Condition rating equals agreement on quality – BGH ruling, Case No. VIII 240/24
If the seller states a condition rating in the purchase contract for a classic car, this is equivalent to an agreement on quality. The Federal Court of Justice clarified this in its ruling dated July 23, 2025 (Case No. VIII 240/24). This also applies in a purchase between private individuals, according to the BGH. The issue of the legal agreement is of central importance to the contracting parties, as such an agreement significantly determines the requirements, warranty, and liability for the purchased item.
The current legal situation regarding agreements on quality is regulated in the German Civil Code (BGB) and is decisively shaped by the case law of the Federal Court of Justice (BGH). The statutory provisions and the interpretation by the courts determine when a characteristic is considered a binding quality. The legislator has established clear requirements for an effective quality agreement, in particular, the parties must make a clear agreement on the quality and the intention to be legally bound must be recognizable.
The ruling has far-reaching legal consequences, as an agreement on quality cannot be circumvented by a contractually agreed exclusion of liability or warranty, according to the business law firm MTR Legal Rechtsanwälte, which advises, among others, in purchase law. The regulation in the BGB and the relevant provisions are decisive for the legal assessment of such cases. The term quality encompasses not only the physical characteristics of the purchased item but also circumstances external to the item that may influence its valuation. The consequence of an effective agreement is that the seller is liable for the absence or non-compliance of the agreed quality, regardless of the transfer of risk. The case law has specified the concept of quality over time and has further developed the regulation of quality agreements through various rulings, including the current BGH decision.
Within the framework of a quality agreement, the information provided is crucial, as it forms the basis for the legal classification and the extension of legal consequences. The public perception serves as an objective standard to assess whether a certain characteristic qualifies as the quality of the contractual item. At the transfer of risk, it is decisive whether the agreed characteristic is missing or lacking, as this has a direct impact on the warranty and the seller’s liability. The seller’s willingness to guarantee the performance and success of the agreement is as important for the effectiveness of the quality agreement as compliance with the statutory warranty provisions.
Classic car fails TÜV inspection
In the specific case, a buyer purchased in 2020 from a private seller a 1973 MG B Roadster with an H-registration for classic cars. In the online advertisement, the car was described with the condition rating “2–3”. Furthermore, the purchase contract explicitly stated: “The seller makes the following binding declaration about the vehicle’s condition: – see expert report – rating 2–3.” In fact, there were two expert reports: one from 2011 with a rating of “2.0” and one from 2017 with the rating “3-”. The parties had agreed on a comprehensive exclusion of warranty in the purchase contract. Liability for quality agreements was not affected by this.
Two years after purchasing the classic car, the buyer faced a harsh awakening. The TÜV refused to issue the inspection sticker due to severe rust damage. After the buyer unsuccessfully urged the seller to remedy the defects, it became clear that the absence of the agreed quality – here the condition according to the expert reports – was present. The consequence for the contracting parties is that despite the agreed exclusion of warranty, liability for the absence of an assured characteristic remains. The buyer subsequently rescinded the purchase contract and demanded the purchase price back. However, the District Court and the Higher Regional Court of Hamburg rejected the claim. They argued that the reference “see expert report” was only a reproduction of third-party knowledge and did not constitute a binding assurance.
Condition rating of significant importance
The seller’s willingness to guarantee the performance and success of the agreement is also made clear in this way. This creates the expectation that the agreed quality actually exists and that the buyer can enforce their claims under warranty in the event of success.
Top condition: What does that mean?
The term “Top condition” frequently appears for buyers and sellers in purchase contracts for classic and used cars. But what does this expression conceal when it comes to the quality of an item? In legal terms, “Top condition” is more than just an advertising phrase – it describes a concrete expectation regarding the condition of the vehicle at the time of purchase.
If a vintage car or another vehicle is described as in “top condition” in the purchase contract or advertisement, the seller signals that the vehicle has no significant defects. This applies both to the exterior appearance and the technical functionality. In the assessment, especially the appearance, technology, and degree of wear play a decisive role: A vehicle in top condition impresses with flawless appearance without visible signs of use, impeccable technology, and minimal wear. Buyers can assume in such cases that the purchased item — i.e., the car — is free from significant damage, rust, or technical defects, and that all essential functions, such as air conditioning or sunroof, work perfectly.
Within the framework of purchase contracts, the term “top condition” can therefore be considered a quality agreement. This means that the seller guarantees the existence of this condition. If the actual condition of the vehicle deviates from the guaranteed quality, there is a material defect. Mileage and age of the vehicle are also taken into account, as these factors can affect the technical condition and functionality of individual components. A vehicle considered a top model achieves the highest condition rating and corresponds in appearance and technology almost to the condition at the time of initial delivery by the manufacturer. Even minor damages or deviations from the new car condition can impair the rating as top condition. In such cases, the buyer has claims for subsequent performance, reduction, or even withdrawal from the contract.
Especially for vintage cars, where the condition is crucial for value and desirability, the indication “top condition” carries particular significance. Sellers should therefore only advertise with this term if they can actually substantiate the condition of the item. Buyers, in turn, should carefully verify whether the seller’s statements correspond to reality when interested in a vehicle in “top condition” to avoid later disputes.
Role of Companies in Vintage Car Purchases
Companies play a central role in vintage car purchases, especially when it comes to professional assessment, trading, and legally secure processing of purchase contracts. In the vintage car scene, Classic Data condition ratings have established themselves as the standard for objectively assessing the condition and state of vehicles. TÜV NORD Autoservice, for example, always relies on the latest version of these condition ratings in its appraisals to provide a reliable basis for insurance classification and vehicle evaluation.
Precise quality agreements are of particular importance for companies in vintage car trading. They form the basis for the rights and obligations of buyer and seller and ensure transparency throughout the process. Companies are obligated to describe the condition of the vehicles in detail and to disclose all existing defects or signs of use. This openness is not only a sign of professionalism but also an important contribution to buyer safety and the minimization of liability risks for the seller.
In Germany, strict regulations apply to the trade of vintage cars, especially with regard to road safety. Companies must ensure that all vehicles comply with legal requirements and that all necessary services — such as the main inspection — are properly carried out. The main inspection is a central element to check and document roadworthiness and the technical condition of the vehicles.
The interpretation of quality agreements and the assessment of material defects are complex issues for companies that require careful consideration and thorough knowledge of current case law. Only through accurate vehicle descriptions and complete disclosure of all defects or signs of use can companies ensure that the interests of all parties are preserved and that later disputes are avoided.
Classic Data condition ratings provide companies with a reliable basis to objectively assess and transparently communicate the condition and state of vintage cars. They are not only of great importance for insurance classification but also help determine the correct insurance amount and clearly define the expectations of buyers and sellers.
Overall, companies significantly contribute to ensuring that vintage car trading in Germany is safe, fair, and legally secure by applying recognized standards, complying with legal regulations, and communicating transparently. Careful consideration of all relevant topics related to quality agreements, condition ratings, and material defects forms the foundation for successful and trustworthy trading of classic vehicles.
Exclusion of Warranty Does Not Apply
As a result, there was a quality agreement for the vehicle, from which the seller cannot withdraw even by referring to the agreed exclusion of warranty, the Federal Court of Justice further explained. The Higher Regional Court of Hamburg must now verify whether the vintage car was in the condition stated.
If the vehicle does not have the agreed condition, there is a material defect and the buyer is entitled to subsequent performance. If the seller nevertheless fails to remedy the defect, the buyer may have claims for withdrawal from the purchase contract or reduction of the purchase price.
Sellers should only provide condition statements in the contract if they can reliably substantiate them. According to the Federal Court of Justice (BGH), a condition grade is to be regarded as a quality agreement and is therefore legally binding. The seller cannot then rely on a general warranty exclusion.
MTR Legal Attorneys advise on purchase law.
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