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- Culpa in contrahendo (c.i.c.) regulates liability for breaches of duty in the pre-contractual area of German civil law.
- c.i.c. is based on a legal obligation without a primary obligation to perform, arising from protection, information and loyalty obligations.
- The main prerequisites are pre-contractual obligations and the granting of the possibility to influence rights and interests.
- Typical use cases include duties of disclosure, breach of contract and incorrect information.
- Compensation is based on §§ 249 ff. BGB to restore the injured party to the previous condition.
- The c.i.c. differs from contractual liability, tortious liability and management without mandate.
- In practice, c.i.c. is becoming increasingly important, especially in merger negotiations and capital investments.
Definition and legal basis:
Culpa in contrahendo (c.i.c.) is a legal institution of German civil law that regulates liability for breaches of duty in the pre-contractual area. It was originally developed by Rudolf von Jhering and has been codified in Section 311 (2) and (3) of the German Civil Code since the 2002 reform of the law of obligations. The c.i.c. establishes a statutory obligation without a primary obligation to perform, from which duties of protection, disclosure and loyalty arise.
Requirements and scope of application:
Liability arising from c.i.c. presupposes that a pre-contractual obligation has arisen between the parties. This can be established by the commencement of contract negotiations, the initiation of a contract or similar business contacts. The decisive factor is that one party grants the other party the opportunity to influence their rights, legal assets and interests with regard to a possible legal relationship.
Typical applications of the c.i.c. are:
1. breach of duties of disclosure
2. Termination of contract negotiations
3. Fault upon conclusion of the contract
4. Liability for incorrect information
Legal consequences and compensation:
In the event of a breach of duty within the scope of the c.i.c., the injured party can demand compensation. The scope of damages is governed by §§ 249 ff. BGB. In principle, the injured party is to be placed in the same position as he would have been in without the breach of duty. This can lead to compensation for negative interest (loss of trust) or, in certain cases, positive interest (loss of performance).
The following aspects must be taken into account when calculating damages:
– Nature and extent of the breach of duty
– Degree of fault
– Contributory negligence of the injured party (Section 254 BGB)
– Causality between breach of duty and damage
Differentiation and relationship to other legal institutions:
The c.i.c. must be distinguished from other liability institutions:
1. contractual liability: The c.i.c. already applies before the contract is concluded, whereas contractual liability requires a valid contract.
2. tortious liability: In contrast to tortious liability, c.i.c. also protects pure financial losses and recognizes vicarious liability in accordance with § 278 BGB.
3. management without mandate: c.i.c. does not require acting for another party, but is linked to the initiation of a contractual relationship.
The c.i.c. can exist alongside other bases for claims and is particularly relevant if contractual or tortious claims are excluded.
Practical relevance and current developments:
The c.i.c. is of great importance in legal practice, particularly in complex contractual negotiations and in the initiation of business relationships. It serves to protect trust and promote good faith in business transactions. In recent times, case law has further developed the application of the c.i.c. in various areas, for example:
– Liability for information in prospectuses for capital investments
– Protection of know-how in contract negotiations
– Liability for termination of merger negotiations
In addition, the c.i.c. is becoming increasingly important in an international context, as similar concepts exist in many legal systems and must be taken into account in cross-border transactions.
In summary, it can be said that culpa in contrahendo is an important instrument of German civil law for closing gaps between contractual and tortious liability and ensuring adequate protection in the contract initiation phase. Its flexible application by the courts makes it possible to react to new challenges in business transactions and to find fair solutions for pre-contractual breaches of duty.
