Commercial Agents and Non-Compete Clauses

Agreement on Non-Compete Clauses in Commercial Agent Contracts A frequent point of contention between companies and commercial agents concerns whether a commercial agent is bound by a non-compete clause. This aspect is not explicitly regulated by law. In practice, however, it is assumed that such a non-compete clause exists unless otherwise agreed in the […]
Written Form Requirement in Commercial Leases

Decision of the Dresden Higher Regional Court (OLG) of February 27, 2024 – Ref. 5 U 2077/23 In commercial lease agreements, it is essential to comply with formal requirements. For instance, a violation of the written form requirement may result in agreed-upon terms being unenforceable. This can mean that agreed notice periods may be […]
Representation in the Shareholders’ Meeting

LG Darmstadt Ruling on Attendance Requirements Significant decisions are made in the shareholders’ meeting. Therefore, it is essential that the company’s articles of association include effective provisions on the representation of a shareholder in the meeting. Otherwise, resolutions passed at the shareholders’ meeting may be invalid or crucial decisions may be blocked. In a […]
M&A – Taxation of Earn-Out Payments

BFH Ruling of November 9, 2023 – Ref.: IV R 9/21 Earn-out clauses are common in M&A transactions, allowing both buyers and sellers to benefit from variable components of the purchase price. However, the timing of taxation on these variable purchase price components can be contentious. In a recent ruling dated November 9, 2023, the […]
Copyright Infringement by Drones

No Freedom of Panorama for Aerial Drone Photography – German Federal Court (BGH) Ruling I ZR 67/23 Drones are widely used in various applications, with aerial photography being especially popular. However, copyright laws must be observed. In a ruling dated October 23, 2024, the German Federal Court of Justice (BGH) determined that aerial photos […]
7×7 Tangible Assets Insolvent

Compensation Claims for Investors 7×7 Sachwerte GmbH & Co. KG has filed for insolvency. As announced on the 7×7 Group’s website, the company filed an insolvency application with the Bonn District Court (Case No.: 99 IN 243/24). Amid the challenging situation faced by the 7×7 Group, numerous concerned investors have contacted MTR Legal Attorneys […]
Capacity to Make a Will in Joint Wills

Joint Will Invalid When One Spouse Lacks Testamentary Capacity Spouses often create a joint will, naming each other as sole heirs to safeguard against claims from other potential heirs. However, if one spouse is no longer capable of making a will when drafting the testament, the entire joint will can become invalid. The Celle […]
International Inheritance Law – Habitual Residence

Decision by the Higher Regional Court of Karlsruhe on Habitual Residence in International Inheritance Law – Case No.: 14 W 50/24 Wx The habitual residence of the deceased plays a central role in international inheritance law. In cross-border inheritance cases, habitual residence is a key criterion for determining which national inheritance law applies. The […]
Phishing – Savings Bank Must Compensate for Damages

Account Holder Receives €42,000 Back – Ruling of the Karlsruhe Regional Court, Case No.: 2 O 312/22 Fraud damages in online banking have been on the rise for years. Despite all precautions and security measures, cybercriminals continually succeed in obtaining their victims’ sensitive banking data to drain their accounts. As reported by Handelsblatt online […]
7×7 Group of Companies Insolvent

Investors’ Money at Risk After Insolvency What had been anticipated is now a reality: the 7×7 Group of Companies is insolvent and will file for insolvency. This was communicated to investors in a letter from the board dated October 14, 2024. For investors who have invested in various capital assets of the 7×7 Group, […]
Immediate Dismissal of a Board Member

Ruling of the Munich Higher Regional Court on July 31, 2024, Case No.: 7 U 351/23 e The forwarding of company-related emails to a personal email address can justify the immediate dismissal of board members. This was decided by the Munich Higher Regional Court in a ruling on July 31, 2024 (Case No.: 7 […]
Claim for Equal Pay

Judgments of the Higher Labor Court of Baden-Württemberg – Case Nos.: 4 Sa 26/23 and 2 Sa 14/24 Equal pay, meaning the same compensation for women and men doing the same work, remains a persistent issue in the workplace. The Higher Labor Court of Baden-Württemberg has strengthened the claim for equal pay for equal […]
Voluntary Disclosure in Money Laundering

Voluntary Disclosure Can Provide Immunity from Prosecution The accusation of money laundering should not be underestimated, as severe financial penalties or prison sentences can be imposed. A timely and complete voluntary disclosure can help avoid punishment. In cases of money laundering, offenders face fines or imprisonment of up to five years. In particularly severe […]
EU Product Safety Regulation Comes into Effect

New Requirements for Product Safety under GPSR The new EU Product Safety Regulation, abbreviated as GPSR, will replace the previous Product Safety Directive from 2001 as of December 13, 2024, and will apply across the entire European Union. With the new EU directive on product safety (Regulation 2023/988), the aim is to address new […]
Best Price Ads: Clear and Unambiguous

Strict Guidelines for Discount Price Advertising – OLG Nuremberg Case No.: 3 U 460/24 UWG When advertising with price reductions, the reference price must be clearly recognizable to the consumer. If this is not the case, the advertisement can be misleading and a violation of competition law. This was decided by the OLG Nuremberg […]
BFH: Loss Offset in Derivative Transactions

Doubts About the Constitutionality of Loss Offset Limitation The Federal Fiscal Court (BFH) has expressed concerns that the restrictions on loss offsetting in derivative transactions under § 20 (6) sentence 5, as amended by the Annual Tax Act 2020, may be unconstitutional. This was made clear by the BFH in its decision of June […]
Tax Audit for Limited Tax Liable Persons

Ruling of the Federal Fiscal Court (BFH) on December 20, 2023, Ref.: I R 21/21 A tax audit for persons with limited tax liability can only be ordered by the tax office and not by the Federal Central Tax Office (BZSt). This was clarified by the Federal Fiscal Court (BFH) in its ruling on […]
Gift Tax for Family Foundations

Ruling of the Federal Fiscal Court (BFH) of February 28, 2024, File No.: II R 25/21 Family wealth should ideally be passed on to the next generation or generations with minimal tax burdens. Establishing a family foundation can be helpful in protecting assets. However, a recent ruling by the Federal Fiscal Court (BFH) on […]
Possibility of Online Lawsuits

Federal Ministry of Justice Presents Draft Law Digitalization is also set to become more prevalent in German courts. To this end, on September 4, 2024, the Federal Ministry of Justice presented a draft for the “Law on the Development and Testing of an Online Procedure in Civil Jurisdiction.” Behind this cumbersome term lies, simply […]
Grandparents’ Right of Contact

Decision of the Higher Regional Court of Brandenburg, Case No.: 9 UF 204/23 Even if parents are separated, family law generally assumes that it is beneficial for the child to have regular contact with both parents. Grandparents also often place great importance on regular contact with their grandchildren. However, the extent to which grandparents […]