One of the most frequently agreed legal transactions in everyday life is the contract of sale. However, many people are unaware that a contract is being concluded. Regular sales contracts, such as purchasing bread rolls at the bakery, are also relatively unproblematic. Nevertheless, there may also be cases in the law of sale that have particular features and cause problems.
§ 433 German Civil Code (BGB) sets out the obligations and rights of the buyer and seller when concluding a contract for the purchase of goods. The lawyers at Schlun & Elseven Rechtsanwälte are happy to outline how you should proceed in a dispute and support you in asserting your interests. Our practice group for international sales law ensures thorough legal advice and comprehensive representation for private individuals and companies.
Contracts: Drafting, Reviewing and Contesting
Regardless of the type, a contract should always be thoroughly reviewed and analysed before it is concluded. In particular, the following factors should be considered: contestability, nullity, completeness and effectiveness of clauses and the contents of the contract itself. Our lawyers will be happy to advise you on these aspects. In doing so, they will carefully review, revise and optimise your purchase contract. We also support you in any contract negotiations.
In addition, drafting and reviewing general terms and conditions is another focus of our contract review. The incorrectness of these terms and conditions can lead to serious consequences. To prevent such consequences, we review the effectiveness of the general terms and conditions clauses in your contract and ensure that your interests are protected in the best possible way.
German Sales Law
A distinction can be made between commercial and private sellers. A private sale is characterised by a private person selling an object, and the possibility of a disclaimer of warranty is given. However, the exclusion of liability does not apply if, among other things, the defect was fraudulently concealed or the seller had provided a guarantee for the quality of the item (cf. § 444 BGB).
There is also a difference between private and commercial purchases concerning taxes. While a commercial seller may be subject to income, trade or turnover tax, a private seller does not usually have to pay taxes. An exception applies if the seller sells an object to which the speculation period and the corresponding regulations of § 23 EStG apply. This could occur, for example, with the sale of precious metals.
While the buyer can assert any claims under the warranty or guarantee, the seller has the right to demand acceptance and payment of the object of purchase. The international sales lawyers at Schlun & Elseven Rechtsanwälte advise and support both the buyer and the seller side. Therefore, our practice group also represents sellers in enforcing their rights.
Mergers & Acquisitions
M&A involves the merging of different companies or the acquisition of one or its shares. The frequency of such transactions is constantly increasing. Careful preparation by an expert is the key to a successful M&A transaction.
The acquisition of a company is possible in two ways: through an asset deal, in which the buyer acquires individual assets of the company, or a share deal, in which shares of a company are obtained and transferred. Before implementing either transaction option, you should consult a legal expert. In addition to the purchase’s legal aspects, tax and labour law are also to be considered.
Our M&A lawyers assess the company you are interested in, evaluate the company’s financial, organisational, and legal aspects, and assess any risks associated with the acquisition within the framework of the due diligence review. Our purchase and contract law experts also analyse any contracts required in this context.
Purchase of Horses, Falcons and Other Animals
When buying a horse – be it a leisure horse, a show horse, a breeding horse or a racehorse – you should ensure that it meets your requirements in every respect. Before buying a horse, obtaining necessary information about the horse’s history and the dealer or breeder is essential.
Once a suitable horse has been found, it is necessary to carefully examine all legal aspects, such as the contract of sale, guarantees and regulations on the import and export of horses. A team of qualified lawyers for equine law will be happy to assist you in these steps.
The purchase and sale of falcons and hawks can be complex, as numerous regulations of nature conservation and hunting law have to be observed here. In nature conservation law, rules on the marketing and keeping of falcons can be found in the Federal Nature Conservation Act, the Federal Species Protection Ordinance, and international statutes and agreements. Our international sales lawyers advise clients on possession and marketing bans, the import and export of hawks and falcons, and all certificates required for possessing a falcon.
Purchasing Vehicles and Vessels
The lawyers at Schlun & Elseven Rechtsanwälte will advise you on purchasing classic cars, oldtimers, yachts and other ships and vehicles. Regarding classic cars, our lawyers have a great deal of experience in guarantees, written sales contracts, general terms and conditions, agency sales, expert reports on defects, international sales, and import and export law.
Our lawyers advise on the customs regulations to be observed here and the best course of action in cases of apparent defects. They are available to support you in disputes over warranties. When buying classic cars or similar vehicles, it is advisable to engage an experienced lawyer to analyse and draft purchase contracts. Reliable legal advice can protect against unnecessary protracted, and costly disputes.
In addition, our legal services extend to advising yacht owners, shipyards, yacht designers and financiers. Our lawyers advise on crew labour law, flag selection and registration, and purchase, sale, construction and design contracts.
Warranties and Guarantees
Should your purchased item have a defect or not correspond to its purchase description or the agreed functionality, type or quality, it is good to know your rights and act wisely. Our practice group for international sales law advises you on the appropriate measures to take in such cases and explains other legal aspects, such as the limitation periods for your warranty claims.
A buyer may be entitled to the following warranty claims:
- Subsequent performance/improvement,
- rescission of the purchase contract,
- reduction of the purchase price,
- compensation.
The warranty is to be distinguished from the guarantee. While the warranty rights and the scope of these are expressly regulated by law, the guarantee is a voluntary performance by the manufacturer or seller concerning the quality or the period of functionality (service life) of a concrete object. The guarantee’s prerequisites, duration and scope are regulated by related conditions – stipulated by the guarantor – in a separately concluded guarantee contract. We advise you to read this contract thoroughly before buying.
Our legal team for sales law supports you in asserting all rights/claims arising from the delivery of a defective item. In doing so, we pay particular attention to the statute of limitations to meet deadlines. Feel free to contact us today to benefit from our legal services in sales law.
Practice Group: German and International Sales Law
Practice Group:
German and International Sales Law