Law Of General Terms And Conditions Of Business

In the course of establishing business relations, the use of general terms and conditions of business has become common practice both in commercial legal transactions and in the relationship between contractors and consumers. By basing their business relationship on their own general terms and conditions of business, the contracting parties will usually attempt to assert contract terms most favourable to them – in derogation of the statutory regulations and within the limits permitted by law. If general terms and conditions of business are not merely adopted as standard clauses, but designed individually according to the specific needs and requirements of the user of the general terms and conditions, the legal position (and the negotiating position) can, as a rule, be optimised and improved in the long term.

However, general terms and conditions of business are governed by rather strict statutory controls in terms of their content. The law of general terms and conditions of business has evolved into its own field of law within the general law of obligations. For this reason we have – in all areas of the law of contract – developed special competence in the legal review, revision and redesign of general terms and conditions of business. As the court rulings on general terms and conditions of business change permanently, it is advisable to have the general terms and conditions of business checked at regular intervals for their compatibility with the latest developments in jurisdiction and literature.

In view of the increasing internationalisation of trade and business relations, our recommendation for contracts made with foreign partners is to use specific general terms and conditions of business in which the special features of international private and procedural law are taken into account. For instance, general terms and conditions of business for exports may be formulated such that the applicability of the German law on general terms and conditions of business is ruled out, allowing far wider definition options, particularly in the field of limitation of liability.



Advisers

Dr. Kerstin Kern

Dr. Dirk Struckmeier

This website uses cookies. By continuing to use the site, you are agreeing to our use of cookies.