Law and Compliance in Germany

Overview by

Business Contract

General Observation
The seller's duty as well as the methods of quality control have to be defined in very precise terms.
Law Applicable to the Contract
For more information refer to the business code.
Advisable Incoterms
It is preferable to choose an incoterm FOB or CIF. Avoid EXW, if you do not want to have to take care of the transport in Germany which can be complicated.
Language of Domestic Contract
Other Laws Which Can Be Used in Domestic Contracts
If German law is not used, the law of the other contracting party must be chosen.

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Legal Framework of Business

Equity of Judgments

Independence of Justice
Judicial power in Germany is independent.
Equal Treatment of Nationals and Foreigners
Germany is a constitutional State. Foreign nationals can always benefit from the same treatment as that reserved for citizens in legal matters.
The Language of Justice
The legal language is German.
Recourse to an Interpreter
Legal Similarities
The main source of the law is the constitution of May 1949 known as the fundamental law which has also become the constitution of reunified Germany. The country's judicial system is based on a system of civil law bringing together indigenous concepts and judicial revisions of different legislative acts by the Federal Constitutional Court. Germany has not accepted the obligatory jurisdiction of the ICJ. As it is part of the European Union, its national law is bound to submit to the conditions of Community legislation.

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The Jurisdictions

Federal Constitutional Tribunal (Bundesverfassunsgericht) Constitutional matters
Federal Court (Bundesgerichtshof) Ordinary jurisdiction
Administrative Court Administrative litigation
Ordinary court Civil and criminal matters
Labor tribunal Professional matters
Tax tribunal Tax litigation
European court of Justice European matters

Court Officials

Federal Justice Minister
Head of the Judicial branch of the federal government, appointed by the Chancellor
President of the Federal Constitutional Court
Appointed by the Bundesrat
Public Prosecuter to the Federal Court
Appointed by the Minister of Federal Justice
Minister of Justice of the Lander
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