Definition: “True” in the legal context
Definition and Fundamentals
The term “True” originates from English and in German means “true”, “accurate”, or “correct”. In the legal context, “True” refers to the accuracy, alignment with reality, and reliability of information or actions. The use of the term spans various areas of law, from contract law and civil procedure, to corporate law, data protection, and IT law.
Relevance and Areas of Application
The assessment of truthfulness—that is, whether information is “true”—is a fundamental prerequisite in all areas where factual assertions play a role. Here, “True” stands for the correctness of information in contracts, as part of disclosure obligations, in court proceedings, and in dealing with data.
Contract Law
In contract law, the truthful presentation of circumstances is a central requirement for the conclusion and fulfillment of contracts. Information that is not “true” can lead to rescission, claims for damages, or invalidity. The demand for truthful statements can be found in various regulations, such as the duty of disclosure (§ 123 BGB – rescission due to fraudulent deception).
Civil Procedure Law
In judicial proceedings, the obligation to provide “True” statements plays a pivotal role. False information can constitute procedural fraud (§ 263 StGB), a false affidavit (§ 156 StGB), or even perjury (§ 154 StGB).
Corporate Law
Accuracy and the “True” representation of financial data and reports are also essential in corporate law. Providing false information can result in liability, administrative offenses, or criminal penalties (e.g., § 331 HGB).
Data Protection Law and IT Law
In data protection law, “True” appears, for example, in connection with data accuracy (Art. 5(1)(d) GDPR – “accuracy of personal data”). Companies and organizations are obligated to ensure that stored or processed data is in fact correct (“true”).
Legal Framework of the Duty of Truthfulness
Statutory Foundations
The obligation to tell the truth (“True” in the legal sense) arises from variously regulated standards in legislation and case law:
- Civil Law: § 242 BGB (Good Faith) – requires honest conduct and thus making correct statements.
- Commercial Law: §§ 238 ff. HGB – requires proper accounting and a truthful presentation of the financial situation.
- Criminal Law: §§ 153-156 StGB – governs the consequences of false statements to authorities and courts.
- Data Protection Law: Art. 5(1) GDPR – stipulates the accuracy of personal data as an independent requirement.
Consequences of False Statements
Legally incorrect (“untrue”) statements result in different legal consequences depending on the area of application:
- Rescission and withdrawal from contract
- Liability for damages
- Liability of company organs
- Penalties or fines for false statements to authorities
- Obligation to correct data in data protection law
“True” and Burden of Proof
Significance in the Presentation of Evidence
In German law, the principle of free assessment of evidence applies (§ 286 ZPO). It is up to the court to determine whether the assertions presented are to be regarded as “true”. The rules on burden of proof assign which party must substantiate the truth of a fact.
Rules and Requirements for the Burden of Proof
- Civil Law: The party relying on a factual assertion must prove its “True” content.
- Criminal Law: The presumption of innocence applies; factual assertions to the detriment of the accused must be proven as “true”.
“True” in the International Context
Globally Recognized Principles
The duty to tell the truth is not limited to German law. For example, in Anglo-American legal systems, the principle of “Truthfulness” is also the basis for many types of liability (e.g., misrepresentation under common law).
International Agreements
International standards, such as the principles of accounting (IFRS), require a “True and Fair View” of a company’s financial situation and thus emphasize the global importance of the principle of truth in law.
Case Law on “True”
Guiding Court Decisions
German courts have created numerous precedents in which the duty of truthfulness was central, for example:
- BGH, Judgment of 7 June 1989 – VIII ZR 182/88: Rescission due to false information in connection with a contract conclusion.
- BVerfG, Decision of 3 July 2001 – 1 BvR 618/89: On the right to correction of false data within the meaning of fundamental data protection rights.
Conclusion and Outlook
The term “True” carries far-reaching significance in law. It safeguards the protection of trust, honesty, and reliability in legal transactions, corporate governance, data protection, and litigation. The obligation to truthfulness protects parties from deception and ensures the integrity of the legal system. With ongoing digitalization and internationalization, the importance of “True” in the legal context will continue to grow, both nationally and internationally.
Frequently Asked Questions
What legal requirements must be met for the application of True under German law?
For the application of True under German law, it is essential to observe all statutory provisions and framework conditions arising from national laws as well as, in part, from European regulations. Regulations in the German Civil Code (BGB), the German Commercial Code (HGB), and possibly special laws depending on the application area are particularly important. It is always necessary to determine the facts of the case precisely and to correctly subsume them under the relevant legal norm, whereby courts focus on the exact wording and purpose of the norm. General procedural principles must also be observed, such as the right to be heard, protection of legitimate expectations, and compliance with formal requirements. Furthermore, in cross-border matters, international and conflict of law rules may apply. Additionally, in certain contexts, True may be subject to special approval requirements, notifications, or disclosure obligations, particularly if data protection or consumer protection provisions are affected. Violations of these legal requirements typically result in the invalidity or unwinding of the legal transactions concerned or in sanctions.
What role does the allocation of the burden of proof play in the use of True?
The allocation of the burden of proof is regularly of considerable significance when True is involved, as anyone who asserts a fact also bears the burden of proving its existence, unless a special statutory standard of proof or a reversal of the burden of proof is stipulated. In German civil law, the principle applies that, in case of dispute, each party must prove the circumstances in their favor. In the context of True, it may depend on who must prove the prerequisites or facts that speak for or against the recognition of True. In procedural terms, particular attention must be paid to the requirements for presenting and admitting evidence and the credibility of evidence offered. For specific scenarios, such as breaches of duty of disclosure or in consumer protection, statutory rules may provide for a reversal of the burden of proof. The case law regularly specifies the scope and requirements of the respective presentation of proof.
What possible legal risks exist in handling True?
When dealing with True, various legal risks should be considered. These include, in particular, risks arising from contractual relationships, such as liability risks in the event of breaches of contract, but also risks in tort law, tax law, and data protection law. Mistakes in handling True—for example, due to insufficient transparency, non-compliance with data security regulations or improper processing of personal or protected data—can result in significant sanctions. Additional risks arise from breaches of disclosure obligations or lack of documentation, such as in the context of compliance requirements. Fines, damage claims, and competition law cease-and-desist or removal claims may also arise. Finally, it should be noted that in cross-border matters different legal interpretations and jurisdictions may exist, which can further complicate the risk situation.
What legal framework applies to the transfer of True to third parties?
Numerous legal provisions apply to the transfer of True to third parties, especially those under data protection law—such as the GDPR for personal data—as well as those under the Trade Secrets Act and copyright law, if protected information is affected. In the areas of commercial and corporate law, confidentiality obligations, for example for company officers or employees, also play a central role. As a rule, a proper legal basis (contract, law, or consent) and compliance with all existing protection and due diligence obligations must be ensured as prerequisites for lawful transfer, such as upholding data secrecy and the integrity of information. Contracts or privacy notices used must contain appropriate indications of the rights and obligations of the parties involved. Breaches of these legal frameworks can result in cease-and-desist or damage claims, as well as sanctions by supervisory authorities.
What special regulations must be observed in international situations involving True?
In international contexts, numerous special legal regulations must be taken into account regarding True, primarily private international law (PIL), which contains conflict rules determining the applicable law and the competent courts. International treaties and bilateral agreements must also be considered, for example regarding mutual recognition and enforcement of judgments or judicial cooperation. In addition to German law, supranational legal acts, particularly European regulations (e.g., GDPR, eIDAS Regulation), may be relevant. Specific international compliance requirements and reporting obligations exist for certain industries or fields such as finance, medicine, or IT. It is important to examine to what extent national export regulations, controls, or embargoes may apply and whether local features (such as foreign data protection laws) must be observed.
How does liability arise for violations of legal provisions regarding True?
For violations of legal provisions regarding True, the applicable law provides for differentiated liability consequences. Liability may arise under civil law—for example, through claims for damages or for injunction/removal—or under public law through fines, penalty payments, or other administrative sanctions. In certain cases, liability may also result in criminal consequences, such as for fraud, forgery, or other offenses. Anyone who causes harm to a third party through unlawful handling of True is generally liable under contractual or statutory liability provisions, whereby issues of officer liability, management responsibility, and possibly employee liability must also be considered. The extent and scope of liability depend on the degree of fault and the damage caused. In some cases, limitations or exclusions of liability may apply, such as in cases of force majeure or legal limitation (e.g., § 309 no. 7 BGB).
What documentation and evidence obligations exist for the use and application of True?
The documentation and evidence obligations relating to the use of True are diverse and arise from various statutory and contractual requirements. In addition to the general retention obligations under commercial and tax law (§§ 238 ff. HGB, §§ 140, 147 AO), additional specific evidence obligations may have to be met, for example in data protection law (Art. 5(2) GDPR accountability), in product safety law, or as part of specific compliance requirements of companies. The obligation to keep comprehensive records serves not only the internal purpose of traceability but, above all, ensures the ability to provide evidence to authorities, courts, or third parties in the event of a dispute. Inactivity or incomplete documentation can, in the case of an audit or legal proceedings, result in significant disadvantages and evidentiary problems, and are sometimes subject to fines. It is therefore generally advisable to document all relevant processes as well as compliance with legal requirements carefully and in a traceable manner.
