GTC reform
The German economy needs a reform of GTC law
Companies depend on legally secure contractual regulations. The restrictive application of German law on general terms and conditions (GTC) prevents this - resulting in great legal uncertainty and liability risks.
This renders German law rather unattractive. Not only does this place a burden on export-oriented SMEs, but also on new business models, for example start-up companies. Therefore, a reform (business to business, B2B) is urgently needed.
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Assistance from the VDMA legal department on retention obligations and periods for commercial documents - new, updated 2025 edition
The BGH decides on the question of whether arbitration proceedings are inadmissible if there is a risk that the arbitral tribunal will apply an ineffective contractual penalty provision.
In its final judgment of 08.01.2025 - 7 U 1776/23 - the Higher Regional Court of Munich deals in passing with the commercial letter of confirmation and confirms the established case law.
The VDMA remains committed to reforming the German law on general terms and conditions. A reform of the GTC must also be the goal of legislative activities in the 2025 legislative period.
VDMA and ZVEI present the current reform proposal for discussion as part of the "Frankfurt Initiative for the Further Development of the Law on General Terms and Conditions".
A shortening of the limitation period in general terms and conditions is ineffective when covering claims for intentional breach of contract, decides the Higher Regional Court of Munich
In a decision, the Federal Court of Justice provides more detailed information on commercial notification of defects in accordance with Section 377 of the German Commercial Code (HGB).
If instructed lawyers have no knowledge of the imminent insolvency of the defendant, they do not have to warn their client about it. The OLG Düsseldorf rejects a general obligation to investigate.
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Despite increasing influencing factors, companies need to balance contract design and risk assessment. Direct but also indirect protection provisions can help.
The VDMA and ZVEI have been jointly pursuing the goal of reforming the German law on general terms and conditions for years in the "Frankfurt Initiative for the Further Development of the Law on General Terms and Conditions".
The success of Industry 4.0 depends on the reform of the German law on general terms and conditions.
The digital age also requires the automation of business transactions. This requires pre-formulated contractual terms. German AGB law stands in the way of this.
Contract partners usually rationalise with general terms and conditions. Unfortunately, the legal provisions for this do not create the necessary legal certainty for Germany as a business location.
Legal opinion confirms the need for reform of the law on general terms and conditions in commercial transactions called for by the VDMA
The control of general terms and conditions (GTC) in business transactions has long been considered far too restrictive and rigid by the business community.
The Industrie 4.0 platform, operated by the BMWi and BMF together with representatives of industry, science and trade unions, advocates more entrepreneurial contractual freedom.
With the general terms and conditions, contractual partners usually rationalise. Unfortunately, the legal provisions for this do not create the necessary legal certainty for Germany as a business location.
The control of general terms and conditions in business transactions has long been considered far too restrictive and rigid by the business community.
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