiensachen’and Chapter XIII D 1 (e)Fehler(haft) fault(y), mistake. Also ‘Mangel(haft)’. See §§ 459, 537–538and 633 BGB; Chapter X, Notes 126 J and 189; Chapter X C3 (g) Exposé (c); Chapter XIV C 3Fehlerfrei free of faults, perfect. See Chapter XIV B 6Fernabsatzgesetz (FernAbsG) Law concerning Long-Distance Transactions. See ChapterX, Exposé (after § 515 BGB)Fernmeldegeheimnistelecommunication secrecy. See Article 10(i) GG andCreifelds under ‘Brief-, Post- und Fernmeldegeheimnis’Fernmeldeverkehr telecommunications (traffic). See Chapter XVII, Note 25Fertigstellungsbescheinigung certificate of completion. See § 641a BGBFestfixed; tight. See Chapter X C 3 (g) Exposé ‘Darlehen’Festnahme(physical) arrest; also ‘Verhaftung’. Cf ‘Arrest. See ChapterXVII DFestsetzento determine, fix, stipulateFeststellento ascertain, conclude, establish, declareFeststellendascertaining, establishing, effecting a declaration (as toparticular circumstances). See Chapter XIV C 5Feststellungascertainment, conclusion, finding, establishment,declaration (of). See Chapter XX EFeststellungsklagewrit claiming the ‘Feststellung’ of a legal relationship orparticular rights. See Creifelds under ‘Feststellungsklage’and Chapters XIII D 2 (c) (ii) and XV BFilialesee ‘Niederlassung’Finanzamttax office. It is a lower authority of a ‘Land’. See Creifeldsunder ‘Finanzamt’ and Chapter IVFinanzbehördetax authorityFinanzgerichtsbarkeitfinance jurisdiction. See Chapter XXII C 4 and Creifeldsunder ‘Finanzgerichtsbarkeit’Finanzgerichtsordnung (FGO) Finance Courts Order. See Chapter XXII C 4Finanzhilfe financial aid, subsidy, grant See Chapter V, Note 6Finanzierungsleasingfinanced leasing. See Chapter X C 3 (g) Exposé (b)Finanzwesenfinance system. See Chapter VII A and Creifelds under‘Finanzwesen’381

The German Legal System and Legal LanguageFirmaFiskalischFiskusFixgeschäftFluchtgefahr(trade) firm (name); also called ‘Handelsfirma’. See ChapterXI B 2 (b) and Creifelds under ‘Firma’fiscal(ly). See Chapter II C and cf ‘hoheitlich’the state (as a fiscal entity). See Chapter X F 3 (a) (i) and X F 5 (e)time-fixed transaction. See Chapter X C 3 (b)danger of flight, absconding (by the suspect). See ChapterXVII D (Note 38 B)Folgeconsequence, resultFolgenbeseitigung disposal of consequences. See Chapter XIV, Note 23 C;Chapter XV CFolgesacheancillary matter. See Chapter XIII D 6 (b)Forderungdemand, (contractual) claim. See Chapter X C 3 (a); ChapterX D 3 (h)Förderungadvancement, promotionFormellformal(ly)Formelles Rechtformal law. See Chapter IX BFormkaufmannbusinessman by reason of form. See Chapter XI B 2 (a)Formlos informal(ly). See Chapter XIV B 3Formularvertragstandard-form contract. See Chapter X B 2 (e)Fortdauer der Haftcontinuation of custody. See Chapter XVII, Note 26 DFortsetzungsfeststellungsklage type of ‘Feststellungsklage’ to establish or declare that a pastVA was illegal. See Chapter XV BFortsetzungsklauselcontinuation clause (in company agreement). See ChapterXI B 3 (b) (iv)Forum non conveniensthe forum is not appropriate, ie, another forum is moresuitable. The doctrine is of importance in English law (interalia, to discourage ‘forum shopping’ by plaintiffs) whenan application is made to stay an action in England or forpermission to serve proceedings outside the jurisdictionof the English courts (formerly, under RSC, Order 11, nowunder the CPR). In Germany, the doctrine is only veryrarely invoked, as an exception to German (international)jurisdiction. See Rosenberg/Schwab, § 20 III; Chapter XIII,Notes 28 and 101Fracht freight. See Chapter XI B 5Frachtführerfreighter. See Creifelds under ‘Frachtführer’ and Chapter XD 3(h) (Note 280)Fragento ask; questionsFraktion parliamentary grouping. See Chapter VII C (Note 19)Franchisegeber franchisor. See Chapter XI, Note 42Franchisenehmer franchisee. See Chapter XI, Note 42Freibeweis(the principle of) free evidence. See Chapter XX E. Cf‘Strengbeweis’ and see ‘Beweismittel’382

Appendix A: VocabularyFreibleibendsubject to availability, subject remaining unsold. SeeChapter X B 2 (c)Freier Beruf free profession; eg, a ‘Rechtsanwalt’. See Chapter XIX A 2;Chapter XXII D 2; Creifelds under ‘Freie Berufe’Freier Mitarbeiter freelance assistant. See Chapter XVIII, Note 2FreiheitFreiheit der Kunst, Wissenschaft,Forschung und LehreFreiheitliche demokratischeGrundordnungFreiheitsentziehungFreiheitsrecht(e)Freiheitsstrafefreedom. See Creifelds under ‘Freiheit, persönliche’ andChapter VIII Cfreedom of art, science, research and teaching. See Creifeldsunder ‘Kunst, Freiheit der’, ‘Wissenschaft, Freiheit der’ and‘Lehrfreiheit’; Chapter VIII Cbasic order of freedom and democracy. See Creifelds under‘Grundordnung, freiheitliche demokratische’ and Chapter II Gdeprivation of freedom, detention (in custody). SeeCreifelds under ‘Freiheitsentziehung’, Chapter VIII C (Note36) and Chapter XVII Dfreedom right(s). See Chapter VIII Aimprisonment; can be ‘zeitig’ or ‘Iebenslang’. See ChapterXVI B and D; Chapter XXI, Note 1Freiwillig voluntarily. See Chapter XXII, Note 101Freiwillige Gerichtsbarkeitnon-contentious (voluntary) civil jurisdiction. See ChapterXIII, Notes 32 and 37; Chapter XIII D 6 (b) 2; Chapter XXII C 2Freizeichnungsklauselexclusion clause. See Chapter X B 2 (e)Freizügigkeitfreedom of movement. See Creifelds under ‘Freizügigkeit’;Article 11(i) GG; ‘Verkehr’Fremdforeign, alien, belonging to others.Fremde Geschäfte other persons’ business. See Chapter X B 4Fremdsprache foreign language. See Chapter VIII, Note 18Friedenspflichtduty of employer and ‘Betriebsrat’ to maintain peace in the‘Betrieb’. See Creifelds under ‘Friedenspflicht’ and seeChapter XVIII D (c) and GFristtime-period; notice period; deadline; time limit. SeeCreifelds under ‘Frist’; Chapter X B 3; Chapter XIII D 1 (g)(iii); Chapter XIII, Note 90; Chapter XIII D 2 (c) (vi)Fristloswithout notice. See ‘Kündigung’Fristsetzung mitAblehnungsandrohungsetting of a deadline with a threat of rejection (if thedeadline is not observed). See § 326 BGBFristverlängerung extension of time (period). See Chapter XIII, Note 129Früchtefruits. See Chapter X C 3 (g) Exposé (b)Früher erster Termininitial (oral) hearing. See Chapter XIII D 2 (c) (iv)Führerscheindriving licence (ie, the actual document). Also ‘Fahrerlaubnis’Führungsaufsicht supervision of conduct. See Chapter XVI D (Note 80)Führungszeugniscertificate of conduct. See ‘Bundeszentralregister’Fundfinding of lost property. See Creifelds under ‘Fund’ and383

The German Legal System and Legal LanguageFür Recht erkennenFürsorgepflichtFusionGarantenpflichtChapter X D 3 (c) (iii) (statutory acquisition of ownershipto movables)to adjudge as law, to find to be right. The judgment of acourt is always preceded by the statement that the courtfinds a particular decision to be right. The phrase is part ofthe heading of the judgment (‘Urteilskopf’). It is followedby the actual tenor of the decision (‘Urteilsspruch’ or‘Urteilstenor’). See ‘Urteil’.duty of care (towards someone). See Chapter XIII, Note69; Chapter XVIII, Notes 3 and 61amalgamation, fusion, merger. Also ‘Verschmelzung’,‘Zusammenschluß’a special legal duty to act to prevent an ‘Unterlassungsdelikt’.See Chapter XVI C 1 (b)Garantievertragcontract of guarantee, indemnity. Cf ‘Bürgschaft’. SeeChapter X Note 177; ‘Schadloshalten’Gastwirt(schaft) inn (keeper). See Chapter X C 3 (g) (Title 13)Gattungsschuldgeneric debt. See Creifelds under ‘Gattungsschuld’ andChapter X, Notes 116, 126 F and 234Gebietskörperschaft territorial corporation. See Chapter II (Notes 1 and 11)GebotsnormGebrauchGebrauchsmusterGebrauchsüberlassung(criminal) norm commanding that (requiring) certainaction (to) be carried out. See Chapter XVI C 1 (b)use.industrial/technical design. Like a patent, it must be a ‘newErfindung’ (new invention) to be registrable. See Creifeldsunder ‘Gebrauchsmuster’ and ‘Erfindung’; Chapter XIX Agrant of use. See Chapter X, Note 159; Chapter X C 3 (g)Exposé (a)Gebühr(en)fee(s). See Creifelds under ‘Rechtsanwaltsgebühr’ and seealso ‘Gerichtskosten’ and Chapter XXII D 8Gebührenstreitwert‘Streitwert’ for the purpose of court fees. See Chapter XIII D 1 (e)Gebührenüberhebung overcharging. See Chapter XXII D 5Gebührenunterschreitung undercutting (of fees). See Chapter XXII, Note 101Geeignetsuitable. See Chapter VIII BGefahrdanger, threat risk. Also ‘Gefährdung’GefahrenabwehrGefahr im VerzugGefahrenquelle(the) warding-off of dangers. See Creifelds under‘Gefahrenabwehr’; Chapter XVII D (Note 32); Chapter XXII(Note 50)in a case of urgency; lit. danger in delay. ‘Gefahr im Verzug’justifies immediate intervention where the purpose of themeasure (‘Zweck der Maßnahme’) would be thwarted(‘vereitelt’) by waiting. See Chapter XIII D 8 (c) (v); ChapterXIV C 3 (Note 23 B); Chapter XVII, Notes 23 and 36; ChapterXXII, Note 26source of danger. See Chapter X Note 222 B384

Appendix A: VocabularyGefahrtragungGefahrübergangGefährdenGefährdungshaftungcarriage of risk. See Chapter X, Note 126 Gtransition of risk. See Chapter X, Note 126 Gto endanger, threatenstrict liability. See Chapter X C 3 (a) (Note 126 D); ChapterX, Note 222 E; Chapter XVI C (Note 17)Gefälligkeit(sverhältnis)(relationship of grace and) favour. See Chapter X C 3 (a)(Note 115) and (g) (Note 166)Gegenbeweiscounter-evidence. See Chapter XIII B 7 (Note 10); ChapterXXII E. Cf ‘Hauptbeweis’Gegendarstellungresponse. See Chapter VIII, Note 20 EGegenleistungcounter-performance. See Chapter X C 3 (a)Gegennorm counter-norm. See Chapter XIII B 7 (Note 10)Gegenrecht counter-right, defence. See Chapter X B 1 4Gegenseitiger Vertragmutual, reciprocal (synallagmatic) contract. See ChapterX (Notes 106 and 126 F). See also Creifelds under‘Gegenseitiger Vertrag’ and Chapter X C 3 (b) (Title 2)Gegenseitigkeitreciprocity. See Chapter XXI CGegenstandthing; matter. See Creifelds under ‘Gegenstand’ and ChapterX B 1 3Gegenstandswertvalue of the matter (for the fees of a ‘Rechtsanwalt’; canfollow the ‘Streitwert’ or ‘Geschäftswert’). See Creifelds under‘Gegenstandswert’ and Chapter XXII D 8Gegenüberstellungidentity parade. See Chapter XVII, Note 38 HGegenvorstellung counter-response. See Chapter XV A; Chapter XXII, Note 19Gegenwärtigpresent(ly), current(ly). See Chapter VII CGehaltsalary. Of public officials: ‘Besoldung’Geheimhaltung (maintenance of) secrecy. See Chapter XIV B 3Geheimhaltungspflichtduty of secrecy. See Creifelds under ‘Berufsgeheimnis’;Chapter XXII D 5Gehemmtprevented from taking effect/running. See ‘Verjährung’ and‘Aufschiebende Wirkung’Geistesschwächeimbecility. See Chapter X F 3 (c) (i)Geldbußefine (punishment for ‘Ordnungswidrigkeit’). See ChapterXVI B (Note 9)Geldforderungmoney claim. See Chapter XIII D 8 (c) (i)Geldschuldmoney debt. See Chapter X, Note 116; Creifelds under‘Geldschuld’. See also ‘Leistungsort’Geldstrafefine (punishment for ‘Straftat’). See Chapter XVI B and Dand cf ‘Geldbuße’Geltend machento assert, exercise (a claim, right). See Chapter XIII D 1 (f)(i); Chapter XIX B (at Note 27)Gemeindelocal authority (below a ‘Kreis’), commune. See Creifeldsunder ‘Gemeinde’ and Chapter VI385

The German Legal System and Legal LanguageGemeindebezirk borough. See Chapter VI, Note 1Gemeindeordnunglocal government law governing the ‘Gemeinden’ in a ‘Land’.See Chapter VIGemeinderatsee ‘Gemeindevertretung’Gemeindeverband ‘Gemeinde’ association. See Creifelds under‘Kommunalverbände’ 1nd Chapter VI (Note 1)Gemeindevertretunglegislative organ of a ‘Gemeinde’, assembly of ‘Gemeinde’,(municipal) assembly of ‘Gemeinde’ representatives,(town) council/parliament. See also ‘Gemeinderat’,‘Stadtverordnetenversammlung’ and Chapter VIGemeindeverwaltungadministration, executive of a ‘Gemeinde’. See‘Oberbürgermeister’Gemeingefährliche Straftaten offences involving danger to the public (at large). SeeChapter XVI B (Note 14)Gemeinsam joint(ly). See Chapter XIII D 6 (b) 2.Gemeinsamer Ausschuß(emergency) joint council. See Chapters III and VII AGemeinsamer Senat der obersten Joint Senate of the Supreme Federal Courts. See ‘Einheitlich’Gerichtshöfe des BundesGemeinschaft nach Bruchteilen community by shares (§ 741ff BGB). See Creifelds under‘Gemeinschaft’, Chapter X C 3 (g) (Title 15) and Chapter XIA 2. See also ‘Miteigentum nach Bruchteilen’Gemeinschaft(lich)community; jointly. Can be ‘zur gesamten Hand’(‘Gesamthandsgemeinschaft’) or ‘nach Bruchteilen’. SeeChapter XI A and BGemeinschaftsaufgabejoint matter, (community) task. The ‘Bund’ can cooperatein the fulfilment of certain ‘Gemeinschaftsaufgaben’, wherethis is necessary to improve living conditions. See Creifeldsunder ‘Gemeinschaftsaufgaben’ and Chapter VII A (Note 6)Gemeinschaftsunternehmen joint venture. See Eisenhardt, Chapter 12 (§ 52). See also‘Unternehmensvertrag’Gemeinschaftswertcommunity value. See Chapter XVI BGenau exact(ly). See Chapter XIII, Note 96Genehmigento approve, allowGenehmigungapproval, permission. See Chapter X B 2 (a) and (b) (Note35); Chapter XIV C 6; Chapter XIX A 2Generalbundesanwaltgeneral federal prosecutor (at the BGH); federal attorneygeneral.See Chapter XVII BGeneralklauselgeneral clause (eg, § 40(i) VwGO). See Creifelds under‘Generalklausel’Generalstaatsanwaltgeneral state prosecutor (at the OLG). See Chapter XVII BGenossenschaftcooperative (association/society). See Creifelds under‘Genossenschaft’ and Chapter XI, Note 5. See also ‘Vorstand’Gerecht(igkeit)just(ice). See Creifelds under ‘Gerechtigkeit’. Cf ‘Recht’Gerichtcourt. See Creifelds under ‘Gericht’ and Chapter XXII C386

Appendix A: VocabularyGerichtlichGerichtsbarkeitGerichtsbescheidGerichtskostenGerichtskostengesetz (GKG)GerichtspersonGerichtsstandjudicial(ly), by the courtparticular (court) jurisdiction (according to branch (‘Zweig’));also (functionally) the exercise (‘Ausübung’) of theadministration of justice (‘Rechtspflege’). See Creifelds under‘Gerichtsbarkeit’ and Chapter XXII C. Cf ‘Zuständigkeit’see Chapter XV Dcourt fees. Part of the ‘Prozeßkosten’. See Creifelds under‘Gerichtskosten’ and Chapter XIII D 2 (c) (i)Court Fees Law. See Chapter XIII D 2 (c) (i) and ChapterXXII D 8member of court personnel. See Chapter XIII D 1 (b)(place of) local jurisdiction (‘örtliche Zuständigkeit’), venue.See ‘Zuständigkeit’Gerichtsstandsvereinbarung agreement on jurisdiction. See Chapter XX D 2; ChapterXXII, Note 74Gerichtsverfassungconstitution of the court(s). See Creifelds under‘Gerichtsverfassung’Gerichtsverfassungsgesetz (GVG) Law relating to the Constitution of the Courts. See ChapterXIII D 1 (e) and Chapter XXII C 2Gerichtsvollzieher(court) bailiff. See Chapter XIII D 1 (g) (ii), Chapter XIII D2 (c) (i) and D 8 (c) (v) and Creifelds under‘Gerichtsvollzieher’Gerichtszahlstellecourt cashier’s officeGeringfügig(keit) insignificant; insignificance. See Chapter XVII E (Note 40 A)Gesamthänder member(s) of a ‘Gesamthandsgemeinschaft’. See Chapter XI A 3Gesamthandseigentumsee ‘Gesamthandsvermögen’Gesamthandsgemeinschaftjoint community. See Creifelds under ‘Gesamthandsgemeinschaft’;Chapter X F 4 (b); Chapter XI B 3Gesamthandsvermögenjoint property, assets. See also ‘Gesamthandsgemeinschaft’Gesamtrechtsnachfolgeuniversal succession (principle). See Chapter X F 4 (a)Gesamtschuldjoint debt. See Chapter X, Note 157 and § 421ff BGBGesamtschuldner joint debtor(s). See Chapter XI B 3Gesamtstaatwhole state. See Chapter II AGesamtstrafe combined punishment. See Chapter XVI, Note 73Geschäftbusiness; shop; transaction, bargain, dealGeschäftsanteilshare in the assets of a company (‘Gesellschaftsvermögen’).Cf ‘Gesellschaftsanteil’. Its size is dependent on the amountof a person’s contribution to the business (‘Einlage’). SeeChapter XI, Note 12; Chapter XII C.Cf ‘Kapitalanteil’Geschäftsbesorgungsvertrag agreement of instruction for reward, contract to transactbusiness for reward, commercial mandate. Cf ‘Auftrag’. SeeCreifelds under ‘Geschäftsbesorgungsvertrag’; Chapters X C3 (g) (Note 166 and Title 10) and XXII D 4Geschäftsfähig(keit)capable of undertaking (capacity to undertake) a387

The German Legal System and Legal LanguageGeschäftsführerGeschäftsführungGeschäftsführung ohneAuftrag (GoA)‘Rechtsgeschäft’ (legal transaction). See Creifelds under‘Geschäftsfähigkeit’ and Chapter X B 1 9 and B 2 (a)director (of a company)(internal) management; direction (of a company). SeeChapter XI B 2 and C 3 (b) (ii). Cf ‘Vertretung’. See alsoKallwass, Section 7, Chapter 2 (§ 112)transaction (of a matter) without instruction/without amandate. See Creifelds under ‘Geschäftsführung ohneAuftrag’; Chapter X C 3 (g) (Title 11); Chapter X F 5 (a)Geschäftsführungsbefugnis right of company member(s) to manage the company. SeeChapter XI C 3 (b) (ii)Geschäftsgebühr business fee. See Chapter XXII D 8Geschäftsgrundlagebasis of the transaction. See Chapter X, Note 47 D and‘Leistungsstörung’Geschäftsherr principal. See Chapter X C 3 (g) (Title 11)Geschäftslokalplace of business. See Chapter XIII D 1 (g) (ii)GeschäftsordnungGeschäftsstelleGeschäftswertGeschäftswilleGeschmacksmusterGeselleGesellschaftbusiness code, rules (of procedure), standing orders. SeeCreifelds under ‘Geschäftsordnung’ and see also ‘Satzung’business office (eg, of a court). See Chapter XIII D 1 (g) (ii)and D 2 (c) (i)business value (for fees of the court and lawyers in noncontentiousmatters and for the fees of the ‘Notar’). SeeCreifelds under ‘Geschäftswert’ and Chapter XXII D 8will to engage in a particular transaction. See Chapter X B2 (b) (The term ‘Willenserklärung’)(registrable) pattern (or model) of aesthetic content. It mustbe novel and original (‘eigentümlich’). See Creifelds under‘Geschmacksmuster’.apprenticecompany, society (G); as used in: GbR, BGB-G=civil lawcompany, BGB company; OHG=open trading company;KG=limited partnership; GmbH=(private) company withlimited liability; AG=public limited company; Handels-G=commercial/trading company (OHG, KG, GmbH orAG). See Creifelds under the respective types; Chapters XC 3 (g) (Note 159 and Title 14) and XI A. See also ChapterXVIII, Note 6; Chapter XXII D 9Gesellschaftermember of a company, shareholder. Also ‘Mitglied’Gesellschafterversammlung members’ meetingGesellschaft mit beschränkterHaftung(GmbH)(private) company with limited liability. See Chapter XIIand ‘Gesellschaft’Gesellschaftsanteilshare of a member in a company. Cf ‘Geschäftsanteil’Gesellschaftsrechtcompany law. See Chapter XIGesellschaftsvermögen assets of a ‘Gesellschaft’. See Chapter XI A 3Gesellschaftsvertragcompany agreement, articles of association; sometimes388

Appendix A: Vocabularycalled ‘Satzung’. See Creifelds under ‘Gesellschaftsvertrag’;Chapter XI A 5; Chapter XII BGesetz(statutory) law; statute. The ‘Grundgesetz’ is a ‘Gesetz’subject to a more difficult procedure of amendment. Ifpassed in accordance with the relevant constitutionalprocedure, a ‘Gesetz’ is referred to as a(n) ‘(einfaches) Gesetzim formellen Sinne’ (a (simple) law in the formal sense). Theterm can also be used in a wider, material sense to refer toany legal norm containing generally binding provisions(including ‘Rechtsverordnungen’ (statutory instruments) and‘Satzungen’ (bye-laws)). Cf ‘Verwaltungsvorschriften’((internal) administrative regulations) and ‘Verwaltungsakte’(administrative acts). See Creifelds under ‘Gesetz’. See alsoChapter II H, Chapter XIV A and ‘Zustimmungsgesetz’. Cf‘Recht’Gesetz betreffend dieLaw relating to (private) companies with limited liability.Gesellschaften mit beschränkter See Chapter XI A1 and Chapter XII AHaftung (GmbHG)Gesetz über die Angelegenheiten Law relating to matters within the non-contentiousder freiwilligen Gerichtsbarkeit (voluntary) civil jurisdiction. See Chapter XXII C 2(FGG)Gesetz über die TätigkeitLaw regarding the activity of european lawyers ineuropäischer Rechtsanwälte Germany. See Chapter XXII D 3in Deutschland (EuRAG)Gesetz zur Regelung desLaw to regulate the law of general contract terms. SeeRechts der AllgemeinenChapter X B 2 (d)Rechts der AllgemeinenGeschäftsbedingungen (AGBG)Gesetzesaufbau construction of a law, statute. See Chapter X C 2 2Gesetzeskonkurrenz concurrence of statutory provisions. See Chapter XVI, Note 73Gesetzeskraftforce of law, statutory force. See Chapter VII CGesetzesvorbehaltthe right to limit basic rights by means of a ‘Gesetz’; can alsobe used in the sense of ‘Vorbehalt des Gesetzes’, ie, to refer tothe need for die executive to act in accordance with law(‘Gesetzmäßigkeit der Verwaltung’), to have a legal basis fortheir action (‘Ermächtigungsgrundlage’ or ‘Eingriffsbefugnis’).See Chapters II F, VII B, VIII B and XIV C 3 and 6Gesetzgebende Gewaltlegislative power. Also ‘Gesetzgebung’. See Creifelds under‘Gesetzgebende Gewalt’ and Chapter II FGesetzgebunglegislature; legislation. See Creifelds under ‘Gesetzgebung’and Chapter II FGesetzgebungskompetenzcompetence to pass laws; legislative competence. SeeChapter II BGesetzliche Frist‘Frist’ set by statute. See Chapter XIII D 1 (g) (iii)Gesetzlicher Erwerbstatutory acquisition (of ownership). See Chapter X D 3 (c) (ii)Gesetzlicher Forderungsübergang assignment by operation of law. See Chapter X, Note 156Gesetzlicher Richterthe judge appointed by statute, ie, it is a basic principle389

The German Legal System and Legal Language(‘Grundsatz’) and basic right (‘justizielles Grundrecht’) thateveryone is entitled to a hearing before him (see Article 101(i)GG). See Chapter VIII C (Note 36) and Chapter XXII AGesetzlicher Vertreterlegal (statutory) representative. See Chapters X B 1 9 andXIII D 1 (f) (i)Gesetzliches Schuldverhältnis obligation arising from statute. See Chapter X C 2 3Gesetzmäßigkeit der Verwaltung duty of the executive to act in accordance with statute, law;also ‘Rechtmäßigkeit der Verwaltung’. See Chapters II F, VIII(Note 15) and XIV C 3Gesichtspunktaspect. See Chapter VIII, Note 22; Chapter XIII D 2 (c) (vi);Chapter XIX A 2Gestaltungsfreiheitfreedom to form (ie, arrange, design, shape) legalrelationships. See Chapter X B 1 6; Chapter X B 2 (e)Gestaltungsklagewrit claiming the ‘Umgestaltung’ (rearrangement) of a legalsituation, position. See Creifelds under ‘Gestaltungsklage’;Chapter XIII D 2 (c) (ii) and Chapter XV BGestaltungsrechtformulation right. See Creifelds under ‘Gestaltungsrecht’and Chapter X B 1 4Geständnisconfession; admission (of facts by a party). See Creifeldsunder ‘Geständnis’ and Chapter XIII D 2 (c) (iv) (Note 107)Gestio pro heredeconducting oneself like an heir, ie, meddling in an estate.See Chapter X F 5 (a) (ii)Gesundheitsschutzprotection of health. See Chapter XVIII HGewährleistung(srecht) guarantee (right). See, regarding a ‘Kaufvertrag’, §§ 434, 437,443, 459ff BGB and, regarding a ‘Werkvertrag’, 634ff BGBand Creifelds under ‘Gewährleistung’Gewalt(tätigkeit)force, violence. See ‘Landfriedensbruch’Gewaltenteilung separation of powers. See Creifelds under‘Gewaltentrennung’ and Chapter II FGewerbebusiness, trade. It does not include a ‘freier Beruf’. SeeChapter XI, Note 31; Chapter XIX A 2; Creifelds under‘Gewerbe’. See also ‘Geschäft’, ‘Grundhandelsgewerbe’ and‘Unternehmen’Gewerbeaufsichtsbehördebusiness (trade) supervisory authority. See Creifelds under‘Gewerbeaufsicht’; Chapter XVIII H; Chapter XIX A 2Gewerbebetrieba specific business (as exercised/operated). See ChapterXI, Note 31; Chapter XIX A 2; ‘Recht am eingerichteten undausgeübten Gewerbebetrieb’Gewerbeordnung (GewO) Business (Trade) Order. See Creifelds under‘Gewerbeordnung’; Chapter XVIII H; Chapter XIX A 2;‘Konzession’Gewerberechtbusiness law. See Chapter XIX A2Gewerbeunternehmera person, who engages in a business (trade) enterprise; anentrepreneurGewerblicher Rechtsschutz business protection. See Chapter XIX A 1Gewerbsmäßig full-time, professional(ly). See Chapter XI, Note 41Gewerkschafttrade union. See Creifelds under ‘Gewerkschaft,390

Appendix A: Vocabularyarbeitsrechtliche’ and Chapter XVIII D and GGewinn profit, gain. See Chapter XI B 3 (b) (ii); Chapter XIX A 2Gewissen conscience. See Creifelds under ‘Glaubens- u.Gewissensfreiheit’ and Chapter VIII C (Article 4(i) GG)Gewissenhaft conscientious(ly). See Chapter XXII D 5Gewohnheitcustom, habit. See Chapter IX BGewohnheitsrecht customary law. See Chapter I; Chapter X, Note 135 D;Chapter XIV AGewöhnlich usual(ly). See Chapter XI B 2Girokontocurrent (giro) accountGirovertragcontract to set up/maintain a current (giro) account at abank. See Chapter X C 3 (g) (Title 10); Chapter XIX, Note36Glaubento believe; belief. See Chapter VIII C (Article 4(i) GG)Glaubhaft credible. See Chapter XIII D 6 (b) 1Glaubhaftmachento make credible, substantiateGlaubhaftmachungsubstantiation. See Chapter XIII B 7 (Note 9). Cf‘Substantiierung’Gläubigercreditor, obligee. See Creifelds under ‘Gläubiger’ andChapter X C 3 (a)Gläubigerbenachteiligung fraud on creditors. See Chapter X, Note 220Gläubigerstreitdispute between creditors. See Chapter XIII D 1 (f) (iii)Gleichbehandlungsgrundsatz equal treatment principle. See Chapter VIII, Note 22Gleichberechtigungequal entitlement, right(s) (of). See Creifelds under‘Gleichberechtigung’ and Chapter VIII C (Article 3(ii) GG)Gleichheit (vor dem Gesetz) equality (before the law). See Creifelds under ‘Gleichheitvor dem Gesetz’ and Chapter VIII C (Article 3(i) GG)Gleichheitsrecht(e)equality right(s). See Chapter VIII AGleichordnungequal level, basis. See Chapter IX BGliedstaatmember state. See Chapter II AGratisfree of charge. Also ‘Unentgeltlich’Greifbar capable of seizure, tangible. See Chapter XIII, Note 67Grenzeborder, boundary, limitGrenzschutzamtborder protection office. Is a ‘Bundesunterbehörde’. SeeChapter IVGrenzüberschreitende Tätigkeit cross-border activity (eg, of lawyers)Grobgross. See Chapter X, Note 259 and Chapter XVI C 3 (c)Grobe Fahrlässigkeit gross negligence. See Chapter XI B 1Grober Behandlungsfehlergross medical error (in treatment). See Chapter X, Note 126 JGrundground, basis, reasonGrundbuchland register. See Creifelds under ‘Grundbuch’ and ChapterX D 3 (b)Grundbuchamt land registry (office). See Chapter XIII, Note 32391

The German Legal System and Legal LanguageGrunddienstbarkeit easement (over land). See Creifelds under‘Grunddienstbarkeit’ and Chapter X D 3 (e)Gründerfounder, promoterGrundgesetz (GG)Basic Law, federal constitution. See Creifelds under‘Grundgesetz’ and Chapter VIIGrundhandelsgewerbebasic commercial trade, trading activity. See Chapter XI C 2 (a)Grundkapitalbasic (share) capital of an ‘Aktiengesellschaft’. Called‘Stammkapital’ in the case of a GmbH. See Chapter XII C.Grundnormbasic norm. See Preface to Second Edition, Note 12; ChapterI, Note 17Grundpfandrechtsecurity right (charge) over land. See Chapter X D 3 (h)Grundrecht(e)basic right(s). See Creifelds under ‘Grundrechte’ andChapter VIIIGrundregel basic rule. See Chapter XIII, Note 10Grundsätzlichbasically, fundamentally, essentially, in principleGrundschuldland charge. See Chapter X D 3 (h)Grundschuldbriefland charge certificate. See Chapter XIX BGrundstück(e)piece(s) of land. See Chapter X D 1. Also ‘Immobilie(n)’;‘Liegenschaft(en)’Grundstücksgleiches Rechta right equivalent to land. See ‘Eigentumsähnliches Recht’Grundstückskaufvertrag contract for the purchase/sale of land. See Chapter X, Note 256Gründungcreation, establishment, formation, foundationGrundverfügungbasic VA (administrative act (order)). See Chapter XVIII HGültig(keit)valid(ity). See Chapter VII B; Chapter VII, Note 12; ChapterXIV, Note 24Gutachtenwritten opinion, expertise. See Chapter XXII D 8 communityof property between spouses. See Creifelds underGütergemeinschaft‘Gütergemeinschaft’, Chapter XI A 3 and ‘Güterrecht’ belowGüterrecht(marital) property law. By § 1363(i) BGB, the (statutory)property status (‘Güterstand’) of spouses during theirmarriage is the so-called ‘Zugewinngemeinschaft’ ((deferred)community of gain). During the marriage, the assets of eachof the spouses remain under their respective, individualcontrol. However, when the marriage ends (otherwise thanby death), the amount of any ‘Zugewinn’ (gain) is equalizedbetween the former spouses (§ 1372 BGB), ie, settlement(‘Ausgleich’) is deferred. Thus, the spouse whose assets atthe end of the marriage (‘Endvermögen’ (final assets)) exceedthose owned by him or her at the beginning of the marriage(the ‘Anfangsvermögen’ (initial assets)) must share thedifference with his or her (former) partner, who has an‘Ausgleichsforderung’ (balancing claim): § 1378(i). Otherforms of ‘Güterstand’ are ‘Gütertrennung’ ((entire)separation of assets) and ‘Gütergemeinschaft’ (communityof property). These can be established by ‘Ehevertrag’(agreement between the spouses), which must be notariallydocumented and registered in the ‘Güterrechtsregister’ atthe ‘Amtsgericht’. See §§ 1363–1390, 1408–1415 and 1558–392

Appendix A: Vocabulary1563 BGB; Chapter X E; Chapter XIII D 6 (b) 2; Creifeldsunder ‘Ehevertrag’, ‘Gütergemeinschaft’, ‘Güterrecht, eheliches’,‘Güterrechtsregister’, ‘Güterstände’, ‘Gütertrennung’,‘Zugewinn’, ‘Zugewinnausgleich’ and ‘Zugewinngemeinschaft’Güterstandproperty status (relationship) between spouses. See‘Güterrecht’Gütertrennungseparation of assets/property. See ‘Güterrecht’; Chapter XF 3 (a) (ii)Güterumlaufcirculation of goods. See Chapter XIX BGute Sittengood morals. See Chapter X F 3 (c) (iv). See also‘Sittenwidrig(keit)’Güteverhandlungconciliation proceedings. See also ‘Einigungsstelle’Güteversuchattempt to reach a settlement. See Chapter XIII D 2 (c) (v);‘Vergleich’Gutgläubiger Erwerbbona fide acquisition (of ownership). See Creifelds under‘Gutgläubiger Erwerb’; Chapter X D 3 (c) (ii); Chapter XIX BHaftbefehlarrest warrant. See Chapter XVII B and Creifelds under‘Haftbefehl’Haften (für)to be liable (for). It usually means the same as ‘schulden’(to owe), ie, ‘wer schuldet, der haftet’ (he who owes is liable).The term can also refer to the extent of liability. See‘Haftung’. Also ‘Einstehenmüssen (für)’Haftgrundground (based on fact) for detaining a suspect in custody.See Chapter XVII C (Note 38)Haftpflichtversicherungpublic liability insuranceHaftprüfungreexamination/review of custody. See Chapter XVII, Notes26 B and 38 DHaftungliability. See Chapter X C 3 (a) (Title 1) (Note 126 D); ChapterXI B; Creifelds under ‘Haftung’; Brox (AS), Chapter 2, § 2III; Schwab (Einführung), Part III, Chapter 5 I (a)Haftungsbeschränkung limitation of liability. See Chapter XI B; Chapter XXII D 9Haftverschonungexemption from custody, ie, suspension of an arrestwarrant, bail. See Chapter XVII, Note 26 CHaltungpoint of view, position, stance. See also ‘Stellungnahme’Handakte(lawyer’s) file. See Chapter XXII D 4 and also ‘Akte’Handel trade, commerce. See Chapter XIX A 2Handelsauskunfttrade information, credit referenceHandelsbrauchcommercial (trade) custom, usage. See Chapter XI B 5 (Note58); Chapter XXII, Note 74Handelsbücher (trade) books. See Chapter XI C 4Handelsfirma(trade) firm (name). Also ‘Firma’Handelsgeschäftcommercial transaction. It can mean a trading enterprise(‘Unternehmen’). See Chapter XI C 5Handelsgesellschaftsee ‘Gesellschaft’ and Chapter XI AHandelsgesetzbuch (HGB)Commercial Code. See Chapter XIHandelsgewerbetrading activity. See Chapter XI, Note 31; Chapter XI C 2 (a)393

The German Legal System and Legal LanguageHandelskammersee ‘Kammer für Handelssachen’Handelskauf trade purchase. See Chapter XI C 5Handelsmakler(trade) broker. See Chapter XI C 2 (e) and cf ‘Makler’Handelsrechtcommercial law. See Creifelds under ‘Handelsrecht’;Chapters XI and XIX AHandelsregistercommercial (trade) register. See Creifelds under‘Handelsregister’ and Chapter XI C 2 (b)Handelsrichter(honorary) commercial judge. See Creifelds under‘Handelsrichter’ and Chapter XXII AHandelssachecommercial matter. See Creifelds under ‘Handelssache’Handelsstand trade class(ification). See Chapter XI C 1 and 2Handelsvertretercommercial/mercantile agent, factor, trade representative.See Chapter X, Note 31; Chapter XI C 2 (e)Handlungact(ion). See ‘Rechtshandlung’; ‘Unerlaubte Handlung’;Chapter XVI C 1 (a)Handlungsfähigkeit capacity to act. See Chapter X, Note 5Handlungsfreiheitfreedom of action. See Chapter VIII C (Article 2(i) GG)Handlungsgehilfetrading assistant; also referred to as ‘kaufmännische(r)Angestellte(r)’. See Creifelds under ‘Handlungsgehilfe’;Chapter X, Note 31; Chapter XI C 2 (d)Handlungslehrlingsee ‘Lehrling’Handlungsort place at which an act is carried out. See Chapter XX, Note 25Handlungsvollmachtauthority to trade; trading power of attorney. See Creifeldsunder ‘Handlungsvollmacht’ and Chapter XI C 2 (c). Cf‘Prokura’Handlungswillewill to act (at all). See Chapter X B 2 (b) (The term‘Willenserklärung’)Handwerk handicraft, manual activity. See Chapter XIX A 2Handwerkercraftsman, handiman, manual worker. See Chapter XVIII,Note 2; Chapter XIX, Note 16Handwerksmeistermaster craftsmanHandwerksordnung (HandwO) Handicraft Order. See Chapter XIX, Note 16HandwerksrolleRegister of Craftsmen, Handicraft RegisterHauptbeweismain evidence. See Chapter XIII B 7 (Note 10) and cf‘Gegenbeweis’Hauptinterventiondirect intervention. See Chapter XIII D 1 (f) (iii)Hauptparteimain party. See Chapter XIII D 1 (f) (iii)Hauptpflichtmain/prime obligation. Also ‘Hauptverbindlichkeit’. SeeChapter X, Notes 126 F and 159; Chapter X C 3 (g) Exposé (c)Hauptstrafemain punishment. See Chapter XVI DHaupttermin (main) hearing (in civil proceedings). See Chapter XIII D 2(c) (iv), (v) and (vi)Hauptverbindlichkeit main obligation. Also ‘Hauptpflicht’. See Chapter X Note 159Hauptverfahrenmain (criminal) proceedings. See Chapter XVII E andCreifelds under ‘Hauptverfahren’394

Appendix A: VocabularyHauptverhandlungHauptverhandlungshaftHauptversammlungmain (criminal) hearing. See Chapter XVII E and Creifeldsunder ‘Hauptverhandlung’main hearing custody. See Chapter XVII Fmain assembly, (annual) general meeting (of shareholdersin a public company). See Creifelds under‘Hauptversammlung’Hausfriedensbruch (criminal) trespass to land. See Chapter XVII, Note 9HausratsverordnungRegulation regarding the treatment of the matrimonial(HausratsVO)home and contents (1944). See Chapter XIII D 6 (b) 2HaustürwiderrufsgesetzLaw regarding the Revocation of Doorstep Transactions.(HaustürWG)See Chapter X B 2 (e) (Group remedies)Hehlereihandling (illegally acquired goods). See Chapter XVII, Note38 CHeiliges Römisches Reich(Deutscher Nation)Holy Roman Empire (of the German Nation). See Chapter I(Note 7)Heilento cure, make good, rectifyHeilung cure, remedy. See Chapter XIII D 1 (f) (i); Chapter XIII, Note 96Heimarbeiter home worker. See Chapter XVIII, Note 2Heimat(recht) home (law). See Chapter XX, Note 25Hemmento impede, suspend, temporarily stop (the running of alimitation period)Heranwachsenderyoung person (between 18 and 21); adolescent. Cf‘Jugendlicher’Herausgabe(anspruch)(right to claim) the return, release of a ‘Sache’. See‘Vindikation’; Chapter XIII D 8 (d)Herrschaftsrecht right of dominance. See Chapter X B 1 4Hersteller manufacturer, producer. See Chapter X C 3 (g) (§§ 631–651BGB); Chapter X, Note 126 J; Chapter XI, Note 42; ‘Fabrikant;‘Unternehmer’Herstellungmanufacture, productionHilfsantragauxiliary application. See Chapter XIII, Note 41; ChapterXIII D 2 (c) (iii)Hilfsbeamter auxiliary officer. See Chapter XVII, Note 22Hilfsnorm accessory norm. See Chapter X B 1 4 (Note 18)Hilfspersonassistant. See Chapter XI C 2 (c) to (e)Hilfsweiseon an auxiliary basisHilfsweise Anwendung subsidiary application. See Chapter XVIII A (Note 1)Hinauskündigungsklauselclause in a company agreement enabling a member to beexcluded by the others. See Chapter XI C 3 (b) (iv)Hindernto hinder, impede, prevent obstruct, stopHinreichendsufficient(ly). See Chapter X B 2 (c) (‘Rules governing offerand acceptance’); Chapter XIII, Note 96; Chapter XIV CHinterlegerdepositor. See Chapter X C 3 (g) Exposé ‘Darlehen’Hinterlegung deposit (of property). Cf ‘Anzahlung’. See Chapter X C 3(c) (Title 2)395

The German Legal System and Legal LanguageHinweisreference (to). See Chapter X B 2 (e)Hinweisen (auf)to point out, refer toHistorische Rechtsschulehistorical school (of law). See Chapter IHochschule high school. See Chapter II C (Note 11)Höchstpersönlich highly/most personal. See Chapter XIX A 2Hoheitlichofficial(ly); based on/endowed with/supported byformal/public legal authority/command. See Chapter IIC and cf ‘fiskalisch’Hoheitsrecht(individual) sovereign (state) power/right. See Chapter II,Note 3Holschuldsee ‘Leistungsort’Homo homini lupus man is the wolf of man. See Chapter I (Note 10)Honorar (professional) fee. See Chapter XXII D 8Honorarvereiribarung fee agreement. See Chapter XXII, Note 100Hypothekmortgage; cf ‘Grundschuld’. See Chapter X D 3 (h)Hypothekenbankmortgage bank. See Chapter XIX BHypothekenbriefmortgage certificate. See Chapter X D 3 (h); Chapter XIX BIdealkonkurrenzsee ‘Tateinheit’Im eigenen Namenin (one’s, his, her, its) own name. See ‘Kommissionär’Im Falle (von)in the event (of)Immanentimplicit in. See Chapter VIII BImmaterialrechtsgut intellectual property. See Chapter X B 1 3Immaterieller Schaden immaterial loss. See Chapter X, Note 118Immobilie(n)see ‘Grundstück(e)’Im öffentlichen Interesse in the public interest. See Chapter XVII at Note 14Im staatlichen Auftrag on state instructions. See Chapter XVI A (Note 3)Im Zweifelin the event of doubt. See Chapter X F 4 (d)Individualabredeindividually negotiated agreement. See Chapter X B 2 (e)Indizienbeweiscircumstantial (or indirect) evidence (by means of‘Hilfstatsachen’ (auxiliary facts)). It can assist in establishing(concluding the truth of) a particular fact. Not to beconfused with its sub-type ‘Anscheinsbeweis’. See ChapterXIII B 7 (Note 10) and Baur/Grunsky, § 14 A 1 2Indossamentindorsement. See Chapter XIX BIn dubio pro reoin case of doubt: for the accused. See Chapter XIII B 7 (Note10) and Creifelds under ‘In dubio pro reo’. Cf ‘Üble Nachrede’Industrie industry. See Chapter XIX A 2Informationsfreiheitfreedom of information (access to public sources). SeeCreifelds under ‘Informationsfreiheit’; Chapter VIII C; ‘Verkehr’Informationsgesellschaftinformation(-based) society. See Preface to Second Edition,Note 9In fremdem Namenin someone else’s name. See Chapter XIII D 1 (f) (iv) (Theterm ‘Vollmacht’)In gutem Glaubenin good faith. See Chapter X D 3 (c) (iii) (Bona fide acquisition396

Appendix A: Vocabularyof ownership to movables). See also Chapter XI (Note 62)Inhaber(schaft)person entitled, holder, ‘owner’, proprietor; entitlement,ownership. See Chapter X B 1 4Inhaberpapierbearer security (‘Wertpapier’). See Chapter XIX B. Cf‘Orderpapier’Inhaberzeichenbearer sign. See Chapter XIX BInhalt content. See Chapter X C 3 (a); Chapter XIII, Note 96Inhaltskontrolle(system of) control of content (of contract terms). SeeChapter X, Note 23; Chapter X B 2 (e)Inlandinland, domestic territory, (within) national boundaries (ie,Germany). Cf ‘Ausland’Innengesellschaft internal company. See Chapter XI, Note 17Innenverhältnisinternal relationship. See Chapter XIII D 1 (f) (iv)Innerbetriebliche Gründe internal business reasons. See Chapter XVIII, Note 14Inquisitionsprinzipinquisition principle (also referred to as the‘Ermittlungsgrundsatz’ or ‘Untersuchungsgrundsatz’). Itapplies in proceedings before criminal, administrative,finance and social courts and in FGG matters. Its oppositeis the ‘Verhandlungsgrundsatz’. See Chapter XIII B 2, ChapterXIII B 7 (Note 10) and Creifelds under ‘Inquisitionsprinzip’Insolvenzinsolvency. See also ‘Zahlungsunfähig’Insolvenzfest insolvency-proof. See Chapter XVIII B 4InsolvenzordnungInsolvency Order. Supercedes the ‘Konkursordnung’ from1.1.1999Insolvenzverwalter insolvency administrator. See Chapter XVIII B 4Instandhaltento maintain (in proper condition). See Chapter X C 3 (g)Exposé (c)Instandsetzento repair, restore. See Chapter X C 3 (g) Exposé (c)Interesseinterest (in). See Chapter IInteressenjurisprudenzjurisprudence based on (a balancing of) interests. Cf‘Begriffsjurisprudenz’ and see Chapter IInteressenvertreterrepresentative of particular interests, lobbyist. See ChapterXI A 2Internationales Privatrechtprivate international law. See Chapter XXInterventionswirkungeffect of ‘Nebenintervention’Invitatio ad offerendum invitation to treat (make offers). See Chapter X Note 66Inzidentkontrolleincidental control (of a norm). See Chapter VII CIpso iureby operation of law. See Chapter X F 4 (a)Irreführento deceive, mislead. See Chapter X, Note 220. Also‘Täuschen’Irrtummistake. See Chapter X B 2 (b) (‘nullity and challengabilityof a ‘Willenserklärung’; Chapter X F 3 (c (iv)Iura novit curiathe court knows the law. See Chapter XIII D 2 (c) (iii) (Note397

The German Legal System and Legal Language98) and Creifelds under ‘iura novit curia’Ius law, right. See Chapter I, Note 10Ius civile civil law. See Chapter I (Notes 3 and 6)Ius cogenscompulsory law. See Chapter IX BIus dispositivumdispositive law. See Chapter IX BIus gentiumlaw common to all mankind; public international law. SeeChapter I, Notes 3 and 9 and ‘Völkerrecht’Ius honorariumhonorary law (of the magistrate or praetor). See Chapter I(Note 6)Ius naturale natural law. See Chapter I, Notes 3, 9 and 10Ius privatumprivate law. See Chapter I, Note 3 and ‘Privatrecht’Ius publicumpublic law. See Chapter I, Note 3 and ‘Öffentliches Recht’Jahresabschlussannual statement (of a company)Jahreshauptversammlungsee ‘Hauptversammlung’Jederzeitat any time. See Chapter X C 3 (g) Exposé (b); Chapter X F3 (c) (ii); Chapter XVII, Note 38 DJenseits vernünftigen Zweifels beyond reasonable doubt. See Chapter XIV B 7JugendamtYouth OfficeJugendgericht youth court, juvenile court. See Chapter XVI, Note 40Jugendgerichtsgesetz (JGG) Juvenile Courts Law. See Chapter XVI, Note 40Jugendhilfeyouth welfare. See Creifelds under ‘Kinder- und Jugendhilfe’;Chapter VI, Note 4Jugendlicher youth (between 14 and 18). See Chapter XVI, Note 40Jugendstaatsanwalt youth prosecutor. See Chapter XVI, Note 40Jugendstrafe juvenile punishment. See Chapter XVI, Note 40Juristische Personartificial/juristic person (of private or public law), legalentity. It can be (and often is) a corporate body. See Creifeldsunder ‘Juristische Person’, Chapter II C (Note 11), ChapterXI A 3 and ‘Verein’Juristische Person dessee ‘Körperschaft des öffentlichen Rechts’öffentlichen RechtsJustiz judicature. See Chapter XXII C 6Justizangestellte(r)judicial clerkJustizgewährungsanspruch (general) right of (access to) justice. See Chapter VIII C. Cf‘Rechtsschutzbedürfnis’Justizielles Grundrecht (so-called) judicial basic right. See Chapter VIII, Note 36Justizverwaltungjudicial administration. See Chapter XXI A; Chapter XXIIC 6. Cf ‘Rechtspflege’Justizverwaltungsaktadministrative act issued by a judicial authority in the fieldof ‘Justizverwaltung’. See Chapter XIV C 1Kammerchamber (of a court; or of a professional or commercialbody). See Creifelds under ‘Kammer’Kammer für Handelssachen chamber for commercial matters. See Chapter XIII D 1 (e)Kannkaufmann voluntary businessman. See Chapter XI, Note 31398

Appendix A: VocabularyKapitalanlageKnpitalanteilKapitalaufbringungKapitalgesellschaftKardinalpflichtKarenzentschädigungKassationKaufKäuferKaufmannKaufmännische(r) Angestellte(r)KaufmännischesBestätigungsschreibeninvestment. See Chapter XIX B(arithmetical) share in the assets (capital) of an OHG orKG. See Creifelds under ‘Kapitalanteil’; Chapter XI, Note12. Cf ‘Geschäftsanteil’raising of capital. See Chapter XIX Bcapital(ised) company, stock corporation. See Creifeldsunder ‘Kapitalgesellschaft’, Chapter XI A 2 and cf‘Personengesellschaft’cardinal duty. See Chapter X B 2 (e)compensation during the period of restriction (under a‘Wettbewerbsverbot’). See Chapter XI C (Competition byemployees during and after employment)see ‘Aufhebung’purchase. See Creifelds under ‘Kauf’ and Chapter X C 3 (g)(Title 1) (§§ 433–514 BGB)purchaser. See also ‘Erwerber’businessman, merchant, trader. See Creifelds under‘Kaufmann’ and see ‘Formkaufmann’, ‘Mußkaufmann’,‘Scheinkaufmann’ and ‘Sollkaufmann’. Cf ‘Händler’ (dealer)(trade) employee. See ‘Handlungsgehilfe’commercial letter of confirmation. See Creifelds under‘Bestätigungsschreiben’ and Chapter X B 2 (c)Kaufvertrag purchase contract, contract of sale. See Chapter X C 2 2and ‘Kauf’Kausalität causation; also ‘Ursächlichkeit’. See Chapter X, Notes 119and 126 I; Chapter XVI C 1 (a); Creifelds under ‘Kausalitätim Strafrecht’Kausalzusammenhang causal connexion. See Chapter X Note 119Kenntnisknowledge. See Chapter XVII BKenntnis der Sachlageknowledge of the position. See Chapter X F 3 (c) (iv)Kennpzeichen(distinguishing) sign, (reference) number, badge. See‘Marke’Kennzeichnen to characterize, distinguish, mark. See Chapter XIII, Note 96Kettechain. See Chapter X D 3 (h)Kindchild. See Chapter X EKindschaftssacheKirchlichKlageKlageänderungKlageantragKlageartparenthood matter. It includes questions of paternity(‘Vaterschaft’). See Chapter XIII D 6 (a) and § 640(ii) ZPOecclesiastical. See Chapter X Ewrit; (criminal) complaint, indictment; action; suit. SeeCreifelds under ‘Klage’ and Chapters XIII C I, XIII D 2 (c),XV B and XVII Eamendment of a writ. See Chapter XIII D 2 (c) (iii)application (to the court) in a writ. See Chapter XIII D 2 (c) (iii)type of writ. See Chapter XIII D 2 (c) (ii) and Chapter XV B399

The German Legal System and Legal LanguageKlagebefugnisKlagebegründungKlägerKlageerwiderungKlageerzwingungsverfahrenKlagegrundKlagenhäufungKlageschriftKlagevortrag(term of administrative procedure) authority to sue, ‘locusstandi’; used analogously in relation to the lodging of a‘Widerspruch’ (‘Widerspruchsbefugnis’). See Chapter XV C.See also ‘Prozeßführungsbefugnis’see ‘Klagegrund’plaintiffdefence to a writ. See Chapter XIII D 2 (c) (iv)procedure to compel a criminal prosecution by the‘Staatsanwaltschaft’. See Chapter XVII, Note 40 Bfactual basis for a writ (ie, such facts asserted by the plaintiffas entitling him to sue), cause of action. Also called‘Klagebegründung’. See Chapter XIII D 2 (c) (iii)cumulation of claims. See Chapter XIII D 2 (c) (iii)statement of claim, writ See Chapter XIIID 2 (c) (i)submission(s) in the ‘Klage’ (of the ‘Kläger’). See ChapterXIII D 2 (c) (iii)Klagezielaim of the action. See Chapter XIII, Note 96; Chapter XV DKlardead(ly)Klauselclause (in an agreement). See Chapter XI C 3 (b) (iv)Kleingedrucktessmall print See Chapter X B 2 (e)Kleingewerbetreibender small businessman. See Chapter XI, Note 31Knebeln to fetter, restrain. See Chapter X Note 58Koalitioncoalition (ie, trade union or employer association). SeeChapter XVIII GKoditionsfreiheitfreedom to form coalitions. See Creifelds under‘Koalitionsfreiheit’ and Chapter VIII C (Article 9(iii) GG)Kollisionsnormcollision norm. See Chapter XX BKommanditgesellschaft (KG) limited partnership. See ‘Gesamthandsgemeinschaft’,‘Gesellschaft’, ‘Personengesellschaft’ and §§ 161–177a HGB.See also Creifelds under ‘Kommanditgesellschaft’Kommanditgesellschaft aufAktien (KGaA)a limited partnership (KG) capitalised by shaes, ie,organised along similar lines to a public limited company(‘Aktiengesellschaft’). See §§ 278–290 AktG, ‘Aufsichtsrat’ andCreifelds under ‘Kommanditgesellschaft auf Aktien’Kommmditistmember of a KG with limited liability. See Chapter XI C 3 (c)Kommissionärcommissioneer. See Chapter XI C 2 (e)Kommunecommunal body, local authority (‘Kreis’ or ‘Gemeinde’). SeeCreifelds under ‘Kommunen’ and Chapter VIKomplementärmember of a KG with unlimited liability. See Chapter XI C 3 (c)Konkludentes Verhaltensee ‘Schlüssiges Verhalten’Konkretconcrete (adj)Konkrete Normkontrollesee ‘Normkontrolle’Konkurrenzconcurrence. See Chapter VIII, Note 10 and Chapter X, Note188400

Appendix A: VocabularyKonkurrierendconcurrent. See Chapter II BKonkursgericht bankruptcy court. See Chapter XIII, Note 32Konkursordnung (KO)Bankruptcy Order (a statute). Since 1.1.1999 supercededby the ‘Insolvenzordnung’Konnossementbill of lading. See Chapter XIX BKontaktsperre contact ban. See Chapter XVII, Note 31Kontrahierungszwang (the principle of) compulsory contracting. See Chapter X,Note 23Kontrollrechtright of control. See Chapter XI C 3 b (ii)Kontrollstelle control point. See Chapter XVII, Note 25Konzentration concentration. See Chapter XIII B 6Konzernsee ‘Unternehmensvertrag’Konzessionlicence (for business purposes), trading licence. It is aparticular type of permission (‘Erlaubnis’). Admission to aparticular business (‘Gewerbezulassung’) is frequentlydependent on fulfillment of conditions laid down in the‘Gewerbeordnung’ or in more specialized laws. See Creifeldsunder ‘Gewerbe’ and ‘Gewerbezulassung’; Chapter XIV C 5Körperschaftcorporation. See ‘Juristische Person’Körperschaft despublic corporation. See Creifelds under ‘Körperschaft desöffentlichen Rechtsöffentlichen Rechts’ and ‘Juristische Person’Körperverletzung bodily harm, injury. See Chapter XVII, Notes 9 and 38 C.See also ‘Personenschaden’Korrespondenzanwalt correspondence lawyer. See Chapter XIII, Note 55Kostenerstattungrepayment/reimbursement of costs. See ‘Kostenpflicht’.Kostenfestsetzungfixing (taxation) of (procedural) costs. See Creifelds under‘Kostenentscheidung’ and ‘Kostenfestsetzung’; Chapter XIIID 1 (f) (v) and Chapter XXI BKostenfestsetzungsbeschluß order for the fixing of costs. See Chapter XIII D 8 (b) (ii)Kostenordnung (KostO)Costs Order (for court and notary fees in non-contentiouscivil matters). See Chapter XXII D 8 and EKostenpflichtduty to bear costs (of a dispute). The normal rule is that theunsuccessful party must reimburse them to the winner. SeeChapter XIII D 1 (f) (v). However, in employment courtproceedings a claim for repayment (‘Kostenerstattungsanspruch’)is usually excluded (§ 12a ArbGG) and in criminal proceedingscosts must be borne by the person convicted (§ 465 StPO). Courtcosts are not charged in social court proceedings (§ 183 SGG).See Creifelds under ‘Kostenpflicht’ and ‘Kostenerstattungsanspruch’Kostenstreitwertsee ‘Gebührenstreitwert’Kostenvorschuß(advance) payment on account of costs. See Chapter XIIID 2 (c) (i). See also ‘Prozeßkostenvorschuß’Kraftfahrt-BundesamtFederal Motor Vehicle Office; in Flensburg. See ChapterIV, Note 2401

The German Legal System and Legal LanguageKraftfahrzeug motor vehicle. See Chapter X Note 222Kraftfahrzeugführerdriver. See Chapter X, Note 222; Chapter XVII, Note 38 CKraftfahrzeughalter keeper of a motor vehicle. See Chapter X Note 222Kraftlosdevoid of (legal) effect. See Chapter X F 5 (d)Kreditloan, credit. Also ‘Darlehen’. For the types of ‘Kredit’, seeChapter X D 3 (h)Kreditgefährdungendangering of credit, harm to financial status. See ChapterVIII, Note 20 EKreditinstitut credit institution. See Chapter X Note 211; Chapter X C 3(g) (Title 10)Kreditmittelmeans of obtaining credit. See Chapter XIX BKreditwesengesetz (KWG)Law concerning the Credit System. See ‘Depotgeschäft’,‘Einlagengeschäft’Kreisregional authority (above a ‘Gemeinde’); also ‘Landkreis’;lit. circle (of a ‘Land’). See Chapter VI; ‘Kommune’; Creifeldsunder ‘Kreis’Kreisangehörigbelonging to a ‘Kreis’. See Chapter VIKreisausschuß(administrative) council of a ‘Kreis’. See Chapter VIKreisfreifree, independent of a ‘Kreis’. See Chapter VI and Creifeldsunder ‘Kreisfreie Städte’Kreisordnunglocal government law governing the ‘Kreise’ in a ‘Land’.See Chapter VIKreistagparliament of a ‘Kreis’. See Chapter VIKriegsdienstverweigerungobjection to military service. See Chapter VIII C andCreifelds under ‘Kriegsdienstverweigerer’Kriminalpolizeicriminal police. See Chapter XVII DKulturhoheit authority in cultural affairs. See Chapter II, Note 7Kundenfreundlichfavourable to the customer. See Chapter X B 2 (e)Kündigento give notice (of termination), cancelKündigung(notice of) termination; notice; dismissal; (unilateral)cancellation (of a contract). In respect of an employee, itcan be ‘ordentlich’ (‘befristet’ (with notice)) or‘außerordentlich’ (‘fristlos’ (without notice)). See Creifeldsunder ‘Kündigung’ and ‘Entlassung des Arbeitnehmers’. Seealso ‘Auflösung’, ‘Gestaltungsrecht’; Chapter X C 3 (g) Exposé(f); Chapter XVIII BKündigungsfristnotice period. See Chapter XVIII BKündigungsschutz(employment) protection against ‘Kündigung’. See ChapterXVIII B and Creifelds under ‘Kündigungsschutz fürArbeitnehmer’Kündigungsschutzgesetz (KSchG) Employment Protection Law. See Chapter XVIII BKunsturhebergesetz (KUG) Law regarding Copyright in Works of the Fine Arts andPhotography (9.1.1907). See Chapter VIII, Note 20 CLadungsummons (for attendance), subpoena (of a person to a402

Appendix A: Vocabularyhearing, to attend court). See Creifelds under ‘Ladung’;Chapter XIII C F; Chapter XIII D 2 (c) (vi); Chapter XVII,Note 38 FLager store, stock, depot. See Chapter XI C 5Lagerscheinstorage certificate. See Chapter XIX BLagerung storage. See Chapter X, Note 166Land, Länder(individual) state(s) (of Germany). See Chapter VLänderverwaltungLandesarbeitsgericht (LAG)LandesbehördeLandeseigene VerwaltungLandesgesetzLandesoberbehördeLandesregierungLandessozialgericht (LSG)LandesverfassungLandesverfassungsgerichtLandeszentralbankLandfriedensbruchLandgericht (LG)LandkreisLandratLandratsamtLandtagLangfristigLaufzeitLeasingnehmerLebenLebensgemeinschaft der Ehegatten(own) administration by the ‘Länder’. See ‘LandeseigeneVerwaltung’, Chapter II C and V Bcounty employment court. See Creifelds under‘Landesarbeitsgericht’ and Chapter XXII C 3authority of a ‘Land’. See Chapter V B(own) administration by a ‘Land’. See ‘Länderverwaltung’and Chapter II Cstatute of a ‘Land’, state statute. Cf ‘Bundesgesetz’. SeeChapters II B and VII Cupper authority of a ‘Land’. See Chapter V Bgovernment of a ‘Land’. See Chapter V Acounty social (security) court. See Creifelds under‘Landessozialgericht’ and Chapter XXII C 4constitution of a ‘Land’. See Chapter V Aconstitutional court of a ‘Land’. See Chapter VII Ccentral (state) bank (of a ‘Land’)breach of the peace. The offence requires the use or threat ofviolence (‘Gewalttätigkeit’) by a mob (‘Menschenmenge’). See§ 125 StGB; Chapter XVII, Note 38 C. Cf ‘Hausfriedensbruch’county court; regional court; lit. court of a ‘Land’. SeeCreifelds under ‘Landgericht’ and Chapters XIII D 1 (e), XIIID 2 (a) and XXII C 2see ‘Kreis’chief executive of a ‘Kreis’; in Niedersachsen andNordrhein-Westfalen: the ‘Oberkreisdirektor’. See Creifeldsunder ‘Landrat’ and Chapter VIoffice of the chief executive. See Chapter VIparliament of a ‘Land’. See Creifelds under ‘Landtag’ andChapter V Along-term. See Chapter X C 3 (g) Exposé (d)period, term (eg, of a loan). See Chapter X C 3 (g) Exposé‘Darlehen’leasing customer. See Chapter X C 3 (g) Exposé (b)life. See Chapter VIII C (Article 2(ii), 1st sentence GG)marital fellowship, community (of life). See Chapter XIIID 6 (b) 3. Also ‘eheliche Lebensgemeinschaft’403

The German Legal System and Legal LanguageLebenspartnerschaftlifetime partnership (arrangement/relationship) (betweenpersons of the same sex). Since 1.8.2001, it can be registeredbefore a competent authority and creates a status largelyequivalent to marriage. See Burhoff, ZAP, Fach 11, p 603Leerlaufento run empty, have no practical effect. The term is mainlyused with reference to basic rights. See Chapter II, Note 5Legalitätsgrundsatzlegality principle; obliges official intervention by aprosecuting authority. See Creifelds under ‘Legalitätsprinzip’;Chapter XVII B; Chapter XVII E, Notes 39 and 40; cf‘Opportunitätsgrundsatz’Legitimationspapierlegitimately document, ie, one that has legitimately effect.A ‘Legitimationspapier’ can be ‘einfach’ (simple) or‘qualifiziert’ (qualified). See Chapter XIX BLehrling (craftsman’s) apprentice. See Creifelds under‘Handwerkslehrling’Leibrenteannuity, pension for life. See Creifelds under ‘Leibrente’ andChapter X C 3 (g) (Title 16)Leichte Fahrlässigkeitslight negligence. See Chapter XI BLeichtfertig reckless(ly). See Chapter XVI, Note 50Leihegratuitous loan. See Creifelds under ‘Leihe’ and Chapter XC 3 (g) (Title 4)Leistungperformance (owed or carried out); achievement;accomplishment; service. In §§ 812ff BGB, the term‘Leistung’ is used to mean ‘eine Vermögenszuwendung’ (agrant of a financial benefit or advantage) or, as is oftensaid, ‘eine bewußte und zweckgerichtete Mehrung fremdenVermögens’ (a conscious and purposeful increase insomeone else’s assets). For the purpose of § 326 BGB, theterm ‘Leistung’ means a ‘Hauptleistung’ rather than a‘Nebenleistung’. See Creifelds under ‘Leistung’,‘Ungerechtfertigte Bereicherung’ and ‘Gegenseitiger Vertrag’II 2. See also Chapters X C 3 (a), X C 3 (b) and X C 3 (g)Leistungsbeschreibungdescription of the act/object of performance (required bya contract). See Chapter X B 2 (e)Leistungserfolg(successful) performance. See Chapter X C 3 (a) and‘Leistungsort’Leistungsgefahrrisk of performance. See Chapter X Notes 116 and 126 FLeistungshandlung(act of) performance carried out. See Chapter X C 3 (a) and‘Leistungsort’Leistungsklagewrit claiming a ‘Leistung’. See Chapters XIII D 2 (c) (ii),XIV (Note 23 E) and XV BLeistungskondiktionground of action (condiction) under § 812(i), 1st sentence,1st alternative BGB to recover something (‘etwas’=a financialadvantage) from someone, who receives it without a legalbasis (‘ohne rechtlichen Grund’) due to me ‘Leistung’ of theclaimant. See Creifelds under ‘Ungerechtfertigte Bereicherung’and Chapter X C 3 (g) (Title 24)404

Appendix A: VocabularyLeistungsnäheLeistungsortLeistungspflichtLeistungsrecht(e)LeistungsstörungLeistungsverpflichtungLeistungsverwaltungLeistungsverweigerungsrechtLeistungszeitLeitbildLeitender AngestellterLex causaeLex foriLex loci delicti commissiLex posterior derogat legi prioriLex specialis (derogat legi generali)proximity to an act of performance. See Chapter X, Note135 Aplace of performance, ie, the place at which the‘Leistungshandlung’ must be carried out. It is sometimesreferred to as the ‘Erfüllungsort’. Usually, the ‘Leistung’ hasto be collected by the creditor from the debtor (a ‘Holschuld’)and the place of the ‘Leistungshandlung’ and ‘Leistungserfolg’coincide: they are both at the ‘Wohnsitz’ ((place of) residence)of the debtor (§ 269(i) BGB). However, the ‘Leistungsort’ and‘Erfolgsort’ can diverge—as where the ‘Schuldner’ has to sendhis ‘Leistung’ (a ‘Schickschuld’ eg, a ‘Geldschuld’). In that case,the ‘Leistungsort’ is at the ‘Schuldner’s address, but the‘Leistungserfolg’ occurs at the address of the creditor (as under§ 270 and § 447 BGB). The ‘Leistungsort’ is of importance inprivate international law in order to ascertain the applicablelaw and the legal venue (‘Gerichtsstand’) in contractualdisputes. See Creifelds under ‘Leistungsort’; Brox (AS),Chapter 4, § 11 IV; Fikentscher, Section 3 (§ 35); Klunzinger(Einführung), Part III, Chapter 2 (§ 26 II); Chapter X C 3 (a)(Title 1); Chapter XX D 2duty of performance. See Chapter X C 3 (a)right(s) to a ‘Leistung’; right(s) to a service (performance).See Chapter VIII Adisruption, disturbance, irregularity of/in performance.See Chapter X C 3 (a) and (b) Titles 1 and 2 and Note 126see ‘Leistungspflicht’service administration. See Chapter II C (Note 12); ChapterVI. Cf ‘Eingriffsverwaltung’right to decline performance. See Chapter X B 4 Exposétime for performance. See Chapter X (Note 98) and‘Fälligkeit’model, example. See Chapter X B 2 (e)leading employee. See Creifelds under ‘Leitende Angestellte’and Chapter XVIII Cthe applicable law, governing law. See Chapter XX Bthe law of the forum (ie, the law applicable in the placewhere the case is heard). See Chapter XIII, Note 28 D,Chapter XX B and Note 25 Bthe law of the place of commission of die tort. See ChapterXX, Note 25 Aa later law supercedes an earlier one. See Chapter II Ha special law (takes precedence over a general one). See‘Sonderregel’Lieferant supplier. See Chapter XI, Note 42Lieferungskaufdelivery sale (ie, a contract to produce a ‘vertretbare Sache’and to obtain die necessary materials to do so). See ChapterX, Note 234405

The German Legal System and Legal LanguageLiegenschaftLis alibi pendensLizenz(vertrag)Locus standiLohnfortzahlung im Krankheitsfallsee ‘Grundstück’proceedings/suit pending elsewhere (concurrently). SeeChapter XIII, Note 101licence (agreement). See Chapter X C 3 (g) Exposé (b);Chapter XI, Note 42. Cf ‘Erlaubnis’; ‘Führerschein’;‘Konzession’see ‘Klagebefugnis’continued pay in case of illness. See Creifelds under‘Entgeltfortzahlung im Krankheitsfall’; Chapter XVIII, Note 13Lohnpfändung attachment of earnings. See Chapter XIII, Note 168Lohnsteuer wages tax. See Chapter XII, Note 13Lokalisierungsprinzip localisation principle. See Chapter XXII, Note 58LombardgeschäftLombard transaction, ie, grant of a loan by a bank againstcreation of a ‘Pfandrecht’ (lien). See Chapter X D 3 (h) (Note280 D)Löschento delete (from a list/register), to cross/strike off, erase,extinguishLöschungdeletion, erasure, cancellation, discharge. See Chapter X D3 (h); Chapter XIII D 8 (e)Lückegap. See Chapter II, Note 22; Chapter X, Note 47; ChapterX B 2 (e); Chapter X F 3 (c) (iii)Lückenlos free of gaps, complete, seamless. See Chapter XIII, Note 67MachtpowerMachtbereich (des Empfängers) area of control (of the recipient). See Chapter X B 2 (b)(Validity of a ‘Willenserklärung’) (Note 43)Machtungleichgewichtimbalance/inequality of (bargaining) power. See ChapterX B 2 (e)Magistrat(collective) magistrate; executive organ of a ‘Gemeinde’. Seealso ‘Oberbürgermeister’ and Creifelds under‘Magistratsverfassung’Mahnbescheiddefault notice. See Chapter XIII C I, D 1 (g) (ii) and‘Mahnverfahren’. A similar English term (which has a certainfunction in the English law of bankruptcy) is: ‘statutorydemand’Mahnungwarning. See ‘Leistungsstörung’ and ‘Verzug’Mahnverfahrendefault notice procedure. See Creifelds under‘Mahnverfahren’ and Chapter XIII D 7Makler(civil law) agent, broker. See Creifelds under ‘Makler’ andcf ‘Handelsmakler’Maklerlohnbroker’s fee; also called ‘Courtage’Mätdervertrag(civil) agency contract. See Creifelds under ‘Mäklervertrag’and Chapter X C 3 (g) (Title 8)Mandant client (of a lawyer); also ‘Auftraggeber’. See Chapter XXII D 4Mandatbrief, case. See Chapter XXII D 5. See also ‘Anwaltsvertrag’406

Appendix A: VocabularyMangel fault; defect. See ‘Fehler(haft)’; ‘Gewährleistung’; Chapter X,Notes 126 J, 166, 185, 189; Chapter XIII, at Notes 20 and 61Mangels Massedue to lack of assets/ substance (a term of insolvency law)MantelgesellschaftManteltarifvertragMarkeMarkenwarenMaßnahmeMaßregel der Besserungund SicherungMateriellMaterielles RechtMehrdeutiga ‘shell’/‘skeleton’ company, ie, one which previouslytraded, but which has meantime suspended its businessactivities. Cf ‘Vorratsgesellschaft’principal (general) tariff agreement (regulating workingconditions for a longer term)mark, stamp; brand, emblem, logo. See Creifelds under‘Marken’. See also ‘Kennzeichen’brand name/branded goods. See Creifelds under‘Markenwaren’; Chapter XI, Note 42measure. See Chapter XIV C 1 and Chapter XVI Dmeasure of improvement and security. See Creifelds under‘Maßregeln der Besserung und Sicherung’ and Chapter XVI Dmaterial(ly)material law. See Chapter IX Bambiguous. See Chapter X B 2 (e)Mehrheit majority; multitude. See Chapter X C 3 (f); Chapter XIB 2;Chapter XII DMehrheitsprinzipmajority principle. See Chapter XI BMehrparteiensystemmulti-party system. See Chapter II GMehrseitig multilateral. See Chapter X B 17 and X C 2 3Mehrwertsteuervalue-added tax. Also ‘Umsatzsteuer’Meinungopinion. See also ‘Stellungnahme’Meinungsfreiheitfreedom of expression (opinion). See Creifelds under‘Meinungsfreiheit’ and Chapter VIII CMeinungsverschiedenheitdifference of opinion. See Chapter XVIII DMenschenrecht(e) human right(s). See Chapter II, Note 34Menschenwürdehuman dignity. See Creifelds under ‘Menschenwürde’ andChapter VIII CMerkmalelement, characteristic (of). See Chapter X, Note 22; ChapterXVI, Note 17Mieterent(al). See Creifelds under ‘Miete’; Chapter X C 3 (g)Exposé. Rental payment also called ‘Mietzins’Mietkauf hire-purchase. See Chapter X, Note 238Mietvertragrental agreement, lease, tenancy. See ‘Mietvertrag’; ChapterX C 3 (g) (Title 3); Chapter XVIII, Note 6Mietzins(amount of) rent, ie, rental payment Also called ‘Miete’Mildernde Umständemitigating circumstancesMinderjährigunder the age of majority. Cf ‘Volljährig’Minderjährigerminor. See Chapter X B 2 (a)Minderkaufmannlesser businessman. See Chapter XI D 2 (a), ‘Mußkaufmann’and Creifelds under ‘Minderkaufmann’407

The German Legal System and Legal LanguageMinderung abatement, reduction (in the price). See Chapter X, Note 189Ministerpräsidentprime minister; head of a ‘Landesregierung’. See Chapter V AMißachtento disregard, ignoreMißbrauchento abuse. See Chapter X, Notes 47 C and 220; Chapter XIVC 6. See also ‘Ausnutzen’Mitbestimmung(srecht)(right of) co-decision, co-determination; stronger than‘Mitspracherecht’. see Creifelds under ‘Mitbestimmung’ andChapter XVIII C and FMiteigentum nach Bruchteilen joint ownership by shares (§ 1008ff BGB). It is a subcategoryof the ‘Gemeinschaft nach Bruchteilen’. See ChapterX D 3 (c) (v)Miterbejoint heir. See Chapter X F 4 (b)Mitfahrerpassenger. See Chapter XVII, Note 38 CMitgliedschaftsrechtright of membership. See Chapter XIX BMitspracherechtright of co-determination, consultation. See Chapter XVIIIE and cf ‘Mitbestimmungsrecht’Mittäterjoint perpetrators), accomplice. See ‘Täter’; Creifelds under‘Mittäterschaft’ (joint perpetration); § 25(ii) StGB. Cf‘Anstiftung’, ‘Beihilfe’Mittelbarindirect(ly). See Chapter II C, Chapter IV, Chapter VIII Aand Chapter X, Note 257Mittelstufemiddle level. See Chapter V BMitverschuldencontributory fault, contributory negligence. See Chapter XC 3 (a) (§ 254 BGB); Chapter X, Note 183; Creifelds under‘Mitverschulden’Mitwirkento assist (by way of cooperation). See Chapter IIIMitwirkung cooperation. Also ‘Zusammenarbeit’. See Chapter II H;Chapter X C 3 (g) Exposé (c); Chapter X F 4 (b); ChapterXIII, Note 96; Chapter XVIII EMordmurder. See Chapter XVII, Notes 11, 26 C and 38 BMotivirrtum mistaken motive. See Chapter X, Note 47 D; Chapter X F 3(c) (iv)Mündlichkeitsgrundsatzoral principle. See Creifelds under ‘Mündlichkeitsgrundsatz’and Chapter XIII B 4Mußkaufmanncompulsory businessman; two types: ‘Vollkaufmann’ (fullbusinessman) or ‘Minderkaufmann’ (lesser businessman).See Chapter XI C 2 (a)Mutmaßlichpresumable, supposed(ly). Also ‘Vermutlich’. See ChapterXVI C 2 (b)Nachbar neighbour. See Chapter X, Note 253Nachbessernto correct, repair (a defect). Also ‘Beheben’, ‘Beseitigen’Nachbesserung(subsequent) correction/ repair (of a defect). See ChapterX, Note 189 CNach billigem Ermessenin accordance with fair discretion. See Chapter XIII D 2 (d)408

Appendix A: VocabularyNacherbeNachfolgeklauselsubsequent heir. See Chapter X F 4 (e)succession clause (in company agreement). See ChapterXI C 3 (b) (iv)Nachforschungspflicht duty of investigation. See Chapter X, Note 259Nachgiebigyielding, indulgent. See ‘Dispositiv’Nachholen to carry out anew, make up for. See Chapter XIII, Note 78Nach Lage der Akten (Aktenlage) on die basis of the file(s). See Chapter XIII D 1 (g) (iii)NachlaßSee Chapter X F 4; Chapter XXII B; ‘Erbschaft’Nachlaßgerichtprobate court. See Chapter X F 3 (c) (iv); Chapter X F 5 (d)and (e); Chapter XIII, Note 32Nachlaßkonkursestate bankruptcy. See Chapter X F 5 (b)Nachlaßpflegerestate guardian, curator. See Chapter X F 5 (e)Nachlaßsachematter relating to a ‘Nachlaß’, probate matter. See ChapterXXII BNachlaßverbindlichkeitdebt of the estate. See Chapter X F 4 (b) and 5 (b)Nachlaßverwaltungestate guardian, curator. See Chapter X F 5(b)Nachlieferung further/subsequent delivery. See Chapter X, Note 116Nachteiligdisadvantageous, detrimental. See Chapter XIII D 3 (a)Nachtragaddendum, supplement; codicil. See Chapter X C 3 (g)Exposé (d)Nachverfahrensee ‘Vorbehaltsurteil’Nachweisento prove, show, verify, demonstrateNamensaktieshare (in a public company) issued in the name of aparticular person. See Chapter XIX BNamenspapiersee ‘Rektapapier’Nebenabrede collateral agreement. See Chapter X B 2 (e); Chapter X C 3(g) Exposé (d)Nebenanspruch accessory/collateral claim. See Chapter X, Note 266 B;Chapter XIII D 2 (c) (vi)Nebenbestimmung collateral provision (to a VA). See Chapter XIV C 2Nebenforderungsee ‘Nebenanspruch’Nebengesetzsecondary, accessory, collateral statute. See Chapter XVI ANebenintervenientintervener. See ‘Nebenintervention’Nebeninterventionassistance to a party in the dispute as intervener; also called‘Streithilfe’. See Creifelds under ‘Nebenintervention’, ChapterXIII D 1 (f) (iii) and ‘Interventionswirkung’Nebenklagecollateral prosecution. See Creifelds under ‘Nebenklage’ andChapter XVII HNebenleistungcollateral service. See ‘Leistung’; Chapter X D 3 (h)Nebenpflichtaccessory duty. Breach can found a claim for ‘positiveVertragsverletzung’ (PVV). See Chapter X B 2 (b)(Interpretation of a ‘Willenserklärung’) (Note 47); ChapterX C 3 (g) Exposé (c)409

The German Legal System and Legal LanguageNebenpunktNebenstrafeNe bis in idemNemo bonus iurista nisi bartolistaNemo plus iuris ad aliumtransferre potest, quam ipse habet(Nemo dat, quod non habet)NennbetragsaktieNeugliederungNichtberechtigterNichtbestehenNichtehelichaccessory (collateral, subordinate) point. See Chapter X B2 (c) ‘Failure to reach an ‘Einigung’accessory punishment. See Creifelds under ‘Nebenstrafen’and Chapter XVI Dnot twice in the same matter. No prosecution or punishmentis possible again for the same crime. The equivalentprinciple in English law is the ‘double jeopardy’ rule. SeeCreifelds under ‘Ne bis in idem’ (‘Strafklageverbrauch’);Chapter VIII C (Note 35); Chapter XVI, Note 5. Cf ChapterXIII C D (Note 15)noone is a good jurist, if he does not follow Bartolus. SeeChapter I (Note 5)nobody can transfer to another person a greater right thanhe himself has. See Chapter X D 3 (c) (ii)/(iii), Notes 255and 260a share issued for a particular nominal value (‘Nennwert’).Cf ‘Stückaktie’new division. See Creifelds under ‘Neugliederung desBundesgebietes’ and Chapter II F (Note 20)unauthorised (third) person. See Chapter X D 2 (v) and D3 (c) (ii) (‘Bona fide acquisition of ownership to movables’)non-existence, not to exist. See Chapter XIII D 2 (c) (ii)illegitimate (child). See Chapter X E and Creifelds under‘Nichteheliche Kinder’Nichterfüllungfailure to perform, non-performance, breach. See ChapterX, Notes 114 and 126 ANichterscheinennon-appearance; a party’s failure to attend a ‘Termin’. SeeChapter XIII D1 (g) (iv) and ‘Versäumnis’Nichtig(keit)void; nullity. Can relate to a court decision, a ‘Gesetz’, a‘Willenserklärung’, a ‘Rechtsgeschäft’ or a VA. See,respectively, Chapters VII C X B 2 (b) and XIV C 3. See alsoCreifelds under ‘Nichtigkeit gerichtlicher Entscheidungen’,‘Nichtigkeit von Gesetzen’, ‘Nichtigkeit von Rechtsgeschäften’and ‘Nichtigkeit von Verwaltungsakten’Nichtigerklärungdeclaration of nullity (of marriage). See Chapter XIII D 6 (b)Nichtigkeitsklage type of writ seeking ‘Wiederaufnahme’. See Chapter XIII D 4Nichtleistungskondiktion(subsidiary) ground of action (conduction) under § 812(i),1st sentence, 2nd alternative BGB to recover something(‘etwas’=a financial advantage) from someone, who obtainsit without a legal basis (‘ohne rechtlichen Grund’), not dueto the ‘Leistung’ of the claimant, but ‘in sonstiger Weise’ (inanother way). There are 3 types of ‘Nichtleistungskondiktion’:‘Eingriffskondiktion’, ‘Verwendungskondiktion’ and‘Rückgriffskondiktion’. Cf ‘Leistungskondiktion’ and seeChapter X C 3 (g) (Title 24)Nichtrechtsfähigincapable of carrying rights and obligations (not possessinglegal capacity). See Chapter II C (Note 11). Cf ‘Rechtsfähig(keit)’410

Appendix A: VocabularyNichtstuninaction, idleness. See Chapter X B 2 (c)Nichtverhandelna party’s failure to make submissions at a ‘Termin’;equivalent to ‘Nichterscheinen’ (§ 333 ZPO). See ChapterXIII D 1 (g) (iv)Nichtvermögensrechtlichnon-monetary. See Chapter XIII D 3 (b)Nichtvermögensschaden non-pecuniary loss. See Chapter X, Note 227Nichtzulassungsbeschwerde type of ‘Beschwerde available in administrative, finance,social and employment proceedings against refusal of leaveto appeal. See Chapter XIII, Note 135NiederlassungSee ‘Sitz’; Creifelds under ‘Niederlassung’. See also ‘Filiale’,‘Zweigniederlassung’ (branch office)Niederlassungsfreiheitfreedom of establishment. See Chapter VIII C; ‘Verkehr’NiedersachsenLower Saxony. See Chapter V ANiederschriftwritten record. See Chapter X, Note 256; Chapter X F 3 (c)(i) and 5 (e); Chapter XXII ENießbrauchusufruct. See Creifelds under ‘Nießbrauch’ and Chapter X D3 (e)Non liquet (the matter is) not dear. See Chapter XIII B 7Norddeutscher Bund North German Confederation. See Chapter I (Note 7)Nordrhein-WestfalenNorthrhein-Westphalia. See Chapter V ANormnorm, legal provision. Also ‘Rechtssatz’. See Preface toSecond Edition, at Note 1; Chapter IX BNormkontrollenorm-control (by a court); a norm-control reference to theBVerfG can be ‘konkret’ (concrete: within particularproceedings) or ‘abstrakt’ (abstract: on application). SeeCreifelds under ‘Normenkontrolle’ and Chapters VII C andXV ANormkontrollverfahrennorm-control procedure (eg, under § 47 VwGO). See‘Normkontrolle’Normzweck purpose of a norm. See Chapter X, Note 219; Chapter XIII C 6Notarnotary. See Creifelds under ‘Notar’ and Chapter XXII ENotarkammerNotaries’ Chamber. See Chapter XXII ENotfall emergency. See Chapter XXI, Note 1Notfrista ‘Frist’ described as such in a statute and which cannot beextended or shortened. See Creifelds under ‘Notfrist’ andChapter XIII D 1 (g) (iii)Nötigungduress. See Chapter X, Note 58 CNotstand(state of) emergency; can be a ‘Rechtfertigungsgrund’ (§ 34 StGB)or a ‘Schuldausschließungsgrund’. An illegal act can be excusedif it is carried out in an emergency (‘entschuldigender Notstand’),although not if this was on the basis of an (avoidable) mistake(‘Putativnotstand’) (§ 35 StGB). See Creifelds under ‘Notstand’I; Chapter X, Note 58 C; Chapter XVI C 2 (b) and 3 (d)Nottestamentemergency will. See Chapter X F 3 (c) (i)Notwehrself-defence; a person acting in ‘Notwehr’ has a‘Rechtfertigungsgrund’ (§ 32 StGB). If the appropriate411

The German Legal System and Legal Language‘Notwehr’ is exceeded (‘Notwehrexzeß’), ‘Schuld’ can beexcluded. See Creifelds under ‘Notwehr’ I and Chapter XVIC 2 (b) (Note 30) and 3 (d) (Note 50)Notwendignecessary. See Chapter XIII D1 (f) (ii) and (v); Chapter XVII CNovelle(statutory) amendment supplementNulla poena sine culpa no punishment without blame. See Chapter XVI C (Note 16)Nulla poena sine lege no punishment without law. See Chapter VIII C (Note 36)and Chapter XVI ANullum crimen sine legeno crime without law. See Creifelds under ‘Nullum crimen(nulla poena) sine lege’ and Chapter XVI A (Note 3)Numerus claususclosed (fixed) number. See Creifelds under ‘numerusclausus’; Chapter VII C (Note 18); Chapter X D 1Nutzung benefit, profit. See Chapter X, Note 265Nutzungsherausgabe release/return of benefits). See Chapter X, Note 266Nutzungsrechtright of user; (copyright) licence. See Creifelds under‘Nutzungsrecht’ and Chapter X D 1Oberbegriffprincipal/upper term. See Chapter XVI, Note 35; ChapterXIX A 2Oberbürgermeistersenior Mayor; executive organ of a larger ‘Gemeinde’. Seealso ‘Bürgermeister’; ‘Magistrat’; ‘Gemeindeverwaltung’;Chapter VI; Creifelds under ‘Oberbürgermeister’OberfinanzdirektionUpper Finance Directorate. It is both a ‘Bundesbehörde’ anda ‘Landesbehörde’. See Chapter IVOberkreisdirektorsee ‘Landrat’, Chapter VI and Creifelds under‘Oberkreisdirektor’Oberlandesgericht (OLG)county court of appeal; superior (county) court (of a ‘Land’);upper regional court. See Creifelds under ‘Oberlandesgericht’and Chapters XIII D 3 (a) and XXII C 2OberpostdirektionUpper Post Directorate. It used to be a ‘Bundesbehörde’. SeeChapter IVOberstaatsanwaltsenior state prosecutor (at the LG). See Chapter XVII BOberste Bundesbehördesupreme federal authority. See Chapter IV and Creifeldsunder ‘Oberste Bundesbehörden’Oberste Bundesorgan(e)supreme organ(s) of the ‘Bund’. See Chapter inOberste Landesbehördesupreme authority of a ‘Land’. See Chapter V BOberstes LandesgerichtSupreme County/State Court (in Bavaria). See ChapterXXII C 2Oberstufeupper level. See Chapter V BOberverwaltungsgericht (OVG) administrative court of appeal; sometimes called‘Verwaltungsgerichtshof’ (VGH). See Creifelds under‘Oberverwaltungsgericht’ and Chapters XV A and XXII C 4Obhutsafekeeping, gaurd, care. See Chapter X C 3 (g) Exposé (c);Chapter XVI, Note 24Objektive Bedingungen der objective conditions of punishability. See Chapter XVI CStrafbarkeit(Note 17)Objektives Recht objective law. See Chapter X B 1 4412

Appendix A: VocabularyObliegenheitinformal duty (ie, one falling short of a legal obligation).See Chapter X, Note 111; § 43(ii) GmbHGOffene Handelsgesellschaft (OHG) open trading company. See Creifelds under ‘OffeneHandelsgesellschaft’, Chapter XI A and ‘Gesamthandsgemeinschaft’,‘Gesellschaft’ and ‘Personengesellschaft’Offenkundig (patently) obvious(ly), well known. See Chapter XIII D 2(c) (iii) (Note 97 2)Offensichtlichevidently), obvious(ly). See Chapter XI, Note 69; ChapterXX, Note 6Öffentlich(in) publicÖffentliche Einrichtung public facility, amenity, establishment. See Chapter II C;Chapter VIÖffentliche Gewalt(the) public power. See Chapter VII CÖffentlicher Glaubepublic credence (eg, of the Land Register or a certificate ofinheritance). See Chapter X D 3 (b); Chapter X F 5 (d)Öffentlich-rechtlicher Vertrag contract governed by public law, public contract. SeeCreifelds under ‘Öffentlich-rechtliche Verträge’; Chapter X B2 (e); Chapter XIV B 3Öffentliches Rechtpublic law. See Chapter IX and Creifelds under ‘Recht’ IISee also ‘ius publicum’Öffentliche Sachepublic property. See Creifelds under ‘Öffentliche Sachen’;Chapter XIV C 1Öffentliche Urkundepublic document. See Chapter XXII EÖffentlichkeit (the) publicity). See Chapter XIII, Note 136Öffentlichkeitsgrundsatzthe principle that a hearing (usually) takes place in public.See Creifelds under ‘Öffentlichkeitsgrundsatz’ and ChapterXIII B 5Offizialprinzip official principle. See Chapter XVII, Note 13Ohne Obligowithout obligation. See Chapter X B 2 (c)Ohne rechtlichen Grundwithout (a) legal basis. See Chapter X B 2 (a); Chapter X C3 (g) (Title 24); Chapter X (Note 246); ‘Leistungskondiktion’Ohne sachlichen Grund without (a) substantial reason. See Chapter XIV C 6 (Note 34)Opportunitätsgrundsatzopportunity principle; gives a ‘Behörde’ discretion as to whetherto intervene. See Creifelds under ‘Opportunitätsprinzip’, ChapterXVII B and cf ‘Legalitätsgrundsatz’Ordentlichordinary, (in) proper (form). See ‘Kündtgung’Ordentliche Gerichtsbarkeit ordinary jurisdiction; deals with civil, criminal and FGGmatters. See Creifelds under ‘Ordentliche Gerichtsbarkeit’ andChapter XXII C 2Orderpapierorder security ie, in the name of a particular person or order.See Chapter XIX B; Creifelds under ‘Orderpapier’. Cf‘Innaberpapier’Ordnung order. See Chapter XVII D (Note 32)Ordnungsbehördeorder authority. See ‘Verwaltungspolizei’Ordnungsgeldsee ‘Ordnungsmittel’Ordnungsgemäßproper. See Chapter X F 4 (b)413

The German Legal System and Legal LanguageOrdnungshaftOrdnungsmäßigOrdnungsmittelsee ‘Ordnungsmittel’correct(ly), proper(ty). See Chapter XIII D 1 (f) (i)measure to compel particular conduct or to punish forcontempt of court. Can consist of a fine (‘Ordnungsgeld’) ordetention (‘Ordnungshaft’). See ‘Beugemittel’. Cf‘Zwangsmittel’Ordnungswidrigkeitminor offence punishable by a fine (‘Geldbuße’). SeeCreifelds under ‘Ordnungswidrigkeiten’ and Chapter XVI BOrdnungswidrigkeitengesetz (OWiG) Minor Offences Law. See Chapter XVI B (Note 9)Organorgan (of a corporate body); eg, of the ‘Bund’ or a ‘Land’: seeCreifelds under ‘Organe der BRep’ and Chapters II C, III andV A. See also Chapter XI A 3. The term includes aconstitutionally appointed representative (‘verfassungsmäßigberufener Vertreter’) under § 31 BGB and a specialrepresentative (‘besonderer Vertreter’) under § 30 BGB. A‘Rechtsanwalt’ is an ‘Organ der Rechtspflege’ (organ of theadministration of justice). See Chapter XXII D 2Organisationsverschulden organisational fault. See Chapter X C 3 (g) (Note 222)OrganstellungOrganstreit(igkeit)ÖrtlichOrtsüblichPachtPacta sunt servandaPächterPandektenwissenschaftParaphierungParlamentarische DemokratieParteiParteibetriebParteifähig(keit)ParteihandlungParteiöffentlichkeitParteiprozeßposition/status of an ‘Organ’; position of responsibility,representative position. See ‘Organ’ and Chapter X C 3 (g)(Note 222 C)dispute between (supreme) constitutional organs. SeeCreifelds under ‘Organstreitigkeiten’ and Chapter VII Clocal. See ‘Zuständigkeit’normal in the (local) area, locality. See Chapter X D 3 (c) (i)(commercial) lease. See Creifelds under ‘Pacht’; Chapter XC 3 (g) (Title 3)contracts are to (must) be observed (performed). SeeCreifelds under ‘pacta sunt servanda’, Chapter I and ChapterX Note 47 D(commercial) lessee. See Chapter X C 3(g) Exposé (b)science of the pandects. See Chapter Iagreement on the draft text of a treaty by way of initialling.See Chapter II Hparliamentary democracy. See Chapter III (Note 2) and cf‘Präsidialdemokratie’party (to civil proceedings). See Chapter XIII D 1 (f) (i)conduct of proceedings by the parties. See Chapter XIII CC. Cf ‘Amtsbetrieb’capable of being (capacity to be) a party. See Creifelds under‘Parteifähigkeit’ and Chapter XIII D 1 (f) (i)See ‘Prozeßhandlung’party openness (principle). See Chapter XIII D 2 (c) (iii)party action. See Creifelds under ‘Parteiprozeß’, Chapter XIIID 1 (f) (iv) and cf ‘Anwaltsprozeß’414

Appendix A: VocabularyParteivernehmungParteiverratexamination of a party (in a civil court). See Creifelds under‘Parteivernehmung’party disloyalty, acting for both sides in a matter in breachof trust. See Chapter XXII D 5Parteivortragsubmission(s) of a party. See ‘Darstellung’; Chapter XIII D2 (c) (iii) (Note 97 4)Partnerschaftsgesellschaft partnership (company). See Chapter XXII D 9Partnerschaftsvertrag partnership agreement. See Chapter XXII D 9Pausch(al)vergütung lump-sum (fixed) fee. See Chapter XXII, Notes 100 and 102Personalstaff. See Chapter XI C 2 (d)Personalausweissee ‘Ausweis’PersonalkörperschaftPersonalratpersonal corporation. See Chapter II C (Note 11) and cf‘Gebietskörperschaft’personnel council (in public sector). See Creifelds under‘Personalvertretung’ (representation of personnel), ChapterXVIII C and cf ‘Betriebsrat’Personengesellschafta personal company; as opposed to a ‘Kapitalgesellschaft’.See Creifelds under ‘Personengesellschaft’. Examples: ‘BGB-Gesellschaft’, OHG and KG. See Chapter XI (Note 17),Chapter XXII D 9Personenkreis group of persons. See Chapter X B 2 (e); Chapter XIV C 1PersonenschadenPersonenzusammenschlußPersönlichPersönlichkeitPersönlichkeitsrechtpersonal injury. See Chapter X, Notes 126 J and 227. Seealso ‘Körperverletzung’alliance (group, union) of persons. See Chapter XI (Note3)personalpersonalitypersonality right. See Creifelds under ‘Persönlichkeitsrecht’and Chapter VIII C (Note 20)Petitionsrechtright of petition. See Chapter XV APfandbriefmortgage bond (certificate). See Chapter XIX BPfandleihe pawnbroking. See Chapter X D 3 (h) (Note 280 D)Pfandrecht pledge, lien. See Chapter X D 3 (h) (Note 280)Pfändungdistraint, seizure. See Creifelds under ‘Pfändung’ andChapter XIII D 8 (c) (v)Pfändungsbeschlußcourt order for ‘Pfändung’ of a debtor’s money claims,attachment order, garnishee order. See Chapter XIII D 8 (c) (v)Pfändungspfandrecht distraint lien. See Chapter X D 3 (h) (Note 280 C)Pfleger(in)attendant, administrator, executive; nurse. See Chapter XE and also ‘Rechtspfleger’Pflegschaftadministration (over a person unable to deal with his orher affairs in the cases specified in §§ 1909–1921 BGB). SeeCreifelds under ‘Pflegschaft’ and Chapter X E415

The German Legal System and Legal LanguagePflicht duty, obligation. See Chapter X C 3Pflichtgemäßin accordance with legal obligation, dutifully. See ChapterXIV C 6Pflichtteilcompulsory portion (of an estate). See Creifelds under‘Pflichtteil’; Chapter X B 4 (c); Chapter X F 1, 2 and 4 (g)Pflichtteilergänzungsanspruch a claim to supplement the compulsory portion (of anestate). See Chapter X F 4 (g) (iv)Pflichtverteidigercompulsory defender, compulsory defence lawyer. SeeCreifelds under ‘Pflichtverteidiger’; Chapter XVII C; ChapterXXII D 4; Chapter XXII, Note 100Plädoyerfinal representations in a case by a lawyer in court. SeeChapter XIII D 2 (c) (vi)Platzverweisungsee ‘Verweisung’Plausibel plausible. See Chapter XV, Note 12Polizeipolice. See Chapter XIV C 3 and Chapter XVII DPolizeibehördepolice authority. See ‘Verwaltungspolizei’PolizeipräsidentPolice Chief/Commissioner/President, ie, head of themunicipal/ regional police forcePolizeipräsidiumpolice headquartersPolizeivollzugsbeamter(executive) police officer, constablePolizeivollzugsdienst executive police service. See Chapter XVII D (Note 32)Popularklagepopular action. See Chapter XV C and Creifelds under‘Popularklage’Positionpoint, item (in a list or schedule); position. See ChapterXIII, Note 96Positive Vertragsverletzung (PVV) positive breach of contract. See Chapter X B 1 4 (Note 18),Chapter X B 2 (b) (Note 47), Chapter X C 3 (a) (Note 126 C);Chapter XVIII H; Chapter XXII, Note 74Postulationsfähig(keit)capable of appearing (capacity to appear) (before aparticular court), right of audience. See Creifelds under‘Postulationsfähigkeit’ and Chapter XIII D 1 (f) (iv)Präjudiz(case) precedent. See Chapter XIII C G. Cf ‘Fallrecht’Präsidialdemokratiepresidential democracy. See Chapter in (Note 2) and cf‘parlamentarische Demokratie’Preisgefahrrisk of (receipt of) the price. See Chapter X, Note 126 GPreis-/Leistungsverhältnisprice/performance ratio. See Chapter X B 2 (e)Pressegesetzlaw governing the press. See Chapter VIII, Note 20 EPresse- und Informationsamtder Bundesregierungpress and information office of the federal government.See Chapter IVPrinzipprinciplePrivatautonomie private autonomy (principle). See Chapter X B 6Privatklageprivate prosecution. See Creifelds under ‘Privatklage’;Chapter XVII B and H416

Appendix A: VocabularyPrivatrechtprivate law. See Creifelds under ‘Privatrecht’ and ChapterIX. See also ‘ius privatum’Probezeittrial (employment) period. See Chapter XVIII BProdukthaftung product liability. See Chapter X, Notes 126 J, 188 and 227;Chapter XIII B 7 (Note 10)Prokuraprocura. See Creifelds under ‘Prokura’ and Chapter XI C 2 (c)Protestatio (facto contraria)non valeta reservation (which does not accord with the externalcircumstances) is ineffective. Also ‘Vorbehalt’. See ChapterX B 2 (b) (Note 50)Protokoll protocol, minute (entry), deposition. Also‘Verhandlungsprotokoll’Provisioncommission, fee. See Chapter XI C 2 (e)Prozeßcase, action, proceedingsProzeßbevollmächtigterperson possessing a ‘Prozeßvollmacht’Prozeßfähig(keit)capable of taking (capacity to take) steps in the proceedings.See Creifelds under ‘Prozeßfähigkeit’ and Chapter XIII D 1 (f) (i)Prozeßförderungspflichtduty of the parties to further the proceedings. See ChapterXIII D 2 (c) (vi)Prozeßfüzhrungsbefugnisright to conduct an action. See Creifelds under‘Prozeßführungsbefugnis’ and see Chapter XIII D1 (f) (iv).See also ‘Klagebefugnis’Prozeßführungsrechtright to conduct an action. Also called ‘Prozeßführungsbefugnis’Prozeßgebühr procedure fee. See Chapter XXII D 8Prozeßgerichtcourt hearing the case, action. See Creifelds under‘Prozeßgericht’ and cf ‘Vollstreckungsgericht’Prozeßhandlungstep in the proceedings. A ‘Prozeßhandlung’ taken by a partyis a ‘Parteihandlung’. See Chapter XIII D 1 (f) (i) and (iv)and Creifelds under ‘Prozeßhandlung’Prozeßhandlungsvoraussetzung precondition for a ‘Prozeßhandlung’ (eg, ‘Parteifähigkeit’,‘Prozeßfähigkeit’, ‘Prozeßvollmacht’ and ‘Postulationsfähigkeit’)Prozeßhindernis obstacle to the proceedings. See Chapter X Note 20Prozeßkostencosts (in (of) the proceedings). They comprise the‘Gerichtskosten’ and ‘außergerichtliche Kosten’. See ChapterXIII D 1 (c) and D 1 (f) (v). See also Creifelds under‘Prozeßkosten’Prozeßkostenhilfe legal aid. See Chapter XIII, Note 53; Chapter XXII D 8(Notes 101 and 110); Creifelds under ‘Prozeßkostenhilfe’; §§114–127a ZPOProzeßkostenvorschußadvance/payment on account of costs. See Creifelds under‘Prozeßkostenvorchuß’, Chapter XIII D 2 (c) (i); ‘Unterhalt’Prozeßleitende Verfügung(interlocutory) direction from the court in the course ofproceedings. See Chapters X D 2 (v) and XIII D 2 (c) (v)Prozeßleitungconduct/ direction of proceedings (by the court). See ChapterXIII C C; Chapter XIII, Note 69; Chapter XIII D 2 (c) (vii)417

The German Legal System and Legal LanguageProzeßrechtProzeßstandschaftprocedural law. See Chapter IX Btransfer of ‘Prozeßfüzhrungsrecht’ to someone who has no‘Sachlegitimation’. See Creifelds under ‘Prozeßstandschaft’and ‘Ermächtigung’; Chapter XIII D 1 (f) (iv)Prozeßstoff material at issue (in a dispute). See Chapter XIII, Note 69Prozeßunfähignot ‘prozeßfähig’Prozeßurteilprocedural judgment. It deals with (preliminary)procedural questions (eg, ‘Zulässigkeit der Klage’). SeeCreifelds under’ ‘Prozeßurteil’ and ‘Zurückverweisung’. Cf‘Sachurteil’. See also ‘Urteil’ and ‘Zwischenurteil’Prozeßvollmachtauthority to act, power of attorney in proceedings. SeeCreifelds under ‘Prozeßvollmacht’ and Chapter XIII D 1 (f) (iv)Prozeßvoraussetzungprecondition for the proceedings. See Creifelds under‘Prozeßvoraussetzungen’ and Chapter XIII D 1 (f) (i). See also‘Sachurteilsvoraussetzung’Prüfen to examine, test, check. See Chapter X B 1 4 (Note 18)Prüfung examination, test, check. See Chapter XXII A and D 3Prüfungsmaßstabstandard against which an examination is (to be) made(measured). See Chapter VIII C (Note 23)Prüfungspflicht duty of examination, duty to check. See Chapter XXII, Note 74Publicum ins est, quod ad statum public law looks to the situation of the Roman state, privaterei Romanae special, privatum (law) to the advantage of single persons (ie, public lawquod ad singulorum utilitatem serves the interests of the state, private law the interests ofthe individual) (Ulpian). See Chapter IX A (Note 1)Putativnotstandsee ‘Notstand’PutativnotwehrQualifikationQuelleQuidquid non agnoscit glossa,non agnoscit curiaQuota litiswhere a person mistakenly believes he is acting in selfdefence.See Chapter XVI C 3 (d) (Note 54)characterisation. See Chapter XX Bsource. See ‘Rechtsquelle’what is not acknowledged by the gloss is notacknowledged by the court. See Chapter I (Note 4)proportion of (the amount recovered in) an action. It isforbidden for a ‘Rechtsanwalt’ to agree (in advance) that heshould receive it as his fee. See Chapter XXII D 8Rahmen frame(work). See Chapter II B and Chapter XXII D 8Rasterfahndunggrid search, ie, a computer-assisted search method basedon a comparison of personal data according to certaincriteria. It can be ordered to trace the perpetrator(s) ofcertain serious offences. See Chapter XVII Note 25 andCreifelds under ‘Rasterfahndung’Rat advice; council. See Chapter X Note 215; Chapter XXII, Note 71Rateinstalment (eg, on repayment (‘Zurückzahlung’) of a loan(‘Darlehen’)), rateRatifikationratification (of a treaty). See Chapter II H418

Appendix A: VocabularyRaubRäuberischer Angriffrobbery. See Chapter XVII, Note 38 Caggression (assault) in the course of a robbery. See ChapterXVII, Note 38 CRäumerooms, premises. See Chapter X C 3 (g) Exposé (a)Räumung eviction. See Chapter X Note 266Realaktpure factual act. See Chapter X B 1 8 and Chapter XV CRealkonkurrenzsee ‘Tatmehrheit’Reallastsuccessive duty of supply from a property. See Chapter XD 3 (g) and Creifelds under ‘Reallast’Rechnen mit (etwas)to reckon with (something). See Chapter X B 2 (e)Rechnung bill, invoice, statement. See Chapter X, Note 127Rechnungshofaccounts court. See Chapter IVRechtlaw; right. Can be understood in an objective or subjectivesense. See ‘Ius’; Chapter IX B; Chapter X B 4; Creifelds under‘Recht’. Cf ‘Gesetz’ and ‘Gerecht(igkeit)’Recht am eingerichteten undausgeübten Gewerbebetriebright to an established and exercised business. See ChapterVIII, Note 20 F; Chapter X, Note 266 C; Chapter XVIII, Note 53Recht auf Konsultationright to consultation. See Chapter XVII, Note 38 HRecht der Selbstuerwaltung right of self-administration; autonomy. See Chapter VIRecht zum Besitzright to possession. See Chapter X D 3 (c) (iv) and cf ‘Besitz’Rechtfertigento justifyRechtfertigungjustificationRechtfertigungsgrundjustifying reason. See Chapter XVI C 2 and ‘Einwilligung’,‘Notwehr’, ‘Notstand’Rechtliches Gehörsee ‘Anspruch auf rechtliches Gehör’Rechtlich geschütztes Interesse legally protected interest. See Chapter X B 1 4Rechtlich verbindlich legally binding. See Chapter X, Note 66Rechtmäßig(keit)legal(ity). See Chapter XIV C 3 and ‘Gesetzmäßigkeit derVerwaltung’Rechtmäßiger Eingrifflegitimate infringement (of a basic right). See Chapter VIII BRechtsangleichungharmonisation of law(s). See Preface to Second Edition;Chapter V, Note 1Rechtsanwaltlawyer. See Creifelds under ‘Rechtsanwalt’ and Chapter XXII DRechtsanwaltskammer (RAK) Lawyers’ Chamber. See Chapter XXII D 6Rechtsauffassunglegal opinion, view. Also ‘Rechtsansicht’. See Chapter XIII,Note 3Rechtsausführung legal submission. See Chapter XIII, Note 3Rechtsbegrifflegal term. See ‘Unbestimmt’Rechtsbehelf(every form of) legal remedy, formal or informal; includes‘Rechtsmittel’. See Creifelds under ‘Rechtsbehelf and ChapterXV ARechtsbeziehunglegal relationship. See ‘Rechtsverhältnis’419

The German Legal System and Legal LanguageRechtsbindungswillewill to be legally bound by one’s act. See Chapter X B 2 (b)(the term ‘Willenserklärung’)Rechtsfähig(keit)capable of carrying (capacity to be a carrier of) rights andobligations; legally capable (legal capacity). See Chapter XB 1 1 and Creifelds under ‘Rechtsfähigkeit’. Cf ‘Nichtrechtsfähig’Rechtsfolge legal consequence. See Chapter X B 1 5; Chapter X B 1 7and Chapter X C 22Rechtsfolgeirrtummistake as to the legal consequence. See Chapter XVI C 3 (d)Rechtsfortbildungdevelopment of (the) law (by the judiciary). See Chapter XNote 47 ERechtsfragelegal question; question of law. See Chapter XVIII D (Note37)Rechtsgeschäftlegal transaction; juristic act. In Latin: ‘negotium’. SeeCreifelds under ‘Rechtsgeschäft’ and Chapter X B 1 7Rechtsgeschäftliches obligation arising from a ‘Rechtsgeschäft’. See Chapter X C 2 3SchuldverhältnisRechtsgeschäftsähnlich similar to a ‘Rechtsgeschäft’. See Chapter X B 1 7Rechtsgestaltendcreating or amending a legal relationship or situation. SeeChapter XIV C 5Rechtsgrundlage legal basis. See Chapters VII B and VIII, Note 15Rechtsgut asset of legal (social) importance. See Chapter X, Notes 219,222 B, 266 C; Chapter XVI BRechtshandlung legal action; legal act. See Chapter X B 1 8Rechtshängig(keit)(the fact that a matter is) sub judice, legally pending. SeeCreifelds under ‘Rechtshängigkeit’ and Chapter XIII D 2 (c)(i) and (iii). Cf ‘Anhängig’Rechtshilfelegal assistance, cooperation. See Chapter XXI A. Cf‘Amtshilfe’Rechtshilfeordnung inOrder for Legal Assistance in Civil Matters. See ChapterZivilsachen (ZRHO)XXI, Note 7Rechtsinstitut legal institution. See Chapter I, Note 13Rechtskraftlegal force, legally binding nature (of a court decision); adecision has ‘formelle Rechtskraft’ (formal legal force) whenit can no longer be Challenged. This is a condition for thedecision having ‘materielle Rechtskraft’ (material legal force),ie, being final for the court and parties: ‘res judicata’. SeeCreifields under ‘Rechtskraft’; Chapter XIII C E and C HRechtskräftigpossessing ‘Rechtskraft’Rechtsmachtlegal power. See ‘Subjektives Recht’Rechtsmangeldefect in title. See Chapter X, Note 185. Cf ‘Sachmangel’Rechtsmittel(devolutive) legal remedy, appeal. See Creifelds under‘Rechtsmittel’; Chapter XIII C H and D 3; Chapter XIII, Note90. Cf ‘Rechtsbehelf’Rechtsnachfolgesuccession (to the right/interest/title of another person). Also‘Sukzession’. It can be based on a ‘Rechtsgeschäft’ (eg, transfer420

Appendix A: Vocabularyof ownership) or arise from statute (eg, ‘gesetzliche Erbfolge’).See Chapter X, Note 255. See also ‘Gesamtrechtsnachfolge’Rechtsnormlegal norm. See Chapter VII B; Chapter IX B; Chapter XVIII,Note 52Rechtsobjekt legal object. See Chapter X B 1 3Rechtsordnunglegal system. See Chapter X B 1 4; Chapter XX BRechtspflegeRechtspflegerRechtspflegergesetz (RPflG)Rechtsprechende GewaltRechtsprechungRechtsquelleRechtsreflexRechtssatzRechtsscheinRechtsschutzRechtsschutzbedürfnisadministration of justice. See Creifelds under ‘Rechtspflegeand Chapter XXII C 5legal executive, ie, a civil servant who can conduct variousjudicial matters which are not entrusted to a judge. SeeChapter XXII B and Creifelds under ‘Rechtspfleger’Law relating to the ‘Rechtspfleger’. See Chapter XXII Bjudicative power. Also ‘Rechtsprechung’. See Creifelds under‘Rechtsprechende Gewalt’ and Chapter II Fjudicature; case-law. See Creifelds under ‘Rechtsprechung’and Chapter II Flegal source. See Chapters X A and XIV Alegal reflex. Cf ‘Subjektives Recht’legal provision. Also ‘Norm’. See Chapter X B 1 5 (Note22); Chapter X C 2 2 (Note 105)legal appearance, aura. See Chapter XI C 2 (c); ChapterXIII, Note 57; Chapter XVIII, Note 7legal protection. See Chapter XXI Aneed for legal protection; also called ‘Rechtsschutzinteresse’.See Chapter XIII D 1 (f) (i); Chapter XIII D 6 (b) 1. See alsoCreifelds under ‘Rechtsschutzbedürfnis’; Stern, Part I, § 12Rechtsschutzgarantieright of everyone to protection of the courts (Article 19(iv)GG). See Creifelds under ‘Rechtsweggarantie’ and ChapterVIII CRechtsschutzinteressesee ‘Rechtsschutzbedürfnis’Rechtssicherheit legal certainty. See Preface to Second Edition; Chapter II E;Chapter X, Note 260Rechtssphärelegal sphere. See Chapter VII CRechtsstaatstate in which the (rule of) law prevails. See Creifelds under‘Rechtsstaat’ and Chapter II ERechtsstreitlegal dispute. Also ‘Streit’; ‘Streitigkeit’Rechtssubjektlegal subject, person. See Creifelds under ‘Rechtssubjekt’ andChapter X B 1 2Rechtsunwirksamlegally ineffective, of no legal effect. Also ‘Unwirksam’Rechtsverhältnis legal relationship. See Chapter X B 1 5Rechtsverordnungstatutory instrument, regulation, ordinance, edict. It is alegal provision (‘Rechtssatz’) issued by the executive onthe basis of a ‘Gesetz’. See Chapters VI, VII C, VIII B (Note15) and XIV A. See also ‘Gesetz’ and ‘Zustimmungsgesetz’421

The German Legal System and Legal LanguageRechtswegRechtswidrig(keit)Rechtswissenschaftlegal route (to a particular court). See Creifelds under‘Rechtsweg’ and Chapters XIII D 1 (f) (i) and XV Cillegal(ity). Also ‘Widerrechtlich’legal science, jurisprudence. See Preface to Second Edition,Note 1Rechtszug (court) instance. See Chapter XIII A and D 2Rechtzeitigin (good) time. See Chapter X C 3 (g) Exposé (c); ChapterXIII D 2 (c) (v)Referendara prospective ‘Rechtsanwalt’ between the first and second‘Staatsprüfung’; after the second: ‘Assessor’. See ChapterXXII A and D 3. See also Creifelds under ‘Referendar’Reforrnatio in peiusit is not permitted, on appeal, to amend a decision to thedetriment of the appellant. See Creifelds under ‘reformatioin peius’; Chapter XIII, Note 131; Chapter XVI B (Note 14)Regelnto regulate, govern, settle (a matter)Regelung(legal) provision, rule, arrangementRegelunterhaltstandard maintenance (for an illegitimate child). SeeChapter XIII D 6 (c) and Creifelds under ‘Unterhaltsprozeß’Regelungsfrageregulatory question; question of regulation. See ChapterXVIII D (Note 37)Regierung government. See Chapter II, Note 8Regierungsbezirkgovernmental area, district. See Creifelds under‘Regierungsbezirk’ and Chapter V BRegierungspräsidentpresident of the government (of a ‘Regierungsbezirk’). SeeChapter V BRegistergericht court of registration. See Chapter XIII, Note 32Regreßregress. Also ‘Rückgriff’ReichsgerichtImperial Court. See Chapter X B 2 (e)ReichskammergerichtImperial Chamber (Court). See Chapter IReichsversicherungsordnung Imperial Insurance Order. See Chapter XVIII H(RVO)Reif mature. See Chapter XVI, Note 40Reisegewerbetravelling business/trade. See Chapter XIX B; Creifeldsunder ‘Reisegewerbe’Reisevertragtravel contract. See Creifelds under ‘Reisevertrag’ andChapter X C 3 (g) (Title 7)Rei vindicatiosee ‘Vindikation’Rektapapiersecurity issued in favour of a specifically named person.Also ‘Namenspapier’. See Chapter XIX BRelatives Recht relative right. Cf ‘Absolutes Recht’ and see Chapter X B 1 4Religionsunterrichtreligious instruction. See Chapter VIII C (Article 7 GG) andCreifelds under ‘Religionsunterricht’Renditesee ‘Ertrag’422

Appendix A: VocabularyRentenschuldRenvoiReplikRes judicataRestitutionsklageRevisionregular land charge, ie, a property is charged not for a fixedamount, but as security for regular, successive payments.See Chapter X D 3 (h) and Creifelds under ‘Rentenschuld’see ‘Rückverweisung’the plaintiff’s reply to a ‘Klageerwiderung’. See Chapter XIIID 2 (c) (iv)the matter has (already) been decided. See Chapter XIII C Etype of writ seeking ‘Wiederaufnahme’. See also‘Nichtigkeitsklage’appeal (on point of law). In civil proceedings, it can be ofthree types: – a ‘Wertrevision’ (appeal on value); – a‘Zulassungsrevision’ (appeal with leave); or – a‘Sprungrevision’ (leap-frog appeal). See Creifelds under‘Revision’, ‘Einheitlichkeit der Rechtsprechung’ and ChapterXIII D 3 (b)Rezeption des römischen Rechts reception of Roman law (in Germany in the Middle Ages).See Chapter I (Note 6)Rheinbund Rhein Confederation. See Chapter I (Note 7)Rheinland-PfalzRheinland-Palatinate. See Chapter V ARichterRichterliche FristRichterlicheRechtsfortbildungRichterliches PrüfungsrechtRichterrechtRichterwahlausschußRichtlinieRückgewährRückgriffRückgriffskondiktionRücknakmeRücksicht(nehmen)RücktrittRückverweisungjudge. See Creifelds under ‘Richter’ and ‘Richtergesetze’ andChapter XXII A‘Frist’ set by a judge. See Chapter XIII D 1 (g) (iii)development of the law by the judiciary. Also ‘Richterrecht’the judiciary’s (inherent) right to check the validity andconstitutionality of a ‘Rechtsnorm’. See Creifelds under‘Richterliches Prüfungsrecht’ and Chapter VII B and Cjudge-made law. See Chapter I, Note 13; Chapter II, Note23; Chapter X, Note 47 E; Chapter XIV A, Note 2. Also‘Richterliche Rechtsfortbildung’judicial selection council. See Chapter XXII Adirective. See Chapter XXII D 5; Creifelds under‘Richtlinien’; ‘Verwaltungsvorschrift’return. See Chapter X, Note 138; Chapter X D 3 (h)regress. See Creifelds under ‘Regreß’type of ‘Nichtkistungskondiktion’, where the claimant takesregress against a person, who has obtained a benefit at theformer’s expensewithdrawal, taking back. Can refer to a ‘Klage’, ‘Rechtsmittel’or VA. See Chapter X F 3 (c) (ii); Chapter XIV C 4. Cf ‘Rücktritt’(to take into) consideration, account. See Chapter X, Notes47 C and 135 Bwithdrawal, rescission, termination. See Creifelds under‘Rücktritt vom Vertrag’; Chapter X C 3 (b) (Title 5); ChapterX Note 245reference back, ‘renvoi’. See Chapter XX B423

The German Legal System and Legal LanguageRückwirkendretrospectively. See Chapter X F 4 (f) and 5 (b). See also ‘Extunc’Rückwirkungretrospective effect, application. See Creifelds under‘Rückwirkung von Gesetzen’; Chapter II E; Chapter XVI A.Retrospective criminal legislation is absolutely forbidden(Article 103(ii) GG; but see Chapter XVI, Note 4)Rufreputation. See Chapter VIII, Note 20 FRügeobjection, censure. See ‘Einspruch’, ‘Einwendung’ and‘Einrede’. The word can also mean a (disciplinary)reprimand. See Chapter XIII D 1 (f) (i); Chapter XXII D 7Ruhento rest; the resting of. See Chapter XIII D 1 (g) (v)Rundfunk- und Fernsehanstalt radio and television station; broadcasting institution. SeeChapter II C (Notes 7 and 11). The first German televisionchannel (the ‘ARD’ (‘Arbeitsgemeinschaft der RundfunkanstaltenDeutschlands’)) has no legal personality itself, but is merelyan ‘Arbeitsgemeinschaft’ (working group) (ie, a ‘BGB-Gesellschaft’) established by the various regional broadcastingstations. The respective regional producing station thereforehas responsibility for particular programmesSachbearbeitercase manager, person in charge of/responsible for dealingwith a matterSachdienlichconducive, helpful (to the matter), relevant. See ChapterXIII D 1 (g) (i)Sache(corporeal) thing; matter. In Latin: ‘res’. See Creifelds under‘Sache’; Chapter X B 1 3 and Chapter X D 1. See also‘Bestandteil’ and ‘Zubehör’Sachenrechtlaw of property. See Chapter X DSachgebiet subject area. See Chapter V, Note 6; Chapter X A (Note 3)Sachgerecht appropriate, proper. See Chapter XIII, Note 69Sachgesamtheitcollection of ‘Sachen’. See Chapter X C 3 (g) Exposé (a);Chapter X D 2 (iii)Sachherrschaftdominance over a ‘Sache’. See Chapter X D 2 (i)Sachkunde expertise, expert knowledge. See Chapter X, Note 215Sachlegitimationlegitimation (in proceedings); can be active or passive. SeeChapter XIII D 1 (f) (iv)Sachlichfactual; pertinent; to the point; substantiveSachlichkeitsgebot duty to be relevant. See Chapter XXII D 5Sachmangeldefect/fault in a ‘Sache’. See Chapter X, Note 185; ChapterX C 3 (g) Exposé (c). Cf ‘Rechtsmangel’ and ‘Falschlieferung’Sach– und Streitstand(the) non-contentious and contentious subject-matter,position (in the case). See Chapter XIII D 2 (c) (vi)Sachurteiljudgment on the substantive matter, point. It deals withthe ‘Streitgegenstand’ and decides whether a ‘Klage’ is‘begründet’ or not. Cf ‘Prozeßurteil’Sachurteilsvoraussetzung(pre)condition for a (substantive) judgment in theproceedings. Also called ‘Prozeßvoraussetzung’ and‘Zulässigkeitsvoraussetzung’. See Chapter XIII D 1 (f) (i)424

Appendix A: VocabularySachverhaltset of facts, position (in a particular case)Sachverständiger expert. See ‘Beweismittel’; Chapter XVII, Notes 22 and 30Sachvorschriftsubstantive legal provision. See Chapter XX BSalvatorische Klauselsaving clause (eg, in an agreement, to protect against therisk of invalid provisions). See Chapter X B 2 (e)Sammelverwahrungcollective deposit. See Chapter XIX BSanierungreconstruction, rescue (of a business/company). SeeChapter XVIII B 4Satzungbye-law; company agreement, statute, memorandum/articles (of association) of a ‘Verein’ or ‘Juristische Person’.See Chapters VI, X B 2 (e), XI A 5 and XIV A. See Creifeldsunder ‘Satzung’. See also ‘Gesetz’. The ‘Geschäftsordnung’ offederal, state and local parliaments can be issued in this form.Satzungsänderungamendment of the articles (of a company)Satzungsversammlung rule making assembly (of BRAK). See Chapter XXII D 5Schadensersatz damages, compensation. See Creifelds under‘Schadensersatz’ and cf ‘Entschädigung’. See also ChapterVIII, Note 20; Chapter X C 3 (a) (Title 1); Chapter X, Notes119 and 227Schadensersatz wegendamages for non-performance. See Chapter X, Note 126 INichterfüllungSchadloshaltento indemnify. See Chapter XIII D 1 (f) (iii); ‘Garantievertrag’Scheidung divorce. See Creifelds under ‘Ehescheidung’; Chapter X E;Chapter XIII D 6 (b)Scheinkaufmann apparent businessman. See Chapter XIII, Note 57Scheinselbstständigkeitpretended/feigned/ostensible self-employment. SeeChapter XI, Note 40; Chapter XVIII, Note 2 (c)Scheinvollmachtapparent (ostensible) authority. See Chapter XI C 2 (c)Scheiternto fail. See Chapter X, Note 135 BSchenkunggift, donation. See Chapter X C 3 (g) (Title 2); Chapter X F3 (e) and 4 (g) (iv). Cf ‘Zuwendung’Schenkungsversprechenpromise of a gift (for the future). See Creifelds under‘Schenkung’; Chapter XXII ESchickschuldsee ‘Leistungsort’Schiedsgericht court of arbitration. See Chapter XIII D 10Schiedsmann(official) arbitrator, who presides over the ‘Sühneverfahren’and neighbour disputes. See Creifelds under ‘Schiedsmann’Schiedsrichterliches arbitration procedure. See Chapter XIII A and Chapter XIII D 10VerfahrenSchiedsspruch arbitration award/decision. See Chapter XIII, Note 171;Chapter XXI ASchiedsvertrag arbitration agreement. See Chapter XIII D 10Schlechtleistungbad performance. Can found a claim for ‘positiveVertragsverletzung’ (PVV)425

The German Legal System and Legal Language

Appendix A: VocabularySchuldanerkenntnis(abstract) acknowledgement of debt. See Creifelds under‘Schuldanerkenntnis’ and Chapter X C 3 (g) (Title 20). Cf‘Schuldschein’. See also ‘Schuldversprechen’Schuldangemessen appropriate to (the) ‘Schuld’. See Chapter XVID (at Note 73)Schuldausschließungsgrund reason excluding (justifying the exclusion of) ‘Schuld’. SeeChapter XVI C 3 (d). See also‘Tatbestandsirrtum’,‘Verbotsirrtum’ and ‘Notstand’Schuldbeitrittaccession of a debtor in addition to the existing one(s). Cf‘Schuldübernahme’ and see Chapter X, Note 157Schuldfähigcapable of blame. See Chapter XVIC 3 (b). Cf ‘Schuldunfähig’Schuldner debtor, obligor. See Chapter X C 3Schuldnerverzeichnis (black) list of debtors. See Creifelds under‘Schuldnerverzeichnis’; Chapter XII D 8(e)Schuldrechtlaw of obligations. Also ‘Recht der Schuldverhältnisse’. SeeCreifelds under ‘Schuldrecht’ and Chapter X CSchuldscheinIOU, debenture. See Chapter XI, Note 57. Cf‘Schuldanerkenntnis’SchuldtitelSee ‘Vollstreckungstitel’Schuldübernahmesubstitution (of one debtor for another). See Creifelds under‘Schuldübernahme’. Cf ‘Erfüllungsübernahme’, ‘Schuldbeitritt’and ‘Abtretung’. See also Chapter X C 3 (d) and (e)Schuldunfähig(keit) incapable of (incapacity for) blame. See Chapter XVIC 3(d) (Note 52)Schuldverhältnisobligation (relationship). See Chapter X C; Creifelds under‘Schuldverhältnis’ and ‘Schuldrecht’Schuldverschreibung aufdenInhaberpromissory note, debenture. See Creifelds under‘Inhaberschuldverschreibung’ and ‘Inhaberpapier’. See alsoChapter X C 3 (g) (Title 22)Schuldversprechen(binding) promise. See Chapter X C 3 (g) (Title 20). Cf‘Schuldanerkenntnis’Schulwesenschool system. See Chapter VIIIC (Article 7 GG)SchutzprotectionSchutzbereichprotected area. See Chapter VIIIASchutzgesetz protective statute. See Chapter X C 3 (g) (Note 219)Schutzpflichtduty of protection. See Chapter X, Note 135 A; ChapterXVIII HSchutzschriftprotective pleading. See Chapter VIII, Note 20 GSchutzvorkehrungprotective measure. See also ‘Vorkehrung’Schutzwürdigworthy of protection. See Chapter X F 3 (c) (iv)Schweben(d)(to be) pending, remaining) in suspense, abeyance. SeeChapter X B 2 (a) and (b) (Note 35)Schwebezustandperiod of suspense. See Chapter X F 5 (a)Schweigento be silent; silence. Cf ‘Stillschweigen’. See Chapter X, Notes31,40 and 71427

The German Legal System and Legal LanguageSchweigepflichtduty of silence. See Chapter XVII C; Chapter XXII D 5. Seealso ‘Geneimhaltungspflicht’Schwellenwert threshhold figure (value). See Chapter XVIII, Note 13Schwerpunkt main/focal point. See Chapter X B1 2Schwierig(keit)difficult(y)SchwurgerichtSeehandelSelbstbestimmung(srecht)a form of grand criminal chamber at a ‘Landgericht’ dealingwith particular serious offences. It decides guilt andsentence, unlike the jury court in the English system. SeeChapter XXII, Note 37.sea trade. See Chapter XIC1(right of) self-determination. See Chapter II G; Chapter XB1 6Selbsthilfe self-help. See Creifelds under ‘Selbsthilfe’ and Chapter X B 3Selbstorganschaft(principle of the) personal direction of a company by itsmembers. See Chapter XIA 4Selbstschuldnerische Bürgschaft personal guarantee/surety. The giving of a personalguarantee means that, in the event of non-performance bythe (main) debtor (‘Hauptschuldner’), the creditor can proceedimmediately against the guarantor (‘Bürge ’ ) without havingto attempt prior action (‘Vorausklage’) against the main debtornor first to realise security. See §§ 771, 773(i) No 1 BGB;‘Bürgschaft’; Chapter X C 3 (g) Exposé (e)Selbstverteidigung self-defence. Also ‘Notwehr’. See Chapter X B 3Selbstverwaltungsangelegenheiten autonomous matters; also known as ‘eigene Aufgaben’. SeeChapter VISelbs tverwaltungskörperschaft self-governing corporation. See Chapter VISicherheitsecurity. See Chapter XVII, Note 32; Chapter XIX BSicherheit des Rechtsverkehrs business safety. See Chapter X F 3 (c) (iv). Cf‘Rechtssicherheit’Sicherheitsbeauftragtersafety officer. See Chapter XVIII HSicherheitsleistung(provision of) security (for costs). See Creifelds under‘Sicherheitsleistung’; Chapter X B 3; Chapter XIII D 1 (c);Chapter XIII D 8 (b)Sichernto secureSicherstellen to take into safekeeping. See Chapter XVII, Note 25Sicherungthe securing ofSicherungsabredesee ‘Sicherungsvertrag’Sicherungshypotheksecurity mortgage. It is a means of enforcement regardinga money claim. See Chapter XIII D 8 (c) (vi) (Note 185)Sicherungsrechtsecurity right. See Chapter X D1Sicherungsübereignungtransfer of ownership (of a movable) as security, chattelmortgage. See Creifelds under ‘Sicherungsübereignung’,Chapter X D 3 (c) (ii) (Note 257) and Chapter X D 3 (h)(Note 280 D). See also ‘Besitzkonstitut’428

Appendix A: VocabularySicherungsverfahrenSicherungsvertragSicherungsverwahrungSiedlerSingularzulassungSinnSittenundrig(keit)SiteSofortige VollziehungSofortiger VollzugSollkaufmannSondergesetzSonderrechtSonderregelSorgerechtSorgfaltSorgfalt in eigenenAngelegenheitensecurity proceedings. See Creifelds under ‘Sicherungsverfahren’and Chapter XVIIIsecurity agreement. See Chapter X, Note 257; Chapter X D 3 (h)placement/retention in secure custody. See Chapter XVIDsettler. Cf ‘Aussiedler (German nationals driven out offormer German territories in Eastern Europe); ‘Übersiedler’(persons, who moved across to former West Germany fromthe DDR)(principle of) single admission (of ‘Rechtsanwälte’ at a LGor an OLG). See Chapter XXIID 3meaning, sense. See Chapter X F 3 (c) (iii)(in) breach of (contrary to) good morals. See Creifelds under‘Sittenwidrigkeit’ and Chapter X B 2 (b) (Note 58)seat, registered address (of a company). Other (business)terms in common use are: —‘Niederlassung’ (office, placeof business, branch; §§ 13,29 HGB); —‘Standort’ (base,location); —‘Zentrale’ (headquarters). A (natural) person’s‘Wohnsitz’ is his/her (place of) residence. See Chapter XB1 2; Chapter XIA 5; Chapter XIII, Note 28 Cimmediate enforcement (of a VA). See Creifelds under‘Vollziehung, sofortige’, Chapter XIV C 3 and Chapter XVIII Hsee ‘Sofortige Vollziehung’a person who, due to the type and extent of his or heractivities, should be a ‘Kaufmann’. See Chapter XIC 2 (a)special law. See Chapter IX Aspecial law, right. See Chapter XIA1special rule, provision. See Chapter X, Notes 126 G and188; ‘Lex specialis’(right of (care and)) custody. See ‘Elterliche Sorge’care, diligence. See Chapter X, Note 126 D; Chapter XVIC3 (c)standard of care observed in own’s own affairs. SeeCreifelds under ‘Sorgfalt in eigenen Angelegenheiten’; ChapterX C 3 (b) Title 5 (Exposé); Chapter X F 4 (e); Chapter XI B 1Sorgfaltspflichtduty of care. See Chapter X, Note 135 B and Chapter XI C5. See also ‘Verkehrs(sicherungs)pflicht’SoziaZlgericht (SG) Social (Security) Court. See Chapter XXII C 4SozialgerichtsbarkeitSozialgerichtsgesetz (SGG)Sozialgesetzbuch (SGB)Sozialhilfesocial jurisdiction. See Creifelds under ‘Sozialgeriditsbarkeit’and Chapter XXII C 4. See also ‘Kostenpflicht’Law relating to the Social (Security) Courts. See ChapterXXII C 4Social Security Law. See Creifelds under ‘Sozialgesetzbuch’;Chapter X, Note 156social support security, welfare. See Creifelds under‘Sozialhilfe’; Chapter VI, Note 4429

The German Legal System and Legal LanguageSozialrecht social security law. See Chapter II, Note 19Sozialstaat (social) welfare state. See Chapter VIII, Note 22Sozialtypisches Verhalten socio-typical behaviour. See Chapter X B 2 (c) (Note 70)Sparbuchsavings book. See Chapter XIX BSparkasse (public) savings bank. See Chapter VI, Note 4Spediteurcarrier, forwarder, haulier. See Creifelds under ‘Spediteur’and Chapter X D 3 (h) (Note 280)Spedition forwarding (shipping) agency; shipment. See Chapter X,Note 166 and Chapter XIC 5Sperrento bar, block (off), restrict; to ban, prohibitSpezialspecial. See Chapter X D 2 (iii)Spezialitätspeciality. See Chapter X D 2 (iii); Chapter XXICSpiel game. See Chapter X C 3 (g) (Title 17)Sprungrevision leap-frog appeal (on a point of law). See Chapter XIII, Note 133Staatenbundconfederation (of states). See Creifelds under ‘Staatenbund’,Chapter I (Note 15) and Chapter II AS taatsangehörigkeit citizenship, nationality. See Creifelds under‘Staatsangehörigkeit’; Chapter XIV C 5; Chapter XX B. Seealso ‘Ausbürgerung’Staatsanwalt(schaft)public prosecutor’s office); state attorney (‘s department).See Creifelds under ‘Staatsanwaltschaft’ and Chapter XVII BStaatsaufsicht state supervision. See Chapter V, Note 7StaatsbürgercitizenStaatsgebiet state territory. See Chapter II, Note 1Staatsgerichtshofconstitutional court (in Baden-Württemberg, Bremen,Hessen and Niedersachsen). See Creifelds under‘Staatsgerichtshof’ and Chapter VII (Note 11)Staatsgewaltstate power. See Creifelds under ‘Staatsgewalt’; Chapter II,Note 1; Chapter IIAandFStaatshaftung state liability. See Chapter X Note 224; Chapter XXII, Note 19Staatskanzleistate chancellery (of a ‘Land’). See Chapter V BStaatskasse state treasury. See Chapter XXII, Note 100StaatsprüfungState Examination (eg, to become a ‘Rechtsanwalt’). SeeChapter XXII AStaatsrechtstate law. See Chapter II, Note 1; Chapter IX A; Creifeldsunder ‘staatsrecht’Staatsvertrag(state) treaty. See Chapter II H; Chapter V, Note 1; ChapterXXIAStaatsverwaltungstate administration, executive. See Chapters II C, IV and V BStaatsvolk state people, population. See Chapter II, Note 1Stadttown, city. See Chapter VIStadtplanung town planning. See Chapter VI, Note 4Stadtstaatcity state. See Chapter V AStadtverordnetenversammlung see ‘Gemeindevertretung430

Appendix A: VocabularyStammaktieStammeinlageStammkapitalordinary share (in a public limited company)basic/original share, stake (of a member in a company, ie,a ‘Kapitalgesellschaft’). See also ‘Gesellschaftsanteil’basic /original (share) capital (of a company, ie, a‘Kapitalgesellschaft’; made up of ‘Stammeinlagen’). Called‘Grundkapital’ in the case of a public limited company (AG)Standesrecht rules of professional conduct. See Chapter XXII D 5Stàndigcontinuous(ly), constantly. See ‘Handelsvertreter’Standortsee ‘Site’Steckbrief warrant of apprehension. See Chapter XVII D (Note 38 E)and cf ‘Haftbefehl’Stehendes Gewerbestanding /general /regular business. See Chapter XIX BStellepoint, place; office, job; digit. See Chapter XIII D 2 (c) (i)and Chapter XIV B3Stellungposition. See Chapter XI C 2 (c)Stellungnahmecomment(s), opinion, (statement of) position. See ChapterXIII, Note 3. See also ‘Äußerung’, ‘Haltung’, ‘Meinung’Stellvertretersee‘Vertreter’Steuerbescheidnotice for the payment of taxes, tax assessment. SeeCreifelds under ‘Steuerbescheid’; Chapter XIV C 5Steuer(recht)tax (law). See Chapter XIX; the terminology in Creifeldsafter ‘Steuer’Stichtag (fixed) reference date. See Chapter XIII D 6 (b) 2Stiftungfoundation; it can be one of private or public law. SeeCreifelds under ‘Stiftung des Privatrechts’ and ‘Stiftungöffentlichen Rechts’. See also Chapter II CStille Gesellschaftsilent partnership. See Chapter XI C 3 (a) and (d)Stillegung closure, shut-down (of a business). See Chapter XVIII, Note 14Stillschweigensilence. See ‘Schweigen’Stimme (individual) vote. See Chapter III, Note 3Stofflieferant supplier of materials. See Chapter X, Note 264Störerperson responsible (for disruption, disturbance, interference,obstruction, trouble). See Creifelds under ‘Störer’Störungdisruption, disturbance, interference, interruption. SeeCreifelds under ‘Gefahrenabwehr’Störung der Geistestätigkeit mental disorder. See Chapter X F 3 (c) (i)Strafantragapplication for prosecution. See Creifelds under‘Strafantrag’; Chapter VIII, Note 20 D; Chapter XVII AStrafanzeigenotice of an offence, complaint. See Creifelds under‘Strafanzeige’ and Chapter XVII AStrafaufhebungsgrundreason to lift a ‘Strafe’. See ‘Strafausschließungsgrund’StrafausschließungsgrundStrafaussetzung zur Bewährungreason to exclude a ‘Strafe’. See Creifelds under‘Strafausschließungsgründe’, Chapter XVIC 3 (d) and also‘Strafaufhebungsgrund‘suspension of sentence on good behaviour (probation). See431

The German Legal System and Legal LanguageCreifelds under ‘Probation’, ‘Strafaussetzung’ and ChapterXVIDStrafbarkeitpunishability. See Chapter XVIAStrafbefehlpunishment order. See Creifelds under ‘Strafbefehl’ andChapter XVII EStrafbemessung assessment of punishment. See Chapter XVI, Note 73Strafepunishment. See Chapter XVIDStrafgesetzbuch (StGB)Criminal Code; Penal Code. See Creifelds under‘Strafgesetzbuch’ and Chapter XVIAStrafkammercriminal chamber (at a ‘Landgericht’). See Chapter XXII,Note 37Strafprozeßordnung (StPO) Criminal Procedure Order. See Creifelds under‘Strafprozeß(recht)’ III and Chapter XVII AStrafrechtcriminal law. See Creifelds under ‘Strafrecht’ and Chapter XVIStrafrichterStraftatStrafverfahrenStrafverfolgungsingle criminal judge. See Chapter XVII A (Note 4) and‘Einzelrichter’(criminal) offence, crime. It can be a ‘Verbrechen’ or a‘Vergehen’: see Chapter XVIBcriminal (punishment) proceedings. See Chapter XVIIpursuit of crime; prosecution. See Chapter XVII D (Notes11 and 33)Strafvollstreckungenforcement of punishment. See Chapter XVIIA and JStrafvollzugsbehörde prison authority. See Chapter XXIIC 6Strafvorbehaltreservation of punishment. See Chapter XVID and‘Verwarnung’StraßenverkehrsgesetzRoad Traffic Law. See Chapter X Note 222 E; Chapter XVIB (Note 9); Creifelds under ‘Straßenverkehrsrecht’Streikstrike. It is a means of ‘Arbeitskampf’. See Chapter XVIII Gand Creifelds under ‘Streik’Streitdispute. Also ‘Rechtsstreit’S treitgegenstandobject of the action, matter in dispute. Also ‘Streitsache’.See Chapter XIII D 2 (c) (iii)Streitgenossenjoint parties. See Chapter XIII D1 (f) (ii) and‘Strtitgenossenschaft’Streitgenossenschaftjoinder of parties. See Creifelds under ‘Streitgenossenschaft’Streithilfein dispute, disputed, contentious; dispute. See Chapter VII,Note 10Streitig(keit)see ‘Nebenintervention’Streitkräfte armed forces. See Chapter XIV, Note 1Streitsachesee ‘Streitgegenstand’Streitverkündungnotification of dispute, third party notice. See Creifeldsunder ‘Streitverkündung’ and Chapter XIII D 1 (f) (iii)Streitwertvalue of the (matter in) dispute. See Creifelds under‘Streitwert’ and Chapter XXII D 8432

Appendix A: VocabularyStrengbeweis(the principle of) strict evidence. See Chapter XX E. Cf‘Freibeweis’ and see ‘Beweismittel’Stückaktiea single (proportionate) share in the capital of an‘Aktiengesellschaft’. See Chapter XII, Note 10. Cf‘Nennbetragsaktie’Stückschuld specific (individual) debt. See Chapter X, Note 116Stufenklagestep action. See Chapter XIII, Note 96; Chapter XIII D 2 (c)(iii); Chapter XIII D 6 (b) 2 (v) and 3 (b)Stundensatz hourly rate. See Chapter XXII, Note 101Stundungrespite. It postpones the ‘Fälligkeit’ of a ‘Leistung’. SeeChapter X (Note 98)Sub judicesee ‘Rechtshängig’Subjektives öffentliches Recht public subjective right. See Chapter X B 1 4 (at Note 21)and Creifelds under ‘Subjektives öffentliches Recht’Subjektives Rechtsubjective legal right. See Creifelds under ‘Subjektives Recht’and Chapter X B 1 4. a ‘Rechtsreflex’S ubsidiaritätsprinzipsubsidiarity principle. See Creifelds under ‘Subsidiarität’;Chapter V, Note 6; Chapter VII C, Note 16Substantiierungsubstantiation. See Chapter XIII, Note 67; Chapter XVIII,Note 14Subsumtionsubsumption (of facts under a legal norm). See Chapter XC 2 2 (Note 105)S ühneverfahrenconciliation proceedings (precondition for certain types ofprivate prosecution). See also ‘Güteverhandlung’Syndikus(anwalt)in-house lawyer. He cannot represent his employer in hiscapacity of ‘Rechtsanwalt’ before a court. See Chapter XXII,Notes 59 and 67Tagessatzdaily rate. See Chapter XVI DTantiemeshare of profits, royalty. See Chapter XIII ETarifvertragtariff agreement. See Chapter XVIII G. See also‘Manteltarifvertrag’Tarifvertragsgesetz (TVG)Law relating to Tariff Agreements. See Chapter XVIII G(Note 52)Tat(be/um)standsirrtummistaken belief that an element of a (criminal) ‘Tatbestand’does not exist. It is a ‘Schuldausschließungsgrund’ (§ 16 StGB).See Chapter XVI C 3 (d)Tatbestandsubstantive part of a legal norm, its content; to bedistinguished from its ‘Rechtsfolge’. See Chapter X B 1 5(Note 22); Chapter XIV C 6 and Chapter XVI C Seealso‘Urteil’Tatbestandsmäßig(keit)(in) accordance with a ‘Tatbestand’Tatbestandsmerkmalelement of a ‘Tatbestand’. Also called a ‘Tatumstand’. SeeChapter XVI, Note 19Tateinheit unity of act; ideal concurrence. See Chapter XVI, Note 73Täterperpetrator (of a crime). See Creifelds under ‘Täter’,Chapter XVI C 1 (b) and C 3. See also ‘Mittäter’433

The German Legal System and Legal LanguageTätig(keit)active(ity). See Chapter X, Notes 159 and 166; Chapter XXII,Note 59Tatmehrheit plurality of acts; real concurrence. See Chapter XVI, Note 73TatortTatsacheTatsächlichTatsächliche VermutungTatsachenvermutungTauglich(keit)TauschTäuschenTaxeplace of commission/scene (of a tort or crime). See ChapterXX, Note 25; Chapter XVII, Note 37fact. See Chapter XIII D 1 (g) (i)actual; in fact; really. See Chapter X D 2 (i)actual presumption. See ‘Vermutung’presumption of fact. Cf ‘Tatsächliche Vermutung’ and seeChapter XIII B 7 (Note 10)fit(ness), useful(ness) (for). See Chapter X C 3 (g) Exposé (c)exchange, barter. See Chapter X C 3 (g) IV and Creifeldsunder ‘Tausch’to deceive, defraud. See ‘Arglistige Täuschung’, ‘Betrug’,‘Irreführen’official rate for certain work. See Creifelds under ‘Taxen’;Chapter X, Note 166Teilhabershareholder, participant. See ‘Gemeinschaft nach Bruchteilen’and Chapter XIA3Teilklage partial claim. See Chapter XIII, Note 96Teilnahme am allgemeinen Verkehr participation in general traffic. See Chapter XVIII HTeuungdivision, separation. See Chapter X F 4 (a)Teilurteilpartial judgment. See ‘Urteil’Telekommunikationsgesetz (TKG) Telecommunications Law. See Chapter II, Note 15Tendenzbetrieb‘Betrieb’ with a particular social purposeTermin hearing (date), appointment, date. See Chapter XIII C F;Chapter XIII D 1 g (iii)TestamentTestamentsvollstreckerTestierfreiheitTilgungTitelTodTodeserklärungTotschlagTraditioTroditionspapierTràgerTragweitewill. See Creifelds under ‘Testament’ and ‘Verfügung von Todeswegen’; Chapter X D 2 (v), Chapter X F and Chapter XXII Eexecutor. See Chapter X F 4 (b) and (i)testamentary freedom. See Chapter X F 2 and 3 (b)(re-)payment, discharge, redemption. Also ‘Ablösung’. SeeChapter X D 3 (h)title; can include a court judgment. See Chapter XIII D 8 (b)death. See Chapter X B 4 (c) (§ 1922(i) BGB)declaration of death. See Creifelds under ‘Todeserklärung’and see Chapter XEmanslaughter. See Chapter XVII, Note 38 Bsee ‘Übergabe’see Chapter XIX Bcarrier(s). See ‘Rechtsfähigkeit’ and ‘Verwaltungsträger’range, implication, effect. See Chapter XXIIE434

Appendix A: VocabularyTransformationsgesetzTransparenzgebotTratteTrennungSee ‘Zustimmungsgesetz’transparency principle. See Chapter X B 2 (e)see ‘Wechsel’separation. See Chapter X F 5 (b); Chapter XIII D 2 (c) (iii)and D 6 (b) 3. See also § 1567 BGBTreuepflicht duty of loyalty (eg, of an employee). See Chapter XI B;Chapter XVIII H (Note 61)Treuhänder trustee. See Chapter X Note 220Treu und GlaubenTunTypenfreiheitTypenzwangÜbereignungÜbereinkommenÜberführenÜberführungsstückÜbergabeÜbergangÜberlassenÜberlassungÜbermaßverbot(principle of) trust and good faith. It applies throughoutGerman private, public and procedural law. See Creifeldsunder ‘Treu und Glauben’; Chapter X B 2 (b) (Note 47), (d) and(e); Chapter XIII D 1 (f) (i); see also §§ 157, 162 and 242 BGBto do; can also mean act (noun). See Chapter XVIC 1 (b)free choice of type. See Chapter X D 2 (ii) and cf‘Typenzwang’compulsory/fixed choice of type. See Chapter X F 3 (b). Cf‘Typenfreiheit’transfer of ownership. See Chapter X D 3 (c) (ii)/ (iii)agreement, convention. See Chapter XXIAto convict (of a criminal offence). Also ‘Verurteilen’seizure item, ie, found on a person when arrestedtransfer of physical possession, handing over, delivery (of).See Chapter X Note 234; Chapter X D 3 (c) (ii)/(iii)transfer, transitionto let someone have, leave, hand over (something) (tosomebody)handing over, cession, grant. See Chapter X C 3 (g) Exposé (c)prohibition of excess. See Creifelds under ‘Übermaßiverbot’and Chapter VIIIBÜbermittlung transmission. See Chapter XVII, Note 25Übernahmeacquisition, takeoverÜberordnungdominance. See Chapter IX BÜberörtliche Angelegenheiten local matters extending beyond the area/capacity of a‘Gemeinde’. See Chapter VIÜberprüfen to check, reexamine, review. See Chapter XVIII, Note 14Überraschento surprise. See Chapter X B 2 (e)Überraschungsentscheidung surprise decision. See Chapter XIII, Note 3; Chapter XIII D2 (c) (vi)Überrumpelnsee ‘Überraschen’Überschreitento transgress, exceed. See Chapter XIV C 6 and ChapterXVIC 3 (d) (Note 52)Überschuldetover-indebted. See Chapter X F 5 (b). Cf ‘zahlungsunfähig’435

The German Legal System and Legal LanguageÜberschuß excess balance, surplus. See Chapter X F 4 (b)Übersetzung translation. See Chapter VIII, Note 18Übertragento transfer, allocate, transmitÜbertragene Aufgaben transferred or allocated tasks, matters. Also‘Auftragsangelegenheiten’. See Chapter VIÜbertragene Geschäftetransferred business, matters. See Chapter XXII BÜbertragungtransfer; allocation; transmission. See ‘Übereignung’Überwachung monitoring, surveillance. See Chapter XVII, Note 25;Chapter XIX BÜberweisung (bank) transfer (of funds). See Chapter XIII, Note 182Überweisungsvertrag contract to undertake a bank transfer. See Chapter X C 3(g) (Title 10)Überwiegendpredominantly, mainlyÜberzeugento convinceÜberzeugungconviction, firm belief. See ‘Beweiswürdigung’Ubi ius, ibi remedium where there is a right, there is a remedy. See Chapter X,Note 16Üble Nachrededefamation/slander/offensive gossip (§186 StGB). SeeChapter VIII, Note 20 E; Chapter XVI, Note 35. Unlike‘Beleidigung’ (insult), this offence requires a statement offact (‘Tatsache’). It is a defence, if the fact is demonstrablytrue (‘erweislich wahr’). However, the defendant bears thedetriment of any remaining doubt as to its truth (contraryto the general rule ‘in dubio pro reo’). Cf ‘Verleumdung’Ultima ratiofinal measure, step; last resort. See Chapter XVIDUmdeutungfresh interpretation. See Chapter VIII, Note 6; Creifeldsunder ‘Umdeutung’; § 140 BGBUmfang extent, range, breadth, width. See Chapter XI, Note 25;‘Vollmacht’Umgehungcircumvention, avoidance. See Chapter XVIII, Note 2 (c);Chapter XX, Note 6; Chapter XXII D 5Umgestaltento rearrange, redesign, reshape, transform. See Chapter XC 3 (b) Title 5 (Exposé)Umgestaltungrearrangement, reshaping. See Chapter XIII D 2 (c) (ii)Umkehr der Beweislastreversal of the burden of proof. See Preface to SecondEdition, Note 11 A; Chapter X Notes 126 J and 135 A;Chapter XIII B 7 (Note 10)Umkehrschlußopposite conclusion (by reversal of argument/‘argumentume contrario’). See Chapter X Note 47 EUmlaufcirculationUmlaufvermögencurrent assetsUmsatzturnoverUmsatzrückgang decline in turnover. See Chapter XVIII, Note 14Umsatzsteuersee ‘Mehrwertsteuer’436

Appendix A: VocabularyUmstandUmstellungUmwandlungUmweltrechtcircumstance. See Chapter X F 3 (c) (iii)conversion, change (to)conversion, transformationenvironmental law. See Chapter XV C (Note 12); Chapter XIXUmweltschutz protection of the environment. See Chapter VI, Note 5Unabhängig(keit)independent(ce). See Chapters II G, XIII (at Note 30), XXIIA and XXII D 2Unabwendbares Ereignisunavoidable event (a defence against liability for a roadtraffic accident: § 7 (ii) StVG)Unanfechtbar(keit) non-(un-)challengable(ility). See Chapter XVIII H (Note 56 B)UnangemessenUnaufschiebbarUnbedingtUnbegründetUnbeschränktUnbestellbarUnbestimmtUnbestimmter RechtsbegriffUnbeweglichUnbewußtUnbilligUnbrauchbarmachungUndurchsichtigUnechtUnehelichUnentbehrlichUnentgeltlichUnerheblichUnerläßlichUnerlaubte Handlungimproper, inappropriately). See Chapter X B 2 (e); ChapterXXII, Note 101incapable of postponement. See ‘Besorgnis der Befangenheit’;Chapter XIV C3unconditionally, definitely. See Chapter XIIID1 (f) (i)unfounded. Cf ‘Begründet’unlimited. See Chapter X F 5 (b); Chapter XIC 3 (b) (i)undeliverable. See Chapter XIII D1 (g) (ii)indefinite. See Chapter X C 3 (g) Exposé (d)indefinite legal term. See Creifelds under ‘UnbestimmteRechtsbegriffe’ and Chapter XIV C 6. Cf ‘Ermessen’immovable (adj). Cf ‘Beweglich’unconscious (non-medical sense). See Chapter XVIC 3 (c)inequitable, unfair. See Chapter XIV, Note 23 C. See also‘Billig’rendering (something) useless; neutralisation (of). SeeCreifelds under ‘Unbrauchbarmachung’ and Chapter XVIDintransparent, obscure, opaque. See Chapter X B 2 (e)not genuine, false, artificial. See Chapter XVIC1 (b)illegitimate (child). Also ‘Nichtehelich’see ‘Unerläßilih’; Chapter X B 2 (e)gratuitous(ly). Also ‘Gratis’insignificant, unimportant. See Chapter X C 3 (g) Exposé(c)essential, indispensable. See Chapter XVIDtort, tortious act. See Creifelds under ‘Unerlaubte Handlung’,‘Delikt’; Chapter X C 3 (g) (Title 25); Chapter XX, Note 25Unfallort scene of the accident. See Chapter XVI, Note 23Unfallschutzprotection against accident. See Creifelds under‘Unfallschutz’ and Chapter XVIII H437

The German Legal System and Legal LanguageUnfallverhü tungsvorschriften regulations for the prevention of accidents. See ChapterXVIIIHUngerechtfertigte Bereicherung unjust enrichment. See Creifelds under ‘UngerechtfertigteBereicherung’, Chapter X C 3 (g) (Title 24),‘Leistungskondiktion’ and ‘Nichtleistungskondiktion’Ungewöhnlichunusual. See Chapter X B 2 (e)Ungleichbehandlung unequal treatment. See Chapter VIII, Note 22Universalitätsgrundsatzuniversality principle. See Chapter VIUnkenntnisignoranceUnklarunclear(ly). See Chapter X F 3 (c) (iii)Unmittelbardirect(ly)Unmittelbar betroffendirectly affected. See Chapter VII CUnmittelbar drohende Gefahr immediate threat of danger. See Chapter XVIII H (Note 56)Unmittelbarer Zwangdirect force. See Chapter XVIII HUnmittelbar geltendes Recht directly applicable law. See Chapter VIII AUnmittelbarkeitsgrundsatzdirectness principle, ie, hearing and evidence must takeplace/be presented directly before the court consideringthe case. See Creifelds under ‘Unmittelbarkeitsgrundsatz’ andChapter XIIIB 5Unmöglichkeitimpossibility. See Chapter X C 3 (a) (Titles 1 and 2) (Note126) and Chapter X C 3 (b)Unparteiischimpartial, neutral. See Chapter XIII, Note 69; Chapter XXIIE. See also ‘Besorgnis der Befangenheit’.Unrechtmäßiger Besitzerperson in illegal possession. See Chapter X, Note 266 BUnrechtsbewußtseinconsciousness of illegality. See Creifelds under ‘Bewußtseinder Rechtswidrigkeit’ and Chapter XVIC 3 (d)Unregelmässigirregular(ly). See Chapter X C 3 (g) Exposé ‘Darlehen’Unschuldsvermutungpresumption of innocence. See Chapter XVII AUntätigkeitsbeschwerde complaint of inactivity. See Chapter XXII, Note 19Untâtigkeitsklagesee ‘Verpflichtungsklage’Unterbrechunginterruption. See Chapters X B 4 and XIII D 1 (g) (v)Untere Landesbehördelower authority of a ‘Land’. See Chapter V BUntere Verwaltungsbehörde lower administrative authority. See Chapters IV and V BUntereinanderamongst each other. See Chapter XIC 3 (b) (ii)Unterhaltmaintenance (payment). To be distinguished are:– maintenance of the family (‘f amilienunterhalt’; § 1360 BGB).Maintenance of the family includes a‘Prozeßkostenvorschußpflicht’, ie, an obligation towards theother spouse to advance the costs of taking any necessarycourt proceedings (also for divorce), if the other spouse isnot in a position to bear them: § 1360a (iv) BGB. Such anobligation takes precedence over any application for legalaid (‘Prozeßkostenhilfe’) by the other spouse: – maintenanceduring separation (‘Getrenntlebensunterhalt’; § 1361 BGB);438

Appendix A: VocabularyUnterhaltsvertragUnterhändlerUnterlagenUnterlassenUnterlassungUnterlassungsdeliktUnterlassungsklageUnternehmenUnternehmensvertrag– maintenance after divorce (‘nachehelicher Unterhalt’; §§1569–1586 BGB);–maintenance between relations (‘Unterhalt unterVerwandten’; §§ 1601–1615 BGB);– maintenance for illegitimate children (‘Unterhalt fürnichteheliche Kinder’; §§ 1615a-1615o BGB).The evasion of a statutory duty of maintenance (‘gesetzlicheUnterhaltspflicht’), so as to endanger the livelihood of theperson entitled, is punishable: § 170b StGB. In all cases, thereis a duty to supply information (‘Auskunft’) regardingincome (‘Einkünfté, including any relevant vouchers(‘Belege’)) and assets (‘Vermögen’): §§ 1361(iv), 1580, 1605BGB. If there is reason to believe that details of income havebeen incorrectly stated, an assurance in lieu of oath(‘eidesstattliche Versicherung’) can be demanded: § 259(ii) BGB.It must normally be declared at the ‘Amtsgericht’: § 261 BGB.The making of a false assurance in lieu of oath is punishable:§ 156 StGB. See Creifelds under ‘Unterhaltspflicht’ and‘Ehescheidung 4’; Chapter X E; Chapter XIII D 1 (e) and D 6maintenance agreement. See Chapter XIIID 6 (b) 2 (iv)(government) negotiator, representative. See Chapter II Hdocuments, papersto omit (stop) to do, desist from. It can also mean omission(noun). See Chapter X, Note 219omission. It can mean stoppage/restraint (of a disturbance(‘Störung’). See Creifelds under ‘Unterlassungsanspruch’;Chapter VIII, Note 20; Chapter X D 3 (c) (iv) and ChapterXV Ccrime by omission. See Chapter XVIC1 (b)action for a restraining order/order of stoppage. SeeChapter XIII, Note 96 and at Note 190(whole) enterprise, business, undertaking. See Creifeldsunder ‘Unternehmen’. Cf ‘Betrieb’ and ‘Gewerbe’a contract (of association) between a public limitedcompany (‘Aktiengesellschaft’ (AG)) or a public limitedpartnership (‘Kommanditgesellschaft auf Aktien’ (KGaA)) andanother legally independent commercial enterprise(‘Unternehmen’). The parties to an ‘Unternehmensvertrag’constitute connected enterprises (‘verbundeneUnternehmen’): § 15 AktG. An ‘Unternehmensvertrag’ cantake one of the following main forms (§§ 291–292 AktG):–a‘Beherrschungsvertrag’, ie, a contract whereby the AG orKGaA is subjected to the domination of the otherenterprise; – a ‘Gewinnabführungsvertrag’, ie, a contractunder which the AG or KGaA is obliged to transfer itsprofits in whole or in part to the other enterprise; or–a‘Gewinngemeinschaftsvertrag’, ie, a contract under whichthe AG or KGaA is obliged to pool/share its profits inwhole or in part with the other enterprise.439

The German Legal System and Legal LanguageIf one or more dependent/servient enterprises (‘abhängigeUnternehmen’) stand under the unified control/management (‘einheitliche Leitung’) of a dominantenterprise (‘herrschendes Unternehmen’), they togethercomprise a concern (‘Konzern’): § 18 AktG. See Creifeldsunder ‘Unternehmensvertrag’, ‘Konzern’ and ‘Konzernrecht’;Eisenhardt, Chapter 12 (§§49–52).Unternehmerbusinessman, entrepreneur; manufacturer, producer. SeeChapter X, Note 166; Chapter XIC 2 (e); ‘Kaufmann’;‘Hersteller’Unternehmerentscheidung commercial decision. See Chapter XVIII, Note 14Unternehmer(isches)risikocommercial riskUnterordnungsubordination. See Chapter IX BUntersagento forbid, prohibitUnterschlagungembezzlement, ie, wrongful appropriation of a movablebelonging to another by a person having custody thereoffor the use of the offender or a third party. By § 246(i) StGB,it is punishable by a sentence of up to three years’imprisonment or a fine, unless a higher penalty is laiddown in other provisions. The possible maximum prisonsentence increases to five years, if the movable wasentrusted to the offender: § 246(ii) StGB (‘Veruntreuung’)Unterschriftsignature. Also (as an act): ‘Unterzeichnung’Unterstufelower level. See Chapter V BUntersuchungexamination, investigation, (bodily) search). See ChapterXVII A and B and see also ‘Ermittlung’, ‘Durchsuchung’,‘Prüfung’Untersuchungsgrundsatzinquisition maxim; applies in criminal and administrativelaw and in FGG matters. See Creifelds under‘Untersuchungsgrundsatz’ and Chapter XIIIB2Untersuchungshaftremand in custody (for investigation). See Creifelds under‘Untersuchungshaft’; Chapter XVII, Notes 26 and 38Unterwerfungsubmission (of oneself to). See Chapter X B 2 (e);‘Vollstreckbare Urkunde’Unterzeichnung(act of) signature. See Chapter IIHUntreuebreach of trust. A person is punishable for ‘Untreue’ under§ 266 StGB, if he intentionally (‘vorsätzlich’)– abuses/exceeds his authority (‘Befugnis’) (under statute,executive mandate or legal transaction) to deal with/manage another person’s assets (‘fremdes Vermögen’) orto oblige that person; or– infringes a duty (‘Pflicht’) incumbent on him under statute,executive mandate, legal transaction or a relationship oftrust (‘Treueverhältnis’) to look after another person’seconomic interests (‘fremde Vermögensinteressen’); and– thereby causes the other person, whose interests he isresponsible to care for, economic loss (‘Vermögensschaden’).Unübersichtlichdifficult to oversee, complex (to grasp), involved, of440

Appendix A: VocabularyUnvereinbarUnverhältnismäßigUnverjährbarUnverletzlich(keit)UnversehrtheitUnvertretbare HandlungUnverzüglichUnvorhergesehenrambling scope, untidily arranged. See Chapter X B 2 (e)incompatible. See Chapter VII Cdisproportionate; unreasonablenot subject to ‘Verjährung’. See Chapter X B 4 and ChapterXVII, Note 11inviolable(ity). See Chapter VIII Cintactness, integrity. See Chapter VIII Can act incapable of being undertaken by someone otherthan the debtor. See Chapter XIIID 8 (d)without delay, forthwith, promptly. See Creifelds under‘Unverzüglich’; Chapter X B 2 (b) and (c); Chapter X, Note31; Chapter XXII D 5unforeseen. See Chapter X C 3 (g) Exposé (c)Unwirksam ineffective. See Chapter X B 2 (b) (Note 35); Chapter X B 2(e); Chapter XIV C 3 (at Note 20)Unzulässiginadmissible; not allowed. See Creifelds under‘Unzulässigkeit’; Chapter XIII D 1 (f) (i); Chapter XIII, Note69; Chapter XV CUnzumutbarnot to be expected (of a person), unreasonable,unacceptable. See Chapter X, Note 47 D; Chapter X B 2 (e);Chapter XIII D 6 (b) 3; Chapter XVIII B. Cf ‘Zumutbar’Unzweideutigin no uncertain terms, unequivocally). See Chapter XXII EUrheberauthor, creator. See Chapter XIIID 1 (f) (iii)Urheberrechtcopyright (law). See Chapter X, Note 266 C; Chapter XIX,Note 1; Creifelds under ‘Urheberrecht’Urkundea document, deed, certificate. Formal definition: ‘eine inSchriftzeichen verkörperte Gedankenäusserung’ (a declarationof thoughts incorporated in script). It can be a publicdocument (‘Öffentliche Urkunde’) or a private one(‘Privaturkunde’). See Creifelds under ‘Urkunde’; ChapterXIII, Note 64; Chapter XXIIEUrkundenprozeß(particular form of) action on the basis of (an) ‘Urkunde(n)’,document action. See Creifelds under ‘Urkundenprozeß’ andChapter XIII D 5. See also ‘Vorbehaltsurteil’Urkundenrolle(annual) roll of ‘Urkunden’ (maintained by a ‘Notar’). SeeChapter XXII EUrlaubholiday. See Chapter XVIII, Note 2 (b)Urproduktionoriginal production, extraction of natural produce (fromthe land). See Chapter XI, Note 31; Chapter XIX BUrsächlich(keit)causal, causation; also ‘Kausal(ität)’. See Chapter XVIC 1 (a)Urteiljudgment; can be final (‘Endurteil’) or interim(‘Zwischenurteil’). A final judgment can be full (‘Vollurteil’)or partial (‘Teilurteil’). Other possible types: ‘Versäumnisurteil’(judgment in default); ‘Vorbehaltsurteil’ (judgment subject toa reservation). An ‘Urteil’ consists of a heading (‘Urteilskopfor ‘Rubrum’), a tenor (‘Urteilsformel’) and (usually separately)a ‘Tatbestand’ (substantive part) and ‘Entscheidungsgründe’441

The German Legal System and Legal LanguageValutaValutaverhältnisVariabelVaterschaftVenire contra factum proprium(nemini licet)VeränderungVerantwortenVerantwortungVerarbeitungVeräußerer(reasons): § 313(i) ZPO. See Chapter XIII C A, D and E;Chapter XIII D 2 (c) (iii); Creifelds under ‘Urteil’ and‘Urteilsverfahren’; Jauemig (ZP), Book H, Chapter 9, § 59. Seealso ‘Für Recht erkennen’; ‘Versäumnisurteil’; ‘Vorbehaltsurteil’;‘Zwischenurteil’; Chapter X B 4 (b)monies (‘Gelder’). Also (foreign) currency (‘Währung’)value relationship, relationship in which value (is to)flow(s)/pass(es). Cf ‘Deckungsverhältnis’. See Chapter X C3 (g) (Title 21); Chapter XIX, Note 36variable. See Chapter X C 3 (g) Exposé ‘Darlehen’paternity. See Chapter XIII, Note 149; ‘Kindschaftssache’(it is not permitted) to act contrary to one’s own previousconduct. See Chapter X, Note 47 C; Chapter X C 3 (b) Title5 (Exposé)change, alteration. See Chapter X F 3 (c) (ii). See also‘Änderung’to answer (take responsibility) forresponsibilityprocessing. See Creifelds under ‘Verarbeitung’ and ChapterX D 3 (c) (ii)transferor (vendor). See Chapter X D 3 (c) (iii) (Bona fideacquisition of ownership to movables)Veräußerung disposal; (sale). See Chapter X, Notes 159 and 242Veräußerungsverbotprovision restricting disposal. See Creifelds under‘Veräußerungsverbot’ and Chapter X D 2 (v)Verbandassociation, federation. See Creifelds under ‘Verbände’;Chapter VIII, Note 20 G; Chapter XI A 2; Chapter XIX, Note 10Verbandsklageaction by a federation. See Creifelds under ‘Verbandsklage’and Chapter XIVCVerbindlichsee ‘Rechtlich verbindlich’Verbindungconnection. See Creifelds under ‘Verbindung von Sachen’ andChapter X D 3 (c) (ii)Verbot prohibition. See Chapter XIV C 6Verbotene Eigenmachtforbidden /illegal self-assumption (with regard topossession). See Chapter X, Note 266 DVerbotsirrtummistaken belief that an act is not illegal. It can be a‘Schuldausschließungsgrund’, if the mistake was unavoidable(§ 17 StGB). See Creifelds under ‘Verbotsirrtum’ and ChapterXVI C 3 (d)Verbotsnorm(criminal) norm forbidding certain action or injury to a‘Rechtsgut’. See Chapter XVI C 1 (b)Verbrauchbare Sache consumable thing. See Chapter X D 1Verbraucher consumer. See Chapter X B 2 (e); Chapter XX D (at Note 16)VerbraucherkreditgesetzConsumer Credit Law. See ‘Abzahlungskauf(VerbrKrG)442

Appendix A: VocabularyVerbrauchervertrag contract with a consumer. See Chapter X, Note 127Verbrauchsgüter consumer goods. See Preface to Second Edition, Note 11Verbrechencategory of ‘Straftat’. See Chapter XVIBVerdachtsuspicion. See Chapter XVII DVerdächtigtersuspect (person). See Chapter XVII EVerdeckter Ermittler undercover agent. See Chapter XVII, Note 25Verdienstausfall loss of earnings. See Chapter XIII, Note 96Verdingungsordnung fürBauleistungen (VOB)(internal) administrative regulations governing the awardof building contracts by the public sector. Part B sets outstandard terms, which can, by agreement, apply to privatecontracts for building work in place of the provisions inthe BGB (§§ 631ff). See Chapter X, Note 166Verdrângen to displace, oust. See Chapter XVI, Note 73Verdunkelnto obscure. See Chapter XVIIDVerdunkelungsgefahrdanger of justice being obstructed (obscured). See ChapterXVII D (Note 38 B)Vereinclub, association; eV=‘eingetragener (registered) Verein’.Prototype of ‘Juristische Person’, ‘Körperschaft’. See Creifeldsunder ‘Verein’; Chapter XI A 3; Chapter XII A. See also‘Vorstand’Vereinbarcompatible. See Chapter VII CVereinbarungagreement. Also ‘Abmachung’, ‘Einigung’, ‘Vertrag’Vereinfachtsimplified; simplyVereinigungunion. Also ‘Zusammenschluß’. See Chapter V A andChapter VIII C Cf ‘Gewerkschaft’Vereinigungsfreiheit freedom of (private) association, also called‘Vereinsautonomie’. See Creifelds under‘Vereins(Vereinigungs)freiheit’ and Chapter VIII C (Article 9GG). Cf ‘Koalitionsfreiheit’Vereitelnto thwart, foil. See ‘Gefahr im Verzug’Vererbento leave/transmit by way of inheritanceVererblichheritable; hereditaryVerfahren procedure; proceedings. See Chapter XIIID 2Verfahrensmangelprocedural defect See Chapter XIII D1 (f) (i); Chapter XIII,Note 69Verfahrensrechtprocedural law. Also ‘Prozeßrecht’Verfallforfeiture, expiration. See Chapter XVIDVerfassungconstitution; (physical) condition. See Creifelds under‘Verfassung’ and Chapters VA and VIIVerfassungsbeschwerdeconstitutional complaint. See Creifelds under‘Verfossungsbeschwerde’ and Chapter VII CVerfassungsgemäßin accordance with the constitution, constitutional. SeeChapter VIIBVerfassungsgerichtconstitutional court. See Creifelds under ‘Verfassungsgerichtsbarkeit’and Chapter VIIC443

The German Legal System and Legal LanguageVerfassungskonforme Auslegung interpretation of ‘Rechtsnormen’ so as to conform with theconstitution (GG). See Creifelds under ‘Auslegung’ I 5 and‘Verfassungswidrigkeit von Gesetzen’; Chapter VII B; ChapterVII, Note 12Verfassungsmäßige Ordnung constitutional order. See Chapter II F; Chapter VIII Note 20Verfassungsmäßigkeitaccordance with the constitution, constitutionality. Cf‘Verfassungswidrig’Verfassungsorgansupreme federal (constitutional) organ (ie, mentioned inthe constitution). See Chapter IIIVerfassungsrechtconstitutional law (ie, law of the constitution only). Cf‘Staatsrecht’Verfassungsschutzprotection of the constitution, constitutional protection. The‘Bund’ and the ‘Länder’ each maintain separate authoritiesto deal with ‘Verfassungsschutz’. See Creifelds under‘Verfassungsschutz’; Chapter II G; Chapter XVII D (Note 32).See also ‘Bundesnachrichtendienst’Verfassungsstreit(igkeit)constitutional dispute. See Chapter VII C (Note 10) and‘Enumerationsprinzip’Verfassungswidrig(keit) unconstitutional(ity). See Creifelds under‘Verfassungswidrigkeit von Gesetzen’) Chapter II G; ChapterVII B and CVerfehlung transgression (by a youth). See Chapter XVI, Note 40Verfolgungpersecution; prosecution. See Chapter XVII A; Chapter XXI CVerfügungthe transfer, release, burdening or variation of a (subjective)right; ‘legal act’ or ‘legal transaction’ in that sense;disposition. Different senses in which the word can be used:a decision or direction of the presiding judge (‘Verfügungdes Vorsitzenden’); an injunction (‘einstweilige Verfügung’); apolice order (‘polizeiliche Verfügung’); an official order ordirection (‘ordnungsbehördliche Verfügung’). A ‘Verfügung vonTodes wegen’ is a transaction or disposition taking effect ondeath (eg, a will). A ‘letztwillige Verfügung’ is a testamentarydisposition. See Creifelds under ‘Verfügung’(‘rechtsgeschäftliche’, ‘gerichtliche’ and ‘behördliche’); ChapterX D 2 (v); Chapter X F 3 (b); Chapter XIV C 5Verfügungsbefugnisentitlement to undertake a ‘Verfügung’. See Creifelds under‘Verfügungsbefugnis’ and Chapter X D 2 (v). Regarding theeffect of a ‘Verfügung’ purported to be undertaken by a thirdparty without ‘Verfügungsbefugnis’ see Creifelds under‘Verfügung eines Nichtberechtigten’ and ‘Gutghubensschutz’Verfügungsbeschränkungprovision limiting a person’s ‘Verfügungsbefugnis’. SeeChapter X D 2 (v); Chapter X, Note 256Verfügungsgrundsatzsee ‘Dispositionsgrundsatz’Verfügung von Todes wegen see ‘Verfügung’; Chapter X F 3 (b)Vergehencategory of ‘Straftat’. See Chapter XVIBVergewaltigungrape. See Chapter XVII, Note 38 CVergleichsettlement (of dispute by way of agreement), compromise;arrangement, composition (with creditors); comparison.444

Appendix A: VocabularySee Creifelds under ‘Vergleich’; Chapter X C 3 (g) (Title 19);Chapter XIII D 1 (f) (iv) (The term ‘Vollmacht’)Vergleichsgebühr settlement fee. See Chapter XXII D 8 (Note 96)Vergleichsordnung Composition Order. See Chapter XVIII, Note 20Vergütung reimbursement, reward, payment, fee. See Chapter X, Note 166VerhaftungSee ‘Festnahme’VerhaltenVerhältnismäßigVerhältnismäßigkeitsgrundsatzVerhandelnVerhandlungVerhandlung zur Hauptsachebehaviour; conduct. See Chapter X B 2 (b) (The term‘Willenserklärung’); Chapter X B 2 (c) (Note 70); ChapterXVI C 1 (a)proportional, fair. See Chapter VIII Bprinciple of proportionality, relative fairness. See Creifeldsunder ‘Verhältnismäßigkeit(sgrundsatz)’; Chapter II E;Chapter VIII B (Note 14); Chapter XIV C 6 (Note 32);Chapter XVI C (Note 35) and D (at Note 76); Chapter XVIIB (Note 26)to negotiatehearing; negotiationhearing on the substantive issue. See Chapter XIII D 2 (c)(vi). Cf ‘Hauptverhandlung’Verhandlungsgebühr hearing fee. See Chapter XXII D 8Verhandlungsgrundsatzprinciple that an action proceeds on the basis of facts andapplications made by the parties; also‘Beibringungsgrundsatz’. See Creifelds under‘Verhandlungsgrundsatz’ and ‘Da mihi factum, dabo tibi ius’;Chapter XIII B 2Verhandlungsprotokollrecord, protocol of the hearing. See Chapter XIII D1 (g) (i)Verhandlungsschlussclosure of a hearing. See Chapter XIII D 2 (c) (vii)Verhindernsee ‘Hindern’Verhütento prevent. See Chapter XVII DVerjährunglimitation (of action), prescription. See Creifelds under‘Verjährung’ I; Chapter X B 3 Exposé; Chapter XVIII A, Note 11Verkehrtraffic, transport, circulation, communication, (social)contact, (sexual) intercourse. See Chapter VI, Note 5;Chapter X, Note 126 D and J; Chapter XIX A 2. In thefollowing terms of EC law, the word ‘Verkehr’ has a specialmeaning:—‘Warenverkehr’ (movement of goods);—‘Personenverkehr’ (movement of persons);—‘Kapital—und Zahlungsverkehr’ (movment of capital andpayments);—‘Dienstleistungsverkehr’ (provision/supply of services).‘Personenverkehr’ in turn incorporates:—‘Freizügigkeit’ (freedom of movement for workers); and—‘Niederlassungsfreiheit’ (freedom of establishment for selfemployedpersons).445

The German Legal System and Legal LanguageFreedom of information (‘Informationsfreiheit’) is a collateralright See Articles 39–55 EC Treaty.Verkehrsanwalt(local) instructing/correspondent lawyer. See Chapter XIII,Note 55Verkehrsfähig(keit)negotiable(-ility). See Chapter XIX BVerkehrs(sicherungs)pflicht duty of care (safety). An ‘unerlaubte Handlung’ (tort) can becommitted through an omission to observe it. See Creifeldsunder ‘Verkehrssicherungspflicht’; Chapter X C 3 (g) (Note222). See also ‘Sorgfaltspflicht’Verkündento proclaim, pronounceVerkündungproclamation (of a law or legal provision); pronouncement(of court’s decision). See Chapter XIII D 3 (a); Creifeldsunder ‘Verkündung von Rechtsvorschriften’ and ‘Urteil’ andsee also ‘Bekanntmachung’ and ‘Veröffentlichung’Verlängerungextension. See Chapter X C 3 (g) Exposé (f)Verleiten zum Vertragsbruch inducement to breach of contract. See Chapter X Note 220Verletzento injure, infringe, breachVerletzunginjury, infringement, breach. See Chapter VIIIA and Note 20 CVerleumdung(malicious) defamation, calumny (§ 187 StGB). The offencerequires that an untrue fact regarding another person bealleged, contrary to the better knowledge of the declarant(‘wider besseres Wissen’). See Chapter VIII, Note 20 E;Chapter XVI, Note 35. Cf ‘Üble Nachrede’Verlöbnisengagement (before marriage). See Creifelds under‘Verlöbnis’ and Chapter X EVerlustloss. See Chapter X D 3 (c) (ii)/(iii)Vermächtnislegacy, bequest (§§ 1939, 2147–2191 BGB). See Creifeldsunder ‘Vermächtnis’; Chapter X, Note 106; Chapter X F 4(a) and (h)Vermächtnisnehmerlegatee. See Chapter X F 4 (h)Vermeidbaravoidable. See Chapter XVIC 3 (d)Vermeidento avoidVermerknote (under seal). See Chapter XXII EVermischungmixture. See Creifelds under ‘Vermischung’ and Chapter XD 3 (c) (ii)Vermittelnto mediate, procure, arrange, obtain (for)Vermittlungmediation, intercession (good offices), arrangement,referral. See Chapter XI, Note 41Vermittlungsausschußmediation board/council. It is often convened (‘einberufen’)under Article 77(ii) GG to resolve differences of opinion(‘Meinungsverschiedenheiten’) between the ‘Bundestag’ and‘Bundesrat’ regarding proposed legislation. See Chapter VIIA (Note 3) and Creifelds under ‘Vermittlungsausschuß’. Seealso ‘Zustimmungsgesetz’ and ‘Einspruchsgesetz’Vermögenassets, capital, property, fortune, wealth. See Creifeldsunder ‘Vermögen’; Chapter X B 1 (Note 12); Chapter X, Note166; Chapter X D 3 (c) (i) (Note 251). See also Chapter XVI446

Appendix A: VocabularyB (at Note 14); Chapter XXII D 8Vermögensoffenbarungdisclosure of assets. See Chapter XIII D 8 (e)Vermögensrechtlichmonetary See Chapter XIII D1 (e) and D 3 (b)Vermögensschaden pecuniary loss. See Chapter X Notes 118 and 227Vermögensvorteilpecuniary advantage. See Chapter X F 4 (h) (i)Vermutento presume, supposeVermutlichpresumably. See also ‘Mutmaßlich’Vermutungpresumption, supposition. It can be ‘tatsächlich’ (actual) or‘gesetzlich’ (emanating from statute; statutory). See ChapterX D 3 (b); Chapter X F 5 (d); Chapter XIII B 7 (Note 10). Seealso Creifelds under ‘Vermutung’Vernehmungexamination, questioning, interrogation. In civilproceedings, the examination of the parties is a means ofevidence (‘Beweismittel’). See Chapter XIII, Note 115. Incriminal proceedings, ‘Vernehmung’ can take place:—in the‘Ermittlungsverfahren’ (investigation procedure). SeeChapter XVII B (Note 22); Chapter XVII D, Note 38 H andI;—where there is a ‘Vorführung’ (presentation), followingan arrest on the basis of a warrant (‘Haftbefehl’) or aprovisional arrest (‘vorläufige Festnahme’). See Chapter XVII,Note 38 D;—in the ‘Hauptverhandlung’ (main hearing). SeeCreifelds under ‘Vernehmungen im Strafverfahren’ II. It isimportant to keep these stages separate, since differentprovisions of the StPO apply in each situation.Vernichtungdestruction. See Chapter X F 3 (c) (ii)Vernunft reason; (good) sense. See Chapter I (at Note 12)Vernünftig sensible, reasonable. See Chapter XIIIB 7Veröffentlichungpublication. See also ‘Verkündung’Verordnungsee ‘Rechtsverordnung’Verordnung zur einheitlichen Order for the Uniform Regulation of the Constitution of theRegelung der Gerichts-Courts. See Chapter XXII, Note 19; Chapter XXII C 6verfassung (G VVO)Verpflichtungobligation. See Chapter X C 2 2 and D 2 (v)Verpflichtungsklagewrit issued at the VG claiming (obligation to) issue (of) a VA. Itcan be of 2 types (§ 42(i) VwGO):—a ‘Versagungsgegenklage’(refusal counter action), ie, if a VA has been refused (‘abgelehnt’);or—an ‘Untätigkeitsklage’ (action for inactivity), ie, if an authorityhas failed/omitted (‘unterlassen’) to issue a VA. See SchmittGlaeser, Part 2, § 4; Creifelds under ‘Untätigkeitsklage’ and‘Verwaltungsstreitverfahren’ I (a); Chapter XV BVerrattreason. See Chapter II GVerrichtungsgehilfeperson entrusted with a particular task. See Creifelds under‘unerlaubte Handlung’ V; Chapter X C 3 (g) (§ 831 BGB). Cf‘Erfüllungsgehilfe’Versagen to deny, refuse (something); fail. See Chapter XXII, Note 59Versammlungsfreiheit freedom of assembly. See Creifelds under‘Versammlungsfreiheit’ and Chapter VIII C447

The German Legal System and Legal LanguageVersandVersäumnisVersäumnisurteilVersäumungVerschaffungVerschaffu ngsvermächtnisVerschlechterungVerschmelzungVerschuldensee ‘Versendung’a ‘Nichterscheinen’ or ‘Nichtverhandeln’ by a party. Can leadto a ‘Versäumnisurteil’judgment in default (on die basis of a ‘Versäumnis’;otherwise referred to as being ‘unecht’ (not genuine)). SeeCreifelds under ‘Versäumnisurteil’ and Chapter XIII D 1 (g)(iv) and D 2 (c) (iv)failure to observe /miss a time limit. See Chapter X F 5 (a)(i); Chapter XIII D 1(g) (iv)procurement, provision (of). See Chapter X C 2; ChapterX, Note 185; §651 BGBprocurement legacy. See Chapter X F 4 (h)deterioration. See Chapter X C 3 (g) Exposé ‘Darlehen’see ‘Fusion’fault, blame (in civil law; § 276 BGB). There are two forms:‘Vorsatz’ (intent) and ‘Fahrlässigkeit’ (negligence). SeeCreifelds under ‘Verschulden’ and cf the term ‘Schuld’. Seealso ‘Vertretenmüssen’ and ‘Mitverschulden’; Chapter X C 3(a) Title 1 (Note 126 D) and Chapter XVI C 3see ‘Culpa in contrahendo’related by marriage; an in-law. Cf ‘Verwandt’See ‘Schweigepflicht’Verschulden bei VertragsschlußVerschwägertVerschwiegenheitspflichtVersendung despatch, shipping. See Chapter X Note 256Versetzento transfer, remove (a person), place, transplant; put into(a position, state). See Chapters VII E and XXII AVersetzungtransfer, removal, transplanting; putting (into). See ChapterXVIII, Note 11; Chapter XVIII E; Chapter XXII AVersicnerungsvertragsgesetz (VVG) Insurance Contracts Law. See Creifelds under‘Versicherungsvertrag’, Chapter X, Note 156Versorgungsausgleichequalization of (pension and disability) pro vision /support(after divorce). See Creifelds under ‘Ehescheidung 5’;Chapter X EVerspätettoo late, out of time, delayed. See Chapter XIII D 2 (c) (iv)VerspätungdelayVersprechen promise. See Chapter X C 3 (b) (Title 3); Chapter X, Note 159Verstossviolation. Also ‘Zuwiderhandlung’Vertagungpostponement, adjournment (of a hearing). See ChapterXIII D 1 (g) (iii); Chapter XIII, Note 116Verteidigerdefender, defence lawyer. See Chapter XVII CVerteidigungdefenceVerteidigungsabsichtintention to defend. See Chapter XIII D 2 (c) (iv)Verteidigungsfalldefence situation. It can arise in the event of a militaryattack (or threat thereof) on Germany. See Creifelds under‘Verteidigungsfall’ and Chapter VII A, Note 6Verteidigungsvortragsubmission(s) in the defence (of the ‘Beklagter’). See ChapterXIII, Note 97448

Appendix A: VocabularyVerteilungapportionment, distribution. See Chapter X F 4 (b)Verteilungsverfahrendistribution procedure. See Chapter XIII D 8 (c) (vii)Vertragcontract, agreement. See Creifelds under ‘Vertrag’; ChapterX B 2 (c) and C 23Vertragsabschlußsee ‘Abschluß’Vertragsähnlichesquasi-contractual relationship of trust. See Chapter X, Note135 BVertragsanbahnung precontractual period, phase. See Chapter X Note 66Vertrag Vertrauensverhältnismit Schutzwirkung contract with protective effect in favour of a third party.See Chapter X C 3 (b) (Title 3) (Note 135 A)Vertragsbedingungensee ‘Allgemeine Geschäftsbedingungen’Vertragsfreiheitzugunsten Dritterfreedom of contract (principle). It is part of the principle of‘Privatautonomie’Vertragshändler authorised dealer, distributor. See Chapter XI, Note 42Vertragsmässigin accordance (conformity) with the contract. See ChapterX C 3 (g) Exposé (c)Vertragsstrafecontractual penalty. See Chapter X C 3 (b) (Title 4) andChapter XI C 5Vertragsverhandlung(pre)contractual negotiation. See Chapter X, Notes 66 and 135 BVertrag zugunsten Dritter contract for the benefit of a third party. See Chapter X C 3(b) (Title 3)Vertrauenconfidence, trust. See Chapter X F 3 (c) (iv)Vertrauensbruch breach of trust. See Chapter X Note 220Vertrauensschutz protection of trust. See Chapter II E; Chapter X Note 46;Chapter XIII, Note 57; Chapter XVI, Note 4Vertrauensstellungposition of trust. See Chapter X Note 166; Chapter XVIII BVertraulich confidentially), in confidence. See Chapter XXII D 7Vertreiben to distribute; drive out. See Chapter XI, Note 42Vertretbare Handlungan act capable of being undertaken by someone else. SeeChapter XIII D 8 (d)Vertretbare Sachefungible thing. See Chapter X C 3 (g) Exposé ‘Darlehen’;Chapter X D 1Vertretenmüssensee ‘Verschulden’Vertreterrepresentative, agent, deputy. See Chapter XIII D 1 (f) (iv).a ‘Beauftragte’Vertreter ohne Vertretungsmacht unauthorised agent/representative. See Chapter X Note31; Chapter XIII D 1(f) (iv)Vertretungrepresentation, representative body, agency Cf‘Geschäftsführung’Vertretungsbefugnisright of representation. See Chapter XXIID 9 and also‘Vertretungsmacht’Vertretungsmachtpower to represent authority. See Chapter XIB and C 2 (c);‘Vollmacht’Veruntreuungsee ‘Untersddagung’Verursachen to cause. See Chapter X, Note 119449

The German Legal System and Legal LanguageVerurteilenVerwahrerVerwahrungto adjudge, convict. Also ‘Überführen’custodiandeposit in custody, safe-keeping. See Creifelds under‘Verwahrung’; Chapter X C 3 (g) Exposé ‘Darlehen’; ChapterX C 3 (g) (Title 12)Verwaltungadministration, executive, management. See Creifeldsunder ‘Verwaltung, öffentliche’ and ‘Vollziehende Gewalt;Chapter II CVerwaltungsaktadministrative act. See Creifelds under ‘Verwaltungsakt’;Chapter XIV CVerwaltungsaufgabeadministrative function, task. See Chapter II CVerwaltungsgericht (VG) administrative court. See Chapters II C, XV A and XXII C 4Verwaltungsgerichtshof (VGH) see ‘Oberverwaltungsgericht’Verwaltungsgerichtsordnung Administrative Courts Order. See Creifelds under(VwGO)Verwaltungsgerichtsbarkeit; Chapter XV AVerwal tungspolizei(so-called) administrative police. Incorporated in this termare the terms ‘Polizeibehörde’ and ‘Ordnungsbehörde’. Cf‘Vollzugspolizei’ and see Chapter XVII D (Note32)Verwaltungsprivatrechtadministration in private law form. See Creifelds under‘Verwaltungsprivatrecht’; Chapter II CVerwaltungsrechtadministrative law. See Creifelds under ‘Verwaltungsrecht’;Chapter XIVVerwaltungsrechtsweglegal route (access) to the administrative courts. SeeChapter XV CVerwaltungstâtigkeitadministrative activity. See Chapter II CVerwaltungsträgercarrier of administration. See Chapter IICVerwaltungsunterbauadministrative sub-construction (structure). See Chapter XIV AVerwaltungsverfahrensgesetz(VwVfG)Administrative Procedure Law. See Creifelds under‘Verwaltungsverfahren(sgesetz)’; Chapter XIV BVerwaltungsvollstreckungsgesetz(VwVG)Administrative Enforcement Law. See Creifelds under‘Verwaltungsvollstreckungsgesetz’; Chapter XVIII H (Note 56)Verwaltungsvorschrift (internal) administrative regulation. See Chapter XIV A,Maurer, Part 6, § 24 and Creifelds under ‘Verwaltungsvorschriften’and ‘Weisungsrecht’. See also ‘Richtlinie’Verwaltungszustellungsgesetz Administrative Service Law. See Chapter XIII D1 (g) (ii)Verwaltungszwang administrative force. See Creifelds under‘Verwaltungszwang’; Chapter XVIII H (Note56)Verwandlung conversion, transformation. See chapter X B 17 (Notes 24)Verwandt(er/schaft)related, (blood) relative, kinship. See Creifelds under‘Verwandtschaft’; Chapter X E; Chapter X F 3 (a) (i). Cf‘Verschwägert’Verwarnungwarning, caution. See Creifelds under ‘Verwarnung beiOrdnungswidrigkeiten’, ‘Verwarnung mit Strafvorbehalt’and ‘Probation’; Chapter XVIB (Note 9) and XVID (Note 71)450

Appendix A: VocabularyVerwarnungsgeld(money) penalty. Cf ‘Geldbuße’Verweis (disciplinary) direction, rebuke. See Chapter XXII D 7Verweisung(statutory) reference; (procedural) transfer (to anothercourt). See Creifelds under ‘Verweisung’; Chapter XIII, Note47; Chapter XX; Chapter XXII D 9. A ‘Platzverweisung’ is apolice order banishing a person from a particular placeVerwenderuser (of standard business terms). See Chapter X B 2 (e)Verwendungexpenditure (on a ‘Sache’, whereby it is repaired,maintained or improved, but not fundamentally changed).A ‘Verwendung’ can be ‘notwendig’ (necessary) or ‘nützlich’(useful). See Chapter X, Note 266 and Creifelds under‘Verwendungen’. Cf ‘Aufwendung’Verwendungskondiktiontype of ‘Nichtleistungskondiktion’, where the recipientobtains a benefit due to a ‘Verwendung’ by the claimant onsomething belonging to the recipientVerwerfen to dismiss (a legal remedy). See Chapter XIII, Note 138Verwerflich objectionable. See Chapter X, Note 220Verwertbarkeitusability, admissibility (of evidence). See Chapter XVII,Note 38HVerwertungsrecht disposal right. See Chapter X D 1Verwirkungforfeiture. See Chapter II G; Chapter X B 2 (b)(‘Interpretation of a ‘Willenserklärung’) (Note 47 C); ChapterX, at Note 91; Chapter X C 3 (g) Exposé (c). See also theSourcebook, Chapter 5, Footnote 7Verzeichnislist, schedule. Also index, register. See Chapter XIII D 6 (b)2; Chapter XIII D 8 (e)Verzicht (auf)renunciation, waiver (of). See Chapter XIII D 1 (f) (iv) (Theterm ‘Vollmacht’)Verzichten (auf)to renouce, waive, forgo, do withoutVerzinslichinterest-bearing. See Chapter X C 3 (g) Exposé ‘Darlehen’Verzug delay. See Chapter X C 3 (a) (Titles 1 and 2) (Notes 126 and 127)Verzugsschadenloss due to delay. See Chapter X, Note 126 FVier-Augen Prinzip four-eye principle. See Chapter XI, Note 25Vindikationvindication; (owner’s claim to) return of a ‘Sache’ fromsomeone without a ‘Recht zum Besitz’. See Creifelds under‘Eigentumsnerausgabeanspruch’ and Chapter X D 3 (c) (iv)Volenti non fit iniuriano wrong is done to him who consents. See ‘Einwilligung’Volkpeople. See Chapter II FVolksabstimmung (Volksentscheid) plebiscite. See Chapter II F (Note 20)Volksgeist spirit of the people. See Chapter I (Note 16)Volkssouveranitàtsovereignty of the people. See Chapter II FVolkszählungpublic œnsus. See Chapter VII CVölkermord(rules of) customary public international law. See ChapterII H451

The German Legal System and Legal LanguageVölkergewohnheitsrechtVölkerrechtVolljährig(er)VolljährigkeitVollmachtgenocide. See Chapter XVII, Note 38 Bpublic international law. See Chapter II H; Chapter XIV Aand ‘ius gentium’. See also Creifelds under ‘Völkerrecht’ and‘Primat des Völkerrechts’over the age of majority, adult. Also ‘Erwachsen(er)’. Cf‘Minderjährig’age of majority. See Chapter X B 2 (a)power of representation, power of attorney, authority(granted by ‘Rechtsgeschäft’ cf statutory authority). SeeChapter XIII D1 (f) (iv)Vollmachtgebergrantor of a ‘Vollmacht’Vollmachtloswithout a ‘Vollmacht’ZVollrechtfull right. See Chapter X D 2 (iv)Vollständig complete; full(y). See Chapter II, Note 23; Chapter XIII D 2(c) (v)Vollstreckbarerklärungdeclaration of enforceability. See Chapter XIII D 28 (b) (VI)Vollstreckbar(keit)enforceable(ility). See Creifelds under ‘Vollstreckbarkeit’.See also Chapter XIII D 8 and Chapter XVIII H (Note 56)Vollstreckbare Ausfertigung enforcement duplicate, copy. See Chapter XIII D 8 (b)Vollstreckbare Urkundeenforceable document, ie, one—which is prepared by a German court or notary;—which documents a claim to payment of a specific sumof money or supply of a specific quantity of ‘vertretbareSachen’ or ‘Wertpapiere’; and—in which the debtor submits to immediate enforcement(§ 794(i) No 5 ZPO).See Creifelds under ‘Vollstreckbare Urkunde’,‘Unterwerfungsklausel’; Chapter X B 4 (b); Chapter XIII D 8(b) (ii)Vollstreckungenforcement, execution. Also ‘Zwangsvollstreckung’Vollstreckungsbescheid enforcement notice. See Chapter XIII C I; Chapter XIII D 8(b) (ii); ‘Mahnverfahren’Vollstreckungserinnerunglegal remedy (to the judge)) against a measure taken by a‘Rechtspfleger’ judge in enforcement proceedings. See §766 ZPO. Cf ‘Erinnerung’Vollstreckungsgerichtenforcement court. Always the ‘Amtsgericht’. See Creifeldsunder ‘Vollstreckungsgericht’, Chapter XIII D 8 and cf‘Prozeßgericht’Vollstreckungshandlungact of enforcementVdlstreckungsklausel enforcement clause. See Chapter XIII, Note 171Vollstreckungstiteltitle capable of enforcement (‘vollstreckbar’). See ChapterXIII D 8 (b); Creifelds under ‘Vollstreckungstitel’Vollstreckungsunterwerfung submission to enforcement See ‘Vollstreckbare Urkunde’Vollstreckungsurteil enforcement judgment See Chapter XIII, Note 171Vollstreckungsverfahrenenforcement proceedings. Cf ‘Erkenntnisverfahren’. See452

Appendix A: VocabularyChapter XIII C A and D 8Vollurteilfull judgment. See ‘Urteil’Vollziehbarenforceable. Also ‘Vollstreckbar’Vollziehbare Anordnungenforceable orderVollziehende Gewaltexecutive power, executive; also ‘Verwaltung’. See Creifeldsunder ‘Vollziehende Gewalt’ and Chapter II FVollziehungenforcement, execution. See also ‘Vollstreckung’, ‘Vollzug’and ‘sofortige Vollziehung’Vollzugenforcement. See ‘Vollziehung’Vollzugsaktact of implementation, enforcement; implementingmeasure. See Chapter VII CVollzugspolizei(so-called) executive police. Cf ‘Verwaltungspolizei’ and seeChapter XVII DVon Amts wegenofficially; by the court or authority (of its own motion).See Creifelds under ‘Amtsgrundsatz’; Chapter X, Note 20;Chapter XIII C C; Chapter XIII D 2 (c) (i); Chapter XVII,Note 26 B; Chapter XX EVon entscheidender Bedeutung of decisive importance, of the essence. See Chapter X C 3 (b)Vonneuemanew, afresh. See Chapter XIIID1 (g) (v)Vorabin advanceVor die Klammer gezogen drawn before the clasp, to the front. See Chapter X C 2 2Vorausklagesee ‘Selbstschuldnerische Bürgschaft’Voraussetzung (precondition (for). See Chapter X, Note 22Vorausvermächtnisadvance legacy. See Chapter X F 4 (h)Vorauszahlungprepayment. See Chapter XIIID 2 (c) (i)Vorbehaltreservation. See also ‘Protestatio’Vorbehaltloswithout reservation. See Chapter XIIID1 (f) (i)Vorbehalt des Gesetzessee ‘Gesetzesvorbehalt’Vorbehaltsurteiljudgment subject to a reservation. It is a particular type offinal judgment, which can be pronounced where set-off(‘Aufrechnung’) is asserted by the defendant, the plaintiff’sand defendant’s claims are legally unconnected and (only)the plaintiff’s claim is ready for decision (zur Entscheidungreif). The set-off dispute remains pending and must be dealtwith later (‘Nachverfahren’). Premature enforcement of a‘Vorbehaltsurteil’ is at the plaintiff’s risk. If it turns out thathis claim was unfounded, he must compensate thedefendant. See § 302 ZPO; Creifelds under ‘Vorbehaltsurteil’.A ‘Vorbehaltsurteil’ is compulsory in a document action(‘Urkundenprozeß’) whenever judgment is passed againsta defendant, who disputes the plaintiff’s claim: § 599 ZPOVorbereitento prepareVorbereitende Maßnahmepreparatory measure. See Chapter XIIID 2 (c) (v)Vorbereitungpreparation (for)Vorbereitungsdienstpreparatory period of service. See Chapter XXIIA453

The German Legal System and Legal LanguageVorbescheidVorerbeVorfrageVorführungVorführungsbefehlVorhabenVorhersehbarVorkaufsrechtVorkehrunga VA dealing with preliminary matters/points. SeeCreifelds under ‘Vorbescheid’; Chapter XIV C 2prior heir. See Chapter X F 4 (e)preliminary question. See Chapter VII, Note 13; ChapterXIII, Note 71(compulsory) appearance, presentation (eg, before a judge).See Chapter XVII, Note 38 D and Forder requiring a person’s appearance, presentation order.See Chapter XVII, Note 38 Fplan, project, proposalforeseeable, predictable. See Preface to Second Edition,Note 8right of preemption. See Chapter X D 3 (f)precautionary measure. See Chapter X C 3 (g) Exposé (c);Chapter X, Note 222BVorlage(verfahren)presentation, reference (procedure). See ‘konkreteNormkontrolle’; Chapter X D 3(h)Vorläufig provisional(ly), temporary(ily). See Chapter XIII, Note 149;‘Vollstreckbar(keit)’; ‘Vorläufiger Rechtsschutz’Vorläufiger Erbeprovisional heir. See Chapter X F 5 (a)Vorläufiger RechtsschutzVorlegungVormerkungVormund(schaft)VormundschaftsgerichtVorpfändungVorrangVorrang des Gesetzesprovisional legal protection. See Chapter XIV C 3 (Notes23 C and 34)presentation. See Chapter X C 3 (g) (Title 23); Chapter XIX Bpriority notice (reservation). See Creifelds under ‘Vormerkung’;Chapter X D 3 (b) and (h); Chapter X, Note 256guardian(ship). See Chapter X Eguardianship court. See Chapter X, at Note 34; ChapterXIII, Note 32; Chapter XVI, Note 40(prior) notification of the impending ‘Pfändung’ of a moneyclaim, predistraint (warning). See Chapter XIII D 8 (c) (v)precedence, priority. See Chapter X F 3 (b)(the) priority of statute (and, in a wider sense, of higherranking norms). See Creifelds under ‘Vorrang des Gesetzes’and Chapters II F and Vzz BVorratsgesellschaft ‘off-the-shelf’/‘ready-made’ company. Cf‘Mantelgesellschaft’VorsatzVorsätzlichVorschlag(en)VorschriftVorsitzenderintent; a form of ‘Verschulden’ in civil law and of ‘Schuld’ incriminal law. Cf ‘Absicht’intentionally, wilfully Cf ‘Absichtlich’suggestion, to suggestprovision, rule, regulation. Cf ‘Abschnitt’presiding person (judge), chairman. See Chapter XIII, atNote 106454

Appendix A: VocabularyVorsorgende RechtspflegeVorsorglichVorstandVorstellungVorverfahrenprecautionary administration of justice. See Chapter XXIIEby way of (as a) precautionary measure)board (of directors). It is a compulsory organ of:—a ‘Verein’(§§26–31BGB);—an ‘Aktiengesellschaft’ (§§ 76–94 AktG);and—a ‘Genossenschaft’ (§§ 24–35 GenG). See Chapter XIA3 and Creifelds under ‘Vorstand’conception, idea. See Chapter X F 3 (c) (iv)preliminary proceedings. See Chapter XV C; Chapter XVII,Note 20Vorvertragpreliminary contract. See Chapter X, Note 135 BVorwerfbarreproachable, blameworthy. See Chapter XVIC 3 (a)Vorwerfento reproach, blame, accuse (of); cf ‘Anklagen’, ‘Beschuldigen’Vorwurfreproach, accusationWaffengleichheit equality of arms. See Chapter XIII, Note 3Wahl election, choice. See Chapter II, Note 26Wahlfreiheitfreedom of choiceWahlschuld selectable (alternative) debt. See Chapter X C 3 (a) (Title 1)Wählbarcapable of election. See Chapter XVIII CWahndeliktan offence of madness (ie, one that does not exist). SeeChapter XVI C 3 (d)WahrheitsgemäßtruthfulWahrheitspflichtduty to be truthful. See; Chapter XIII B 2 and D 1 (g) (i);Chapter XVIICWahrnehmungperception; safeguarding, pursuit (of one’s interests)Wahrscheinlich(keit)probable, probability. See Chapter XIII B 7 and ‘Beweis’Wandlungrescission (of a contract of sale). See Chapter X, Note 189 BWare(n) product, goods. See Chapter XI, Note 42 and C 5Warnung warning. See Chapter XXII D 7Wechselbill of exchange. It can either be an ‘eigener Wechsel’/‘Solawechsel’ (ie, document a promise of payment by theissuer (‘Aussteller’) himself) or a so-called ‘gezogenerWechsel’/‘Tratte’ (ie, be drawn on a person other than theissuer). A ‘gezogener Wechsel’ is a special form of‘Anweisung’. See Chapter XIX Note 36; Creifelds under‘Wechsel’Wechselbezügliche Verfügung interdependent disposition (in a joint will). See Chapter X F3 (d)Wechselprozeß(particular form of) action on the basis of a ‘Wechsel’. SeeChapter XIII D 5Wechselwirkungstheorietheory of reciprocal effect. See Chapter VIIIBWegfall der Geschäftsgrundlage falling-away (collapse, disappearance) of the basis of thetransaction; frustration. See ‘Geschäftsgrundlage’Wegfall eines Arbeitsplatzes redundancy. See Chapter XVIII, Note 14455

The German Legal System and Legal LanguageWehrstrafgesetz (WStG) Military Crime Law. See Chapter XVI, Note 34Weimare Reichsverfassung(Imperial) Constitution of (the) Weimar (Republic). SeeChapter II (Note 5)Weisungdirection, order, directive. See Chapter XIIEWeisungsrecht right of direction. See Chapter V, Note 7; Chapter X, Note 222Weiterbeschäftigungcontinued employment. See Chapter XVIII EWerbung advertising, publicity. See Chapter XXII D 5Werka(n) (item of) work; a particular result, agreed upon undera ‘Werkvertrag’Werklieferungsvertragcontract of work and materials, ie, contract for delivery of awork (with (accessory) materials to be obtained/providedby the manufacturer). See Creifelds under‘Werklieferungsvertrag’ and Chapter X, Notes 104 and 234 AWerkvertragcontract for services; agreement to manufacture/producea ‘Werk’. Cf ‘Dienstvertrag’. See Creifelds under‘Werkvertrag’, Chapter X C 3 (g) (Title 7) and Chapter X,Notes 104 and 166Wert value. See Preface to Second Edition, Note 12; Chapter X,Notes 138 and 220; Chapter X F 4 (g)Wertordnungvalue-order. See Chapter VIIIAWertpapiervaluable paper documenting a particular right, security(eg, ‘Wechsel’). See Chapter XIX B; Creifelds under‘Wertpapier’, ‘Inhaberpapier’ and ‘Orderpapier’Wertungappraisal, evaluation. See Chapter X B 2 (e)Werturteilsee ‘Beleidigung’Wesensgehaltessence. See Chapter VI, Note 4 and Chapter VIII BWesensgleichessentially similar (to). See Chapter X D 2 (iv)Wesentlich(keit) essential; importance, significance. See Chapter VIII B;Chapter X D 3 (c) (i); Chapter X F 4 (b); Chapter XXII D 5Wesentliche Bestandteileessential/substantial components. See Chapter X B 2 (c)‘Rules governing offer and acceptance’ and ‘Failure to reachan ‘Einigung’; Chapter X D1Wettbewerbsbeschränkungrestraint on competition. See Creifelds under‘Wettbeiverbsbeschränkungen’ and Chapter XIX, Note 9Wettbewerbsrecht competition law. See Chapter XIX, Note 9Wettbewerbsverbotprohibition of competition (by statute or covenant). SeeChapter XI C 2 (d); Creifelds under ‘Wettbewerbsverbot’Wette bet. See Chapter X C 3 (g) (Title 17)Widerklagecounterclaim. See Chapter XIIID 1 (f) (iii) and D 2 (c) (iv)(Note 107)Widerrechtlichillegal. Also ‘Rechtswidrig’. See § 823(i) BGBWiderrufretraction, revocation, withdrawal. See Chapter VIII, Note20; Chapter X, Note 67; Chapter X F 3 (c) (ii); Chapter XIVC 4 and cf ‘Rücknahme’456

Appendix A: VocabularyWidersprechenWiderspruchto contradict, object to(formal) objection, protest; can be raised in connection with aVA, an entry in the land register (‘Grundbuch’) or certaindecisions in civil matters. See Chapter XI B; Chapter XIV C 3;Chapter XV A and C; Creifelds under ‘Widerspruchsverfahren’,‘Widerspruch im Grundbuch’ and ‘Widerspruch im Zivilprozeß’.See also ‘Einwendung’, ‘Einrede’ and ‘Einspruch’Widerspruchsbehördeobjection authority, ie, the ‘Behörde’ responsible forhandling a ‘Widerspruch’ and issuing a‘Widerspruchsbescheid’Widerspruchsbescheidnotice giving decision after a ‘Widerspruch’ in connectionwith a VAWiderspruchsverfahrenobjection proceedings (in connection with a VA). See‘Widerspruch’Widerstandsrechtright of resistance. See Creifelds under ‘Widerstandsrecht’and Chapter VIII (Note 36)Widmungadoption/dedication (of property/a thing) for publicpurposes. See Creifelds under ‘Widmung’; Chapter VI;Chapter XIV C 5Wiederheiratsee ‘Wiederverheiratung’Wiederaufgreifen to reconsider, reconsideration. See Chapter XIV C 4Wiederaufnahme (des Verfahrens) resumption, reactivation, reopening (of proceedings) after‘Rechtskraft’. See Chapter XIII A, C H and D 4,‘Nichtigkeitsklage’ and ‘Restitutionsklage’. See also ChapterXVI, Note 5; Chapter XVII AWiedereinräumung (des Besitzes) restoration (of possession). See Chapter X, Note 265 DWiedereinsetzung in den vorigen reinstitution (of proceedings) into the previous position.See Chapter XIII Stand Notes 18, 78 and 129Wiedereröffnung der Verhandlung reopening of the hearing. See Chapter XIII D 2 (c) (vi)Wiederherstellungrestoration, resumption. See Chapter XIII D 6 (b) 3; ChapterXIV C 3 and ‘aufschiebende Wirkung’Wiederholungsgefahr danger of repetition. See Chapter XVII D (Notes 26 and 38 B)Wiederkehrende Geldleistungen recurring payments. See Chapter X, Note 127Wiedervereinigungreunification. See Creifelds under ‘Wiedervereinigung’ andChapter V AWiederverheiratungre-marriage. See Creifelds under ‘Wiederverheiratung imFalle der Todeserklärung’ and Chapter X EWillenserklärungdeclaration of will; made up of ‘Handlungswillé’,‘Rechtsbindungswille‘ and ‘Geschäftswille’. See Creifeldsunder ‘Willenserldärung’ and Chapter X B 1 5 and B 2(b)Willensmangel defect of will. See Chapter X, Note 49Willensübereinstimmungsee ‘Einigung’Willkürarbitrary will, arbitrariness. See Chapter I, Note 12 andbefore Note 16; Chapter VII, Note 16Willkürlicharbitrary. Conduct which is ‘willkürlich’ can give rise to457

The German Legal System and Legal Languagesanctions in different fields eg, in administrative oremployment law. See Chapter VIII, Note 22; Chapter XXII,Note 5Willkürverbotprohibition of arbitrariness (principle). See Chapter VIII,Note 22Wirksam(keit)effective(ness), valid(ity). See Chapter X B 2 (b) (‘Validity ofa ‘Willenserklärung’); Chapter XIII, Note 90; Chapter XIV C 3WirkungeffectWirkung nach außensee Chapter XIV C1 and ‘Außenwirkung’Wirtschafteconomy, industryWirtschaftsförderung promotion of the economy. See Chapter VI, Note 5Wirtschaftskriminalitätbusiness/commercial (‘white-collar’) crimeWirtschaftslenkungdirection/regulation/steering of the economy. See ChapterXIXWirtschaftsrechtbusiness/commercial law. See Chapter XIXWirtschaftsstrafgesetz (WiStG) Commercial Crime Law 1954. See Chapter X, Note 209 andChapter XIX, Note 24Wirtschaftsstrafkammercommercial criminal chamber (at a ‘Landgericht’). SeeChapter XXII, Note 37Wirtschaftsstrafrecht(area of) law relating to commercial crime. See Chapter XIXWirtschaftsverfassungsrecht (area of) law relating to the constitutional form of theeconomy. See Chapter XIXWirtschaftsverwaltungsrecht (area of) law relating to the administration/managementof the economy. See Chapter XIXWissensvorsprungan informed advantage, a lead based on particular (inside)information. See Chapter X, Note 215WohldesKindes welfare of the child. See Chapter XIII, Note 158Wohlwollendfavourable, kind. See Chapter X F 3 (c) (iii)Wohnraumliving space, (residential) accommodation. See Chapter XC 3 (g) Exposé (a)Wohnsitz(place of) residence, domicile. See Chapter X B 1 2; ChapterX F 5 (d); Chapter XIII, Note 21; Chapter XIII D 8 (d) and(e); Chapter XVII, Note 37; Chapter XX B; Creifelds under‘Wohnsitz’. See also ‘Leisiungsort’ and ‘Site’. Cf’AufenthaltWohnungdwelling, flat, home, apartment. See Creifelds under‘Wohnung, Unverletzlichkeit deS; Chapter VIII C (Article 13GG); Chapter XIII D 1 (g) (ii)Wohnungseigentum(right of) property in an apartment, ownership of a flat.See Chapter X, Note 267Wohnungseigentumsgesetz Ownership of Flats Law. See Chapter XI, Note 13(WEG)Wortlautwording (of a text). See Chapter X F 3 (c) (iii)Wucher extortion, profiteering, usury. See Chapter X, Notes 58 and 245Würdedignity. See Chapter VIII C (Article l(i) GG)458

Appendix A: VocabularyWürdigworthy. See Chapter X FZahlungpaymentZahlungsaufforderung demand for payment. See Chapter X, Note 127Zahlungsbedingungenconditions of payment. See Chapter X B 2 (e)Zahlungsfrist period for payment. See Chapter X, Note 127Zahlungsmtttelmeans of payment. See Chapter XIX BZahlungsunfähiginsolvent. See Chapter X F 5 (b). Cf ‘überschuldet’Zedentassignor. See Chapter XIX BZeichnento subscribe (for shares in a company)Zeitablaufeffluxion of time. See Chapters X C 3 (c) and XVIIIBZeitarbeit temporary work. See Chapter XVIII, Note 13Zeitbestimmungtime provision. See Chapter X B 2 (d)Zeitpunkt(point in) time, moment. See Chapter X F 3 (c) (iii) and 4 (e)Zeitraum period, space of time. See Chapter XIII D 6 (b) 2Zerstörento destroy. See Chapter X F 3 (e)Zessionarassignee. See Chapter XIX BZeuge witness. See Chapter XVII, Note 22Zeugenbeweiswitness evidence. See Chapter XIII D 2 (b); ‘Beweismittel’Zeugniscertificate; (employer’s) reference, report; witnessstatement. See Chapter X F 5 (d); Chapter XIX BZeugnisverweigerungsrecht right to refuse to give evidence. See Chapter XVII, Note 22and Chapter XVII C. See also ‘Aussage’Zielaim, target, destination, finish-line (point)Zinseninterest. See Creifelds under ‘Zinsschuld’ and Chapter X C3 (a) (§§ 246–248 BGB)Zinslosinterest-free. See Chapter X C 3 (g) Exposé ‘Darlehen’Zinssatzinterest rate. See Chapter X D 3 (h)Zitiergebotcitation requirement. See Chapter VIII BZivilkammercivil chamber (of a LG). See Chapter XIII D1 (e)Zivilprozeßcivil procedure, civil proceedings. See Chapter XIIIZivilprozeßordnung (ZPO) Civil Procedure Order/ Code of Civil Procedure. SeeChapter XIII AZollamtcustoms office. Is a ‘Bundesunterbehörde’. See Creifeldsunder ‘Zollbehörden’; Chapter IVZollverein customs union. See Chapter I, Note 15Zubehöraccessories, fittings, appurtenances. See Chapter X C 3 (b)(Title 1); Chapter X D 1; §§ 97 and 314 BGB; Creifelds under‘Zubehör’. Cf ‘Bestandteil’Zuchtmittel disciplinary measure. See Chapter XVI, Note 40Zufälligby chance, fortuitously). See Chapter X, Note 126 G459

The German Legal System and Legal LanguageZugangcommunication, receipt (eg, of a ‘Willenserklärung’). SeeChapter X B 2 (b) (Validity of a ‘Willenserklärung’)Zugehento be communicated (to), received (by), reachZugesicherte Eigenschaft assured (guaranteed) quality (of a ‘Sache’). See Chapter X,Note 189Zugewin nausgleichequalisation/settlement of gain (on termination of a‘Zugewinngemeinschaft’). See Chapter X F 3 (a) (ii)Zugewinn(gemeinschaft)(community based on) gain. See Chapter X F 3 (a) (ii);Chapter X F 4 (g) (iii); Chapter XIII D 6 (D) 2; ‘Güterrecht’Zulässig(keit)admissible, admissibility; permissible. Cf ‘Begründet(heit)’Zulässigkeitsvoraussetzung see ‘Sachurteilsvoraussetzung’Zulassungadmission, leave (of a court). See Chapter II C; ChapterXIII D 3 (b); Chapter XIV, Notes 14 and 34Zumutbaracceptable, bearable, viable. See Chapter X B 2 (e); ChapterX D 3 (c) (i)Zunächstin the first instance, first of all. See Chapter XIC 3 (b) (ii)Zurechenbarattributable (to). See Chapter X, Notes 119 and 222 BZur Entscheidung reifsee ‘Vorbehaltsurteil’Zurückbehaltungsrecht(debtor’s) right of retention, withholding (of performance).See Creifelds under ‘Zurückbehaltungsrecht’; Chapter X C 3(a) and (b) (§§ 273, 274 and 320 BGB) and Chapter X, Note266Zurücknahme withdrawal. See Chapter XIV C 4Zurücktreten to give way, stand back, resign. See Chapter XVI, Note 4Zurückverweisento remand, transfer back (to another court). See ChapterXIII D 3 (b)Zurückweisento reject (an application or appeal). See Chapter XIII, Note138Zurückzahlento repayZusammenarbeitcooperation. See also ‘Mitwirkung’Zusammenschlußunion, joint or merged enterprise. See ‘Fusion’, ‘Vereinigung’Zusatzpftichtteiladditional compulsory portion. See Chapter X F 4 (g) (ii)Zustandcondition, state. See Chapter X C 3 (g) Exposé (c)Zuständigcompetent, responsible, in chargeZuständigkeitcompetence, jurisdiction (in a particular case; cf‘Gerichtsbarkeit’). Can be ‘sachlich’, ‘örtlich’, ‘funktionell’(‘instanziell’) or ‘international’. See Creifelds under‘Zuständigkeit von Verwaltungsbehörden’, ‘GerichtlicheZuständigkeit’ and ‘Örtliche Zuständigkeit des Gerichts’. Seealso Chapter XIII D 1 (e) and D 8 (b) (Notes 28 and 171);Chapter XVII A (Note 4); Chapter XVII D (Note 37); ChapterXX C 2Zuständigkeitsstreitwert‘Streitwert’ for the purpose of ‘Zuständigkeit’ (of a court).See Chapter XIII D 1 (e)460

Appendix A: VocabularyZustellungservice (of document). See Creifelds under ‘Zustellung’ andChapter XIII D 2 (c) (i)Zustellungsbevollmächtigter person authorised to accept service. See Chapter XIIID 1(g) (ii)Zustellungsurkundecertificate of service. See Chapter XIII D 1 (g) (ii) and D 2 (c) (i)ZustimmungZustimmungsgesetzZuteilenZuverlässigkeitZuwanderungZuweisungapproval, agreement, consent. Also ‘Einverständnis’. It canbe prior (‘Einwilligung’) or subsequent (‘Genehmigung’). SeeCreifelds under ‘Zustimmung’) Chapter X B 2 (a); ChapterXX Da proposed ‘Gesetz’ requiring the ‘Zustimmung’ (approval)of the ‘Bundesrat’, ie, one that alters the constitution(‘verfassungsändernd’) or affects the federal structure of the‘Bund’ (‘föderativ’)/has repercussions (‘Auswirkungen’) on theinterests of the ‘Länder’. The cases in which a‘Zustimmungsgesetz’ is required are laid down in the GG (eg,Article 84(i) GG). Although according to Article 77 GG a‘Zustimmungsgesetz’ is (officially) the exception (to an‘Einspruchsgesetz’), it has become the norm: some 60% offederal laws today require the ‘Zustimmung’ of the‘Bundesrat’. See Katz, Part IV, § 20 III. Federal‘Rechtsverordnungen’ (statutory instruments, ie, those issuedby the Federal Government or a Federal Minister) oftenrequire ‘Zustimmung’ or are based on a ‘Zustimmungsgesetz’(Article 80(ii) GG). The term ‘Zustimmungsgesetz’ also refersto a ‘Gesetz’ approving the transformation of a ‘Staatsvertrag’(international treaty) into national (internal) law. See Model/Creifelds/ Lichtenberger, Part I D III (60 IV) and D IV (64III); Creifelds under ‘Zustimmungsgesetz’) The Bundesrat Case(1975) (Kommers 3.8). See also ‘Vermittlungsausschuß’;Chapter II H; Chapter III, Note 3; Chapter V, Note 1 andChapter VIII B (Note 15). Cf ‘Einsprucnsgesetz’to allot (shares)reliability. See Chapter XIX B(permitted) influx of (contingent of) foreigners. Cf‘Einwnderung’allocation, assignment (to). See Chapter V, Note 6; ChapterXV, Note 10; Chapter XVIII, Note 11Zuwendunggrant (which enriches another person), transfer of assets(in moneys worth). A ‘Zuwendung’, which is gratuitous(‘unentgeltlich’), is called a ‘Schenkung’ (gift): § 516(i) BGB.See Chapter X F 3 (b) and 4 (g) (iv)Zuwiderhandlung contravention, infringement. Also ‘Verstoss ’ZwangsgeldZwangshypothekZwangsmaßnahmeZwangsmittel(compulsory) fine. See Chapter XIIID 8 (d); Chapter XVIII Hcompulsory mortgage. See ‘Sicherungshypothek’compulsory measure (in criminal proceedings). SeeChapter XVII, Note 26Fcompulsory measures) (in administrative /police law). SeeChapter XVIII H461

The German Legal System and Legal LanguageZwangsvers teigerungcompulsory sale by auction. See Chapter XIIID 8 (c) (vi)(Note 187)Zwangsverwaltungcompulsory administration. See Chapter XIII D 8 (c) (vi)(Note 186)Zwangsvollstreckung enforcement. Also ‘Vollstreckung’. See Chapter XIII D 8;Chapter XXIAZweckZweckmäßig(keit)Zweckuerbandpurpose; aim. See Chapter I; Chapter X B 2 (e); Chapter XNotes 159 and 220; Chapter XIA 2; Chapter XIC 3 (b) (i);Chapter XIV C 1appropriateness), expediency, expedient(ly). See ChapterXIV C 6 (Note 31)a (voluntary or compulsory) grouping of ‘Gemeinden’ (or‘Gemeindeverbände’) for the purpose of fulfilling a particulartask. See Creifelds under ‘Zweckuerband’ and cf‘Gemeindeverband’.Zweifeldoubt. See Chapter XIII B 7 (Note 9). See also ‘Im Zweifel’,‘Jenseits vernünftigen Zweifels’Zweig branch. See Chapter XXII C 1Zweigniederlassung branch office. See Chapter X, Note 7Zweispurigtwo-tracked. See Chapter XVIDZweistufentheorietwo-tier theory. See Chapter II CZweitberuf second occupation. See Chapter XXII, Note 59Zwingend compulsory, mandatory. See Chapter IX B; Chapter X C 3(g) Exposé; Chapter XIC 2 (c); Chapter XVIII, Note 52;Chapter XX D1Zwischenstaatlichinter-state, international. See Chapter XXIAZwischenurteilZwischenverfahreninterim judgment. A ‘Zwischenurteil’ does not deal with the‘Streitgegenstand’ itself, but only concerns the progress ofthe proceedings (‘Fortgang des Verfahrens’). Thus, it is nota‘Sachurteil’, but a ‘Prozeßurteil’. See ‘Prozeßurteil’,‘Sachurteil’ and ‘Urteil’; Creifelds under ‘Zwischenurteil’ and‘Grundurteil’. See also ‘Dem Grunde nach’ and §§ 303–304ZPOsee ‘Eröffnungsverfahren’462

APPENDIX BABBREVIATIONS REFERRED TO IN THE TEXT(FOR ENGLISH MEANINGS SEE APPENDIX A)ABGBAllgemeines Bürgerliches GesetzbuchACAppeal CasesADHGBAllgemeines Deutsches HandelsgesetzbuchAGAktiengesellschaftadjadjectiveAGAmtsgerichtAGBG Gesetz zur Regelung des Rechts der AllgemeinenGeschäftsbedingungenAktGAktiengesetzA11ERAll England Law ReportsALRAllgemeines Landrecht für die Preußischen StaatenAm J Comp LAmerican Journal of Comparative LawAOAbgabenordnungArbBeschFGArbeitsrechtliches BeschàftigungsförderungsgesetzArbGArbeitsgerichtArbGGArbeitsgerichtsgesetzArbStättVOVerordnung über ArbeitsstättenASiGArbeitssicherheitsgesetzAsylVfGAsylverfahrensgesetzATAllgemeiner TeilAUGAuslandsunterhaltsgesetzAuslGAuslàndergesetzAVAGAnerkennungs—und VollstreckungsausfühningsgesetzBAGBundesarbeitsgerichtBBankGBundesbankgesetzBerHGBeratungshilfegesetzBerufsOBerufsordnungBetrVGBetriebsverfassungsgesetzBeurkGBeurkundungsgesetzBFHBundesfinanzhof

The German Legal System and Legal LanguageBGBBGHBGSBKABNDBNotDBORABRAGOBRAKBRAOBSGBTBtMGBVerfGBVerfGEBVerfGGBVerwGBVwVGCAcfChDCISGCPRDRiGECJECREEC/ECEFZGEGEGBGBEGGVGEUEuGVÜEuMRKEuRAGBürgerliches GesetzbuchBundesgerichtshofBundesgrenzschutzBundeskriminalamtBundesnachriditendienstBundesnotarordnung=BerufsOBundesgebührenoixinung für RechtsanwälteBundesrechtsanwaltskammerBundesrechtsanwaltsordnungBundessozialgerichtBesonderer TeilBetäubungsmittelgesetzBundesverfassungsgerichtEntscheidungen des BundesverfassungsgerichtsBundesverfassungsgerichtsgesetzBundesverwaltungsgerichtBundesverwaltungs-VollstreckungsgesetzCourt of Appeal (London)compareChancery Division (High Court, England)UN Convention on Contracts for the International Sale of GoodsCivil Procedure Rules (England)DeutschesRichtergesetzEuropean Court of Justice (Luxemburg)European Court ReportsEuropean (Economic) CommunityEntgeltfortzahlungsgesetzEuropaische Gemeinschaft(= EC)Einführungsgesetz zum BGBEinführungsgesetz zum GVGEuropäische UnionEuropäisches Überemkommen über die gerichtliche Zuständigkeitund die Vollstreckung gerichtlicher Entscheidungen in Zivil- undHandelssachenEuropäische MenschenrechtskonventionGesetz über die Tätigkeit europäischer Rechtsanwälte in464

Appendix B: AbbreviationsEur L RevEVÜEWGEZBegeGeVFamRÄndGFernAbsGFGGFGOGazetteGBOGbRGenGGewOGGGKGGmbHGmbHGGVGGVVOGWBHandwOHausratsVOHaustürWGHGBHLieICLQInsOJGGKGKODeutschlandEuropean Law ReviewEuropâisches Übereinkommen über das auf vertraglicheSchuldverhältnisse anzuwendende Recht= EECEuropäische Zentralbankfor example (‘exempli gratia’)eingetragene Genossenschafteingetragener VereinFamilienrechtsänderungsgesetzFernabsatzgesetzGesetz über die Angelegenheiten der freiwilligen GerichtsbarkeitFinanzgerichtsordnungGazette of The Law Society (England)GrundbuchordnungGesellschaft des bürgerlichen RechtsGesetz betreffend die Erwerbs– und WirtschaftsgenossenschaftenGewerbeordnungGrundgesetzGerichtskostengesetzGesellschaft mit beschränkter HaftungGesetz betreffend die Gesellschaften mit beschränkter HaftungGerichtsverfassungsgesetzVerordnung zur einhdtlichen Regelung der GerichtsverfassungGesetz gegen WettbeweibsbeschränkungenHandwerksordnungHausratsverordnungHaustürwiderrafsgesetzHandelsgesetzbuchHouse of Lordsthat is (‘id est’)International and Comparative Law QuarterlyInsolvenzordnungJugendgerichtsgesetzKommanditgesellschaftKonkursordnung465

The German Legal System and Legal LanguageKostOKSchGKUGKWGLAGLGlitLSGMHRGOHGOLGOVGOWiGPartGGProdHaftGRAKRPflGRSCRVOSGSGASGBSGGStGBStPOStrEGStVGStVOStVZOTKGTVGTzBfGUWGVAVerbrKrGVGKostenordnungKündigungsschutzgesetzKunsturhebergesetzGesetz über das KreditwesenLandesarbeitsgerichtLandgerichtliterallyLandessozialgerichtGesetz zur Regelung der MiethöheOffene HandelsgesellschaftOberverwaltungsgerichtOberlandesgerichtOrdnungswidrigkeitengesetzPartnersdhaftsgesellschaftsgetzProdukthaftungsgesetzReditsanwaltskammerRechtspflegergesetzRules of the Supreme Court (England)ReichsversicherungsordnungSozialgerichtSale of Goods ActSozialgesetzbuchSozialgerichtsgesetzStrafgesetzbuchStrafprozeßordnungGesetz über die Entschädigung für StrafverfolgungsmaßnahmenStraßenverkehrsgesetzStraßenverkehrsordnungStraßenvekehrszulassungsordnungTelekommunikationsgesetzTarifvertragsgesetzGesetz über Teilzeitarbeit und befristete ArbeitsverhältnisseGesetz gegen den unlauteren WettbewerbVerwaltungsaktVerbraucherkreditgesetzVerwaltungsgericht466

Appendix B: AbbreviationsVGHvizVOBVolVVGVwGOVwVGVwVfGWEGWiKGWiStGWoRKSchGWStGZEuPZPOZRHOZVGVerwaltungsgerichtshofnamely (‘videlicet’)Verdingungsordnung für BauleistungenVolumeVersicherungsvertragsgesetzVerwaltungsgerichtsordnungVerwaltungsvollstreckungsgesetzVerwaltungsverfahrensgesetzWohnungseigentumsgesetzGesetz zur Bekämpfung der WirtschaftskriminalitätWirtschaftsstrafgesetzWohnraumkündigungsschutzgesetzWehrstrafgesetzZeitschrift für Europâisches PrivatrechtZivilprozeßordnungRechtshilfeordnung in ZivilsachenGesetz über die Zwangsversteigerung und die Zwangsverwaltung467

APPENDIX CPARAGRAPH REGISTERLaw and paragraph (§) Translation (T) Where referred toAGBG1–11 Chapter X B 2 (e)1(i), 1st sentencechapter X B 2 (e)1(i), 2nd sentenceChapter X B 2 (e)1(ii)Chapter X B 2 (e)2 Chapter X B 2 (e)3 Chapter X B 2 (e)4 Chapter X B 2 (e)5 Chapter X B 2 (e)6(i)Chapter X B 2 (e)6(ii)Chapter X B 2 (e)6(iii)Chapter X B 2 (e)8 Chapter X B 2 (e)9–11 Chapter X B 2 (e)9 Chapter X B 2 (e)9(i)Chapter X B 2 (e)9(ii)Chapter X B 2 (e)9(ii) No 1Chapter X B 2 (e)9(ii) No 2Chapter X B 2 (e)10 Chapter X B 2 (e)11 Chapter X B 2 (e)11 No 7 Chapter X, Note 8711 No 8 Chapter X B 2 (e)11 No 10 Chapter X, Note 189 C11 No 10 (f) Chapter X, Note 9911 No 11 Chapter X B 2 (e)11 No 15 (a) Chapter X Note 126 I12 Chapter X B 2 (e)13–22 Chapter X B 2 (e)13 Chapter X B 2 (e)13(iv)Chapter XB 2 (e)20 Chapter X B 2 (e)21 Chapter X B (e)21, 1st sentence Chapter X B 2 (e)21, 2nd sentence Chapter X B 2 (e)22 Chapter X B 2 (e)Chapter X C, Exposé: ‘Fernabsatz’23–24 Chapter X B 2 (e)23(i)Chapter X B 2 (e)23(ii)Chapter X B 2 (e)24 Chapter X B 2 (e)24, 1st sentence Chapter X B 2 (e)24, 2nd sentence Chapter X B 2 (e)469

The German Legal System and Legal LanguageAktG1(i) Chapter XI A 11(i), 2nd sentence Chapter XI, Note 166 Chapter XII, Note 107 Chapter XII, Note 3510(i) Chapter XIX, Note 3515 ‘Unternehmensvertrag’18 ‘Unternehmensvertrag’23(i) 99, 21876–94 ‘Vorstand’278–290 ‘KG auf Aktien’291–292 ‘Unternehmensvertrag’ArbGG1 Chapter XXII, Note 392(i) No 1 Chapter XVIII, Note 525(i)Chapter XVIII, Note 2 (a)12a‘Kostenpflicht’12(vii)Chapter XXII D 8 (c)62 Chapter XXII D 8 (a)85 Chapter XXII D 8 (a)ArbStättVO53(i) 18753(ii) 187ASiG5 1876 187AVAG34(i) Chapter XXI, Note 13BBankG12-13 Chapter IV, Note 2BerHG4 Chapter XXII, Note 1108(ii) Chapter XXII, Note 110BerufsO3 Chapter XXII, Note 7111–18 Chapter XXII D 511 Chapter XXII D 5470

Appendix C: Paragraph Register12 Chapter XXII, D 513 Chapter XXII, Note 7616 Chapter XXII, Note 10117 Chapter XXII, Note 6918 Chapter XXII, Note 7519 Chapter XXII, D 521(i) Chapter XXII, Note 10122 Chapter XIII, Note 5523 Chapter XXII, Note 7025 Chapter XXII, D 7;29 Chapter XXII, D 5Chapter XXII, Note 7730 Chapter XXII, Note 7533 Chapter XXII, Note 7534 Chapter XXII, Note 77BetrVG 1952129(i) Chapter XVIII, Note 49BetrVG 19722(i) 1845(ii) Chapter XVIII, Note 235(iii) Chapter XVIII, Note 298 Chapter XVIII, Note 279 Chapter XVIII, Note 2874(i), 2nd sentence Chapter XVIII, Note 3274(ii), 1st sentence Chapter XVIII, Note 3374(ii), 2nd sentence Chapter XVIII, Note 3474(ii), 3rd sentence Chapter XVIII, Note 3576(ii) Chapter XVIII, Note 3876(v) 1st sentence Chapter XVIII, Note 3976(vi) Chapter XVIII, Note 3777 Chapter XVIII, Note 3677(iii) Chapter XVIII, Note 5281–86 Chapter XVIII, Note 4787 Chapter XVIII, Note 3987(i) Chapter XVIII, Note 4192–105 18399(i) Chapter XVIII, Note 4299(ii) Chapter XVIII, Note 42102(i) Chapter XVIII, Note 43102(ii) Chapter XVIII, Note 44102(iii) Chapter XVIII, Note 45102(v) Chapter XVIII, Note 46106–113 183111ff Chapter XVIII, B 4118(i) Chapter XVIII, Note 30130 Chapter XVIII, Note 24471

The German Legal System and Legal LanguageBeurkG5 Chapter X, Note 2568 Chapter XXII, Note 12013 Chapter X, Note 25616(ii) Chapter X, Note 25617–21 25436 Chapter XXII, Note 12139–43 Chapter XXII, E45 Chapter XXII, Note12147 ‘Ausfertigung’49(i)‘Ausfertigung’BGB1–89 271–240 272.T.366 Chapter XIII, Note 17 Chapter X B 127(ii) Chapter X B 128–11 Chapter X B 1212 T Chapter VIII, Note 20 C; Chapter X, Note 513 Chapter X, Exposé: ‘Fernabsatz’14 Chapter X, Exposé: ‘Fernabsatz’21–79 9721 Chapter XI, Note 1524 Chapter X, Note 7;Chapter XI A 525 9726–31 ‘Vorstand’26 Chapter XI A 626(ii) Chapter X, Note 2730 Chapter X, Note 222,‘Organ’31 97; Chapter X, Notes 222and 224; Chapter XI A 6,‘Organ’57–58 Chapter XI, A 554 Chapter XI, A 654, 1st sentence Chapter XI, A 654, 2nd sentence Chapter XI, A 680–88 Chapter II, Notes 1189(i) Chapter X, Notes 222 and 22490–103 2891 Chapter X, D 192 Chapter X D 193–94 Chapter X D 197 Chapter X D 199 Chapter X, Note 265100 Chapter X, Note 265104ff Chapter X, Note 166104–115 T 30472

Appendix C: Paragraph Register104–185 30104 T 30105 T 32, Chapter X, Note 245106 T 30107–113 T 30107 T 30108–110 T 30108(i) T 32108(ii) T 30, Chapter X Note 31109 T 30110 T 30116–118 T 30116–124 T 31, Chapter X, Notes 35 and 49116–144 T 30, 31116 T 32117 T 32118 T 32119–123. T Chapter X, Notes 47, 51,135 C119 T 32, 34, Chapter X, Notes 45,47,48 and 49;Chapter X F 3 (c) (iv) and 5 (a)119(i), 2nd alternative T Chapter X, Note 38119(ii). T 34, Chapter X, Note 47 D120 T 32, 34, Chapter X, Notes 45, 48 and 49121(i) T 34122 T 34123 T 32,34, Chapter X, Notes 48,58 C, 135 B and 245,Chapter X F 5 (a)124(i) T 34125–129 T 31125–127 T Chapter X, Note 56125 T 31, Chapter X,Note 35; Chapter X C 3 (g) Exposé (d)125, 1st sentence T 34126m T 34126(iii) Chapter X, Note 54126a Chapter X, Note 54126b Chapter X,Note 54127 T 34128 T 34129 T 34130–132 T 31130(i) T 32, Chapter X, Note 67131 T 32132 T Chapter X, Note 9133 T 31, ChapterX, Note44; ChapterX B 2 (e),Chapter X F 3 (c) (iii)134–138 T 31134 T 39, 37, 34, 31, Chapter X,Notes 35 and 209, Chapter X B 2 (e)135 T 74137 T 74473

The German Legal System and Legal Language138 T 31, 34, 37, 39, Chapter X, Notes 35 and 58138(i) T 34, Chapter X F 3 (c) (iv); Chapter X, Note 302138(ii) T Chapter X, Notes 58 and 245139–144 T 31139 T Chapter X B 2 (e); Chapter X, Note 245142 T Chapter X, Note 48142(i) T 32, 51, Chapter X F 3 (c) (iv); Chapter XVIII, Note 7143(i) T 41145–153. T Chapter X, Note 64145–157 T 30, 34145 T 35, Chapter X, Note 66146. T 35147 T 35148 T 35150 T 35151 T 35154–155. T ‘Einigungsmangel’154 T 34155 T 34, ‘Falsa démonstratio’157 T 32, ‘Treu und Glauben’, Chapter X, Note 47,Chapter X B 2 (e); Chapter XXII, Note 74158–163 30, 36158(ii). T 51, Chapter X, Note 245160 T 36161 T 36162 T 37, ‘Treu und G/auben’163 T 36, 51164–181 T 30164(i) Chapter XII, Note 60167(ii) Chapter X, Note 256Chapter XIII, Note 57170–173 Chapter XII, Note 57177ff Chapter XI B 2177(i) Chapter X Note 31177(ii) Chapter X, Note 31179 Chapter X, Note 31; Chapter XII B180 Chapter X, Note 31182–185 T 30185 T Chapter X, Note 243186–193 41186–240 41194–225 41194(i) 29, 42195–197 42195 T 42, Chapter X, Note 135 A196(i) No 1 42196(i) No 3 42196(i) No 4 42196(i) No 14 42196(i) No 15 42474

Appendix C: Paragraph Register196(ii) 42197 42198,1st sentence 43201,1st sentence 43202–207 43208–216 43217 43218(i)Chapter X B 4(b)222(i) 42222(ii) 43223(i) 44225 44226–231 T 42228 T Chapter X, Note 58 C; Chapter XVI, Note 31232–240 42241–242 T 46241–292 T 45241–304 45, 46241–432 44241–853 27, 44241 T 44,45, Chapter X, Note 126241aChapter X, Exposé: ‘Fernabsatz’242 T 37,42, 51,62,187, ‘Treu und Glauben’,Chapter X, Notes 47, 57, 75 and 135 D; Chapter X B 2 (e);Chapter X C 3 (g) Exposé (c); Chapter XXII, Note 74243–245 46243 T 46, Chapter X, Note 234243(i) T Chapter X, Note 116243(ii) T Chapter X, Note 116244–245 46246–248 T 46, ‘Zinsen’246 T Chapter XI, Note 59249ff T Chapter X, Notes 119 and 227249–255 T 46249 T 46250 T 46251 T 46252 T 46253 T 46, Chapter X, Notes 118 and 227254 T 46, Chapter X, Note 183, ‘Mitverschulden’255 T 46256–257 46258 46259–260 Chapter XII, D 8 (d)259–261 46259 Chapter XII, Note 96259(ii)‘Unterhalt’261 ‘Unterhalt’262–265 46266 46475

The German Legal System and Legal Language267–268 46269–270 46269(i) ‘Leistungsort’ Chapter X B 12270 ‘Leistungsort’, Chapter X, Note 116271–272 46271(i) Chapter X, Notes 98 and 124273–274 46, ‘Zurückbehaltungsrecht’275ff T 51275–283 T 46275–304 Chapter X, Note 126 E275(i) T Chapter X, Notes 116 and 126 F276 T 50,Chapter X, Notes 126 D and 219276(i) T 130; Chapter X, Note 126 H276(i), 3rd sentence T Chapter X, Note 5277 T Chapter XI B 1278 T Chapter X, Note 126 H and I;Chapter X, Note 135 A; Chapter X, Note 222;Chapter XXII, Note 74; ‘Erfüllungsgehilfe’279 T Chapter X, Note 116280 T Chapter X Note 126I280(ii) T 48282 T Chapter X, Notes 126I and 135 A;Chapter XIII, Note 10 4283 T Chapter X, Note 126I284–290 T 46284–285 T 46, Chapter X, Note 126 F284(ii) T Chapter X, Note 127284(III) Chapter X, Note 127285 T Chapter X Note 126 I286–290 T 46286 T 46286(i) T Chapter X Note 126 F286(ii) 279 48287 T 46288–290 T 46288 T Chapter X, Note 127; Chapter XI, Note 60291–292 47291 Chapter X, Note 128292 T 31293–299 47293–304 45300–304 47300(ii) Chapter X, Note 116305–319 T 47305–361 47305 T 47, 51, Chapter X, Notes 23, 106, 132, 159306–307 T 47306–309 T 47, Chapter X Note 126 E306 T Chapter X, Note 126 E476

Appendix C: Paragraph Register307–308 T 47308 T 47309 T 47310–312 47313 47, 216, Chapter X, Note 256314 47, ‘Zubehör’315-319 Chapter X Note 64315–316 T 47317–319 T 47320ff T Chapter X, Note 188320–327 T 47, Chapter X Note 126 E320 T 48,‘Zurückbehaltungsrecht’320(i) T Chapter X, Note 166321 T 48322 T 48323ff T 51, Chapter X, Note 166323–325 T 48, Chapter X,Note 106323(i) T Chapter X, Note 126 F324 T Chapter X, Note 126 G325 T Chapter X, Notes 126 G and 166326 T 48, 49, Chapter X Notes 106, 126 F and 166;‘Leistung’326(ii) T Chapter X, Note 126 F327 T 48, Chapter X, Note 126 F327,2nd sentence T 48328–335 T 45328 T 48329–332 48329 T 48330 48331 48332 48333–335 T 48333 T 48334 T 48335 T 48336–345 47336–338 48339–345 48343(i) Chapter XI, Note 61346ff 50, 51346–349 48346–356 Chapter X Note 126 F346–361 47, 48346 Chapter X, Note 138347 48347,1st sentence 48350–353 48, 50350 50351 49, 50352 50477

The German Legal System and Legal Language354–355 49356 49357–358 49357–361 49359 49360 49361 49361aChapter X, Exposé: ‘Fernabsatz’361bChapter X, Exposé: ‘Fernabsatz’362–371 50362–397 50362(i) 45, Chapter X, Note 114362–363 51364–365 51366–367 51368–370 51368–371 51371 51372–375 51372–386 50376–377 51378–379 52380–382 52383–386 52387–388 52387–396 50389 52390–395 52396 52397 50, 52398–413 52398 52,Chapter XIX B399–400 52401 52402–403 52404–411 52407 Chapter XIX, Note 31412 52413 52414–415 52414–419 52416 52417 52418 52419 52420–432 52420 52421 ‘Gesamtschuld’421ff 53422–425 53478

Appendix C: Paragraph Register427 53, Chapter XI B 3; Chapter XII B428–430 53431–432 53431 Chapter XI, B 3433ff Chapter X Note 234433–514 ‘Kauf’433–515 53, 54433–811 72433–853 44, 53433 54433(i) Chapter X, Note 185433(i), 1st sentence 44, 45434ffChapter X, Note 188Z434–438 Chapter X, Note 185434 54, ‘Gewährleistung’435–436 54437–438 54437 ‘Gewährleistung’439–443 Chapter X, Note 185439 54440–441 54440(i) 48442–444 54443 ‘Gewährleistung’445 54, Chapter X C 3 (g) Exposé (b)446–147 54, Chapter X Note 126 G; Chapter X C 3 (b) Exposé446 Chapter X Notes 126 G and 234447 ‘Leistungsort’448–450 54451 54452 54453 55454 55455 48, 55, 72, Chapter X Note 245456–458 55459–493 55459ff‘Fehler(haft)’, ‘Gewährleistung(srecht)’,Chapter X Note 126 D459 55, Chapter X, Note 189460 55, Chapter X, Note 189461 55462–465 55462 Chapter X Notes 116 and 189463 Chapter X, Note 189465–467 Chapter X, Note 166466 55467 48, 55, Chapter X Note 189468–471 55469–475 Chapter X, Note 166472 55473–475 55479

The German Legal System and Legal Language473 55474 55475 55476 55, Chapter X, Note 189476a 73477 55, Chapter X, Note 189477(i)Chapter X B 4 (c)478–479 55480 55, Chapter X, Notes 116 and 189481–492 55493 55494 55495–496 55497–503 55504–514 55, 77515 55516–534 53516–517 56516(i)‘Zuwendung’518–520 56518 216 Chapter X, Note 106521–524 56525–527 56528–534 56535–580a 56535–597 53, 56535–536 56535 Chapter X C 3 (g) Exposé536 Chapter X C 3(g) Exposé537–541 56537–538 Chapter X C 3 (g) Exposé537(i)Chapter X C 3 (g) Exposé537(ii) Chapter X, Note 202537(iii)Chapter X C 3 (g) Exposé538(i)Chapter X C 3 (g) Exposé538(ii)Chapter X, C 3 (g) Exposé539 Chapter X C 3 (g) Exposé541a–541b 56542–544 56, Chapter XVIII, Note 6542(i), 1st sentenceChapter X C 3 (g) Exposé542(i), 2nd sentenceChapter X C 3 (g) Exposé542(i), 3rd sentenceChapter X C 3 (g) Exposé542(ii)Chapter X C 3 (g) Exposé543,2nd sentenceChapter X C 3 (g) Exposé544 Chapter X C 3 (g) Exposé545 57545(i)Chapter X C 3 (g) Exposé545(ii)Chapter X C 3 (g) Exposé546 57547 Chapter X B 4 (c) 43, 57547a Chapter X B 4 (c), 43, 57480

Appendix C: Paragraph Register548 57, Chapter X C 3 (g) Expos é549 57550 57, Chapter X, Note 199550a 57550b 57551–552a 57553–554b 57, Chapter X C 3 (g) Exposé; Chapter XVIII, Note 6554aChapter X C 3 (g) Exposé554bChapter X C 3 (g) Exposé553 Chapter X, Note 199556 57556(i)Chapter X C 3 (g) Exposé556a-556c 57556a (i), 1st sentenceChapter X C 3 (g) Exposé556b (i) Chapter X, Note 280557 57558 Chapter X B 4 (c), 43, 55, 57559–563 57559 Chapter X, Note 280564–565 Chapter XVII, Note 6564 57564(i)Chapter X C 3 (g) Exposé564(ii)Chapter X C 3 (g) Exposé564a-564b 57, Chapter X, Note 203564a (i)Chapter X C 3 (g) Exposé564b (i)Chapter X C 3 (g) Exposé564b (iii)Chapter X C 3 (g) Exposé564b (vi)Chapter X C 3 (g) Exposé564b (vii)Chapter X C 3 (g) Exposé564c 57564c(i) Chapter X, Note 208564c(ii) Chapter X, Note 209565 57 Chapter X C 3 (g) Exposé565a 57565b-565e 57566 57, Chapter X C 3 (g) Exposé566, 2nd sentence Chapter X Note 204567 57568 57, Chapter X, Note 206569 57, Chapter XVIII, Note 6569a–569b 57570 57570a 57571–579 Chapter X C 3 (g) Exposé571–576 57571 Chapter X C 3 (g) Exposé571(i)Chapter X C 3 (g) Exposé571(ii), 1st sentenceChapter X C 3 (g) Exposé571(ii), 2nd sentenceChapter X C 3 (g) Exposé573–574 Chapter X C 3 (g) Exposé577 58481

The German Legal System and Legal Language578 58579 58580–580a 58580 Chapter X, C 3(g) Exposé581 Chapter X, C 3(g) Exposé581–584b 58582–584b Chapter X C 3 (g) Exposé584 Chapter XVIII, Note 6585–597 58594 Chapter XVIII, Note 6598–606 53598 59, Chapter X C 3 (g) Exposé599–600 59 Chapter X C 3 (g) Exposé601–604 64601 Chapter X C 3 (g) Exposé602 Chapter X C 3 (g) Exposé603(i) Chapter X, Note 199604(i)Chapter X C 3 (g) Exposé604(iii)Chapter X C 3 (g) Exposé605 64605 No 2 Chapter X, Note 199606 64, Chapter X Note 95607–610 53, 64607(i) Chapter X C 3 (g) Exposé; Chapter X Note 235609 Chapter XVIII, Note 6609(i)Chapter X C 3 (g) Exposé609(ii)Chapter XC 3 (g) Exposé609(iii)Chapter X C 3 (g) Exposé609aChapter X C 3 (g) Exposé,Chapter XVIII, Note 6610 Chapter X C 3 (g) Exposé611–630 53, 65, Chapter XVIII, Note 1611ff Chapter XVIII, Note 60611 65611a-611b 65611a-612a‘Benachtàligung’612 65612a 65613 65613a 65613a(iv) Chapter XVIII B 4614 65615–616 65617–619 65618(i) 125618(iii) Chapter XVIII, Note 62620 65621–622 65621 Chapter XVIII, Note 6622 181, Chapter XII E; Chapter XIII, Note 75622(i) 181482

Appendix C: Paragraph Register622(ii) 181622(iii) 182622(iv)-(vi) Chapter XVIII, Note 12623 65624 65625 65626–628 65626(i) 181626(ii) 181627 Chapter XVIII, Note 6627(i) 181629–630 65630 Chapter XVIII B631ff Chapter X Note 166631–651 ‘Herssteller’631–651k 53, 65631–632 65631 Chapter X, Notes 104 and 166631(i) Chapter X, Note 166631(ii) Chapter X, Notes 166632(i) Chapter X, Note 166632(ii) Chapter X, Note 166632a 66, Chapter X, Note 166633ff Chapter X, Note 234633 66, ‘Fehler(haft)’633(i) Chapter X, Note 166633(ii) Chapter X, Notes 166 and 189633(iii) Chapter X Note 166634ff‘Gewährleistung(srecht)’634–636 66634 Chapter X Note 166634(iv) 48635 Chapter X Note 166636(i) Chapter X Note 166637 66638–639 66638(i) Chapter X B 4 (c); Chapter X, Note 166639(ii) 43640–641 66640(i) Chapter X, Note 166640(ii) Chapter X, Note 166641(i) Chapter X, Note 166641a Chapter X, Note 166642–643 66644–646 Chapter X Note 126 G644 66, Chapter X Note 126 G645 66646 66, Chapter X Note 166647–648 66647 Chapter X, Note 280649 66, Chapter XVIII, Note 6483

The German Legal System and Legal Language650 66651 66, Chapter X, Notes 104 and 264, ‘Verschaffung’651(i) Chapter X, Note 234651(ii) Chapter X, Note 166651a-651lChapter X B 2 (e) (Group remedies)651a-651k Chapter X, Note 166651a–651b 66651c-651g 66651h 66651i 66651j 66651k 66652–656 53, 66652 Chapter XI, Note 41657–661 50, 66657 Chapter X, Note 106661aChapter X, Exposé:‘Fernabsatz’662–676 66662ff‘Beau/ftragte’662 66663 66664–668 66669–670 66671–674 66675(i) 67, Chapter X, Note 166675(ii) Chapter X C 3 (g) (Title 10)675a Chapter X C 3 (g) (Title 10)676 67676a-c Chapter X C 3 (g) (Title 10)676d-e Chapter X C 3 (g) (Title 10)676f–h Chapter X C 3 (g) (Title 10)676hChapter X, Exposé:‘Fernabsatz’677–687 53677 67678–679 67680 67681 67682 67683 67684 67685 67686 67687 67688–700 Chapter X, C 3 (g) Exposé, 73690 Chapter X, Note 210700(i)Chapter X, C 3 (g) Exposé700(ii) Chapter X, Note 211701–704 54704 Chapter X, Note 280705–740 54, 68, 105705ff Chapter XXII D 9484

Appendix C: Paragraph Register705 68,Chapter XI, Note 4706–707 68706(i)Chapter XI B708 68, Chapter XI B709–712 68709(i)Chapter XI B, Chapter XII D710 Chapter XI B714–715 68714 Chapter XI B716 68717 68718–720 68718(i) 98719(i) 98721–722 68723–729 68723–725 Chapter XVIII, Note 6725 Chapter XI, Note 12730–735 68730–740 Chapter XI, Note 52735 Chapter XXII, Note 115736–740 68741–758 54, 68741ff ‘Gemeinschaft nach Bruchteilen’, Chapter X, Note 267741 68, Chapter XI, Note 14742–743 68742–758 Chapter XI, Note 14744–746 68745 Chapter X F 4 (b)747–748 68747 98749–751 68749(i) Chapter XI A 2749(ii)–751 Chapter XI, Note 7752–754 68755–757 68758 68759–761 54, 68762–764 54, 68765–778 54, 68765–766 69765(i) Chapter X, Note 177766, 1st sentence Chapter X, Note 177767 69768 69769 69770–773 69771 ‘Selbstschuldnerische Bürgschaft’773(i)No 1‘selbstschukdnerische Bügschaft’774 69, Chapter X, Note 156775–777 69778 69485

The German Legal System and Legal Language779 54, 69, Chapter XXII, Note 96780–782 54, 69783–792 54, 69, Chapter XIX B783–786 69783 Chapter XIX, Note 36787–791 69792 69793–808a 54, 69, Chapter XIX B793–797 69793(i), 2nd sentenceChapter XIX B795 Chapter XIX, Note 33796 Chapter XIX, Note 33798–800 69799 Chapter XIX, Note 33801–802 69803–808a 69807 Chapter XIX B; Chapter XIX, Note 41808 Chapter XIX B; Chapter XIX, Note 41808(i), 1st sentence Chapter XIX, Note 41808(i), 2nd sentence Chapter XIX, Note 41809–811 54, 69812–822 54, 69812ff 50, ‘Leistung’, Chapter X, Notes 48 and 209;Chapter XIII, Note 174812 30, Chapter XIII D 8 (c) (v)812–813(i) 69812(i), 1st sentence, 1st alternative ‘Leistungskondiktion’, Chapter X, Note 245812(i), 1st sentence, 2nd alternative‘Nichtleistungskondiktion’813(ii)–815 69816 70, Chapter X, Note 243817, 1st sentence 70817, 2nd sentence 70818(i) 70818(ii) 70818(iii) 30,.70818(iv)–820 70818(iv) 30819(i) 30821 70822 70823–853 T54,.70 823ff T Chapter X, Note 126 D; Chapter XIII, Note 174823 T 70, Chapter VIII Note 7; Chapter X, Notes 126 J,219, 222, 224 and 254; Chapter XIII D 8 (c) (v)823(i) T ‘Widerrechtlich’, Chapter VIII, Note 20;Chapter X, Notes 219, 222, 224 and 266;Chapter XVI, Note 36823(ii) T Chapter VIII, Note 20 C; Chapter X, Note 219824–826 T 70824 T Chapter VIII, Note 20 E; Chapter X, Note 220825–826 T Chapter X, Note 220486

Appendix C: Paragraph Register826 T Chapter VIII, Notes 7 and 20; Chapter X,Notes 58 and 220; Chapter XIII, Note 15827–829 T 70827 T Chapter X, Note 5828 T Chapter X, Note 5830 T 70831 T 70, Chapter X, Notes 135, 222and 224; ‘Verrichtungsgehilfe’832 T 70833–834 T 70833 T Chapter X, Note 126 D836–838 T 70839 T 70 and ‘Amtspflicht’; Chapter X, Notes 220 and 224839(i) T ChapterX, Note 224839(i), 2nd sentence T Chapter X, Note 224839(ii), 1st sentence T Chapter XXII, Note 19839(ii), 2nd sentence T Chapter XXII, Note 19840–841 70842–846 T Chapter XVIII, Note 62842–843 T 70844–846 T 70844 T Chapter X, Note 226845 T Chapter X, Note 226847 T 70847 analogously T Chapter VIII, Note 20847(i) T Chaper X, Note 227848–851 T 70852–853 T 71852(i) T Chapter X B 4(c)854–872 71, 73854–1296 71858(i) Chapter X, Note 266859 Chapter X, Note 254861–862 Chapter X, Note 266861(i) Chapter X, Note 266862 ChapterX, Note 254862(i) Chapter X, Note 266868 Chapter X, Note 257873–878 74873–902 71, 73873 44, 71, 73873(ii) Chapter X, Note 256875 73877 73879–881 74883–888 74883(i) Chapter X, Note 256891–893 74891ffChapter X D 3(h)891 Chapter X D 3(b)892 Chapter X D 3 (b) and X F 5 (d)487

The German Legal System and Legal Language892(i), 1st sentenceChapter X D 3 (b)892(i), 2nd sentenceChapter X D 3 (b)893 Chapter X D 3 (b)894–899 74898 42900–902 74902 42903–924 74903–1011 74903 74904 Chapter X, Note 58; Chapter XVI, Note 32906(i)Chapter X D 3 (c) (i)906(ii)Chapter X D 3 (c) (i)907–924 Chapter X, Note 253910 Chapter X, Note 254925–928 44, 75925(i)75, ‘Auflassung’925(i), 1st sentence Chapter X, Note 256925(ii) Chapter X, Notes 245 and 256929–936 76929–984 44, 75929 76929, 1st sentence Chapter X, Note 256929, 2nd sentence 75930 76931 76932 76, Chapter X D 3 (b); Chapter X F 5 (a); Chapter XI, Note 62933 Chapter X, Note 261934 Chapter X, Note 261935 76935(ii)Chapter XIX B937–945 76937–984 76946–952 76947–948 Chapter XI A 2950 Chapter X, Note 264950(i), 1st sentence Chapter X, Note 264952 ChapterXIX B953–957 76956–957 ChapterX, Note 195958–964 76965–984 76985–1007 77985 77, Chapter X, Notes 245 and 266;Chapter XIIID 8 (c)(v)987ff 49, 50987–993 Chapter X, Note 266987–1003 Chapter X, Note 266989 31990 31994 Chapter X, Note 2661000 Chapter X, Note 266488

Appendix C: Paragraph Register1004 77, Chapter VIII, Note 7;Chapter X, Notes 254 and 266 D1004 analogously Chapter VIII, Note 20; Chapter XV, Note 151006 Chapter XIII, Note 10; Chapter XIX, Note 301008–1011 771008ff‘Miteientum nach Bruchteilen’1012–1017 771018–1029 771018–1093 771018–1203 711018–1296 711027 Chapter X, Note 2661030–1089 771090–1093 771094–1104 771105–1112 771113–1190 781113–1203 781113–1296 781113 Chapter X D 3(h)1115 Chapter X D (h)1116 Chapter X D (h)1116(ii)Chapter X D (h)1117(i)Chapter X D (h)1133–1135 Chapter X D (h)1137 Chapter X D (h)1138 Chapter X D (h)1141 Chapter X D (h)1142–1150 Chapter X D (h)1142–1143 Chapter X D (h)1147 Chapter X D (h)1153–1199 Chapter X D (h)1153 Chapter X D (h)1154 Chapter X D (h)1155 Chapter X D (h)1160(i)Chapter X D (h)1163 Chapter X D (h)1177 Chapter X D (h)1191–1203 781192 Chapter X D (h)1196 Chapter X D (h)1204–1258 801204–1296 801204(i) Chapter X, Note 2801205–1256 Chapter X, Note 2801227 Chapter X, Note 2801228ff Chapter X Note 2801250(i) Chapter X Note 2801252 Chapter X Note 2801257 Chapter X Note 2801273–1296 80489

The German Legal System and Legal Language1297–1302 801297–1588 801297–1921 801303–1322 801323–1322 801323–1347 801348–1362 801360 ‘Untehalt’1360a(iv)‘Unterhalt’1361 ‘Untehalt’1361(ii) Chapter XIII D 6 (b) 21361(iv), 4th sentenceChapter XIII D 6 (b) 2; ‘Unterhalt’1363ff Chapter XIII D 6 (b) 21363–1390 ‘Güterrecht’1363–1563 801363(i)‘Güterrecht’1365 1011371 Chapter X F 3 (a) and 4 (g)1371(i)Chapter X F 3 (a) and 4 (g)1371(ii)Chapter X F 3 (a) and 4 (g)1371(iii)Chapter X F 3 (a) and 4 (g)1372 Güterrecht1373 Chapter XIII D 6 (b) 21374–1375 Chapter XIII, Note 1551374(ii) Chapter XIII D 6 (b) 21375(ii) Chapter XIIID D 6 (b) 21375(iii) Chapter XIII D 6 (b) 21376 Chapter XIII, Note 1551376(i) Chapter XIII D 6 (b) 21376(ii) Chapter XIII D 6 (b) 21377(iii) Chapter XIII D 6 (b) 21378(i)‘Güterrecht’, Chapter XIII D 6 (b)1379 Chapter XIII D 6 (b) 21380(i) Chapter XIII D 6 (b) 21382 Chapter XIII D 6 (b) 21383 Chapter XIII D 6 (b) 21384 Chapter XIII D 6 (b) 21408–1518 ‘Güterrecht’1558–1563 ‘Güterrecht’1564–1568 Chapter X E1564–1587P 801565(i), 1st sentence Chapter XIII D 6 (b) 31565(i), 2nd sentence Chapter XIII D 6 (b) 3 and Note 1591565(ii) Chapter XIII D 6 (b) 31566(i) Chapter XIII D 6 (b) 31566(ii) Chapter XIII D 6 (b) 3 and Note 1591567 ‘Trennung’1568 Chapter XIII D 6 (b) 31569–1586 Chapter X E; ‘Unterhalt’1580 Chapter XIII D 6 (b) 2; ‘Unterhalt’1585b Chapter XIII, Note 1561585c Chapter XIII, Note 156490

Appendix C: Paragraph Register1587–1587p Chapter X E1588 811589–1590 811589–1772 811589 Chapter X F 3 (a)1591–1600o 81, Chapter X F 3 (a)1601–1615o 811601–1615 Unterhalt’1605 Chapter XIII D 6 (b) 2; Chapter XIII, Note 154; ‘Unterhalt’1613(i) Chapter XIII D 6 (b) 21614 Chapter XIII D 6 (b) 21615a–1615oUnterhalt’1616–1625 811626–1704 811629 301629(ii), 2nd sentence Chapter XIII, Note 1561631 Chapter XVI, Note 371643 311671(iii) Chapter XIII, Note 1581705–1718 811719–1740g 811741–1772 811773ff Chapter X, Note 345; Chapter XVI, Note 401773–1895 811773–1921 811821 311822 311837(i)Chapter X F 5 (b)1896–1908i 81, Chapter XIII, Note 11909–1921 81, ‘Pflegshaft’1915(i) Chapter X, Note 3451922–1941 811922–2385 811922 Chapter X F 4 (a)1922(i)Chapter X B 4 (c), ‘Tod’1923 Chapter X F 3 (a) (i)1924–1936 Chapter X F 3 (a) (i)1924–1929 Chapter X F 3 (a) (i)1924 Chapter X F 3 (a) (i)1924(iii)Chapter X F 3 (a) (i)1924(iv)Chapter X F (a) (i)1925 Chapter X F (a) (i)1925(iii)Chapter X F (a) (i)1926 Chapter X F (a) (i)1930 Chapter X F (a) (i)1931 Chapter X F 3 (a) (i) and 4 (g)1931(i)Chapter X F 3 (a) (ii)1931(ii)Chapter X F 3 (a) (ii)1931(iii)Chapter X F 3 (a) (ii)1931(iv)Chapter X F 3 (a) (ii)1933,1st sentence.Chapter X F 3 (a) (ii)491

The German Legal System and Legal Language1936 Chapter X F 3 (a)1937 Chapter X F 3 (b) and (c); Chapter X F 4 (c)1938 ‘Enterbung’ Chapter X F 4 (f)1939–1940 Chapter X F 4(h)1939 ‘Vermächtnis’ Chapter X F 4 (h)1940 Chapter X F 4 (h)1941 Chapter X F 3 (b) and (e), Chapter X F 4 (c)1942–2063 Chapter X F 3 (b) and (e), Chapter X F 4 (c)1942–1966 811942(i)Chapter X F 4 (a) and 5 (a)1943 Chapter X F 5 (a)1944(i)Chapter X F 5 (a)1944(ii)Chapter X F 5 (a)1944(iii)Chapter X F 5 (a)1949(i)Chapter X F 5(a)1953(i)Chapter X F 5 (a)1953(ii)Chapter X F 5 (a)1945(i)Chapter X F 5 (a)1954(ii)Chapter X F 5 (a)1954(iv)Chapter X F 5 (a)1955 Chapter X F 5 (a)1956 Chapter X, Notes 335 and 3381957(i)Chapter X F 5 (a)1959(i)Chapter X F 5 (a)1959(ii)Chapter X F 5 (a)1960(i)Chapter X F 5 (a)1960(ii)Chapter X F 5 (e)1964(i)Chapter X F 5 (e)1964(ii)Chapter X F 5 (e)1967–2017 Chapter X F 5 (b)1967(ii)Chapter X F 5 (b)1975 Chapter X F 5 (b)1978(i) Chapter X, Note 3321980(i)Chapter X F 5 (b)1981(i)Chapter X F 5 (b)1984(i)Chapter X F 5 (b)1985(i)Chapter X F 5 (b)1988(i)Chapter X F 5 (b)2018–2031 Chapter X F 5 (c)2032–2063 Chapter X F 4 (b)2033 Chapter X F 4 (b); Chapter X, Note 3112038 Chapter X F 4 (b)204(i)Chapter X F 4 (b)2042 Chapter X F 4 (b)2042(i)Chapter X F 4 (b)2044 Chapter X F 4 (b)2046 Chapter X F 4 (b)2047 Chapter X F 4 (b)2048 Chapter X F 4 (a) and (b)2050 Chapter X F 4 (b) and (g)2057aX F 4 (b) and (g)492

Appendix C: Paragraph Register2058–2063 Chapter X F 5 (b)2064–2273 812064–2086 Chapter X F 3 (c)2064 Chapter X F 3 (b)2065 Chapter X F 3 (b)2066–2077 Chapter X F 3 (c) (iii)2068 Chapter X F 4 (d)2069 Chapter X F 4 (d)2078(i)Chapter X F 3 (c) (iv)2078(ii)Chapter X F 3 (c) (iv)2078(iii)Chapter X F 3 (c) (iv)2079 Chapter X F 3 (c) (iv)2081(i)Chapter X F 3 (c) (iv)2082 Chapter X F 3 (c) (iv)2084 Chapter X F 3 (c)2087–2099 Chapter X F 4 (c)2087 Chapter X, Note 299; Chapter X F 4 (c)2088 Chapter X F 4 (c)2094 Chapter X F 4 (c)2096–2099 Chapter X F 4 (d)2096 Chapter X F 4 (d)2100–2146 Chapter X F 4 (e)2100 Chapter X F 4 (e)2104–2105 Chapter X F 4 (e)2106(i)Chapter X F 4 (e)2108(i)Chapter X F 4 (e)2109(i)Chapter X F 4 (e)2112 Chapter X F 4 (e)2113–2115 Chapter X F 4 (e)2113(iii)Chapter X F 4 (e)2130(i)Chapter X F 4 (e)2131 Chapter X F 4 (e)2132 Chapter X F 4 (e)2137(i)Chapter X F 4 (e)2137(ii)Capter X F 4 (e)2139 Chapter X F 4 (e)2147–2196 Chapter X F 4 (e)2147–2191 ‘Vermächtnis’2147 Chapter X F 4 (h)2150 Chapter X F 4 (h)2156 Chapter X, Note 2912160 Chapter X F 4 (h)2162 Chapter X F 4 (h)2169(i)Chapter X F 4 (h)2170 Chapter X F 4 (h)2174 Chapter X F 4 (h)2176 Chapter X F 4 (h)2177 Chapter X F 4 (h)2180(i)Chapter X F 4 (h)2194 Chapter X F 4 (h)2197–2228 Chapter X F 4 (i)493

The German Legal System and Legal Language2204 Chapter X F 4 (b)2205 Chapter X F 4 (b)2229–2264 Chapter X F 4 (c)2229(i)Chapter X F 3 (c) (i)2229(iv)Chapter X F 3 (c) (i)2231–2248 Chapter X F 3 (c) (i)2232 84, Chapter X F 3 (c) (i)2249–2252 Chapter X F 3 (c) (i)2247(i)Chapter X F 3 (c) (i)2253 Chapter X F 3 (c) (ii)2254 Chapter X F 3 (c) (ii)2255,1st sentenceChapter X F 3 (c) (ii)2256(i)Chapter X F 3 (c) (ii)2258(i)Chapter X F 3 (c) (ii)2258(ii)Chapter X F 3 (c) (ii)2259(i)Chapter X F 3 (c) (e)2259(ii)Chapter X F 3 (c) (e)2260(i)Chapter X F 3 (c) (e)2260(iii)Chapter X F 3 (c) (e)2265–273 Chapter X F 3 (d)2265 Chapter X F 3 (d)2267 Chapter X F 3 (d)2269 Chapter X F 3 (d)2270(i)Chapter X F 3 (d)2270(ii)Chapter X F 3 (d)2271(i)Chapter X F 3 (d)2271(ii)Chapter X F 3 (d)2274–2302 81, 87, Chapter X F 3 (e)2274 Chapter X F 3 (b)2276 2182276(i)Chapter X F 3 (e)2278 Chapter X F 3 (e)2279 Chapter X F 3 (e)2286 Chapter X F 3 (e)2287 Chapter X F 3 (e)2288(i)Chapter X F 3 (e)2289 Chapter X F 3 (e)2299 Chapter X F 3 (e)2301 2182302 Chapter X F 3 (b)2303–2338 81, Chapter X F 4 (g)2303(ii)Chapter X F 4 (ii)2305 Chapter X F 4 (g)2307(i)Chapter X F 3 (a) (ii) and 4 (g)2311(i)Chapter X F 4 (g)2314(i)Chapter X F 4 (g)2316 Chapter X F 4 (g)2317 Chapter X F 4 (g)2325 Chapter X F 4 (g)2327 Chapter X F 4 (g)494

Appendix C: Paragraph Register2330 Chapter X F 4 (g)2332(i)Chapter X B 4 (c); Chapter X F 4 (g)2333–2336 ‘Enterbung’2333–2335 Chapter X F 4 (g)2336 Chapter X F 4 (g)2337 Chapter X F 4 (g)2339–2345 81 Chapter X F 4 (f)2339 Chapter X F 4 (g)2340–2342 Chapter X F 4 (f)2344 Chapter X F 4 (f)2345 Chapter X F 4 (f)2346–2352 81, Chapter X F 4 (f)2353–2370 81, Chapter X F 5 (d)2353 Chapter X F 5 (d)2356(ii) 2182359 Chapter X F 5 (d)236 Chapter X F 5 (d)2362(i)Chapter X F 5 (d)2363 Chapter X F 5 (d)2364 Chapter X F 5 (d)2365 Chapter X F 5 (d)2366 Chapter X F 5 (d)2368 Chapter X, Note 3422371–2385 812371 Chapter X, Note 311BNotO1 Chapter XXII, Note 1184 Chapter XXII, Note 1195 Chapter XXII, Note 12012 Chapter XXII, Note 11814 Chapter XXII, Note 12019 Chapter XXII, Note 12320–22 Chapter XXII, Note 12220–24 21825 Chapter XXII, Note 12165–91 Chapter XXII, Note 124BRAGO3(i) Chapter XXII, Note 1003(ii) Chapter XXII, Note 1023(v) Chapter XXII, Note 1017(i) Chapter XXII, Note 908(i), 1st sentence Chapter XXII, Note 918(i), 3rd sentence. Chapter XXII, Note 928(ii) Chapter XXII, Note 928(ii), 2nd sentenceChapter XXII D 8 (a)11(i) 214, 21511(i),2nd sentence Chapter XXII Note 105495

The German Legal System and Legal Language11(i), 3rd sentence Chapter XXII, Note 10512(i) Chapter XXII, Note 10913(i) Chapter XXII, Notes 101 and 10413(ii) Chapter XXII, Notes 10413(v) Chapter XXII, Note 10116 Chapter XXII, Note 10418 Chapter XXII, Note 10419 Chapter XXII, Note 2219(i) Chapter XXII, Note 10320(i) Chapter XXII, Note 10621 Chapter XXII, Note 10823(i) Chapter XXII, Note 9625–30 Chapter XXII, Note 10431(i) Chapter XXII, Note 9352 Chapter XXII, Note 5483–108 Chapter XXII, Note 9997(i) Chapter XXII, Note 10099 Chapter XXII, Note 100114(i) Chapter XXII, Note 97116 Chapter XXII, Note 99118(i) Chapter XXII, Note 94118(ii) Chapter XXII, Note 94119(i) Chapter XXII, Note 98119(ii) Chapter XXII, Note 98120(i) Chapter XXII, Note 107123 Chapter XXII, Note 111132 Chapter XXII, Note 110BRAO1–3 208, Chapter XXII, Note 541 2082 Chapter XXII, Note 532(ii) Chapter XXII, Note 23(i) Chapter XXII, Note 543(iii) Chapter XXII, Note 554–42 2084 2085 Chapter XXII, Note 577 Chapter XXII, Note 597 Nos 1–6 Chapter XXII, Note 597 No 7 Chapter XXII, Note 597 No 8 Chapter XXII, Note 5914 Chapter XXII, Note 5918(i) Chapter XXII, Note 5919(i) Chapter XXII, Note 5925 Chapter XXII, Note 6127(i) Chapter XXII, Note 6043–59b 208, 20943 209496

Appendix C: Paragraph Register43a Chapter XXII D 543b Chapter XXII D 543c Chapter XXIID 544 Chapter XXII, Note 6545 Chapter XXII, Note 6645(i) No 4 Chapter XXII, Note 6645(ii) No 2 Chapter XXII, Note 6646 Chapter XXII, Note 6749(i) Chapter XVII C; Chapter XXII, Note 6849b(i) Chapter XXII, Notes 100 and 10149b(ii) ‘Quota litis’, Chapter XXII, Note 10150(i) Chapter XXII, Note 6950(ii) Chapter XXII, Note 6951 Chapter XXII, Note 7051a(i) Chapter XXIID 951a(ii), 2nd sentence Chapter XXII D 951a(ii), 3rd sentence Chapter XXII D 959 c-m Chapter XXII, Note 11660–91 20860(i) Chapter XXII, Note 8062(ii) Chapter XXII, Note 8163 Chapter XXII, Note 8273(ii) Chapter XXII, Note 8774 Chapter XXII, Note 8774a Chapter XXII, Note 8778 Chapter XXII, Note 8292–161a 208113(ii) Chapter XXIID 7114 Chapter XXII, Note 89115,1st sentence Chapter XXII D 7115b Chapter XXIID 7118(i) Chapter XXIID 7118(ii) Chapter XXIID 7123(i) Chapter XXII, Note 88135 Chapter XXIID 7150 Chapter XXII, Note 89162–174 208172(i) Chapter XXII, Note 63174 Chapter XXII, Note 83175–176 Chapter XXII, Note 84175–191 208179 Chapter XXII, Note 85187 Chapter XXII, Note 85226 Chapter XXII Note 62BtMG29 Chapter XXII Note 3830 Chapter XXII Note 38497

The German Legal System and Legal LanguageBVerfGG1(i) 95 Chapter VII, Note 1613 1831(i) 1831(ii) 19, Chapter VII, Note 1832 Chapter VII, Note 1064(i) Chapter VII, Note 1978 1879(i) 1882(i) 1890(i) 1990(ii) 1990(11), 2nd sentence Chapter VII, Note 1493(i) 1993(iii) 1993a(ii) Chapter VII, Note 1695 19BVwVG6(ii) Chapter XXIII, Note 569(ii) Chapter XXIII, Note 5713(ii) Chapter XXIII, Note 5713(iii) Chapter XXIII, Note 57DRiG1–45a 2031 Chapter XXII, Note 33 Chapter XXII, Note 135(i) Chapter XXII, Note 117 Chapter XXII, Note 129 Chapter XXII, Note 1110–13 Chapter XXII, Note 1419 Chapter XXII, Note 1725 Chapter XXII, Note 1726(ii) Chapter XXII Note 1928(ii) Chapter XXII, Note 830 Chapter XXII, Note 1844(i) Chapter XXII, Note 544(ii) Chapter XXII, Note 745 Chapter XXII, Note 745a Chapter XXII, Note 446–70 20361 Chapter XXII, Note 1971–84 20377 Chapter XXII, Note 1985–126 203498

Appendix C: Paragraph RegisterEFZG3(i) Chapter XVIII, Note 133(iii) Chapter XVIII, Note 135(i), 1st sentence Chapter XVIII, Note 135(i), 2nd sentence Chapter XVIII, Note 13EGBGBArticle(s)3–38 1953–6 1953(i), 1st sentence 1953(i), 2nd sentence 1963(ii) 1953(iii) Chapter XX, Note 64(i) 1964(i), 2nd sentence Chapter XX, Note 75(i), 2nd sentenceChapter XX C6 Chapter XXIII, Note 148; Chapter XX, Notes 6 and 147–10 Chapter XX C7–12 1957 Chapter XIII, Note14811 Chapter XX Notes 2 and 1911(i) Chapter XX Note 1913–24 19514(i)Chapter XX C15(i)Chapter XX C18(i) 19625–26 19527–38 19527(i), 1st sentence 19727(i), 2nd sentence 19727(iii) 19728(i), 1st sentence 19728(ii), 1st sentence 19729 19729aChapter X Expose: ‘Fernabsatz’30(ii) 19731(i) 19831(ii) 19832(i) 19732(ii) 19834 Chapter IX, Note 635(i) 19838 19840 Chapter XX, Note 24 A220(i) 195499

The German Legal System and Legal LanguageEGGVG8 Chapter XXII, Note 3623–30 Chapter XV, Note 231–38 Chapter XVII, Note 31EG-Vertrag (EC Treaty)Article(s)39–55 Vrekehr’65 Chapter XXI, Note 5234 Chapter XIII, Note 71EuGVÜ (Brussels Convention)Article(s)5 No 1 Chapter XIII, Note 28 C; Chapter XXII, Note 745 No 3 Chapter XX, Note 255 No 5 Chapter XIII, Note 28 C17(i), 2nd sentence Chapter XXII, Note 7421–23 Chapter XIII, Notes 28 C and 10125–49 Chapter XXI, Note 426 Chapter XIII, Note 17127 Chapter XIII, Note 17128 Chapter XIII, Note 17131ff Chapter XIII, Note 17152 Chapter XIII, Note 28D53 Chapter XIII, Note 28D56 Chapter XIII, Note 171EuMRKArticle(s)6 Chapter VIII,Note 18; Chapter XVII, Note 66(iii)a Chapter VIII, Note 186(iii)d Chapter XVII, Note 296(iii)e Chapter XVII, Note 297(ii) Chapter XVI, Note 414 Chapter VII, Note 18EVÜ (Rome Convention)Article(s)3 Chapter XX, Note 133(iii) Chapter XX, Note 144 Chapter XX, Note 155 Chapter XX, Note 166 Chapter XX, Note 178 Chapter XX, Note 209 Chapter XX, Note 1910 Chapter XX, Note 18500

Appendix C: Paragraph RegisterFamRÄndGArticle(s)7 Chapter XIII, Note 148FGG16a Chapter XIII, Note 14819–30 Chapter XIII, Note 14035 Chapter XIII, Note 3236 Chapter XIII, D 6 (b) 245 Chapter XIII, D 6 (b) 249–64 Chapter XIII, Note 15372 Chapter XIII, Note 3173(i)Chapter X F 5 (d)125 Chapter XIII, Note 31GBO1 Chapter XIII, Note 31GenG1(i) Chapter XI, Note 510 Chapter XI, Note 524–35 ‘Vorstand’GewO1 Chapter XIX, B24–34c Chapter XIX, Note 18105–139m Chapter XVIII, Note 2 (a)120a 186120d 186120e 187147(i) No 1 Chapter XVIII, Note 58147(iv) Chapter XVIII, Note 59GGArticle(s)1–3 T Chapter VIII, Note 161–17 T 22, Chapter VIII, Note 361–18 T211–19 T 211 T Chapter VIII, Note 71(i) T 22, Chapter VIII, Note 201(iii) T 212 T Chapter VIII, Note 72(i) T 22, Chapter VIII, Notes 4 and 20,Chapter X, Note 23; Chapter XIII, Note 692(ii), 1st sentence T 22501

The German Legal System and Legal Language2(ii), 2nd sentence T 22, Chapter VIII, Note 363(i) T 22, Chapter VIII, Notes 6 and 22, ‘Gleichheit’3(ii) T 22, Chapter VIII, Note 23, ‘Gleichberechtigung’3(iii) T 22, Chapter VIII, Note 184(i) T 22, Chapter VIII, Note 4, ‘Gewissen’4(iii) T 225 T Chapter VIII, Note 75(i) T 23, Chapter VIII, Note 265(ii) T Chapter VIII, Note 45(iii) T 23, Chapter VIII, Note 46–14 T Chapter VIII, Note 166 T 237 T 238 T Chapter VIII, Note 78(i) T 21, 23, Chapter VIII, Note 48(ii) T Chapter VIII, Note 49(i) T 21,239(ii) T Chapter9(iii) T 23, ‘Koalitionsfreiheit’10(i) T 23,‘Fernmeldegeheimnis’11(i) T 21, 23, ‘Freizügigkeit’12(i) T 21, 23, Chapter VII, Note 18; Chapter XXII, Note 59123 T Chapter VIII, Note 2513(i) T 2313(ii) T Chapter XIII D 8 (c) (v); Chapter XXII, Note 2614 T 75, Chapter X, Notes 251 and 25214(i) T 23,‘Eigentum’, ‘Erbrecht’14(i), 1st sentence T Chapter X F 214(ii) T 75, ‘Eigentum’, ‘Erbrecht’14(iii) T Enteignung’, Chapter VII, Note 1815–19 T Chapter VIII, Note 1616 T 2316(i) T ‘Ausbürgerung’16(ii) T ‘Auslieferung’16a T ‘Asylrecht’17 T 2318 T 819(i) T 21, Chapter VIII, Note 1319(ii) T 22, Chapter VIII, Note 1319(iv) T 6, 22, ‘Rechtsschutzgarantie’, Chapter VIII, Note 17,Chapter XIII, Note 6920–37 T 1720 T Chapter II, Note 18; Chapter VII, Note 2;Chapter VIII, Note 220(i) T 620(ii) T 620(iii) T 6, 22, 117, 16020(iv) T 18, Chapter VIII, Note 3621 T Chapter II, Notes 26 and 30; Chapter VII, Note 221(ii) T 1822 T Chapter VII, Note 2502

Appendix C: Paragraph Register23 T Chapter I, Note 13; Chapter II, Notes 3 and 31;Chapter VII, Note 1623–27 T Chapter II, Note 3124 T Chapter II, Note 325 T Chapter II, H28 T Chapter II, Note 3128–31 T Chapter II, Note 1828(i) T Chapter II, Note 228(i), 1st sentence T 1328(i), 2nd sentence T 1328(ii) T 1529 T Chapter II, Note 2029(vii) T Chapter II, H30 T 14, Chapter II, Note 331 T 5, 21, 157, ‘Bundesrecht bricht Landesrecht’,Chapter II, Note 732 T Chapter VII, Note 232(i) T Chapter II H32(iii) T Chapter II H33 T 18, Chapter VII, Note 234–36 T Chapter VII, Note 234 T Chapter X, Note 224; Chapter XXII, Note 1935(i) T Chapter XII, Note 135(ii)–(iii) T Chapter XII, Note 137 T Chapter II, Note 2; Chapter VII, Note 238–48 1738–69 9, 1738 T 1843(ii) Chapter III, Note 350–53 Chapter III, Note 350 1751 Chapter III, Note 453 1753a 954 Chapter III, Note 454–61 1759(i)Chapter II H59(ii)Chapter II H62–69 1762 970ff Chapter II, Note 370–78 T Chapter II, Note 7; Chapter VII, Note 370–82 Chapter XII, Note 170 5, ChapterV, Note 671 572 573 No 9 Chapter XIX, Note 174 No 11 Chapter XIX, Note 174 No 16 Chapter XIX, Note 175 576–78 Chapter III, Note 3503

The German Legal System and Legal Language77 ‘Zustimmungesgestz’77(ii)‘Vermittlungsausschuß’77(iii)‘Einspruchsgesetz’79 T Chapter VII, Note 379(iii) T 6 Chapter II, Note 1880(i) T Chapter VIII, Note 1580(ii)‘Zustimmungsgesetz’80a–81 T Chapter VII, Note 382 T Chapter VII, Note 383ff Chapter II, Note 383–91 1783 14, 15784 1484(i)‘Zustimmungsgesetz’85 Chapter V, Note 786 15787ffChapter XIV, A87(iii) 1187a–b Chapter XIV, Note 187bChapter XIV A87dChapter XIV A87eChapter XIV A89 Chapter XIV A91a–91b Chapter VII, Note 692ff Chapter II, Note 392–104 T 1792 T 6, Chapter VII, Note 493–94 T Chapter VII, Note 493 T 18, Chapter III, Note 5; Chapter VII, Note 15;Chapter XXII, Note 1693(i) No 1 T 1993(i)No2 T 1893(i) No 3 T 1993(i) No 4a T 22, Chapter VIII, Note 1793(i)No 4b T 1994(i) T Chapter XXII, Note 1695–96 T Chapter VII, Note 495 T ‘Bundesrichter’95(i) T Chapter XXII, Notes 31 and 3995(ii) T Chapter XXII, Note 1596(i) T Chapter XXII, Note 4096(iv) T Chapter XXII, Note 4097–98 T Chapter VII, Note497(i) T 17, 117, Chapter XXII, Note 1798 T Chapter XXII, Note 299–100 T Chapter VII, Note 4100(i) T 18, Chapter XIII, Note 71100(ii) T Chapter II, Note 35100(iii) T Chapter XIII, Note 19101 T 18, Chapter VII, Note 4101(i) T 6, 119, 206, ‘Gesetzlicher Richter’504

Appendix C: Paragraph Register101(i), 2nd sentence T 203, Chapter VIII, Note 36101(ii) T 206, Chapter XXII, Note 38102–103 T Chapter VII, Note 4103 T 18103(i) T 6, 115, Chapter VIII, Notes 18 and 36,Chapter XIII D 2 (c)(vi)103(ii) T 167, Chapter VIII, Note 36;Chapter XVI, Note 3; ‘Rückwirkung’103(iii) T Chapter VIII, Note 36; Chapter XVI, Note 5104 T 18, Chapter VII, Note 4104(i) Chapter VIII, Note 36104(ii) T 178104(iii) T 178104(iii), 2nd sentence T 178104a–115 17104a (iv) Chapter V, Note 6108 Chapter XIV, A115a–115l Chapter VII, Note 6116–146 17142 21GKG11(i) Chapter XXII, Note 9111(ii) 214, Chapter XXII, Note 9112–34 119, 21365(i) 12965(vii) Chapter XIII, Note 91GmbHG2 Chapter XI A 5; Chapter XII B 12(i) 2184(ii) Chapter XIII, Note 574a(ii) Chapter XI, Note 205 Chapter XII, B 35(i)Chapter XII C5(iii)Chapter XIIC6(i)Chapter XII, E6(ii), 1st sentenceChapter XII E6(ii), 2nd and 3rd sentenosChapter XII E6(iii)Chapter XII E6(iii), 2nd sentenceChapter XII E7(ii)Chapter XII C9 Chapter XII B 311(i)Chapter XII B11(ii) Chapter XI, Note 22; Chapter XII B 213(i)Chapter XII D13(ii) Chapter XI, Note 1614 Chapter XII C15(iii)Chapter XII C505

The German Legal System and Legal Language15(iv)Chapter XII C15(v)Chapter XII C17(i)Chapter XII C17(ii)Chapter XII C30(i)Chapter XII C35 Chapter X, Note 27; Chapter XII E36 Chapter XII E37(i)Chapter XII E37(ii)Chapter XI, Note 25; Chapter XII E38(ii) Chapter XII, Note 1340(i)Chapter XII E43(ii)Obliegenheit’46 Chapter XII D47(i)Chapter XII DGVG12 Chapter XXII, Note 3513 616, 1st sentence 20622(iv)Chapter XIII D 1 (e)23 No 1 Chapter XIII D 1 (e)23 No 2a Chapter XIII D 1 (e)23aChapter XIII D 1 (e)23b 162, ‘Familiensache’, Chapter XIII, Note 31,Chapter XXII, Note 7324 Chapter XVII, Note 424(i) Chapter XXII, Note 3724(ii) Chapter XXII, Note 3725 Chapter XIII D 1 (e); Chapter XVII, Note 4,Chapter XXII, Note 3728 Chapter XVII, Note 4; Chapter XXII, Note 3729(i) Chapter XXII, Note 3730 Chapter XXII, Note 936 Chapter XXII, Note 671(i) 11971(ii) No 2Chapter XIII D1 (e)72 136, 13873–74 Chapter XVII, Note473(i) Chapter XXII, Note 3774(i), 1st sentence Chapter XXII, Note 3774(i), 2nd sentence Chapter XXII, Note 3774(ii) Chapter XIII, Note 133; Chapter XXII, Note 3774(iii) Chapter XXII, Note 3774a Chapter XXII, Note 3774c Chapter XXII, Note 3776(i) Chapter XXII, Note 3795 119108 Chapter XXII, Note 6112 Chapter XXII, Note 9119 120, 138506

Appendix C: Paragraph Register119(i) 136120–121 Chapter XVII, Note 4120 Chapter XIII, Note 133, Chapter XXII, Note 37121 Chapter XIII, Note 133132 Chapter XIII, Note 19133 120, 138135 Chapter XIII, Note 133; Chapter XVII, Note 4136-138 Chapter XIII, Note 19141-152 Chapter XVII, Note 4150 Chapter XVII, Note 15152 Chapter XVII, Note 22156 Chapter XXI, Note 1158(i) Chapter XXI, Note 1162-163 Chapter XXI, Note 1166 Chapter XXI, Note 1167 Chapter XXI, Note 1169 116, Chapter XIII, Note 136; Chapter XXII, Note34169, 2nd sentence Chapter XIII, Note 8170 Chapter XIII, Note 31184 Chapter VIII, Note 18185 Chapter VIII, Note 18HGB1–7 1011–104 100, 1011(i) Chapter XI, Note 311(ii) 101, Chapter XI, Note 311(ii) No 6 1041(ii) No 7 1042 101, Chapter XI, Note 314 Chapter XI, Note 314(i) 1016 1018–16 1018–37 1018 10410 Chapter XI, Note 3213 Chapter X, Note 713a–c Chapter X, Note 715 Chapter XI, Note 3215(i) Chapter XI, Note 3215(ii) Chapter XI, Note 3215(iii) Chapter XI, Note 3217–37 10117 10129 101, Chapter X, Note 7Chapter XI, Note 48; ‘Sitz’31 Chapter XI, Note 4848–58 10148–83 101507

The German Legal System and Legal Language49(i) 10149(ii) Chapter XI, Note 3450(i) 10151 Chapter XI, Note 3553(i) 10154 10254(iii)Chapter XI C 2 (c)56 Chapter XI C 2 (c)57 Chapter XI, Note 3659–83 101, 102, Chapter XVIII, Note 2 (a)59 10260(i)Chapter XI C 2 (d)61(i)Chapter XI C 2 (d)61(ii)Chapter XI C 2 (d)62 Chapter XVIII, Note 6174ffChapterXI C 2 (d)74 Chapter XI C 2 (d)74a (i)Chapter XI C 2 (d)74(b) (ii)Chapter XI C 2 (d)74c (i)Chapter XI C 2 (d)75 Chapter XI C 2 (d)75aChapter XI C 2 (d)75h Chapter X, Note 3184–92c 10184–104 10484(i) 10487 10491a Chapter X, Note 3193–104 10193 104105–108 104105–160 97, 104105–177 97105–237 100, 104105(i) 98, 104105(ii) 97, 105, Chapter XI, Note 51106(i) 105, Chapter X, Note 7107 105109–122 104, 105109 105110–111 105110–122 105112–113 105114–117 105115(i)100, 105, Chapter XI B115(ii) 105116 105116(i)100, Chapter XI B116(ii) 105118 105119 105508

Appendix C: Paragraph Register119(i)Chapter XII D120–122 105123–130b 104, 105123 105123(i) 106123(ii) 106124 105, Chapter XXII D 9124(i)106, Chapter XI C 3 (b) (iv)125–125a 106125(i)100, Chapter XI B126 105, 106127 106128–129a 106128 100, Chapter XI B129(iv) Chapter XI, Note 50130 106130a–130b 106131–144 104, 106131 106133 106133(i) 106133(ii) 106138 106139 106140 106143 106145–158 104, 107145(i) 107146–155 107157(i) 107159–160 104, 107159 107161–177a 197, 104, 107, ‘Kommanditgesellschaft’161 107161(i) 98161(ii) 97162 107163–169 107170 107171–176 107177 107177a 107230–237 104, 107238–263 107238–339 100, 107264–335 108336–339 108343–460 100, 108343 Chapter X B 2 (e)343(i) 108344(i) 106509

The German Legal System and Legal Language344(ii) 106, Chapter XI, Note 56345 108346 108, Chapter X B 2 (e)347(i) 108348 108349 108350 108, Chapter X, Note 177352(i) 108353 108362 Chapter X, Note 71363 Chapter XI, Note 56; Chapter XIX, Note 34366(i) 108369–372 108373–382 109376(i) Chapter X, Note 139377(i) 109377(ii) 109378 Chapter X, Note 68383–406 109383 104396 104407–415 107410 Chapter X, Note 280416–424 109425–452 109440 Chapter X, Note 280453–460 109476–905 100InsO2 Chapter XIII, Note 3280(i) Chapter XVIII B 481(i)Chapter X D 2 (v)113(i) Chapter XVIII B 4JGG2 Chapter XVI, Note 403 Chapter XVI, Note 405(ii) Chapter XVI, Note 4033 Chapter XVI, Note 4036 Chapter XVI, Note 4039–41 Chapter XVI, Note 4043 Chapter XVI, Note 4045(ii) Chapter XVI, Note 40KostO18 Chapter XXII, Note 9232 214140–157 Chapter XXII, Note 125510

Appendix C: Paragraph RegisterKSchG1(i) 1821(ii), 1st sentence Chapter XVIII, Note 141(ii), 4th sentence Chapter XVIII, Note 141(iii) Chapter XVIII, Note 153 Chapter XVIII, Note 164(i) 1825(i) Chapter XVIII, Note 177 Chapter XVIII, Note 189 Chapter XVIII, Note 1910 Chapter XVIII, Note 1913(i) Chapter XVIII, Note 1814(i) Chapter XVIII, Note 223(i) Chapter XVIII, Note 1322ffKUGMHRGChapter VIII, Note 20 C1 X C3 (g) ExposéOWiG41(i) Chapter XVI, Note 946(i) Chapter XVI, Note 946(ii) Chapter XVI, Note 947(i) Chapter XVI, Note 953 Chapter XVII, Note 956 Chapter XVI, Note 967(i) Chapter XVI, Note 968(i) ChapterXVI, Note 9PartGG1 Chapter XXII D 92 Chapter XXIID 93 Chapter XXII D 94 Chapter XXII D 95 Chapter XXII D 96 Chapter XXII D 96(ii) Chapter XXII D 97 Chapter XXIID 97(i) Chapter XXII D 97(ii) Chapter XXII D 97(iii) Chapter XXII D 98 Chapter XXII D 98(i) Chapter XXII D 98(ii) Chapter XXII D 9511

The German Legal System and Legal Language9 Chapter XXII D 910 Chapter XXII D 9ProdHaftG1 Chapter X Note 126 J1(iv)Chapter X Note 126 J3 Chapter X Note 126 J3(ii)Chapter X Note 126 J6(i)Chapter X Note 126 J11 Chapter X Note 126 J12 Chapter X Note 126 J13 Chapter X Note 126 J15(ii)Chapter X Note 126 JRichterwahlgesetz1 Chapter XXII, Note 15RPflG3 2044(ii) Chapter XXII, Note 255(i) Chapter XXII, Note 278(i) Chapter XXII, Note 278(iv) Chapter XXII, Note 2711 148, 149, Chapter XIII, Note 141, ‘Erinnerung’11(i) Chapter XXII, Note 2911(ii) Chapter XXII, Note 2911(iii) Chapter XXII, Note 2914–19b Chapter XXII, Note 2420–24a 20420 No 12 147, Chapter XIII, Note 17220 No 17 147, 15129-31 204RVO636 188637(i) 188708 187714(i) 187719 187SGB(IV)7(i), 2nd sentence Chapter XVIII, Note 27(iv) Chapter XVIII, Note 27a Chapter XVIII, Note 2512

Appendix C: Paragraph RegisterSGB(X)24 Chapter XIV, Note 925 Chapter XIV, Note 10116 Chapter XIV, Note 156SGG183 ‘Kostenpflicht’StGB1–79b 1671 T 1677(ii) No 2Chapter XVI, Note 3 D11(i) No 8 XVI, Note 7412 T 16713 T Chapter XVI, Note 2313(ii) T 169, Chapter XVI, Note 2514 Chapter XVI C 1(c)15) T Chapter XVI, Note 4416) T ‘Tat(be/um)standsirrtum’, Chapter XVI, Note 5216(i)) T 17217 T 172, ‘Verbotsirrtum’, Chapter XVI, Notes 52 and 5717, 2nd sentence T Chapter XVI, Note 5818 T Chapter XVI, Note 2019 T Chapter X, Note 5; Chapter XVI, Notes 39 and 5220 T 171, Chapter X, Note 5; Chapter XVI, Note 5221 T 17123(i) T Chapter XVI, Note 823(ii) T Chapter XVI, Note 825(ii) T ‘Mittäterschft’26 T ‘Anstiftung’27 T ‘Beihilfe’32 T ‘Notwehr’ Chapter XVI, Note 3033 T Chapter XVI, Note 5234 T ‘Notatsand’, Chapter X Note 58,Chapter XVI, Note 3335 T ‘Notstand’, Chapter X, Note 58,Chapter XVI, Notes 33, 52 and 5935(i) T 17235(ii) 17238–39 Chapter XVI, Note 6438–44 17338–76a 17338 Chapter XVI, Note 6640–43 Chapter XVI, Note 6540 Chapter XVI, Note 6744 Chapter XVI, Notes 63 and 8146(i) T Chapter XVI, Note 7347(i) T Chapter XVI, Note 6849 T Chapter XVI, Note 8513

The German Legal System and Legal Language49(i) T Chapter XVI, Note 2552(i) T Chapter XVI, Note 7353(i) T Chapter XVI, Note 7356 Chapter XVI, Note 6957 Chapter XVI, Note 7057a Chapter XVI, Note 7059(i) Chapter XVI, Note 7159a(i) Chapter XVI, Note 7160 Chapter XVI, Note 7261–72 Chapter XVI, Note 7462 Chapter XVI, Note 7663 Chapter XVI, Note 7764 Chapter XVI, Note 7866 Chapter XVI, Note 7968 Chapter XVI, Note 8069 Chapter XVI, Note 8170 Chapter XVI, Note 8273–76 Chapter XVI, Note 8377 Chapter XVII, Note 877b Chapter XVII, Note 878–78c Chapter XVII, Note 1178(ii) Chapter XVII, Note 1178(iii) Chapter XVII, Note 1178a Chapter XVII, Note 1180–165 Chapter XVII, Note 1180–358 16786(ii) 892(ii) Chapter XVII, Note 993(ii) 8123 Chapter XVII, Note 9125 ‘Landfriedensbruch’125aChapter XVII, Note 38 C129aChapter XVII, Note 38 B130 Chapter VIII, Note 7142 Chapter XVI, Notes 23 and 73153 Chapter XIII, D 8 (d)156‘ Unterhalt’163 Chapter XIII, D 8 (d)164 Chapter VIII, Notes 20 E166–184 Chapter XVI, Note 12170b‘Unterhalt’177 Chapter XVII, Note 38 C185ffChapter VIII, Notes 7 and 20 D185–241 Chapter XVI, Note 13185 T ‘Beleidigung’ Chapter XVI, Note 35Chapter XVII, Note 9186–187 T Chapter VIII, Note 20 E186 T Chapter XVI, Note 35, ‘Üble Nachrede’187 T Chapter XVI, Note 35, ‘Verleumdung’193 Chapter XVI, Note 35194 Chapter VIII, Note 20 D514

Appendix C: Paragraph Register203 Chapter XVII, Note 9; Chapter XXII D 5211 T Chapter XVII, Note 38 B212 T Chapter XVII, Note 38 B220a (i) No 1 T Chapter XVII, Note 38 B222 T Chapter XVI, Note 73223 T Chapter XVII, Note 9224–227 T Chapter XVII, Note 38 C228 T Chapter XVI, Note 28230 T Chapter XVI, Note 73240 Chapter X, Note 58242–358 Chapter XVI, Note 14242 ‘Diebstahl’243 Chapter XVII, Note 38 C246(i)‘Unterschlagung’246(ii)‘Unterschlagung’249–255 Chapter XVII, Note 38 C253 Chapter XVII, Note 38 C260 Chapter XVII, Note 38 C263 ‘Betrug’, Chapter XVII, Note 38 C266 ‘Untreue’267 Chapter X F 4 (f)271–274 Chapter X F 4 (f)302a Chapter X, Note 58306–306c Chapter XVII, Note 38 C311(i)–(ii)Chapter XVII, Note 38 B315c (iii) Chapter XVI, Note 73316aChapter XVII, Note 38 C323c T Chapter XVI, Notes 14, 23 and 73352 Chapter XXII D 5356 Chapter XXII D 5StPO1–150 1751 1757–21 Chapter XVII, Note 377(i) Chapter XVII, Note 378(i) Chapter X B 1 2;Chapter XVII Note 379 Chapter XVII Note 3712(i) Chapter XVII, Note 3737(i) 17752–53 Chapter XVII Note 2252(iii) Chapter XVII Note 2253(i) No2 17855(i) Chapter XVII, Note 2255(ii) Chapter XVII Note 2281a Chapter XVII, Note 2481a (ii) Chapter XVII, Note 2481b Chapter XVII, Note 2481g Chapter XVII, Note 24515

The German Legal System and Legal Language94–101 Chapter XVII, Note 2597(i) Chapter XVII, Note 2597(v) Chapter XVII, Note 2598(i) Chapter XVII, Note 2598(ii), 1st sentence Chapter XVII, Note 2598a ChapterXVII,Note 2598a–c Chapter XVII, Note 2599–100 Chapter XVII, Note 25100a–b Chapter XVII, Note 25100c–d Chapter XVII, Note 25102 Chapter XVII, Note 25103 Chapter XVII, Note 25104 Chapter XVII, Note 25105 (i)Chapter XVII, Note 25110a–e Chapter XVII, Note 25111 Chapter XVII, Note 25111b–p Chapter XVII, Note 25112ff Chapter XVII, Note 25112 Chapter XVII, Note 25112(i), 2nd sentence Chapter XVII, Note 26112(iii)Chapter XVII, Notes 26 and 38 B112(iv) Chapter XVII, Note 26112(iv)Chapter XVII, Note 26 and 38 C112a (i), 2nd sentenceChapter XVII, Note 38 C112a (i), 1st sentenceChapter XVII, Note 38 C112a (ii)Chapter XVII, Note 38 C113(i) Chapter XVII, Note 26114 Chapter XVII, Note 38 C114(i) Chapter XVII, Note 26114(ii) Chapter XVII, Note 26114aChapter XVII, Note 38 D115(i)Chapter XVII, Note 38 D115(ii)Chapter XVII, Note 38 D115(iii)Chapter XVII, Note 38 D115(iv)Chapter XVII, Note 38 D115a (i)Chapter XVII Note 38 D116–126 Chapter XVII, Note 38 C116 Chapter XVII, Note 26117 Chapter XVII, Note 38 D117(i)Chapter XVII Notes 26 and 38 D117(ii) ChapterXVII, Note 26117(iv)Chapter XVII, Note 26; Chapter XVII C117(v) Chapter XVII, Note 26118 Chapter XVII Notes 26 and 38 D118(i)Chapter XVII, Note 38 D120(i), 1st sentence Chapter XVII, Note 26121(i) Chapter XVII, Note 26121(ii) Chapter XVII, Note 26122 Chapter XVII, Note 26122a Chapter XVII, Note 26125(i)Chapter XVII, Note 38 A127 Chapter XVI, Note 37516

Appendix C: Paragraph Register127(i) Chapter XVII, Note 36127(ii) Chapter XVII, Note 36127b Chapter XVII, Note 49128(i) 178128(ii) 179131 Chapter XVII, Note 38 E133 Chapter XVII, Note 38 F135 Chapter XVII, Note 38 F136 Chapter XVII, Note 38 H136(i), 2nd sentenceChapter XVII, Note 38 H136(i), 3rd sentenceChapter XVII, Note 38 H136(ii)Chapter XVII, Note 38 H136aChapter XVII, Note 38 H137(i)177, Chapter XVIIC137(i), 2nd sentenceChapter XVII C138 Chapter XVII C138a–dChapter XVII C140(i)Chapter XVII C140(ii)Chapter XVII C141ff Chapter XVII Note 29141(iii)Chapter XVII C142(i)Chapter XVIIC143 Chapter XVII C145 Chapter XVII C146, 1st sentence Chapter XVII C147 Chapter XVII C147(ii) Chapter XVII, Note 30147(iii) Chapter XVII, Note 30148 Chapter XVII C149 Chapter XVII C151–295 175151 Chapter XVII, Note 6152 Chapter XVII, Note 13152(ii) Chapter XVII, Note 18153ff Chapter XVII, Note 19153 Chapter XVII, Note 40153(i)Chapter XVII, Note 40 A153a (i)Chapter XVII Note 40 A153cChapter XVII, Note 40 A153dChapter XVII, Note 40 A154(i)Chapter XVII Note 40 A155 Chapter XIII, Note 4155(i)175, Chapter XVII A155(ii)175, Chapter XVII A156 Chapter XVII, Note 46157 Chapter XVII, Notes 42 and 44158 Chapter XVII, Note 7158(ii) Chapter XVII, Note 10160(i) Chapter XVII, Note 20160(ii) Chapter XVII, Note 21161 Chapter XVII, Note 22161a Chapter XVII, Note 22517

The German Legal System and Legal Language162(i) Chapter XVII, Note 23162(iii) Chapter XVII, Note 23163(i) Chapter XVII, Note 34163(ii) Chapter XVII, Note 35163a (i)Chapter XVII, Note 38 G163a(iii) Chapter XVII, Note 22163a (iii)/(iv)ChapterXVII, Note 38 H163(a) (iv)ChapterXVII, Note 38 H163(a)(v) ChapterXVII, Note 22163b ChapterXVII, Note 24163d ChapterXVII, Note 25168(c)(i)ChapterXVII C169aChapter Chapter, Note 38 G170(i) Chapter XVII, Note 39170(ii) Chapter XVII, Note 40171–177 Chapter XVII, Note 40 B174(ii)Chapter XVII, Note 40 C199ff Chapter XVII, Note 20199(ii) Chapter XVII, Note 39200(i) Chapter XVII, Note 39201(i) Chapter XVII, Note 43203 Chapter XVII, Note 43207 Chapter XVII, Note 45210(i) Chapter XVII, Note 44210(ii) Chapter XVII, Note 47212 Chapter XVII, Note 43212a Chapter XVII, Note 43212a(iii) Chapter XVII, Note 48212b (i) Chapter XVII, Note 43213ff Chapter XVII, Note 20214 Chapter XVII, Note 48217 Chapter XVII, Note 48226–275 179238(ii) Chapter XVII, Note 69244–257 ‘Beweisaufnahme’244(ii) Chapter XIII, Note 10 5244(iii) Chapter XIII, Note 9 4259(i) Chapter VII,Note 18261 Chapter XIII, Note 10 5296–358 175304 Chapter XVII, Note 26333 Chapter XIII Note 133335 Chapter XIII Note 133358(i) Chapter XVI Note 14359–373a 175, Chapter XVI, Note 5374–406h 175, 180374–394 180374 Chapter XVII, Note 14380(i)Chapter XVII H395–402 180403–406c 180406d–406h 180518

Appendix C: Paragraph Register407–412 180407–448 175,180407ff Chapter XVII, Note 41407(i), 4th sentence Chapter XVII, Note 41407(ii) Chapter XVII, Note 41407(iii) Chapter XVII, Note 41408 Chapter XVII, Note 41410(i) Chapter XVII, Note 41411(i) Chapter XVII, Note 41413–416 180430–443 180444 180449–463d 180449–473 175,180464–473 180465 ‘Kostennoflicht’StVG7(i) Chapter X, Note 2227(ii)‘unabwendbaresEreignis’9 Chapter X, Note 18316 Chapter X, Note 22217(i) Chapter X, Note 18318 Chapter X, Note 222TVG1(i) Chapter XVIII, Note 524(i) Chapter XVIII, Note 525(i) Chapter XVIII, Note 525(iv) Chapter XVIII, Note 52UWG1 Chapter VIII, Note 20 G3 Chapter VIII, Note 20 G13(ii)Chapter VIII, Note 20 G14(i)Chapter VIII, Note 20 G15(i)Chapter VIII, Note 20 G21(ii)Chapter VIII, Note 20 G21(i)Chapter VIII, Note 20 GWG67 Chapter X, Note 156VwGO11–12 Chapter XIII, Note 1940(i) 164, ‘Generalklausel’, Chapter VII, Note 10;Chapter XVII, Note 33519

The German Legal System and Legal Language42(i)Chapter XV, Note 7, ‘Verpflichtungsklage’42(ii) Chapter XIV, Note 23 C, Chapter XV, Note 1243(i) Chapter XV, Note 744a Chapter XIV, Note 1347 Chapter VII, Note 1347(i) ‘Normkontrollverfahren’ Chapter XIV Note 24;Chapter XV, Note 547(vi), 2nd sentence Chapter VII, Note 1352 Chapter XII, Note 2767 Chapter XV, Note 468 Chapter XV, Note 868(i) Chapter XV, Note 970(i) Chapter XV, Note 972 Chapter XV, Note 973 Chapter XV, Note 973(i) Chapter XV, Note 974 Chapter XV, Note 1380(i) 16080(ii)Chapter XIV, Note 23 B and C80(ii) Nos 1–3Chapter XIV, Note 23 B and C80(ii) No 4Chapter XIV, Note 23 B and C80(iii)Chapter XIV, Note 23 B80(iv)Chapter XIV, Note 23 D80(iv), 3rd sentenceChapter XIV, Note 23 C80(v)Chapter XIV, Note 23 C and E80(v), 1st sentenceChapter XIV, Note 23 C80(v), 3rd sentenceChapter XIV, Note 23 C80(v), 4th sentenceChapter XIV, Note 23 C80(v), 5th sentenceChapter XIV, Note 23 C80(vi)Chapter XIV, Note 23 C81 Chapter XV, Note 1382 Chapter XV, Note 1382(i) Chapter XII, Note 9684(i)Chapter XV D84(iii)Chapter XV D86(i) Chapter XIII, Notes 4 and 96; Chapter XV, Note 1786(ii)‘Beweisverfahren’86(iii) Chapter XIII, Note 6988 Chapter XV Note 1890(i) Chapter XIII, Note 9694 Chapter XIII, Note 71100 Chapter XV D101(iii)Chapter XV D107 Chapter XV D108(i)Chapter XV D113(i) Chapter XV, Note 14113(i), 2nd sentence Chapter XIV, Note 23113(i), 4th sentence Chapter XV, Note 7113(iv) Chapter XV, Note 14520

Appendix C: Paragraph Register114 ‘Ermessnsfehler’, Chapter XIV, Note 32121 Chapter VII, Note 13122 Chapter XV D123 Chapter XIV, Notes 23 C and E and Note 34123(v) Chapter XIV, Note 23VwVfG1–8 1581(i) 1581(iii) 1581(iv) 1582 1582(iii) No 1 Chapter XIV Note 54–8 Chapter XXI Note 14 Chapter XXI Note 17(i) Chapter XXI Note 17(ii) Chapter XXI Note 19–34 1589 15810 15810, 2nd sentence Chapter XIV, Note 811–30 15822,1st sentece 15923(i) Chapter XIV, Note 824 Chapter XIII, Note 424(i) 159, Chapter XV, Note 1725 15928 159, Chapter VIII, Note 3629 15930 15935–53 15835, 1st sentence 15935, 2nd sentence 15936 Chapter XIV, Note 1737 Chapter XIV, Note 1638(i) Chapter XIV, Note 1839 Chapter XIV, Note 1640 Chapter XIV, Note 3243 (ii) Chapter VIII,Note 8; Chapter XIV, Note 1943(iii) Chapter XIV, Note 2044(i) Chapter XIV, Note 2044(ii) Chapter XIV, Note 2048–51 Chapter XIV, Note 2748 Chapter XIV, Note 2749 Chapter XIV, Note 2754–62 15863–71 15863–78 15879–80 15879 Chapter XV, Note 1521

The German Legal System and Legal LanguageWEG10(i) Chapter XI, Note 13WiStG5 Chapter X, Note 209WStG5(i) Chapter XVI, Note 34ZPO1–11 1181–49 118, 1191–252 115,1181 118, 1192–9 11912–19 Chapter XIII, Note 2812–37 118, 119, Chapter XIII, Note 2812 Chapter XIII, Note 2813–17 Chapter XX C 213 Chapter X B 1 2; Chapter XIII, Note 28; Chapter XIII D 8 (e);Chapter XX C; ‘Sitz’16 Chapter X, Note 9; Chapter XIII D 8 (e)17 Chapter XIII, Note 2820–23a Chapter XIII, Note 2821(i) Chapter XIII, Note 2824–26 Chapter XIII, Note 28.27–29 Chapter XIII, Note 2829 Chapter XIII, Note 28; Chapter XX C 229(ii) Chapter XX C 229a Chapter XIII, Note 2830–34 Chapter XIII, Note 2832 Chapter XX Note 2433 Chapter XIII, Note 10735 Chapter XIII, Note 2838–40 11838(ii) Chapter XX C 238(iii) Chapter XX C 239 Chapter XIII, Notes 47 and 11441–49 11841ff Chapter XIII, Note 13642ff Chapter XIII, Note 1942(ii)‘Besorgnis der Befangenheit’43 ‘Besorgnis der Befangenheit’44(ii)‘Besorgnis der Befangenheit’44(iv)‘Besorgnis der Befangenheit’45(ii)‘Besorgnis der Befangenheit’46(ii) Chapter XIII, Note 136522

Appendix C: Paragraph Register47 ‘Besorgnis der Befangenheit’50–58 118, 12050–127a 118, 12050 12150(ii) Chapter XI A 651(i) Chapter XIII, Note 13651(ii) 12152 12159–63 118, 12161 12262(i) 12264–77 118, 12264 12266(i) 12267 12268 12272(i) 12274(iii) 12275 12276 12278–90 118, 12278 123, 12579 12380(i) 12481 12483(i) 12485 12488 12490 123, Chapter XVII, Note 2991–101 12591–107 118, 12591–127a 125, Chapter XIII, Note 2691 (i), 1st sentence 12593 Chapter XIII, Note 10793aChapter XIII, D 6 (b)103–107 125108–113 119108 147114–127a 118, ‘Prozeß—kostenhilife’121(i) Chapter XIII, Note 55121(iii) Chapter XIII, Note 55121(iv) Chapter XIII, Note 55128–165 118, 125128–252 118, 125128(i)Chapter XIII C F; Chapter XIII D 1 (g) (i)128(ii) 116128(iii) 116128(iii), 1st sentenceChapter XIII D 2 (d)128(iii), 4th sentence Chapter XHI, Note 125129–133 125130 No 1 Chapter XIII D 2 (c) (i)523

The German Legal System and Legal Language131(i) Chapter XIII, Note 64134–135 125136–140 125136(i)Chapter XIII D 2 (c) (vii)136(ii)Chapter XIII D 2 (c) (vii)136(iii)Chapter XIII D 2 (c) (vii)136(iv)Chapter XIII D 2 (c) (vii)137(i)133, Chapter XIII D 2 (c) (vii)137(ii) 133,137(iii) 133, Chapter XIII, Note 64138 116138(i) 125138(ii) 125138(iii) 125138(iv) 125139 115, 126, 133, Chapter XIII, Notes 67, 69 and 116140 Chapter XIII, Note 69141–155 126141(i), 1nd sentenceChapter XIII, Note 113141(i), 2nd sentenceChapter XIII, Note 113141(ii) Chapter XIII, Note 113141(iii) Chapter XIII, Note 113142(iii) Chapter VIII, Note 18145 Chapter XIII D 2 (c) (iii )146 Chapter XIII D 2 (c) (iii); Chapter XIII, Notes 52 and 119148–155 Chapter XIII,Note 82148 Chapter XIII, Note 71149 Chapter XIII, Note 71156 Chapter XIII D 2 (c) (vi)157 Chapter XIII D 1 (f) (iv); Chapter XIII, Note 116157(i)Chapter XIIID 1 (f) (iv)157(ii)Chapter XIII D 1 (f) (iv)159–165 12616–207 12666–213a 118, 126166 126170 126170(i) 129173–178 126174(ii) 129175(i) 127180 127181–185 Chapter XIII, Note 89188(i) 126190–192 126193–197 126198(i)126, Chapter XIII C C198(ii) 126203–206 Chapter XIII, Note 89207 ChapterXIII, Note 74208–213a 126, 129524

Appendix C: Paragraph Register208 126209–213a 126211 126, 129212 129212a 129214–229 118, 127214 117, Chapter XIII C F216 Chapter XIII C F217 132220(i) 133223–224 127227(i) 127230–231 Chapter XIII Note 77230–238 119, 127233–238 Chapter XIII Note 15233 Chapter XIII Note 78234 Chapter XIII Note 78236(ii) Chapter XIII Note 78238(iii) Chapter XIII Note 78239–252 119, 127246ff Chapter XIII, Note 71246 128249 128251 128251a 127, Chapter XIII Note 83253(i) Chapter XIII Note 79253–299a 128, 129253–494 128, 136, 138, 140, Chapter XIII D 6 (b) 1253–510b 115, 128253(i) 129253(ii) No lChapter XIII D 2 (c) (i)253(ii)No2 129, 130254 Chapter XIII, Note 96; Chapter XIII D 2 (c) (iii); Chapter XIII D 6 (b)256(i) 130256(ii) Chapter XIII Note 100260 Chapter XIII D 2 (c) (iii) (Note 102)261(iii) No 1 Chapter XIII, Notes 71 and 101263 Chapter XIII, Notes 100 and 101264 Chapter XIII, Notes 100 and 101270 Chapter XIII C C270(i) 129270(iii) 127271 129271(ii) 132272 Chapter XIII, Note 65272(i) 116272(ii) 131272(iii) 116273 132, Chapter XIII, Notes 69 and 116274(i) 132274(iii) 131, 133 Chapter XXI, Note 7525

The German Legal System and Legal Language275 131275(i) 131, Chapter XIII, Note 107275(ii)131, Chapter XIII, D 2 (c) (iv)275(iv) 132276(i) 132276(ii) 132276(iii) 132277(ii) 132277(iii) 132277(iv) 132278 Chapter XIII, Note 65278(i) 133278(i), 2nd sentence Chapter XIII, Note 115278(ii), 1st sentence 133278(ii), 2ndsentence 133278(iii)Chapter XIII, Notes 69 and 116; Chapter XIII D 2 (c) (vi)278(iv)Chapter XIII, D 2 (c) (vii)279 Chapter XIIID 2 (c) (iv); Chapter XVII (Note 52)279(i)Chapter XIII, Note 70; Chapter XIII D 2 (c) (v)279(ii) Chapter XIII, Note 113281 Chapter XIII, Note 47282 Chapter XIII, Note 52282(i) Chapter XIII, Note 117282(iii) 133283 Chapter XIII, Note 64284 133285 133286(i) 116286(ii)116, Chapter XXII, E288–290 Chapter XIII, Note 107288 Chapter XIII, Note 97291 Chapter XIII, Note 97292 Chapter XIII, Note 9293 Chapter XX D294 Chapter XIII, Notes 9 and 78; Chapter XIII D 8 (d)295 Chapter XIII, Note 69295(i) Chapter XIII D1 (f) (i) (Note 42)295(iii)Chapter XIII, D 1(f) (i)296 Chapter XIII, Notes 52 and 120296(i)–(iii) 133296(i) 132296(ii) 133296(iii) Chapter XIII, Note 120296aChapter XIII, D 2 (c) (vii)297(ii) 133299 Chapter XV D300–329 128300–494 Chapter XIII, Note 84300 116300(i)131, Chapter XIII D 2 (c) (iv) and (vii)301 Teilurteil’526

Appendix C: Paragraph Register302 ‘Vorbehalsurteil’303–304 ‘Zwischnurteil’304(i) Chapter XIII, Note 94307(i) Chapter XIII D 2 (c) (iv), Chapter XIII, Note 107308(i) Chapter XIII, Note 96309 116310 117310(i)Chapter XIII, D 2 (c) (vii)313(i)‘Urteil’318 117322 Chapter VII, Note 13322(i) 117, Chapter XIII, Note 101323 Chapter XIII, Note 15325 Chapter XIII, Note 15328 Chapter XIII, Note 148329(i) Chapter XIII, Note 14330–347 128, Chapter XIII, Note 116330 127, 131, Chapter XIII D 2 (c) (iv)331 127, 147331(i)131, Chapter XIII D 2 (c) (iv)331(ii) Chapter XIII, Note 97331(iii) 127, 132333 ‘Nichtcverhandeln’ Chapter XIII, Notes 80, 114 and 116334 Chapter XIII, Note 116338 117348–350 128348(i) 129355ff Chapter XIII, Note 64355–484 Chapter XX D355–370 128355(i) Chapter XIII, Note 99357(i) Chapter XIII, Note 99358 Chapter XIII, Note 9, ‘Beweisaufnakme’359 ‘Beweisbeschluß’371–455 ‘Beweismittel’371–372a 128373–401 128402–414 128415–418 Chapter XIII E415(i)Chapter XIII E415(ii) Chapter XIII E.416 Chapter XIII E418(i) Chapter XIII E.415–444 128437–440 Chapter XXII, Note 126445–455 128450 Chapter XXII, Note 9478–484 128484 ‘Bekräftigung’485–494 128495–510b 128, 134, Chapter XIII, Note 55527

The German Legal System and Legal Language495 128495a 134496 134504 Chapter XIII, Note 69; Chapter XIII D 2 (d)511–544 135, 136511–577 115, 135511 136511a 136516 136519 136519bChapter XIII D 3(a)521 Chapter XIII D 3(a)522(ii)Chapter XIII D 3(a)523 136525 136527–529 137530(i) Chapter XIII Note 107536 Chapter XIII D 3(a)544 Chapter XIII Note 135545–566a 137, 138546(i) 137547 Chapter XIII Note 133549(i)186, Chapter XX D549(ii) Chapter XIII Note 136550 138551 138, Chapter XIII Note 136552 138553 138554(ii) 138554a 138554b Chapter XIII Note 134557 138559(i) Chapter XIII Note 131559(ii), 1 st sentence 138561(i) 138563–565a 138564 Chapter XIII D 3 (b)565 Chapter XIII D 3 (b)566a Chapter XIII Note 133566a(iii) Chapter XIII Note 133567–577 138567 138568 Chapte XIII, Note 140571 138577 138, Chapter XIII Note 141578–591 115, 139, Chapter XIII, Note 15579 139580 139592–605a 115, 139599 ‘Vorbehalsurteil’606–606a XIII D 6 (b)528

Appendix C: Paragraph Register606–620g 139606–638 139606–644 115, 139606 139, 140, Chapter XIII, Note 28; Chapter XIII D 6 (b)606aChapter XIII D 6 (b)607–619 Chapter XIII D 6 (b)608 Chapter XIII D 6 (b)1609 Chapter XIII D 6 (b)610(ii) Chapter XIII, Note 107611 Chapter XIII D 6 (b); Chapter XIII, Note 123613 Chapter XIII, Notes 113 and 115; Chapter XIIID 6 (b) 1614 Chapter XIII, Note 71615 Chapter XIII D 6 (b); Chapter XIII, Note 120615(ii)Chapter XIII D 6 (b)616 Chapter XIII D 6 (b)616(ii)Chapter XIII D 6 (b)616(iii)Chapter XIII D 6 (b)620–620g Chapter XIII D 6 (b)620 Nos 1–4 Chapter XIII D 6 (b)620 No 5 Chapter XIII D 6 (b)620 No 6 Chapter XIII D 6 (b)1620 Nos 7 and 8 Chapter XIII D 6 (b)620 No 9 Chapter XIII D 6 (b)1620a (i)Chapter XIII D 6 (b)1620a (iiChapter XIII D 6 (b)1620b(i)Chapter XIII D 6 (b)1620b (ii)Chapter XIII D 6 (b)1620c, 1st sentence Chapter XIII D 6 (b)620c, 2nd sentence Chapter XIII D 6 (b) 1620fChapter XIII D 6 (b)1621–621f 141621(i)141, 144, Chapter XIII D 6 (b)621(ii), 1st sentence 142621(ii), 2nd sentence 142621(iii) 142621a–f Chapter XIII, Note 153621a 142622–630 144622 144623(i)Chapter XIII D 6 (b)623(ii)Chapter XIII D 6 (b)623(iii)Chapter XIII D 6 (b)627 Chapter XIII, Note 158628 Chapter XIII D 6 (b)629(i) 146...629(iii)Chapter XIII D 6 (b)629dChapter XIII D 6 (b)630 Chapter XIII D 6 (b)630(iii) Chapter XIII Note 159631–638 146640-641k 139529

The German Legal System and Legal Language640(ii)‘Kindschaftssache’641l– 644 139, 145642–644 14545–687 139, Chapter XIII, Note 1688–703d 115, 146688(iii) Chapter XIII, Note 13689(i) 119689(ii), 1st sentence Chapter XIII, Note 22689(ii), 2nd sentence Chapter XIII, Note 22693(ii) 123, Chapter XIII, Note 23696(i) 117699 117700 117703d Chapter XIII, Note 22704–802 146704–945 146704 146705–706 147707 149707(i), 2nd sentence 147708–710 146708–720a 147708 147709 147710 147711–714 147711 147712 147712(i), 2nd sentence 147717 148717(i) 148717(ii) 148719 147, Chapter XIV, Note 23 A720a 147, 148720a(i) 148721 148722–723 148, Chapter XIII, Note 171724–734 148724(ii) 148725 148731 149732 149732(ii) 149733 148735–745 148736 Chapter XI C 3 (b) (iii)747–749 148750–751 148750(iii) 148751(ii) 148753–765 148530

Appendix C: Paragraph Register753 Chapter XIII, Note 180755 Chapter XIII D 8 (c) (v)758 Chapter XIII D 8 (c) (v)764 148, Chapter XIII, Notes 32 and 180764(i) 119765a 147766–777 148766 149, 151,‘Vollstreckungserinnerung’766(i), 2nd sentence 149767 149, 151, Chapter XIII D 8 (c) (v)767(i) 149767(ii) 149767(iii) 149768 149, 151, Chapter XIII D 8 (c) (v)769(i) 149769(ii) 149771 Chapter XIIID 8 (c) (v); Chapter XIII, Notes 174 and 184771(i)Chapter XIII D 8 (c) (v)775 149776 149777 Chapter XIII, Note 177778–785 14888–792 149793 148, Chapter XXII, Note 29794–801 146794(i) 131, 146794(i) No 1Chapter XIII D 2 (c) (iv)794(i) No 5‘Vollstrekabre Urkunde’794a 148797 Chapter XIII, Note 172802 148, Chapter XIII, Note 28803–807 150803–863 150803-882a 146, 150803(i) 150804(i)Chapter X, Note 280 C807 Chapter XIII D 8 (e)807(i) Nos 3 and 4 Chapter XIII, Note 193808–827 150808 Chapter XIII, Notes 180 and 183808(i)Chapter XIII D 8 (c) (v)808(ii)Chapter XIII D 8 (c) (v)811ff Chapter XIII, Note 168814–825 Chapter XIII, Note 182828–863 150828 Chapter XIII, Note 180829–845 Chapter XIII, Note 178829(ii)Chapter XIII D 8 (c) (v)835–2799 Chapter XIII, Note 182840(i)Chapter XIII D 8 (c) (v)845 Chapter XIII D 8 (c) (v)531

The German Legal System and Legal Language846–849 Chapter XIII, Note 178850ff Chapter XIII, Note 168859(i) Chapter XI, Note 12864–371 150866 Chapter XIII, Note 186869 Chapter XIII, Note 187872–882 150882a 150883–898 146, 152883–886 Chapter XIII D 8 (d)883 153, Chapter XIII D 8 (d) and (e)887–890 Chapter XIII D 8 (d)887 Chapter XIII D 8 (d)888 Chapter XIII D 8 (d)889 Chapter XIII D 2 (c) (iii) (Note 96); Chapter XIII D 8 (d)890 Chapter XIIID 8 (d)890(ii) Chapter XIII, Note 190899–915 146, 153, Chapter XIII D 8 (e)899 Chapter XIIID 8 (e)900 Chapter XIIID 8 (e)900(ii)Chapter XIIID 8 (e)900(iii)Chapter XIIID 8 (e)900(iv)Chapter XIIID 8 (e)901 Chapter XIII D 8 (e)903 ChapterXIII D 8 (e)913 Chapter XIIID 8 (e)915 Chapter XIIID 8 (e)915aChapter XIIID 8 (e)916–945 146, 154, ‘Einstwelige VerFügugng’916(i)Chapter XIIID 8 (f)917 Chapter XIIID 8 (f)917(i)Chapter XIIID 8 (f)918 Chapter XIIID 8 (f)919 Chapter XIIID 8 (f)926 Chapter XIIID 8 (f)920 Chapter XIII, Note 9; Chapter XIV, Note 23 E920(ii)Chapter XIII D 8 (d) and (f)921 Chapter XIII D 8 (f)929(ii)Chapter XIII D 8 (f)930 Chapter XIII D 8 (c) (v)930(i)Chapter XIII D 8 (f)935ffChapter VIII, Note 20G935, 940 analogously Chapter XIII, Note 149936 Chapter XIII, Note 9; Chapter XIII D 8 (d) and (f)937(ii)Chapter VIII, Note 20 G945 Chapter XIV, Note 23 C and E946–1024 115, 155989ff 1551025–1048 115, 1551042ff Chapter XIII, Note 171532

APPENDIX DTABLE OF CASESGERMAN CASES533

The German Legal System and Legal Language534

Appendix D: Table of Cases535

The German Legal System and Legal Language536

Appendix D: Table of Cases537

The German Legal System and Legal Language538

Appendix D: Table of Cases539

The German Legal System and Legal Language540

APPENDIX ETABLE OF ENGLISH STATUTESName and Year of StatuteWhere referred to: Chapter(s) & Note(s)Statute of Frauds 1677Chapter X, Note 177 BBills of Sale Act 1882 Chapter X Note 257Law of Property Act 1925Chapter X, Notes 177 B and 234 CConsumer Credit Act 1974 Chapter X, Note 238Sale of Goods Act 1979 Chapter X Notes 185, 234 B and 260Supply of Goods and Services Act 1982Chapter X Note 234 BCivil Jurisdiction and Judgments Act 1982 Chapter X Note 8Foreign Limitation Periods Act 1984 Chapter X Note 92Child Abduction and Custody Act 1985 Chapter XXI, Note 4Consumer Protection Act 1987Chapter X Note 126 JLaw of Property (Miscellaneous Provisions) Act 1989 Chapter X, Note 177 BExtradition Act 1989 Chapter XXI, Note 17Contracts (Applicable Law) Act 1990 Chapter XX, Note 12Private International Law(Miscellaneous Provisions) Act 1995Chapter XX Note 25 B541

APPENDIX FTABLE OF ARTICLES FROM THE MAGAZINE ZAPWHICH ARE REFERRED TO IN THE TEXT(ZAP is a bi-weekly legal magazine published in cooperation with BRAK–see Metarial)543

The German Legal System and Legal Language544

Appendix F: Table of Articles from ZAP545

The German Legal System and Legal Language546

Appendix F: Table of Articles from ZAP547

The German Legal System and Legal Language548

Appendix F: Table of Articles from ZAP549

The German Legal System and Legal Language550

Appendix F: Table of Articles from ZAP551

The German Legal System and Legal Language552

INDEXAAbstractionprinciple 44, 73,276nn245–246, 278n260Accusationprinciple 175Accused,rights of 175, 177, 318nn27–28, 320n38dSee also SuspectsActus reus 168Administration‘carriers of’(Verwaltungsträger) 5–6federal 5–6, 9, 11, 157judicial 207of Länder 14, 229n10,229n7levels of 11, 14Administrative law 25, 157–162courts 206, 237n10,304n5federal statutes 157–158procedure 163–165Advice, legalposition of271n215AG (Aktiengesellschaft=public limitedcompany) 97, 98, 99,111, 286n11, 324n2aAGBG (standardbusiness terms) 37–41, 254nn81–83exceptions 37–38, 39incorporation 38, 254n84interpretation 38–39, 254n85(in)validity 39remedies 41scope 39statutory control 40–41,254nn86–87Agentsbusiness 104, 249n31,285nn40–43legal 30, 123–24,248n27, 292n57unauthorised 248–249n31AgreementSee EinigungAmtsgericht(district court) 128, 134–135,292n55admission/registrationof lawyers 204–205, 216appeals against 135–136, 205applications to 117, 177functions 291n32, 337–338n37jurisdiction 119, 153,289n22, 291n47Anfechtung (challenge)See Verwaltungsakt; Willenserklärung; WillsAnspruchSee Claim(s)Antragsdelikte(prosecutions onapplication) 176, 315n9AnwaltszwangSee Legal representation: mandatoryAnweisung (documentaryinstruction) 54, 69Appeals 117, 120, 135–139,289n15, 336n19grounds for 136–137, 137–138ArbeitsgerichtSee Courts: employmentArbeitsschutzrechtSee Health and safetyArbeitsvertragSee Contracts: of employmentArbitration agreements 155Arrest (Ger)See SeizureArrest (of suspect) 177, 319n36grounds for 320–321n38a-cwarrants 178–179, 318n26,319n38a, 320nn38d–40Assets 246n12553

The German Legal System and Legal Languagedisclosure of 143, 153–154,301nn154–155land 152movable vsimmovable 71, 150, 246n11,274nn232–233protection of 272n219seizure ofSee Arrest; PfändungAufgebotsverfahren (claimnotification procedure) 155Auftrag, Geschäftsfhrung ohne(transaction without instruction)See RechtsgeschäftAuslieferungSee ExtraditionAutonomy, principle of 29, 248n23AVAG (international law onrecognition andenforcement) 336n13BBailiffs, rights/duties of 129, 148, 151,153–154, 295n88,302n180, 304n193Banks/bank accounts 67,271n211, 271n215, 330n36BarristersSee RechtsanwaltBasic Law (GG=Grundgesetz) ix, 5, 6–7, 229n5,231–232n23, 239n2breaches of 18–19disputes overinterpretation19divisions of 17, 236–237nn2–4and internationalrelations 8and Länder 13–14, 18and law of succession 82and local government 15–16and procedure 115and state power 7, 231n20status of 17Basic rights(Grundrechte) 21–23, 241–243n20equality of treatment 22, 243n22European Charter 222n7hierarchy 240–241n10infringements of 22limitations 21–22, 241nn13–15,244n26listed 22–23, 244n36personaldevelopment 22, 242n20b-crelation toprivate law 21, 239–40n7Bavaria 206, 227n14Bedingungen(conditions) 36–37, 254nn74–75Berlin Wall,shootings at 308nn3b-4, 309n13,310n23b, 311n34, 313n58‘Berlin will’ 86, 281n305Berufung(general appeal) 135–137, 300n133Berufungssumme(appeal value) 136BeschlußSee Court ordersBeschwerde (form of appeal)See ComplaintsBesitz (possession) 73, 277n257Betrieb (works) 183Betriebsrat (works council) 183–85Betting 54BGB (Bürgerliches Gesetzbuch=Civil Code) ix, x, 25, 27–95,257n109principal divisions 27Book I: allgemeiner Teil(general part) 27–44, 45Book II: law ofobligations 27, 44–71Book III: law ofproperty 27, 71–80554

IndexBook IV: family law 27, 80–81Book V: lawof succession 27, 81–95and commercial law 97–100, 109definitions of termsused in 27–30institution (1900) 3and international law 195–199on Rechtsgeschäft 30–41Bonds 54, 69, 191,330n33BRAO (Bundesrechtsanwaltsordnung=Federal Lawyers’Ordinance) 207–217Bund (Federal Republic)administration 11, 157constitution 5, 17, 228–29nn2–3(See also Basic Law)decentralisationof power 5, 228–229n3adisputes betweendepartments 19, 239n19executive organs 5–6, 11, 229n8,230n11formation 227n15institutions 6, 230nn11–12, 234n2jurisdiction 329n1legislature 9, 233–234nn1–5,241n15ministries 157, 207relationshipwith Länder 5, 19, 228n2,229nn6–7, 235n7Bundesgerichtshof (FederalSupreme Court) 120, 205–206,335n4appeals to 120, 137–138,300–301nn133–134,301n138Bundesrat (FederalCouncil) 9, 233–234n3Bundestag (FederalParliament) 9, 233–234n3Bundesverfassungsgericht (FederalConstitutional Court) 18–19, 229n7,237–239nn14–20Burden of proofadministrative law 165civil law 116, 260–261n126i–j,288n10contracts for services 266n166criminal law 288n10.5employment law 325n14property rights 273n222b,279n266cBürgerliches RechtSee Civil lawBusiness lawSee Commercial law; WirtschaftsrechtBusiness terms, standardSee AGBGCChildrenSee also Minorscustody/access 141–142, 144,145, 302n158, 335n4inheritance 82, 86, 88international law 335nn4–5kidnapping 335n4maintenance 141–143, 144, 145,224n11a, 302n149, 302n154,302n156, 334n5Cicero 225–226n9Civil CodeSee BGBCivil law 25, 27–96See also ProcedureEuropean 223n10b, 224n11binternational 195–202lawyers’ fees 214reform 224n11b-cCivil servants 273n224See also RechtspflegerClaim(s) (Ansprüche)See also Klageamendments 250–251n47carising out of555

The German Legal System and Legal Languageownership 77, 278–280n266compulsoryentitlement 91–92defence to 29, 247n20definition 29, 246n16grounds for 70, 262–263n135norms 246–247n18right to 275n236time limits 42–44types 247n18Commercial CodeSee HGBCommercial law 25, 97–109See also Wirtschaftsrechtand AGBG 39agents 104, 285nn40–43bookkeeping 107–108chamber(Handelskammer) 119, 203employees 102–103GmbH 111–114Law against UnfairCompetition 243n20gliability 99–100, 105–106,111–112and obligations 68transactions 108–109Common law xi, 225n3, 225n6,227n13Company lawSee Commercial law; Gesellschaft; GmbHCompensation 258nn118–119Competition 189, 330n9employee/employer 102–03unfair 243n20gComplaints (Beschwerden) 137–138,301nn140–141constitutional 18–19, 235n4,237–239nn14–18Compulsoryentitiement 91–92, 281n321withdrawal 92Constitutional courts 18–19, 237n10Constitutional law 25Consumer law 55, 59, 65–66EU 223–224n11aprotection of rights 37, 41, 108–109Contractsthird parties 48Contract(s) (Verträge)as basis of lawof obligations 44–45, 255n101,256n104, 256n106breach of 258–259n126c,265n166, 268n188challenges to 325n7conclusion 29, 34–36, 248n23,253n60, 264n166conditions of 36of employment 102–103, 181–183,295n75, 323n1,324n6, 328n60estate 87EU law 224n 11bfreedom of 29, 37, 248n23,262n132of instruction 66–67, 272n215invalidity 248–249n31liabilities regarding 258–261n126,258nn118–19obligationsregarding 47–48, 250–251n47c,257–258nn115–16offer andacceptance 35, 253–254nn65–71,265n166rental 58–59rights of rescission 48–50of sale 274n234,276n245,276nn237–238of service 65, 113–114,264n159, 322n1,324n6, 328n60for services 43, 65–66,264–267n166, 264n159, 278n264,556

Index324n6, 328n60of surety 54, 69, 267n177third parties 262–263n135travel 66types 256n104, 256n106,264–265n159Costs 125, 293n63See also Feesof criminal law 180of enforcement 149notaries 218Counsel (in criminal cases)See also Rechtsanwalt 176–178Court orders 73, 117, 137appeals against(Beschwerden) 138–139family law 140–141Courts 118, 119–120accessibility 25, 116, 165, 237n10administrative 163, 164–165,206, 237n10,303n5, 338n42of appeal 120, 135–139constitutional 18–19, 229n7, 237n10criminal 176, 315n4, 315n7,338n37employment 206enforcement 147, 148, 149, 153family 140, 291n31hierarchy 18–19, 135–136,140, 205–206international law 198–199jurisdiction 119juvenile 313n40preparationfor hearings 132probate 95special types 206, 339n38Creditors/debtors 78–30and enforcement 146–155, 224n11aand inheritance 94multiple 53time limits 42–44, 255n98,261–262n127Criminal CodeSee StGBCriminal law 25, 167–174See also Offencescommercial(‘white-collar’) 190, 329,338n37counsel 176–178courts 176, 314n4, 315n7, .338n37general principles 167, 309n6injured party,involvement of 180, 322n51lawyers’ fees 214main proceedings 177–178, 179,323n43preliminariesto trial 316nn22–26procedural maxims 175, 287n5, 314n6procedure 175–180, 314nn2–3prosecutions 176, 314n11,314n9, 315n14punishment 173–174, 180, 309n8,313n63, 313n65, 313n73,314nn81–82, 321n41responsibilitySee Schuldstatute based 167, 308n3, 308n6Culpa in contrehendo 263n135b-d,269n188DDamages, claims for 209, 218grounds 70, 102, 224n11b,258n119, 272n220,273n222pain andsuffering 70, 274n227third parties 70, 274nn226–227DarlehenSee LoansDebtorsSee also Creditors/debtors557

The German Legal System and Legal Languagecompulsory declarations 304n193protection of 147–148substitution of 52–53, 264n157Defamation 242–243n20d-f,311n35Democracybasic principles 7–8role in law making 221–222nn4–5Deportation 202Dienstgericht (supervisory/disciplinary court) 204Dingliche(s) Recht(e)See Rights: ‘real’DirectorsSee GmbHDiscretionSee ErmessenDistraintSee PfändungDivorce 144–145, 224n11a,302n156, 302n159–160Doctors 288n10.4E‘E-commerce Law’ 223n11a, 252n54EGBGB (Einführungsgesetz(introductory note)zum BGB) 195–199EhegatteSee SpouseEhesachen(marriage matters) 139–142, 144–145and international law 196, 332n11Eidesstattliche Versicherung(assurance in lieuof oath) 153EigentumSee OwnershipEinigung (agreement/consensus) 34–36in family law 144, 302n159in property law 277n256bEmployeesand Betriebsrat 183, 326n26,326n30categories 323n2competition withemployer 102–103contracts 65, 102–103,181–183, 324n7adismissal 182, 185,324nn10–11,325nn13–14, 326n46exclusions fromdefinition 326n23protection 103, 182, 186–188,325n13, 328nn61–65Employersbankruptcy 183, 327n20and Betriebsrat 184, 326nn36–37contracts 181–183liability 187–188, 272n222a-b,328nn61–65Employment law 181–188, 265n159accidents 187–188Betriebsrat 183–185coalitions 186contracts 102–103, 181–183,322n1courts 206health andsafety 186–187, 328industrial action 184, 186,326, 327n53lawyers’ fees 214tariff agreements 186, 327n52Enforcement 146–155, 302n171‘duplicate’(documentingjudgment) 148, 151land 152money claims 146, 150–152,153, 154–155organs 148(See also Bailiffs)preventive 147–148558

Indexproperty claims 146, 152–154suspension 149English lawSee BritishEnlightenment (C18) 2ErbengemeinschaftSee Heirs: community ofErbfolgeSee Inheritance, modes ofErbschein (certificateof inheritance) 94–95, 282n343ErbvertragSee Contract(s): estateErfüllung (fulfilment,of obligation) 45, 51–52Erlaubnis (permission),grant of 161–162, 190,307n29Ermessen (discretion),exercise of 161–162,306nn31–35Erwirkungshandlungen(See Glossary) 120, 291n39Estate(s)contracts 87debts of 94disclaiming 93disposition of 87–92European Convention onHuman Rights 222n7, 232–233n34,237n9, 308n4European Courtof Justice vii, 231n19, 340n74European Union 221–225nn4–13Civil Code(proposed) x, 224n11b,227n13cooperation betweenmember states 334–335nn5–6,334n1debt law 302n163, 302n171family law 301–302n148jurisdiction within 199Lawyers’ Code 211legislation,examples of 223–224n11a,252n54Rome Convention (oncontractualobligations) 332nn12–20rules of evidence 335n9service of process 335n7unification oflegal system vii, x–xi,223–224nn10b-12vs domestic law 201, 202,211, 221–222n5, 222nn7–9,230n12, 232–233n34,232n31, 308n3cEvidencedocuments in 219‘free’ (Freibeweis) 199, 333n28items seized as 177, 316n25, 318n30rules of 116, 199, 333nn27–28taking of 116, 130, 133, 199,287n9, 296n99, 335n9ExecutiveSee Bund: executive organsExecutors 88, 92, 281n337,282n342Extradition, 202 308n3dFFamily law 80–81, 123,135, 139–145appeals 136courts 140, 291n31foreign decisions 301–302n148and international law 196–197maintenance 142–144, 302n149,302n154marriage 139–141temporary orders 140–141, 302n149Faulty goods,liability for 55, 261n126j,269n189Federal Republic/federal institutions559

The German Legal System and Legal LanguageSee Bund(es-); GermanyFees, lawyers’ 213–216administrative/finance cases 214agreements 341nn101–102,342n111calculation 213–215civil cases 214, 341nn95–97claiming 215, 342n105criminal cases 214, 341n100employment cases 214framework 215legal aid 215, 342n111level 215, 341–342nn101–102reform 216Fernabsatz (long-distancetransactions) 56, 223n11aFeuerbach, Paul JohannAnselm 227n14Foreign law, role in Germanlegal process 199, 340n74Foreign relations 8and AGBG 39Foreign residents 126–127Formal vsmaterial law 26Freedom(s), right to 7–8, 21, 22–23,239n4, 244n26Freiheitliche demokratischeGrundordnung 7–8Fundamental principles(of German law) 6–7See also Basic Law (Grundgesetz)GGemeinde(n)See Local authoritiesGemeinschaft(community) 54, 68, 282–283nn13–14defined 97–98of heirs 87–88, 282n311Gemeinschaftliches TestamentSee Wills: jointGenehmigung (approval)See ErlaubnisGenossenschaft(cooperative society).German languagecharacteristics of 282n5 ix, 221nn3–4as language of courts 241n18,277n256aGermanydefence 303n1electoral system 7, 232n26foreign relations 8, 201–202, 232n31government 5–9, 11, 157,228–229nn3–7,233–234nn1–5history of law in ix, 1–3, 221nn1–2,314n3legal systemSee Separate main headingliterature of 2, 226–227n11reunification 13, 234n1study of law in 221n1GesamtrechtsnachfolgeSee Succession: universalGeschäftsanteilSee GmbH: capitalGeschäftsfähigkeit (ability toundertakelegal action) 30–31, 33, 67,245n5, 256n106and GmbH 112–113of parties 120, 121Geschäftsgrundlage (basisof transaction) 251n47dGesellschaft (company)See also Commercial law; GmbHbookkeeping 107–108definitions 97–99, 104domicile 246n7, 290n28c,291n48formation 98–99, 105liability 99–100, 105–106,283n26, 285nn50–51560

Indexmanagement 99–100members 98, 99–100, 105–106,282n12, 283n16,283n25, 285nn50–51termination 106–107, 325n7btrading 104–107types 97, 104, 282nn4–5,283n17Gestaltungsrechte (Rightsof formulation) 29, 247n19Gewerbe (typeof business) 189–190, 284n31Globalisation. 332n12GmbH (limitedliability company) 25, 97, 111–114capital 112, 286nn8–9directors 113–114, 286n13,287n15, 324n2adomicile 283n20formation 98–99, 111lawyers’ 342n116legal status 112–113liability 111–112organs 112–113registration 112GoA (transaction withoutinstruction)See RechtsgeschäftGoethe, JohannWolfgang von 2, 226–227n11Good faith (Glauben)in business transactions 108–109in court proceedings 37, 120in transfers ofownership 76Grotius, Hugo 1–2, 225–226n9Grundgesetz (GG)See Basic LawGrundrechteSee Basic rightsGuarantees 267n177,269n188Gütetermin (settlementhearing) 132, 135HHaftungSee Commercial law: liability(Handels-)VertreterSee AgentsHandelsgeschäft(e) (commercialtransaction(s)) 108–109HandelsgesellschaftSee Gesellschaft: tradingHandelsregister(trade register) 101, 285n32Handicrafts 329n16Hauptverhandlung (mainhearing, criminal cases) 179Health and safety(workplace) 186–187,328nn6–65compulsorymeasures 186, 327nn56–57Hearings 125–128, 131–135in administrativecourts 164–165alternatives to 135in Amtsgericht 134–135fixing of date 132–133interruption 127–128in Landgericht 131–134‘oral principle’ 116, 117, 125preliminary 131–132preparation for 132preparatorypleadings 125, 292n64procedure 133–134, 300n120publicity 116, 288n8time limits 127, 128, 131–133,294n78, 299n111Heirsacceptance 93, 95,281nn336–38appointment 88–90community of(Erbengemeinschaft) 87–88561

The German Legal System and Legal Languagecompulsoryentitlement 91–92, 281n321disclaimer, right of 93, 95,281n332, 281n334exclusion 90legal status 87–88liability for debts 94HGB (Handelsgesetzbuch=Commercial Code) 97, 100–109principal divisions 100‘Historical school’ (of legalthought)See TheoriesHistory (of German law) 1–3, 225n7,227nn14–15, 314n3Hobbes, Thomas 226n10Holy Roman Empire 1, 225n7Hostelries 54Human rights 308nn3c-4See also Basic rights; European ConventionIInheritanceSee also Heirscertificate of 94–95disclaiming 93by disposition on death 83by statute 82–83by will 84–87Injured party,involvement of 180Innocence,presumption of 175Inquisition principle 175Interest rates 65, 262n128‘Interest’ theory 25International law 25, 195–199,201–102See also European Union; Germany:foreign relationscooperation 201, 202, 334n1enforcement 302n171,335n13extradition 202, 335nn16–17general principles 8, 195–196,233n35of obligations 197–199, 245n6,332n12personal/family 196–197sources 201–202substitutejurisdiction 308n3dvs domestic law.. 195–196, 221–222nn4–5,232n31, 330n2,331nn6–7Interpreter/translator,employment of 241n18,278n256a, 336n9JJudges 203–05appointment 203–04, 335n5,336n17in civil hearings 116, 125–126,134, 294n69, 299n116in civilpreliminaries 131–132in criminal cases 177–178, 317n25independence 7, 117, 204knowledge of law 199, 297n98as law makers 334n2preparation 203, 336nn10–11professional vshonorary 203qualifications 203submissions to(from Rechtspfleger) 204–05supervision/discipline 204, 336–338n19Judgmentenforcement 146overturning 117,288n15, 289n21passing of 116, 117, 134,288n15preconditions for 121Judicial review 237n9, 237n12Jurisdiction 6, 119, 135,289n28agreements 198–199, 340n74challenges to 291n47562

Indexcriminal law 314n4, 314n7,337n37family law 140, 291n28finternational 198–199,290n28a-b,330nn2–3national system 18–19, 205substitute 308n3dtypes 205–207Juristic persons(juristische Personen) 98, 99, 112–113,273n222cassets 283n16defined 27–28Justice, administration of 6, 207Justizverwaltung (judicialadministration) 207KKant, Immanuel 2, 227n12Kaufmann (businessman)definition 101, 246n7, 284n31powers/restrictions 35, 39, 101–102,108–109, 198,254n71, 285n57KG (Kommanditgesellschaft=limited partnership) 97, 98–99,104, 107, 283n18domicile 246n7termination 107, 324n7bKlage(n) (plaint/writ)in administrativelaw 163–164, 308n15,307nn11–12amendment 130, 297n100consideration 131–132, 296n97content 130, 296–297n96in criminal law 175defence to 132, 297n107in employment law 182, 325n17in enforcement cases 151multiple 130–131service 129settlement,attempts at 132types 129–130, 307n12,307n15KlagenhäufungSee Klage(n): multipleKündigungSee TerminationLLadung (summonsto attend) 132–133, 179,298n113Landcompulsory sale/administration 152, 276n244,302n185natural produce(Urproduktion) 189, 329n13ownership/possession 71, 75Register 74, 78, 79, 152,279n272rental 62–63rights 74, 77–78Länder (states)administration 5–6, 14,229–230n10, 229n7authority 5, 13–14, 229n7,234–235n6, 234n4constitutional order 13, 18courts 205–06police forces 318n32treaties between 8Landgericht(county court) 128–134, 205,338n37appeals to/against 135–136civil/commercialchambers 119, 203, 338n37LandlordsSee RentLawyersSee Counsel; RechtsanwaltLeasesSee RentLegacies 87, 92, 280n291563

The German Legal System and Legal LanguageLegal aid 215, 342n111Legal representation 122–123, 292n55appointment 132, 177, 209in criminal cases 177–178mandatory 123, 124Legal system, Germanbasic principles 5–8, 205–207characteristics 222–223nn8–10compared to British ix, 222–223n10areform, need for 222n9reforms, undertaken 224n11b-cviews of 222–223n10aLegal (trans)actionsSee RechtsgeschäftLeihe (type of lease) 59, 255n95Leistung (=contractualobligation)defined 45, 257n115disturbances to(Leistungsstörungen) 46, 258–261n126duties regarding 257–258n116in land rights 74types 257n111Liabilitycivil servants 274n224company 99–100, 105–106,111–112, 283n26,285nn50–51contractual 258–261n126,258nn118–119,262–263employers 187–188, 273n222a-bfaulty goods 55, 261n126j, 270n189heirs 94legalpartnerships 217, 343–344nn115–116notaries 218, 342n123public duty,failure in 273n222b-d,274n224torts 70, 271n219,273–274n222Loans 64–65, 78,270nn210–211Local authorities(Gemeinden) 15–16, 235n1areas of authority 15, 235–236nn5–7,236n11Locke, John 226n10Locus standiSee ProzeßführungsbefugnisMMahnbescheid(default notice) 117, 289n23Mahnverfahren (defaultnotice procedure) 117, 146, 289n22,302n163, 335n13Mediaeval law/jurists 1Mediation(compulsory) 132, 135Mens rea 168Mental incapacity 30, 84MieteSee RentMinorscourt representation 121criminalresponsibility 171, 312n40in family law 80–81, 144–145legal capabilities 30–31, 33, 84,248–249n31‘Modified subject’ theorySee ‘Special rights’ theoryMortgages 78–80NNachlaßgerichtSee Courts: probateNationality,significance of 196‘Natural law’See TheoriesNegligence 268n183, 271n219civil servants 273n224criminal law 171–172, 312n50employers 188, 273n222,328n63564

IndexNormscompulsory vsdispositive 26, 37, 186,245n6, 327n55control 163, 306n6in criminal law 168, 307n1distinguishability(public/private) 25–26in employment law 186, 327n55European 224n12hierarchy 17, 237n7in international law 195, 331nn3–5,333n29interpretation 161, 306n31procedural 293n69role in legal system ix, xi, 227n17supplementary 307n1traffic 273n222evalidity 17–18, 163, 237nn8–9,237nn12–13Notaries 217–219appointment 217, 342n120capacities andduties 218, 277n256a,281n311liability 218, 342n123OOberlandesgericht (county courtof appeal) 120, 135–139, 205–206,300n133, 301n135,306n2and lawyers’admission 208–209Oberste Landesgericht (supremecounty court, Bavaria) 206Obligations (law of) 44–71basic principles 44–45,255–56nn102–106,264–65n159content of 45–49and contracts 45, 47–48, 197–198,332n12discharge of 51–52and internationallaw 197–199, 332n12of multiple debtors/creditors 53and Rechtsgeschäfte 44–45reform 224n11brights of rescission 48–51statutory 45, 70–71transfer of 52–53typical examples 53–58, 64, 65–71Offences, criminalon behalf of others 169–170consequences 173–174elements of 168–172,310–311nn15–19guilt 170–172, 310n18,312n38, 312n40illegality 170justification(Rechtfertigung) 170,311n26, 311nn33–36by omission 169, 311–312nn23–24types 167–168, 309nn9–10,309nn13–14OHG (offeneHandelsgesellschaft) 97, 98–99,104–106domicile 246n7termination 106–107, 324n7bOrderpapiere (ordersecurities) 191–192Ownership (Eigentum) 71, 75–77,278n265definitions 75, 274n231joint 77transfer of 75–76, 275n237,277nn255–256, 277–278n260,279n264, 330n40PPacht (type of lease) 59Parliament(s)federal 9, 11state 13Parties (to court565

The German Legal System and Legal Languageaction) 118, 120–125,291n37delays by 133, 300n120joint 121–122Parteifähigkeit 120, 121requirementto attend 133, 299n113roles in hearing 125–126, 133,299n115–116submissions 125, 133,293n67, 297n97PartnershipsSee KG; RechtsanwaltPensions 54Personal development,freedom of 22, 242n20b-cPersons, legalnatural vs juristic 27, 121, 248n27and obligations 44qualifications 27–28, 245–246n6Pfandrecht (pledge) 80, 280–281n280Pfändung(distraint) 147, 148, 150–152, 154,281n280c, 281n280cPflichtteilSee Compulsory entitlementPolice 178–179, 316n22,319–320nn32–34,338n51internationalcooperation 334n1Postulationsfähigkeit(=right of audience) 124Power, statederivation 7‘horizontal separation’ 7, 231n22Power of attorneySee VollmachtPrecedents 117Prison sentences 167, 173Private law(Privatrecht) 25, 245n1See also Civil law; Commercial law;Company lawand basic rights 21, 239–240n7Privatisation 157, 230–231n15Privatklage (privateprosecution) 176, 180,316n14, 322n51Procedureadministrative 163–165administrativevs. civil 165basic principles 115–117, 165,288–288n10civil law 25, 26, 115–55costs 125criminal law 175–180documentation 218enforcement 146–155family law 139–145hearings 125–128inheritance 93–95international law 198–199, 201–202and parties 120–125proceedings atfirst instance 128–135Prozeßhandlungen 120–121,124reform 224n11cremedyingof faults 120–121, 292n42time limits 42Proceedings 118–119, 125–128See also Procedure;Prozeßhandlungenconduct of 116–117, 125–126,134, 300n120criminal 179, 315,n20321nn39–40, 322n43at first instance 128–135interruption 127–128, 295n71judgment vsenforcement 116, 125lawyers’ fees 214recording/televising of 287n8reopening 117, 134, 139,290n21, 300n123566

Indexspecial types 116, 180Procura 101–102, 285nn34–37Product Liability Law(ProdHaftG) 261n126jProfessionalassociations 184, 186Property (laws of) 71–80See also Assetsland law 74, 77–78marital 80, 142–143, 196,332–332n11mortgages 78–80ownership 75–77possession 71rights 72–73, 74Prozeßführungsbefugnis(=locus standi) 124Prozeßhandlungen (stepsin proceedings) 120–121, 124, 291n38,291nn41–42ProzeßrechtSee Procedural lawProzeßvoraussetzungen(preconditions forjudgment) 121Public lawand AGBG 39–40branches of 25commercial 190vs private 25–26, 245n1Purchase, types of 55PVVSee Contract, breach ofRRAK (Rechtsanwaltskammer=Lawyers’ Chamber) 123, 211–212,341n85Reasonable doubt,principle of 116Rechtsanwalt (lawyer) 207–217, 338n54See also Legal representation;Staatsanwaltschaft; Verteidigeradmission 208–209, 339–340n59,339n61and clients 209, 339n70,340n74, 341n101complaints against 212–213, 341nn88–39conflicts ofinterest 209, 210, 339n71,339n66feesSee Separate main headingand foreign law 340n74misconduct 211, 212–213non-Germannationals 208, 338n56, 340n77partnerships 216–217,342nn114–116publicity 210, 341n72rights and duties 209–211,340nn73–79specialisation 210status 208Rechtsfähigkeit (capacity forrights and obligations) 245n5, 256n106defined 27Rechtsgeschäft(e) (legaltransaction(s)) 29–41commercial 108–09conditions placed on 36–37defined 248n24forms of 34internationalvalidity 332n19null/ineffective 249n35, 252n58,324n7aand obligations 44–45, 67sittenwidrig(immoral) 34, 252n58vs Prozeßhandlungen 120without instruction 53, 67,267–268n169Rechtshandlung(en)(legal action(s)),defined 29–30Rechtsmangel (defect567

The German Legal System and Legal Languagein title) 54, 269n185Rechtsobjekte, defined 28Rechtspflege (administrationof justice) 207Rechtspfleger (legalexecutive, inAmtsgericht) 119, 147, 151,204–205, 302n172,337nn27–28Rechtsstaat principle 6–7, 13,231nn18–19Rechtssubjekte(legal subjects)See PersonsRechtswidrigkeit(illegality) 170Referendar, office of 203, 336n10Reichskammergericht,establishment of 1Rektapapiere (specificallynamed securities) 192, 330n40Remedies, legal 120–121, 135–139,292n42, 336n19See also Appealsin administrative law 163in enforcement 148–149lawyers’misconduct 212–213Rent (Miete),laws of 58–64, 270nn198–199agreements 43, 58–59, 270n202,271n204, 271n206,271n208land 62–63rights and duties 60–62tenure 63–64, 271nn206–209transfer of 62–63Rescission (termination/withdrawal),rights of 48–51, 55, 263–264nn138–39,264n147Revision (appeal onpoint of law) 137–138, 199,300–301nn133–135grounds for 301n136Rightsof accused 175basicSee Separate main headingto be heard 115, 134, 175,288n3, 303n9of Betriebsrat 184–185, 327n46consumer 37, 41of customers 266–267n166land 74, 77–78procedural 115, 175of property 71, 72–73‘real’ (dinglich) 71, 72–73, 78,276n236of rescission 48–51subjective 28–29, 246n16Road accidents 273n222e, 274n227Roman law 1–3, 225nn3–6,245n1, 264–265n159,282n10Rome Convention 332nn12–20Rousseau,Jean-Jacques 226–227n11, 226n9RücktrittSee RescissionSSale/purchase 53, 54, 269–270nn188–39,268n185, 274–275n234Satzung (articlesof association) 98–99Savigny, FriedrichKarl von, Prof 2–3, 227n13,227n16, 277n246Schiller, Friedrich von 2, 226–227n11Schuld (guilt) 170–172, 311n18exclusion 172, 312nn52–54,313nn57–61intent 171–172, 312n47minors 171, 312n40568

Indexnegligence 171–172, 312n50Schuldverhältnis(obligation), defined 45, 257n115See also Obligations, law ofSecuritiesSee WertpapiereSeizureof criminal evidence 177, 316n25of (debtor’s) assets 154–155,302nn179–181Servicecontract(s) of 65, 102–103,113–114, 265n159,323n1, 325n6, 328n60of legal process 126–127, 129, 152,224n11a, 295–296nn87–90,335n7Settlement(out of court) 132, 135Social security 230n12, 303n10,323n2cSozialgesetzbuch(Social Code) 188‘Special rights’ theory 25Specificityprinciple 296–297n96Spouse(s)inheritance by 82, 83, 91, 281n287joint wills 86, 282n305Staat (state)defined 228n1power structure 7, 231n20Staatsanwaltschaft (stateattorney’s office) 176–177,316nn22–26, 315n20StammkapitalSee GmbH: capitalStandard business termsSee AGBGStateSee Bund; StaatStatute(s)administrative 157–158and AGBG 40–41,254–255nn86–87as binding 7, 117, 167,230–231n23, 290n18criminal law,role in 167, 176, 307n3,308n6gaps in 251n47e, 309n6and inheritance 82–83interest rates 262n128and obligations 45, 256–257n108and ownership 76and Verjährung 42, 43–44StGB (Strafgesetzbuch=Criminal Code) ix, x, 167–174StPO (Strafprozeßordnung=Criminal ProcedureOrder) 175–180Streitgegenstand(object of action) 130, 296–297n96,297n101StreitschlichtungSee MediationStreitwert (value of monetary action) 119,134–135Subjektives RechtSee Rights, subjective‘Subordination’ theory 25Substantiation,requirement of 125, 293n67Succession (laws of) 27, 81–95disposition of estate 87–92exclusion from 90modes of inheritance 82–87procedural aspects 93–95universal, principle of 87Supreme federal organs/authoritiesSee Bund: executive organsSuspectsSee also Accusedarrest 177, 317n26,319–320n38, 319n36569

The German Legal System and Legal Languageexamination 320n38g-h,320n38dinvestigation 177, 179,316nn24–26remanded in custody 317n26,319–320n38a-dSwitzerland, Civil Code 222n8TTatbestand (=content, ofcriminal offences) 168–170Tax law 25Temporary ordersenforcement 149family law 140–141, 302n149TenantsSee RentTenure, security/termination of 63–64Termination (Kündigung)of company 97, 106–107,282n7, 324n7bof contracts 113, 324n6,324n7a, 324n8of employment 65, 103, 181–183,295n75, 325–326nn10–11of lease 61, 63–64, 271nn208–209of legalpartnership 217of loan 64–65of Rechtsgeschäft 51, 264n147Terrorism 318n31TestamentSee WillsTheories of lawClassical 225–226n9, 225n3‘free’ school 226n17‘historical’ school 2, 224n12,227–228n17, 227n16‘natural law’ 1–2, 225–226nn9–10positivist 226n10, 226n17Thibaut,Friedrich, Prof 2Third parties 122claims fordamages 274–275nn226–227in company law 105–106, 284n32,285nn50–51contracts forbenefit of 48, 262–263n135in enforcementcases 151, 152injuries to 273n222bprotection of 292n57Time limitsadministrative law 164AGBG 41appeals 136, 295n78company liability 107contracts 49, 324n9criminalprosecutions 176, 315–316n11,322n48debts 42–44, 255n98,261–262n127default notices 117hearings 127, 131–133, 295n78,298n111inheritance law 86, 88, 91, 93Rechtsgeschäfte 36–37, 41–44,255n98rentalagreements 271n204, 271n206,271n208Torts 45, 54, 70–71, 269n183,272n219burden of proof. 261n126j,273–274n222bcommercial law 243n20gemployment law 272n222b, 327n53failure of safety 272–273n222b-dinternationallaw 199,333n25negligence 273–274n222b-d,274n224personal injury 252n58d,272–273n220,274–275n227570

Indexplace ofcommission 333n25procedure 199property. 280n266dright to sue. 273n226road accidents. 273n222etime limits 43Trades unions 184, 186Treaties. 8, 201, 233–234n3,234n12, 335n12extradition 202, 335n16Treu und Glauben,principle of 37, 120, 250n47a-bSee also Good faithTruth, duty to tell 115, 125, 287n5,292n66UUK lawabsence of constitution 226n10burden of proof 288compared to German law(in general) ix, x, 168,222–23n10a, 253n62conditions 254n75contracts 252n58c,253n62, 253n65, 253n67,254n70, 254n75, 332n15,332nn12–13criminaloffences 168, 311n26criminalprocedure 314n2declarationof intent 249n38domicile 246n9‘estoppel’ 251n47cand EU 335n4, 335extradition 335nn17–18guarantees 268–269n177inheritance 281n337internationallaw 331 332nn12–13,333n25bjudicial review 237n9lawyers’ duties 341n74, 340n77negligence 272n219property 246n11, 277–78n255,279n264, 280n266drescission 263n138Romaninfluence 225n6sale of goods 269n185, 269n188,275–276n234b-c,276n238, 279n260Scotland 246n16securities 190subjective rights 246n16torts 243n20g, 272n219,280n266d, 334n25btreaties 232–233n34, 335n6Unerlaubte HandlungenSee TortsUngerechtfertigteBereicherung (unjustifiedenrichment) 54, 69–70, 73Unternehmen(enterprise) 183, 185Untersuchung(shaft)See Suspects: remanded in custodyUrkunden- and Wechselprozeß(speedy financialactions) 139Urprvduktion (extraction ofnatural produce) 189, 329n13UWG (Law againstUnfair Competition) 243n20gVVendor, duties/liabilities of 270n189Verband (federation/association), defined 97–98Verein (association/club) 97, 98, 99,283n15unregistered 99571

The German Legal System and Legal LanguageVerfügung (various meanings:See Glossary)in court judgment 117, 301n140definitions 44, 72–73,255n102,276n241in law of succession 83, 86, 281n311limitation/prevention 73in preparationfor hearings 132in property rights 72, 73, 74,276–77n245,278n257and Rechtssubjekte 44, 255n102Verhandlung(en)See HearingsVerjährung (timelimitation) 42–44, 255n92,255n98VermächtnisSee LegaciesVerpflichtung (dutyto perform) 258n126adefined 45Verteidiger (defender) 177–178, 317n27,318nn29–31Vertrag (and compounds)See ContractsVertretbare Sachen (fungiblegoods) 71, 274n234a,275n235Vertreter/ungSee Agents: legalVerwaltung (and compoundsother than below)See Administration; Administrative lawVerwaltungsakt(administrativeact) 17, 158, 159–162,237n8, 303nn12–13annulment 160, 305nn26–27challenges to 160, 163–165,304–305nn22–23,304n13, 307n2definition 159enforceability 327n56grant of Erlaubnis 161–162, 307n29types 160–161, 327–28n57validity 160, 305nn24–25Verwaltungsverfahren(gesetz) ((law of)administrativeproceedings) 157–159, 303n8Vollmacht (authority/power of attorney) 123–124, 293n62,292nn57–59in family law 140Vollstreckbare AusfertigungSee Enforcement: ‘duplicate’WWerkvertragSee Contract(s): for servicesWertpapiere (securities) 190–193See also Bondsdefinition 191exclusions fromdefinition 192–193, 330n41types 191–192, 330n36Wiederaufnahme des VerfahrensSee Proceedings: reopeningWillenserklärung (declarationof will, ie, intent)agreement over 34–36challenges to 33–34, 250n45, 251n48definitions/components 32interpretation 32–33, 249–250n44,250n46(in)validity 30–31, 32, 33–34,249n35, 251nn49–50place inRechtsgeschäft 29–30, 248n24requirements 249n43,249nn38–39Wills (Testamente) 84–87appointment of heirs 88–90capacity to make 84572

Indexchallenges to 85–86, 90, 93interpretation 84–85joint 86, 282n305legacies 87, 92probate 95, 283n345revocation 84, 86types 84validity 85–86Wirtschaftsrecht(business law) 189–193See also Commercial law; GmbHdefinitions 189, 328n2Wirtschaftsverfassungsrecht(SeeGlossary) 190Wirtschaftsverwaltungsrecht(SeeGlossary) 190Witnesses, examination of 318n29Wohnsitz (domicile)defined 27–28, 246nn7–9significance in(international) law 195, 196–97,291n28c-d, 331n4,331nn8–10ZZPO (Zivilprozeßornung =Order of CivilProcedure) 115–155, 289n25principal divisions 115basic principles 115–116Book I: GeneralProvisions 118–128Book II: Proceedings atFirst Instance 128–135Book III: Remedies 135–139Book IV: Wiederaufnahme desVerfahrens 139Book V: Urkunden—andWechselprozeß 139Book VI: Family Matters 139–145Book VII: Mahnverfahren 146Book VIII:Zwangsvollstreckung 146–155Book IX:Aufgebotsverfahren 155Book X: Arbitration 155on documentation 219and international law 198–199,201–202ZuständigkeitSee JurisdictionZustellungSee Service: of legal processZwangsmittel(compulsory measures).. 186, 328–329nn56–57573