The statutes that actually decide how your contract is read.
German contract law is not primarily judge-made. It runs on a small set of codified statutes, and a contract drafted without them in mind can look complete on paper while being partly, or entirely, unenforceable in practice. This is the framework our team drafts and reviews against.
The BGB: formation and default terms
The Bürgerliches Gesetzbuch (Civil Code) sets the default rules for every private contract in Germany, how offer and acceptance form a binding agreement, and what applies by default wherever your contract is silent. It also sets the standard limitation period, three years under Section 195 BGB, running from the end of the year in which a claim arose and the creditor knew, or should have known, of it, under Section 199 BGB. A well-drafted contract deliberately decides where to rely on these defaults and where to override them, rather than inheriting them by accident.
AGB-Recht: the control over standard business terms
Sections 305 to 310 BGB regulate Allgemeine Geschäftsbedingungen, standard terms drafted in advance for use in more than one contract, which covers most SaaS terms of service, subscription agreements, and standard supply terms by definition. German courts have held that even a single use of pre-formulated terms in a business-to-business deal can be enough to trigger this control. A clause that unreasonably disadvantages the other party, a broad liability exclusion, an aggressive auto-renewal term, an unbalanced termination right, can be struck down as void even between two commercial parties. This is the single most common reason a contract someone else wrote doesn’t actually protect the party using it, and it’s the first thing we check when drafting or reviewing standard terms.
The HGB: rules that apply because you’re a business
The Handelsgesetzbuch (Commercial Code) layers additional rules onto transactions between merchants (Kaufleute). It also governs commercial agency relationships: an agency agreement that doesn’t account for the statutory compensation claim under Section 89b HGB, calculated on the customer relationships an agent builds, can leave a principal exposed to a cost it never priced into the deal. This is a drafting consideration, built into the agreement from the outset, not something to discover later.
The CISG: it may already apply to your deal
Germany is a contracting state to the UN Convention on Contracts for the International Sale of Goods (CISG). For a cross-border sale of goods between businesses in different contracting states, the CISG applies automatically unless the parties expressly exclude it, and its rules differ from the BGB’s own sales law. A contract that is silent on this point does not default to German domestic law by assumption; a drafter needs to either account for it or expressly opt out.
Formal requirements: when a signature isn’t enough
Most commercial contracts in Germany have no form requirement at all and can be validly concluded in English, by email, or even orally, though written form is strongly advisable as evidence. A narrow set of transactions is the exception: a contract to sell or transfer real property requires notarization under Section 311b BGB, and the issuance or transfer of shares in a GmbH requires notarization under Section 15 of the GmbH Act. Missing one of these requirements does not create a weaker contract; it typically makes the transaction void from the outset, which matters directly for how investor and equity-linked agreements need to be structured.