Contract Law – New Requirements for the General Terms and Conditions

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In contract law, there have been several changes in 2022. Companies must particularly ensure a legally secure design of their General Terms and Conditions (GTC).

Numerous changes in contract law came into effect at the beginning and throughout 2022. The changes affect, among other things, the legal design of the GTC, which companies must accordingly adapt, explains the business law firm MTR Rechtsanwälte.

For contracts with consumers, an important regulation concerns the contract duration or the notice periods in so-called long-term obligations. These include, for example, newspaper subscriptions, contracts between fitness studios and consumers, or energy supply contracts, which can be particularly interesting in times of rising energy prices.

In such contracts, which involve regular delivery of goods or provision of services, minimum contract terms of one or two years are still possible, but termination options for the consumer have been improved. Previously, if notice was not given in time, the contract usually renewed automatically. For contracts concluded from March 1, 2022, it now applies that after the initial contract duration, the consumer is granted the right to terminate the contract with a notice period of no more than one month. Contradictory clauses in the GTC, which provide for a tacit contract renewal of one year, for instance, are invalid. However, older contracts concluded before 03/01/22 are still subject to the old regulations, meaning an implicit contract renewal of up to one year and notice periods of up to three months are still possible.

Online, from 07/01/2022 for such long-term obligations, a cancellation button becomes mandatory. Without this option, the consumer can terminate the contract at any time without observing a notice period.

Moreover, companies may no longer exclude the assignment of consumers’ claims, both financial claims as well as rights, in their GTC. Relevant clauses are invalid.

Further changes affect sales law. For instance, the conditions for the assumption of a material defect have changed, and the reversal of the burden of proof in favor of consumers has been increased from 6 to 12 months. New is the so-called consumer contract for digital products.

If the GTC do not meet the new legal requirements, companies must expect warnings. Lawyers experienced in contract law provide advice.

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