Significance of Condition Ratings in Classic Car Purchase Agreements – New Guidelines from the Federal Court of Justice
The acquisition of classic cars continues to enjoy great popularity, both out of passion and as a capital investment. The legal interpretation of condition ratings stated at the time of sale is increasingly coming into focus in court disputes. With its judgment of July 28, 2025 (Ref.: VIII ZR 240/24), the Federal Court of Justice (BGH) has now set new standards for the legal assessment of such information and provided greater clarity on the handling of condition ratings when purchasing classic cars.
Overview of the Facts
In the dispute in question, the buyer purchased a vehicle from a commercial classic car dealer, which in both the advertisement and the purchase contract was assigned a condition rating referring to the evaluation scheme of a recognized classic car assessment institution. After the buyer, upon delivery, complained of significant defects, he cited, among other reasons, deviations from the specified condition rating and asserted claims for rescission. The parties particularly disputed the legal binding effect and significance of the condition rating within the context of liability for material defects.
Assessment of the Condition Rating – Binding Nature and Informational Value
Classification of the Condition Rating as a Contractual Agreement on Quality
The BGH emphasized that a condition rating recorded in the purchase contract is not just a non-binding expression of opinion or mere information. Rather, an explicitly stated condition rating—especially when referencing the evaluation system of a third-party professional organization—tends to constitute a binding determination of certain characteristics of the vehicle. Legally, such information can generally be qualified as an agreement on quality within the meaning of Section 434 (1) sentence 1 of the German Civil Code (BGB). Consequently, compliance with this rating is subject to review within the framework of defect liability.
Requirements for Individual Interpretations
According to the BGH, whether and to what extent a condition rating constitutes an agreement on quality always depends on the circumstances of the particular contract. Not only the written agreements are decisive, but also the manner in which the vehicle is presented and the accompanying circumstances, such as in advertisements or oral explanations. What matters is whether, from the perspective of an objective recipient, it can be concluded that the parties intended to make a specific assessment a binding part of the contract.
Implications for Contract Drafting and Defect Liability
Liability of the Seller and the Scope of Defect Liability
If a condition rating is elevated to a decisive contractual agreement on quality, the seller is liable—regardless of fault—for the corresponding vehicle quality at the time of delivery. If, due to subsequently established defects, the actual condition deviates from the contractually agreed rating, the buyer may be entitled to warranty rights, up to and including rescission of the contract, provided that the statutory requirements are met.
Significance for Private and Commercial Sellers
The judgment makes it clear that private sellers, too, may be bound by a condition rating based on common evaluation patterns under certain circumstances. For commercial sellers, an even higher degree of care in assessing and documenting the condition rating is required as a rule. Correct and transparent assignment of the rating thus gains considerable importance in relation to liability risks.
Implications for the Classic Car Market and Future Legal Developments
Transparency and Legal Certainty in the Trade of Classic Cars
The decision of the BGH contributes to reinforcing transparency in transactions involving historic vehicles. Potential buyers can place greater contractual reliance on the stated condition rating in contractual documents or advertisements. This improves legal certainty and the verifiability of vehicle quality in classic automobiles.
Challenges for Market Participants
Nevertheless, challenges remain—especially regarding the objective determination and communication of the condition rating. Disputes can particularly arise where ratings are based on subjective assessments or there are significant discrepancies in the level of detail in the evaluation. Clear contractual arrangements and comprehensive documentation therefore remain essential for smooth transactions.
Conclusion
Current case law underscores the importance of precise wording and the use of condition ratings in the purchase of classic cars. All parties—both buyers and sellers—are advised to consider the implications of such information in the contract and to ensure careful documentation in case of doubt. Developments in this area will continue to be shaped by further judicial decisions.
For any questions regarding the legal framework or if concrete issues arise in connection with classic car transactions, the lawyers at MTR Legal Rechtsanwälte, experienced in business law, are always happy to assist.
