When you negotiate agreements between German companies and companies with a – broadly speaking – common law background, especially the U.S., one issue that keeps appearing is the parties’ liability for damages. Groundhog day, if you will.
“Liability” is certainly a difficult legal term to being with, especially as you have to first decide what you are actually talking about when using the word. Continue reading
When you’re asked to localize contracts coming from a U.S. legal background so that they function under German law two very different legal worlds collide. Things just work differently over here. And things word differently over there. We draft our contracts differently, we use different language (which is why simply having a translator go over your documents just won’t cut it, much less asking uncle Google), our concept of selling and licensing software is nowhere near the “this software is licensed not sold” was of thinking, and so on and so forth. Nothing wrong with that, but it provides for some hard going sometimes.
One of the more peculiar concepts of German contract law is that of or our “Law on General Terms and Conditions” (Google Translator tells me that in English that should be “Legal terms and conditions of” which isn’t even close, so there…). In a nutshell, the idea is this: If, as a company, you work with standard contracts, i.e. a set of contractual documents that you have in your drawer all drafted to best fit your particular interests and ready to pull out for every new customer you want to do business with, the terms and conditions of those contractual documents are subject to the so-called “content control” (we Germans like control, as is well known). Continue reading