Civil LAW EXAM Questions PDF

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133. List five areas of civil law which do not primarily relate to contract law: - Private International Law - Tort Law - Family Law - Property Law - Commercial Law 134. Give a short overview on different types of legal scholarships in the area of civil law. - Mannuals – book design to cover all aspects of a legal area - Textbooks – it gives overview of certain legal area - Commentaries – explanation of a certain in statute 135. What is “Private International Law”? In which situation is it legally relevant - Is a legal area in the area of civil law, which has rules on the issue 136. Briefly name by order (in keywords only) the three steps for the specification of the contents of a statutory provision. - s.p may specify statute - case law - legal scholarships 137. What is a b2c contract and b2b? - business to consumer and business to business 138. Name (give designations only) the types of persons that are distinguished in civil law - Natural and legal person 139. May a six years old kid be (i) the owner of shares in a listed company, (ii) the purchaser of a small bag of candies? Give reasons - Yes, a natural person may be the holder of rights as soon as he is independent of his/her age. - No, because minors below 18 have no legal capacity to enter into contracts. 140. What does the principle of freedom of contract mean? - The freedom of parties to decide whether or not to conclude a contract about the content but it can’t be in conflict with mandatory statutory law. 141. Outline the relationship between a purchase contract and the statutory law on purchase contracts? -Matter which are not governed by the law. The content might different. 142. May a contract deviate from the provision of statutory law, e.g. a lease contract? - Yes, the contract may deviate from provisions of statutory law, unless those rules are mandatory because of freedom of contract.

143. In case a written contract contains no provisions on damage claims of party, it is then legally possible that a party is entitled to damages under the contract? - Yes, it is possible because issues not governed by a contract have to be governed by the applicable statutory law. 144. Name the legal elements on which an agreement is required for the formation of a purchase contract has a valid and enforceable purchase contract been formed when an agreement on these elements has been reached? - Parties, objects of purchase and price Exceptions: It depends, certain type of validity requirements - Immoral contract (not valid contracts) - In case of open disagreement - Agreement of minor - Prohibited contract 145. Under normal circumstances when is a written offer for a purchase for a movable object binding, in which case is it not binding? - The offer is binding, when the offer is received by the addresse, unless then the offer specifically states that is not binding. (not valid is not binding) 146. Explain why is it recommendable that a written offer sets a time period for its acceptance. - it’s recommendable to avoid uncertainties and otherwise the law applies 147. Company A submits a written offer to company B for a sale by A to B of 10 units of product QUOMOC for 899 euro, per units plus VAT. The next day, B responds in written to A as follows: “We accept your offer of yesterday. Applicable discount 8% for payments within 2 weeks. : What is the legal effect of B’s response? - B’s accepted A’s offer with modification that B has rejected A’s offer and made a counter offer. 148. Please explain the concept of notarial recording and the concept of notarial certification. - Notarial recording concerns the contract itself. During the notarial recording the notary reads out the entire contracts and gives neutral advice and the notary and the parties must sign. -Notarial certification only deals with the authenticity of the signatures or the copy of documents. Here notary do not read and give advices. 149. Name the two types of agreements requiring notarial recording and briefly indicate which basic rule applies, if such an agreement is made in written form? - Marriage - Real Estate => required notarial recording - Forming of GmbH - Sales of shares in GmbH

150. Assume that a mandatory statutory rule provides that a certain type of contract requires written form. What rule applies, if the parties enter into such a contract as follows. (a) Facebook or (b) by exchanging of emails or (c) by sending an undersigned fax, the content and the receipt of which is confirmed by the recipient through text message sent on a mobile phone? - a,b,c are in the form instead of written form which they do not (meet the requirements of the comply with the next form to meet the requirements of written form. 151. What is power of attorney? - Authority granted by 1(principal) person to 2nd (the agent person by which the other person may sign the contract by or behalf of the principal. 152. Person 1 intends to enter into a contract with person 2. However, person 1 does not want to sign the contract herself. Rather, person 1 wants that person 3 makes the signature, and that as a consequence the contract between persons 1 and 2 will be created. How can this be done? 153. Two parties have entered into a lease agreement for a fixed term of ten years. After two years, have of the parties wants to continue the lease agreement any more. Is there a way for then to bring the lease agreement to an end soon? - Yes, they can simply cancel the lease agreement through a mutual cancellation agreement which they can make it at any time. 154. In the absence of any irregular circumstances (such as breaches errors, or criminal conduct) , may a party pull out of a contract concluded by it? - Basic rule may not do that. A party has no right to pull out of a contract in the absence of irregular circumstances. There are a couple of exceptions: 1. All other parties consent. 2. Ordinary termination can be possible thus a couple of requirements have been observed. 3. The rescission right has been agreed in the contract. 4. In certain B2C contracts, such as long distance sales, the sale … 155. Which types of contracts are in principle subject to termination (Kundigugn) exist and what are the basic differences between then? 1. Contracts for continuing obligations (CCO). For example, lease agreement, partnership agreement, medium-term supply agreement. 2. Ordinary termination: a) no cause required. B) notice period required. C) flexible law: right for ordinary termination during the fixed term is excluded. Extraordinary termination: a) good cause required. B) no notice period required, but immediately effective. C) mandatory law: right for extraordinary termination during the fixed term may not be excluded. 156. The civil law condition: (a) What is that? (b) Which contracts are conditional? (c) In which way are the parties bound to a conditional contract? (d) Provide (in keywords) a typical example of conditional contract.

a) Civil law condition: uncertain future event. Must be agreed by the parties to become part of the contract. Relates to future effectiveness of the contract. b) In which a party has agreed by law. c) Parties are bound to the contract even before the condition occurs. d) Consent of third party (shareholder, bank, government)

++++157. List the basic issues regarding the law on general terms and conditions and briefly explain what these issues are about. 1. Definition of the terms: small print in the contract 2. Legal basis 3. Incorporation of standard terms: need awareness and consent of other party, and then they are incorporate. 4. Content control: it means that rules in general terms and conditions, used by the party are invalid if the conflict with the provisions of 307-309 BGB (mandatory) 5. Legal consequences: consumer protecting organizations may sue the company using standard terms which conflict with the law. In the lawsuit, these consumer protecting organizations may demand that use of such unlawful general terms and conditions is stopped. +++++158. S GmbH has sold to B GmbH 20 tons of cement of type MEC44 for 24 000 EURO plus VAT. B Gmbh request a 1% discount for immediate payment by wire transfer on the ground of the standard purchase contract customarily used by B GmbH, which is also available on B GbmH’s website and which provides that a 1% discount for immediate payment by wire transfer applies. Which legal issue regarding the request for a discount arise? 1. They have signed a contract without these standard terms. B has an original contract been qualified, modified in a way that they agreed on the standard terms. 2. B is basing his claim on the standard terms, which case is can a party base its contractual claim on the standard terms and conditions. Only then, when these standard terms and conditions have been incorporated in two individual contracts, not simply because a company has such standard terms and conditions. 3. Whether or not it is allowed with the statutory requirements. 159. Assume a written purchase contract contains an ambiguous section that is relevant for the performance of the contract which legal concept may be applied? Also state in no more than 3 sentences how it is applied. 1. Interpretation 2. Establishing and proving the parties’ real intent. For instance, through witness. Or what we presumed be agreed by parties acting in “good faith” / reasonable/common sense 160. 161. Name the typical two primary obligation under a contract - performance in kind - payment

162. A want to pull out of the purchase contract concluded with X. To this end, A intends that T replace A under the purchase contract through a replacement contract concluded between A and T under the law, can A and T do that like this? Give reasons. - No, they cannot do this unless X agrees. Because it is the fully exchange of a contract, which is treated like assumption of that, which cannot be validly made without the consent of the other party. 163. What is typically the main objective of buyer under a purchase contract for a movable asset and how does the buyer achieve it? 1. Main objective: The buyer wants to become the new owner of the object of this purchase. 2. The buyer agrees of the transfer of the ownership. Possession in object of purchase is transferred to the buyer. (it applies movable assets only). The buyer must registered as a new owner in the land title register. (for immovable assets). 164. Distinguish ownership and possession. - Ownership: it is title to a thing, you have the right to do with the thing whatever you want. E.g. consumer, sell or rent. - Possession: is mere physical control over a thing. 165. What does “retention of title” mean and in which case does it apply? - It applies to purchase contract when the seller makes delivery of the sold object to the buyer, but the buyer will only acquire ownership in the purchase object when the buyer has fully paid the purchase price to the seller. - Only when there is an agreement. 166. The three main types of breach of a purchase contract by the seller are: 1- late performance, 2no performance, 3- defective performance. As a consequence of a breach the buyer may (generally speaking) have 4- remedies, which (depending on the case) may In particular be 5. Compensation of damages, 6- rescission, 7-elimination of defect, 8-price reduction. 167. Generally state what is mean by “default”, indicating its two basic requirements (disregards exceptions) 1. Default is a special case of late performance, if certain requirements are met. 2. Debtor fails to perform when due. Creditor demands performance. Debtor unable to prove that he was not responsible for the late performance. 168. In case of default of the buyer, does the payment obligation of the buyer change? - yes, because the buyer will have to pay default interest in addition to the purchase price. In b2c contract: 5% points above basic rate p.a. In b2b contract: 9% points above basic rate p.a. 169. In case of default of the seller which particular risk does the seller run regarding the existence of the contract?

- The buyer may set a grace period to the seller which the buyer will demand performance and, should the seller not perform within that grace period. The buyer will have the right to rescind the contract. 170. What is understood by “warranties”? - Warranty is a guarantee for the quality or quantity of the object that was sold by seller. 171. Summarize in one sentence in which case an object of purchase has a defect. - Quantity and quality deviates from agreed parties when it is delivered. 172. Which two types of defect can an object of purchase have? Also, give three categories of examples altogether and relate these three categories of examples to the relevant types of defect. 1. Material defects (Sachmangel) 1.1 New manifactive object is damaged or doesn’t function 1.2 New or old objects lack agreed features. 1.3 Quantity falls short of agreed features. 2. Legal defects 2.1 Object is validly leased out to someone else 2.2 seller falls to transfer title to buyer 2.3 grey inpats 173. Name and briefly describe the four types of warranty claims, that a buyer may have according the German civil code. - Elimination of defects in cure - Rescission of contract - Reduction of purchase price - Damage claim against the seller

174. May warranty rights of the buyer be excluded in the sales contract? - Yes. In principle. There are exceptions. 1 if the seller conceals the defect. 2. B2C contract for movable assets. 3. Seller gives explicitly warranty. - In standard term, no because it’s unfair to another party therefore it is declared invalid by BGB 175. Explain the situation in which the object of purchase does not function properly, but the buyer may not successfully raise warranty rights even if warranty rights of the buyer are not excluded in the contract. 1. When the buyer has prior knowledge of defect. 2. When the period of warranty claim becomes time-barrred 3. it has agreed that the object doesn’t function properly

4. The defect rose after the delivery 176. If a seller has breached a contract for the sale of an object for which the purchase price is 2500 euros is the buyer entitled to (i) damages of 2500 euros or (ii) damages of 9% of 2500 euro? - When the seller is in default, the buyer has no automatical claim against the seller for the compensation, unless the buyer can demonstrate and pure that because of non-performance of seller the buyer has financial loss. Therefore, in this case neither (i) nor (ii) is correct 178. Is a transfer contract sufficient in order to effect the transfer of property in real estate to the buyer? - No it is not enough 179. Do the seller and buyer alone handle the transfer of title in real estate to the buyer? Give reasons. - not recording the purchase contract - recording of the new owner from the local real estate agent - notary does not only reads out he is handle all the documents to the land register 180. What are the primary legal consequences under a personal surely. In which typical cases are such personal sureties granted in practice? 182. On 2 Jan. 2015, S GmbH sold a cargo load of timber to B GmbH for 6200 euro. B GmbH paid 3200 euro in May 2015. As per today, how about S GmbH outstanding claim for 3000? - We have to consider if the claim of seller has become time barred or not. - The limitation period is 3 years - It hasn’t become time-barred, because the staring point of limitation period begins at the end of the year that the claim has risen = start when 1st Jan 2015 183. “When a party takes legal action against another party under a purchase contract , in other words when (i) find, the procedure for such legal action is not governed by the BGB, but by the (ii) German Civil Code, commonly abbreviated in German as ZPO. 184. What is a legal conflict in the area of contract law? 185. If the debtor does not fulfill its obligations against the creditor, the creditor may sometimes shy away from a lawsuit with its debtor. Give possible reasons for such decisions of the creditor. - Time expenditure - Financial risk - Emotional stress, burden - Settle a law suit - Counter claim of the debtor - Legal risk 186. In practice what is a typical legal conflict in the area of contract law? - One party doesn’t pay

- Seller doesn’t deliver on ( with the quality or quantity) 187. Which three basic ways are available to resolve a civil law conflict? - Fulfill the claim 189. Give a brief overview of the abstract initial options of a defendant in a lawsuit in a civil law matter: 1. Acknowledgement – accept the claim 2. Settlement – could be done Parallel as the contradiction 3. Contradiction = deny the claim 4. Ignore 190. In practice, why can it be necessary for a plaintiff in an individual case to enforce the judgement. - It can be possible when the defendant chooses not to fulfil the court’s judgement - No, the enforcement of judgement always requires the enforcement of plaintiff. 191. Name typical of enforcement measures regarding payment claims of the creditor. 1. confiscation of bank accounts through cart order 2. confiscation of moveable property through court bailiff 3. Fareclosure of real estate property through mortgage and subsequent action sale of real property....