Business Law - The Differences between Common Law and Civil Law: Substansive Law - Breach of Contract and relevance of Fault
3 important questions on Business Law - The Differences between Common Law and Civil Law: Substansive Law - Breach of Contract and relevance of Fault
Breach of contract and relevance of fault: General Info
o Existence of “fault” by either party to a contract becomes instrumental in ascertaining whether there is a breach of the contract or not.
Breach of contract and relevance of fault: Civil Law
Civil Law: In civil law, in principle proving fault in necessary to claim damages; §§ 280 I, 276 BGB:
· § 280 I BGB: Damages for breach of duty: If the obliger breaches a duty arising from the obligation, the oblige may demand for the damage caused thereby. This does not apply if the obligor is not responsible for the breach of duty.
· The provisions state that the obligor will only be liable for harm caused intentionally and negligently. However, in certain causes fault is not necessary to claim damages (e.g., pursuant § 833 of the HGB – animal owner liability)
· § 280 I BGB: Damages for breach of duty: If the obliger breaches a duty arising from the obligation, the oblige may demand for the damage caused thereby. This does not apply if the obligor is not responsible for the breach of duty.
· The provisions state that the obligor will only be liable for harm caused intentionally and negligently. However, in certain causes fault is not necessary to claim damages (e.g., pursuant § 833 of the HGB – animal owner liability)
Breach of contract and relevance of fault: Common Law
§ Common Law: Under common law exists a concept of a “law of strict liability”, under which proving fault is not a prerequisite for claiming breach of contract with certain exceptions such as impossibility of performance or changed circumstances.
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