The German Law of Contract A Comparative Treatise (Second Edition)

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Edition: 2nd
Format: Paperback
Pub. Date: 2006-03-01
Publisher(s): Hart Publishing
List Price: $155.20

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Summary

Recently the contract section of the German Civil Code was amended after one hundred years of un-altered existence. The German Law of Contract, radically recast, enlarged, and re-written since its first edition, now details and explains for the first time these changes for the benefit of Anglophone lawyers. One hundred and twenty translated contract decisions also make this work a unique source-book for students, academics, and practitioners. Along with its companion volume, The German Law of Torts, the two volumes provide one of the fullest accounts of the German Law of Obligations available in the English language. Through its method of presentation of German law, the book represents an original contribution to the art of comparison. An additional feature of the Contract volume is the way in which it reveals the growing impact which European Directives are having upon the traditional, liberal, contract model, thereby bringing German and English law closer to each other, especially in the area of consumer protection.

Author Biography

Sir Basil Markesinis QC is a Fellow of the British Academy, a Foreign Fellow of the Accademia dei Lincei of Rome, the Royal Belgian Academy of Arts and Sciences in Brussels, the Royal Netherlands Academy of Arts and Sciences in Amsterdam, and a Correspondng Fellow of the Academy of Athens and the Academie des Sciences Morales et Politques in France. He is a Bencher of Gray's Inn.
Angus Johnston is University Lecturer in Law at the University of Cambridge and Director of Studies in Law at Trinity Hall, Cambridge.
Hannes Unberath, Professor of Law at the University of Bayreuth (deceased).

Table of Contents

Foreword v
Lord Bingham
Foreword vii
President Hirsch
Preface to the Second Edition ix
Introduction
1(54)
Preliminary Observations
2(4)
The Genesis Of The Code
6(10)
The Tortured Path to Unity
6(6)
The Triumph of the Learned Man
12(2)
European Contract Law?
14(2)
The Contrast With The French Civil Code
16(3)
The Regulatory Technique Of The German Civil Code
19(6)
Contract As Part Of The Law Of Obligations
25(12)
Preliminary Observations
25(1)
The Different Meanings of `Contract'
25(2)
The Principles of Separation and Abstraction
27(10)
The Constitutionalisation Of Private Law
37(6)
Freedom Of Contract
43(12)
Preliminary Observations
44(1)
The Initial Position
45(1)
Modern Constraints
46(9)
The Formation of a Contract
55(64)
Introductory Remarks
55(1)
The Offer (Antrag, Angebot)
56(14)
General Observations
57(2)
Necessary Content of an Offer
59(3)
Offer and Invitation to Treat
62(1)
The Duration of the Offer
63(1)
The Irrevocability of the Offer
64(1)
The Rationale of the German Approach
65(2)
Communication of the Offer
67(3)
The Acceptance (Annahme)
70(11)
Free
70(1)
Unreserved Acceptance; Dissent
71(2)
Communication of the Acceptance
73(2)
Waiver of Notification of Acceptance; Silence and Letters of Confirmation
75(3)
Pre-contracts; Option Contracts; and Letters of Intention
78(1)
The Battle of the Forms
79(2)
Form And Evidence Of Seriousness
81(10)
Formalities
81(5)
Evidence of Seriousness
86(5)
Culpa In Contrahendo: Fault In Contracting
91(18)
General Observations
92(5)
Situations Covered
97(2)
Failed Contracts
99(4)
Negligent Misrepresentation
103(1)
Liability of Intermediaries
103(6)
Agency
109(10)
General Observations
109(3)
The Giving of Authority---Bevollmachtigung
112(1)
The Extent of the Authority
113(1)
Lack of Authority
114(1)
Ratification
115(1)
The Liability of the Falsus Procurator
115(1)
Exceptional Rules
116(1)
Termination of Authority
116(1)
The Commission Agent
117(2)
The Content of a Contract
119(62)
Introductory Remarks
119(1)
The Principle Of Good Faith
119(14)
Preliminary Observations
120(3)
Abuse of Rights
123(2)
Implying Collateral Obligations
125(5)
Policing the Contract
130(3)
The Sources Of Contractual Terms: Interpretation And Beyond
133(11)
General Observations
133(2)
Comparative Observations
135(3)
Express Terms, Terms implied in Fact and in Law
138(2)
`Completive' Interpretation (erganzende Vertragsauslegung)
140(1)
Default Rules and Terms implied in Law
141(3)
Specific Types Of Contract
144(19)
Preliminary Observations
144(3)
Contract of Sale
147(1)
Donation
148(1)
Contract of Rent
149(2)
Lending
151(1)
Loan and other Forms of Credit
151(2)
Contracts for Services
153(2)
Contract for Work
155(2)
Travel Contract
157(1)
Mandate and the Management of Affairs for Others
158(2)
Surety
160(2)
Mixed and New Types of Contract
162(1)
Standard Terms And Exclusion Clauses
163(18)
Preliminary Observations
164(6)
Structure and Scope of Application
170(1)
Standard Terms, their Incorporation and Construction
171(4)
Assessing the Fairness of Standard Terms
175(4)
Consequences of Invalidity
179(2)
Relaxations to Contractual Privity
181(46)
Introductory Remarks
181(5)
Contracts In Favour Of Third Parties ( Vertrage zugunsten Dritter)
186(18)
Typical Factual Situations where such Contracts are Discovered by the Courts
187(1)
Retirement Benefits and Widows' Pensions under Private Law Agreements
188(1)
Parents Contracting with Physicians for the Treatment of their Child
189(1)
Savings Accounts: Third Parties as Account Holders
190(3)
Carriage of Persons in Connection with the Services of Travel Agencies
193(1)
Insurance Contracts Stipulating Performance to a Third Party
194(2)
Carriage of Goods where the Consignee is Treated as a Third Party-Beneficiary
196(1)
How is the Right Acquired?
197(2)
When does the Third Party's Right Vest?
199(2)
Defences against the Beneficiary
201(2)
Unjust Enrichment of the Beneficiary
203(1)
Contracts With Protective Effects Towards Third Parties
204(12)
Preliminary Observations
204(1)
Cases involving Personal Injury or Physical Damage
204(4)
Economic Loss Cases
208(6)
Summary and Comparative Epilogue
214(2)
Schadensverlagerung And Transferred Loss
216(11)
Preliminary Observations
217(1)
Theoretical Basis
218(2)
Risk Cases
220(3)
Indirect Representation
223(1)
Taking Care of Another's Goods
224(3)
Validity
227(36)
Introductory Remarks
227(2)
Capacity
229(11)
Preliminary Observations
229(1)
Age-related distinctions-Minors
230(8)
Individual Lack of Capacity
238(2)
Illegality
240(7)
Preliminary Observations
240(2)
Statutory Prohibition-General Principles
242(3)
Statutory Prohibition-Fields of Application
245(2)
Public Policy (Sittenwidrigkeit)
247(16)
Preliminary Observations
248(2)
Usury (Wucher)
250(3)
Contracts Contrary to bonos mores
253(1)
Contracts Violating the Interest of One of the Parties to the Contract
254(6)
Contracts Violating the Interests of the Community at Large
260(1)
Contracts Violating the Interests of a Third Party
261(2)
Setting the Contract Aside
263(56)
Introductory Remarks
263(1)
Consumer Rights
264(12)
Preliminary Observations
265(5)
Right of Cancellation (Widerrufsrecht)
270(3)
Scope of Application
273(3)
Mistake
276(26)
Preliminary Observations
277(5)
The Distinction between Declaration Mistakes and Errors in the Motivation
282(4)
Right to Rescind
286(5)
Declaration Mistakes
291(1)
`Expression' and `Meaning' Mistake
291(1)
Transmission Mistake
292(1)
Causality
292(1)
Intention to Create Legal Relations?
293(1)
`Calculation Error'
294(1)
Mistakes of Law
295(2)
Electronic Declarations of Will
297(1)
Mistake as to the Quality of the Subject-matter or the Person
297(4)
Common Error
301(1)
Deception And Other Forms Of `Misrepresentation'
302(12)
Preliminary Observations
302(1)
Deception
303(3)
Duties to Inform (Aufklarungspflichten)
306(5)
Other Forms of `Misrepresentation'
311(3)
Coercion
314(5)
Preliminary Observations
314(1)
Elements of Coercion
315(1)
Illegitimacy of Threats in Particular
316(3)
The Doctrine of the Foundation of the Transaction
319(30)
Introductory Remarks
319(1)
Theoretical Explanations
320(3)
The Initial Approach And The Present Position Of The BGB
323(3)
The Cause Of The Revolution
326(10)
Adjusting Performance And Counter- Performance: A Closer Look
336(6)
Frustration Of Purpose
342(4)
Common Mistake
346(3)
The Performance of a Contract
349(144)
Introductory Remarks
349(1)
Plea Of Unperformed Contract (Einrede des nichterfullten Vertrages)
349(6)
Classification of Contracts
349(2)
Plea of Unperformed Contract (Einrede des nicht erfullten Vertrages)
351(3)
General Right of Retention (allgemeines Zuruckbehaltungsrecht)
354(1)
Time And Place Of Performance
355(6)
Time of Performance
355(2)
Place of Performance
357(4)
Performance Through Third Parties
361(12)
Preliminary Observations
362(1)
Vicarious Performance: Sub-contracting and Substitution
362(2)
Sub-contracting in the Building Industry
364(2)
Payment of Another's Debt
366(7)
Set-Off (Aufrechnung)
373(6)
Preliminary Observations
374(1)
Mutuality of Claims
375(1)
Claims of the Same Kind
376(1)
Validity, Maturity and Enforceability of the Claim Set Off
376(1)
Existence of the Claim of the Other Party
377(2)
Breach of Contract: General Principles
Introductory Remarks
379(2)
The Reformed System Of Remedies For Breach Of Contract
381(11)
History of the Reform and Main Objectives
382(4)
Outline of the Reform
386(6)
Enforced Performance
392(27)
Preliminary Observations
392(7)
The Primary Duty of Performance
399(1)
Requesting Performance---Relation to Secondary Rights
400(3)
Methods of Enforcement
403(3)
Limits of Enforced Performance: Impossibility
406(2)
Impossibility in the Sense of § 275I BGB
408(1)
Consequences of Impossibility for the Counter-performance
409(2)
Excursus: Delay of the Creditor
411(2)
Impossibility in the Sense of § 275 II BGB
413(5)
Impossibility in the Sense of § 275 III BGB
418(1)
Termination
419(18)
Preliminary Observations
419(2)
Duties of Performance (Leistungspflichten)
421(5)
Late Performance
426(1)
Non-conforming Performance
427(1)
Partial Failure of Performance
428(1)
Performance being impossible
429(1)
Anticipatory Breach
430(1)
Exclusion of the Right of Termination
431(1)
Duties of Protection (Schutzpflichten)
432(1)
Consequences of Termination (Rucktritt)
432(4)
Continuing Contracts (Dauerschuldverhaltnisse)
436(1)
Damages
437(49)
Preliminary Observations
438(6)
The `Fault Principle'
444(2)
Elements of Fault
446(1)
Raising the Standard of Care
447(3)
Alleviating the Standard of Care
450(1)
Damages instead of Performance - Late Performance (§ 281 BGB)
451(1)
The `ultimate' Failure of Performance
452(2)
Damages instead of the `Whole' Performance
454(1)
Effect on Counter-performance
454(1)
Damages instead of Performance - Impossibility (§ 283 and § 311a II BGB)
455(1)
Subsequent Impossibility
456(1)
Initial Impossibility
456(3)
Damages instead of Performance-Protective Duties (§ 282 BGB)
459(1)
Recovery of Wasted Expenditure (§ 284 BGB)
460(1)
Reliance or Expectation?
461(2)
Conditions of Recovery
463(1)
Damages for Delay (§ 280 II BGB)
464(1)
Delay of Performance (Verzug)
464(2)
Consequences of Delay
466(3)
Damages alongside Performance, `Simple' Damages (§ 280 I 1 BGB)
469(1)
Theoretical Explanations
469(1)
Expectation Interest (Erfullungsinteresse)
470(1)
Interest in the Integrity (Integritatsinteresse)
471(1)
Limiting Damages
471(4)
Mitigation and Contributory Negligence
475(4)
Assessment of Damages
479(1)
Expectation Interest
479(3)
Personal Injury
482(1)
Damage to Property
483(3)
Prescription
486(7)
Preliminary Observation
487(2)
Periods of Limitation
489(1)
Suspension, Restart and Effects of Prescription
490(3)
Breach of Contract-Specific Contracts
493(48)
Introductory Remarks
493(1)
Sale of Goods
494(26)
Preliminary Observations
495(1)
Application of General Contract Principles to Breach of a Contract of Sale
496(3)
Defining Conformity
499(3)
Enforced Performance
502(6)
Termination
508(1)
Price Reduction
509(1)
Damages
510(3)
Relationship between Primary and Secondary Rights
513(2)
Consumer Sales
515(5)
Contract For Work
520(8)
Preliminary Observations
521(1)
Application of General Contract Principles to Breach of a Contract for Work
522(2)
Defining Conformity
524(1)
Enforced Performance
524(2)
Recovery of Cost of Reinstatement
526(1)
Termination and Price Reduction
526(1)
Damages
527(1)
Contract Of Services
528(5)
Preliminary Observations
528(1)
Enforced Performance
529(10)
Termination
539
Damages
531(2)
Contract Of Rent
533(8)
Preliminary Observations
533(1)
Application of General Principles to Breach of a Contract of Rent
534(4)
Enforced Performance
538(1)
Termination by Notice and Price Reduction
539(1)
Damages for Non-conforming Performance
539(2)
Appendix I Cases
541(324)
Chapter 2
RGZ 124, 81
541(1)
Tony Weir
OLG Hamm NJW 1976, 1212
542(2)
Tony Weir
BGHZ 41, 271
544(3)
Tony Weir
BGH NJW 2002, 363
547(3)
Raymond Youngs
RGZ 105, 256
550(3)
Tony Weir
RGZ 144, 289
553(2)
Tony Weir
BAG NJW 1963, 554
555(2)
Tony Weir
RGZ 125, 68
557(1)
Tony Weir
BGHZ 67, 275
558(3)
Tony Weir
RGZ 50, 191
561(2)
Tony Weir
BGH NJW 1976, 801
563(2)
Irene Snook
RGZ 104, 265
565(2)
Carola Pfau
BGH NJW 1957, 1105
567(3)
Tony Weir
BGH NJW 1965, 387
570(1)
Tony Weir
BGH NJW 1965, 965
571(3)
Tony Weir
OLG Koln RBRK 1980, 270
574(5)
Tony Weir
BGHZ 54, 236
579(2)
Tony Weir
BGH NJW 1974, 991
581(2)
Tony Weir
BGH NJW 1985, 1838
583(4)
Irene Snook
BGH NJW 1996, 1467
587(6)
Raymond Youngs
RGZ 117, 121
593(1)
Kurt Lipstein
BGHZ 48, 396
593(2)
Kurt Lipstein
BGH NJW 1972, 1189
595(2)
Irene Snook
BGHZ 21, 102
597(3)
Raymond Youngs
RGZ 78, 239
600(1)
Raymond Youngs
BGHZ 66, 51
601(4)
Kurt Lipstein
BGH NJW 1987, 639
605(2)
Raymond Youngs
BGHZ 6,330
607(2)
Irene Snook
BGH NJW 1975, 1774
609(1)
Kurt Lipstein
BGH NJW 1996, 1884
610(3)
Raymond Youngs
BGHZ 56, 81
613(2)
Raymond Youngs
BGH NJW-RR 1991, 1241
615(2)
Raymond Youngs
BGHZ 36, 30
617(3)
Tony Weir
BGHZ 5, 111
620(3)
Irene Snook
BGH NJW 1999, 2883
623(2)
Raymond Youngs
Chapter 3
RGZ 131, 274
625(2)
Kurt Lipstein
BGHZ 21, 66
627(2)
Kurt Lipstein
BGHZ 43, 289
629(2)
Kurt Lipstein
BGHZ 90, 198
631(1)
Raymond Youngs
RGZ 101, 47
632(3)
Irene Snook
RGZ 108, 1
635(4)
Kurt Lipstein
BAG NZA 1994, 1080
639(3)
Raymond Youngs
BGHZ 91, 324
642(5)
Raymond Youngs
RGZ 99, 147
647(1)
Raymond Youngs
BGH NJW 1999, 3704
648(1)
Raymond Youngs
RGZ 117, 176
649(2)
Kurt Lipstein
RGZ 161, 330
651(5)
Kurt Lipstein
BGHZ 23, 282
656(2)
Kurt Lipstein
BGH NJW-RR 1987, 144
658(1)
Raymond Youngs
BGHZ 130, 19
659(5)
Raymond Youngs
Chapter 4
BAG NJW 1967, 173
664(1)
Irene Snook
BGHZ 2, 94
665(2)
Tony Weir
BGHZ 46, 198
667(2)
Irene Snook
RGZ 106, 1
669(3)
Irene Snook
BGHZ 41, 95
672(1)
Tony Weir
BGHZ 52, 194
673(5)
Irene Snook
BGHZ 93, 271
678(4)
Irene Snook
RGZ 51, 403
682(1)
Irene Snook
BGHZ 61, 227
683(4)
Tony Weir
BGHZ 70, 327
687(2)
Tony Weir
RGZ 102, 65
689(2)
Tony Weir
BGHZ 58, 184
691(3)
Tony Weir
BGHZ 33, 247
694(2)
Tony Weir
RGZ 91, 21
696(3)
Tony Weir
OLG Dusseldorf NJW 1975, 596
699(1)
Tony Weir
BGHZ 1, 383
700(2)
Tony Weir
BGH NJW 1977, 2073
702(2)
Tony Weir
BGH NJW 1964, 33
704(4)
Tony Weir
RGZ 102, 232
708(2)
Tony Weir
BGH NJW 1968, 1929
710(4)
Tony Weir
BGHZ 40, 91
714(5)
Tony Weir
BGH NJW 1977, 2208
719(3)
Tony Weir
BGHZ 49, 357
722(1)
Tony Weir
BGH NJW 1969, 789
723(3)
Tony Weir
Chapter 5
BGHZ 78, 28
726(2)
Raymond Youngs
BGHZ 111, 308
728(3)
Raymond Youngs
BGHZ 88, 240 = NJW 1984, 230
731(3)
Raymond Youngs
BVerfG NJW 2004, 2008
734(5)
Raymond Youngs
BGH NJW 2003, 1860
739(3)
Raymond Youngs
BGHZ 111, 336
742(2)
Raymond Youngs
BVerfG NJW 1994, 36
744(7)
Raymond Youngs
BGH NJW 2002, 2228
751(4)
Raymond Youngs
BGH NJW 2004, 930
755(9)
Raymond Youngs
Chapter 6
BAG NZA 2004, 597
764(6)
Raymond Youngs
LG Hanau NJW 1979, 721
770(1)
Raymond Youngs
BGH NJW 1995, 190
771(3)
Raymond Youngs
BGH NJW 2002, 2312
774(2)
Raymond Youngs
OLG Hamm NJW 1993, 2321
776(1)
Raymond Youngs
BGH NJW 1988, 2597
777(3)
Raymond Youngs
BAG NZA 2003, 848
780(2)
Raymond Youngs
BGH NJW-RR 1996, 429
782(2)
Raymond Youngs
BGH LM § 123 BGB Nr. 52
784(2)
Raymond Youngs
BGHZ 69, 53
786(2)
Irene Snook
BAG NJW 1999, 2059
788(4)
Raymond Youngs
Chapter 7
RGZ 86, 397
792(1)
Kurt Lipstein
RGZ 100, 129
793(4)
Kurt Lipstein
RGZ 103, 328
797(3)
Kurt Lipstein
RGZ 105, 406
800(1)
Kurt Lipstein
RGZ 107, 78
801(3)
Kurt Lipstein
OLG Bremen NJW 1953, 1393
804(1)
Kurt Lipstein
BGH MDR 1953, 282
805(3)
Kurt Lipstein
BGH NJW 1959, 2203
808(4)
Kurt Lipstein
BGHZ 37, 44
812(2)
Kurt Lipstein
BGHZ 61, 31
814(4)
Kurt Lipstein
BGH NJW 1976, 565
818(3)
Kurt Lipstein
BGH NJW 1984, 1746
821(3)
Kurt Lipstein
BGH NJW 1993, 259
824(3)
Kurt Lipstein
Chapter 8-10
BGH NJW 1982, 2494
827(2)
Irene Snook
BGH NJW 2003, 3341
829(3)
Raymond Youngs
RGZ 87, 64
832(1)
Tony Weir
BGHZ 75, 221
832(5)
Irene Snook
BGHZ 113, 62
837(2)
Irene Snook
BGHZ 24, 97
839(2)
Tony Weir
BGH NJW 1971, 421
841(1)
Tony Weir
BGH NJW 1972, 1045
842(2)
Tony Weir
BGH NJW 1968, 2238
844(4)
Carola Pfau
BGHZ 8, 239
848(2)
Carola Pfau
BGHZ 49, 56
850(4)
Tony Weir
BGHZ 30, 29
854(3)
Irene Snook
BGH NJW 2004, 2299
857(4)
Raymond Youngs
BGH NJW 1963, 804
861(4)
Tony Weir
Appendix II German Civil Code---Extracts
865

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