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Business Law Part 1 > Civil Law: Law of Obligations > Flashcards

Civil Law: Law of Obligations Flashcards

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1
Q

What are the two main parts of the 2nd Book of the Civil Code (BGB) structure?

A
  • General Part: Applies to all types of obligations.
  • Specific Part:
    Contains special rules for:
    -Contractual obligations: e.g., purchase contracts, lease agreements, service contracts.
    -Obligations imposed by law: e.g., torts (delictual acts).
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2
Q

What types of contractual obligations are included in the Specific Part of the BGB?

A
  • Purchase contracts (Kaufvertrag)
  • Lease agreements (Mietvertrag)
  • Service contracts (Dienstvertrag)
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3
Q

What Additional Legal Sources does the Law of Obligations include?

A
  1. Product Liability Act (Produkthaftungsgesetz):
    • Covers liability of manufacturers/importers for defective products.
  2. Commercial Code (Handelsgesetzbuch):
    • Contains special rules for merchants (Kaufleute).
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4
Q

What is the Law of Obligations, and what does it govern?

A

The Law of Obligations governs the relationship between a debtor (Schuldner) and a creditor (Gläubiger), where one party is entitled to demand performance (§ 241 I BGB).

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5
Q

What is meant by “Freedom of Content” in the Law of Obligations?

A

Provisions are optional (dispositiv) and apply only if the parties don’t agree otherwise.

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6
Q

What are the two types of obligations under the “Beginning of Obligations,” and how are they created?

A
  • Contractually Based Obligations (Vertragliche Schuldverhältnisse): Created through an agreement between parties.
  • Statutory Obligations (Gesetzliche Schuldverhältnisse):Arise by fulfilling legal requirements
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7
Q

What are examples of statutory obligations, and what do they involve?

A
  • Delictual acts/Torts (§ 823 BGB): Liability for harm caused.
  • Unjustified enrichment (§ 812 BGB): Obligation to return gains obtained without legal basis.
  • Unauthorized management of affairs (§§ 677 BGB):Acting without authority for another’s benefit.
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8
Q

What are the different types of duties in obligations according to § 241 BGB, and what do they entail?

A
  • Primary Duties (§ 241 I BGB): Main performance obligations, e.g., paying the purchase price or delivering goods (§ 433 BGB).
  • Secondary Duties (Nebenleistungspflichten): Support proper fulfillment of primary duties; arise from agreements, statutes (§ 448 II BGB), or good faith (§ 242 BGB).
  • Ancillary Duties (§ 241 II BGB): Protect rights like property and health; include duties to inform about risks or past accidents (linked to § 242 BGB).
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9
Q

What are the performance modalities for obligations under BGB?

A
  1. Place of Performance (§ 269 BGB):
    Default: Debtor performs at their location (Holschuld).
    May involve delivery (Bringschuld) or shipping (Schickschuld).
  2. Time of Performance (§ 271 BGB): If unspecified, performance is due immediately.
  3. Right to Refuse (§ 273 BGB): Debtor can refuse performance if they have a valid counterclaim from the same legal relationship.
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10
Q

What are the obligations regarding ascertained and unascertained goods in a contract?

A
  1. Stückschuld (Ascertained Goods): A specific, identified item is owed (e.g., a painting). Obligation ends if the item is destroyed or lost.
  2. Gattungsschuld (Unascertained Goods): Goods belonging to a class (e.g., apples).
    * Vorratsschuld: Supplied from debtor’s stock.
    * Konkretisierung: Obligation shifts to specific items upon designation.
  3. If unascertained goods are destroyed before designation, the debtor may need to provide substitutes.
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11
Q

How can third persons fulfill obligations on behalf of the debtor?

A
  • § 267 BGB: A debtor may use third parties to render performance.
  • Erfüllungsgehilfe (Vicarious Agent): A person acting with the debtor’s knowledge and intent within their duties, e.g., employees or subcontractors
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12
Q

How are third parties included in contracts under BGB?

A
  • Contracts for the Benefit of a Third Party (§ 328 BGB): Creditor demands performance for a third party, who gains a direct claim against the debtor.
  • Contracts with Protective Effect for Third Parties: Protect related third parties (e.g., a parent-child relationship). They cannot demand performance but can claim compensation if harmed.
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13
Q

What are the types of contract breaches under BGB and their general conditions?

A
  • General Damages (§ 280 I BGB): Breach of duty causing damages, exempt if no fault.
  • Damages for Delay (§ 286 BGB): Debtor default required (e.g., missed deadlines).
  • Damages Instead of Performance (§§ 281, 282, 283 BGB): Conditions include failure after request (§ 281), unreasonable performance (§ 282), or impossibility (§ 283).
  • Pre-Contractual Breach (§§ 311 II, 241 II BGB): Breaches during pre-contractual negotiations, e.g., false information, unjustified negotiation end.
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14
Q

What are the prerequisites for damages under § 280 I BGB?

A
  • Contractual Obligation (Schuldverhältnis): A valid relationship exists.
  • Breach of Duty (Pflichtverletzung): Obligations violated.
  • Responsibility (Verschulden): Fault of obligor (§ 276 BGB).
  • Causal Damages (Kausaler Schaden): Damages result from breach (§§ 249 et seq. BGB).

Legal Consequence: Obligor compensates the obligee for damages.

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15
Q

What is the principle of compensation under § 249 I BGB?

A

The liable party must restore the injured party to the position they would have been in if the damage had not occurred.

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16
Q

What are the types of damages outlined in BGB?

A
  • Direct Damage (§ 249 II BGB): Natural restitution (restore or cover costs).
  • Indirect Damage (§ 252 BGB): Loss of profit as a consequence.
  • Immaterial Damage (§ 253 BGB): Non-material harm (e.g., pain), allowed only when specified by law.
17
Q

How is causality (Kausalität) evaluated for liability in damages?

A
  • Äquivalenztheorie: All contributing conditions are causally relevant.
  • Adäquanztheorie: Only foreseeable causes are legally relevant.
18
Q

What is contributory negligence (§ 254 BGB), and how does it impact liability?

A

If the injured party’s negligence contributed to the harm, they share responsibility. Negligence (§ 276 II BGB) involves failing to exercise reasonable care.

19
Q

What are examples of pre-contractual breaches under §§ 311 II, 241 II BGB?

A
  1. Violating rights (health, property).
  2. Providing false information.
  3. Ending negotiations unjustifiably.

Business Law Part 1 (7 decks)

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