Signing an NDA
In a world where business relations are becoming increasingly international, we are also seeing international law increasingly take center stage. In this context, non-disclosure agreements (NDAs) are a must, potentially strengthening the signatory’s position vis-à-vis their business partner in the event of any legal disputes, the outcome of which is often determined by which country’s […]
Invalid commercial tenancy clause dealing with cosmetic repairs
The use of the German word “Ausführungsart” in cosmetic repairs clauses – where the term seemingly refers to the method or approach to carrying out the repairs – renders the entire clause unlawful because it is too vague. A recent ruling by Brandenburg’s higher regional court – the Oberlandesgericht (OLG) Brandenburg – saw the court […]
Real estate fund Verius in crisis
The Verius real estate financing fund has been frozen since November 2022. According to a report by German business newspaper Handelsblatt, if the fund were to be dissolved, this could result in losses of up to 500 million euros. Despite its status as a heavyweight valued at around 1.2 billion euros, Verius is in danger […]
Provisions on margins and bonuses are not a must in distribution agreements
It is not necessary for a distribution agreement to include provisions on margins and bonuses. These aspects can be determined unilaterally by the manufacturer. That was the verdict of Frankfurt’s higher regional court – the Oberlandesgericht (OLG) Frankfurt – in a judgment from February 14, 2023 (case ref.: 11 U 9/22). A great many commercial […]
German SME bond fund in liquidation
The Deutsche Mittelstandsanleihen Fonds (DMAF) has been going through the process of liquidation since June 14, 2023. Both private and institutional investors in the fund should anticipate financial losses. The news has come as a surprise to the capital markets. The DMAF, a German SME bond fund currently valued at around 150 million euros, is […]
BGH gives verdict on commission advances in the event commercial agency agreement is terminated
Restrictions, whether they be direct or indirect, must not be placed on the commercial agent’s freedom to terminate the commercial agency agreement. That was the finding of Germany’s highest court for civil disputes – the Bundesgerichtshof (BGH) – in a ruling from January 19, 2023 (case ref.: VII ZR 787/21). Commercial law in Germany stipulates […]
Düsseldorf court finds no trademark infringement in egg dispute
“Eierlikör” (German egg liqueur) contains eggs. It is for this reason – according to Düsseldorf’s regional court of appeal, the Oberlandesgericht (OLG) Düsseldorf – that a ban on promoting the drink using the word “Ei”/egg is not lawful (case ref.: I-20 U 41/22). As important as trademark protection is for businesses, it has its limits. […]
Board member of stock corporation and managing director at a subsidiary
A member of the board of executive directors at a German stock corporation (AG) cannot simply appoint themselves to the position of managing director at a wholly owned subsidiary, no questions asked. That was the verdict of Germany’s highest civil court, the Bundesgerichtshof (BGH) (case ref.: II ZB 6/22). It is necessary when creating structures […]
Reporting obligations for M&A transactions
Failure to comply with the reporting obligations for foreign trade and payments in connection with M&A transactions may be treated as a summary offense and punished with heavy fines. Fortunately, it is possible to avoid this outcome. With the initial focus on other issues – such as assets, existing contracts and commitments, or risks – […]
BGH says no obligation to pay negative interest
Germany’s highest civil court – the Bundesgerichtshof (BGH) – recently ruled in a case from May 9, 2023, that lenders are not obligated to pay negative interest in connection with variable rate loans (case ref.: XI ZR 544/21). It is commonplace for bank customers to receive interest from their bank on positive account balances, and […]
German Whistleblower Protection Act set to enter into force
Germany’s lower and upper houses of parliament – the Bundestag and Bundesrat – have passed a law designed to strengthen protections for whistleblowers. The legislation is expected to come into effect in June of this year. Its adoption marks the transposition into German law of EU Directive 2019/1937 on the protection of persons who report […]
Fraud and white-collar crime
Fraud lies at the heart of many white-collar crimes. But in order for conduct to amount to fraud, various elements of the offense need to be present. The impact of allegations of fraud is immediate and profound. Board members, managing directors, and other company officers who find themselves on the receiving end of such accusations […]
BAG weighs in on deadline for summary dismissal amidst compliance investigations
Germany’s Federal Labor Court – the Bundesarbeitsgericht (BAG) – has stated that an employer is still entitled, subject to certain conditions, to issue an employee with a summary dismissal notice even after the two-week deadline has passed. The country’s labor laws require the employer – or an authorized person within the company – to give […]
Best Lawyers 2024 – MTR Legal Rechtsanwälte and Marc Klaas among Germany’s best
U.S. publishing house Best Lawyers has once again recognized commercial law firm MTR Legal Rechtsanwälte and the firm’s very own Marc Klaas in its latest annual list of The Best Lawyers in Germany. 2024 marks the 15th edition of the awards, an event that MTR Legal Rechtsanwälte and Marc Klaas are no strangers to. And […]
Marc Klaas of MTR Legal Rechtsanwälte honored again in 2023
In its ranking for this year’s best M&A lawyers, Handelsblatt has once again singled out Marc Klaas at MTR Legal Rechtsanwälte for recognition. The German business newspaper regularly collaborates with the renowned U.S. publishing company Best Lawyers with the aim of identifying Germany’s top lawyers and law firms. Not for the first time, Marc Klaas […]
Draft law presented establishing commercial courts
Germany’s Federal Ministry of Justice presented a bill on April 25, 2023, that establishes new commercial courts with the aim of strengthening the country’s judicial system. Germany is an important hub for business in a world where many businesses operate internationally and where legal disputes among international business partners are par for the course, not […]
Voluntary disclosure – Tax authorities have cryptocurrencies in their sights
The German tax authorities are taking aim at investors who have traded cryptocurrencies. Those who have not paid the tax due on the profits may still be able to submit a voluntary declaration for tax evasion. Investors with undeclared profits from trading cryptocurrencies such as Bitcoin and Ethereum are risking trouble with the tax authorities, […]
“Caramel” product containing only caramel flavoring in breach of competition law
A product labeled as caramel pudding must in fact contain caramel. Flavoring agents won’t cut it, says Munich’s regional court, the Landgericht (LG) München (case ref.: 33 O 13261/21). If something appears on the outer packaging, it should also be present in the product itself. The absence of a named substance is a violation of […]
Voluntary disclosure to avoid a conviction for tax evasion
Reporting oneself to the tax authorities over inaccurate or incomplete tax returns continues to be a path for tax dodgers to return to a state of compliance. But in order for the voluntary declaration to actually lead to immunity from punishment, a number of conditions have to be met. One of the outstanding features of […]
Tax relief when outsourcing a sole proprietorship
Tax relief can be claimed in the event of a sole proprietorship being outsourced to a newly formed corporation. That was the verdict of Münster’s tax court – the Finanzgericht (FG) Münster – in a ruling from May 3, 2022 (case ref.: 8 V 246/22 GrE). Section 6(a) of the German Real Estate Transfer Tax […]
