Podcast
Questions and Answers
What is the general rule regarding the currency in which the purchase price should be paid?
What is the general rule regarding the currency in which the purchase price should be paid?
In a domestic delivery, what should be listed separately in the purchase contract, in addition to the net purchase price?
In a domestic delivery, what should be listed separately in the purchase contract, in addition to the net purchase price?
What is the destination principle?
What is the destination principle?
In the case of intra-Community deliveries and export deliveries, what does the supplier not pay?
In the case of intra-Community deliveries and export deliveries, what does the supplier not pay?
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What is the purpose of the provision regarding input tax deduction in relation to exports?
What is the purpose of the provision regarding input tax deduction in relation to exports?
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Who is responsible for the costs of dispatch from the place of performance in a sale by delivery to a place other than the place of performance?
Who is responsible for the costs of dispatch from the place of performance in a sale by delivery to a place other than the place of performance?
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In a domestic delivery, who is responsible for paying the statutory turnover tax?
In a domestic delivery, who is responsible for paying the statutory turnover tax?
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What is the main argument for stipulating whether all prices are net prices excluding VAT in a purchase contract?
What is the main argument for stipulating whether all prices are net prices excluding VAT in a purchase contract?
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What happens if the costs for the seller, like customs duties, decrease?
What happens if the costs for the seller, like customs duties, decrease?
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Who bears the transport costs when the goods are shipped to a different destination at the buyer's request?
Who bears the transport costs when the goods are shipped to a different destination at the buyer's request?
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What is the standard payment term used when the purchase price is due?
What is the standard payment term used when the purchase price is due?
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In the context of the passage, what does 'advance performance obligation' refer to?
In the context of the passage, what does 'advance performance obligation' refer to?
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Which of the following factors can lead to a price increase beyond the seller's control?
Which of the following factors can lead to a price increase beyond the seller's control?
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What is the purpose of the 'principle of step-by-step performance' mentioned in the passage?
What is the purpose of the 'principle of step-by-step performance' mentioned in the passage?
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Which of the following is NOT included in the purchase price of the goods?
Which of the following is NOT included in the purchase price of the goods?
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What is the main concern addressed by the 'payment terms' discussed in the passage?
What is the main concern addressed by the 'payment terms' discussed in the passage?
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What is the primary purpose of including cost clauses in general terms and conditions (GTC)?
What is the primary purpose of including cost clauses in general terms and conditions (GTC)?
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What is the main difference between price reservation clauses and price adjustment clauses?
What is the main difference between price reservation clauses and price adjustment clauses?
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According to the Preisklauselgesetz (PreisklG), what is considered objectionable in terms of price adjustment clauses?
According to the Preisklauselgesetz (PreisklG), what is considered objectionable in terms of price adjustment clauses?
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What type of price adjustment clauses are considered acceptable under the PreisklG?
What type of price adjustment clauses are considered acceptable under the PreisklG?
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In the context of price clauses, what is meant by 'form-based price clauses'?
In the context of price clauses, what is meant by 'form-based price clauses'?
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Why might price clauses in general terms and conditions be ineffective under German law?
Why might price clauses in general terms and conditions be ineffective under German law?
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What is the main argument against including price adjustment clauses that are based on the value of unrelated goods or services?
What is the main argument against including price adjustment clauses that are based on the value of unrelated goods or services?
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Which of the following is NOT a reason why parties should consider including cost clauses in their GTC?
Which of the following is NOT a reason why parties should consider including cost clauses in their GTC?
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What is the main risk that the buyer and seller face when there is an obligation to perform in advance?
What is the main risk that the buyer and seller face when there is an obligation to perform in advance?
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In the context of German law, what does § 309 No. 2 BGB prevent?
In the context of German law, what does § 309 No. 2 BGB prevent?
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How does German law view the contractual partner of a user?
How does German law view the contractual partner of a user?
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In business transactions between entrepreneurs, what can be waived?
In business transactions between entrepreneurs, what can be waived?
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What is the legal basis for the seller's ability to demand advance payment in a business transaction?
What is the legal basis for the seller's ability to demand advance payment in a business transaction?
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What does § 321 BGB concretize in terms of the seller's obligation?
What does § 321 BGB concretize in terms of the seller's obligation?
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In what way do insolvency-related dissolution clauses differ from clauses mentioned in § 321 BGB?
In what way do insolvency-related dissolution clauses differ from clauses mentioned in § 321 BGB?
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What is the primary purpose of discount clauses?
What is the primary purpose of discount clauses?
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Which of the following situations is NOT covered by § 321 BGB?
Which of the following situations is NOT covered by § 321 BGB?
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Where are discount clauses typically found?
Where are discount clauses typically found?
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Which of the following is NOT a requirement for the effectiveness of general terms and conditions according to the German Civil Code (BGB)?
Which of the following is NOT a requirement for the effectiveness of general terms and conditions according to the German Civil Code (BGB)?
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What impact do §§ 308 and 309 BGB have on general terms and conditions?
What impact do §§ 308 and 309 BGB have on general terms and conditions?
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Why is the restriction of the scope of application of GTCs to B2B transactions more relevant for terms of sale than for terms of purchase?
Why is the restriction of the scope of application of GTCs to B2B transactions more relevant for terms of sale than for terms of purchase?
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Based on the information provided, which of the following best describes the purpose of the general clause in § 307 (1) BGB?
Based on the information provided, which of the following best describes the purpose of the general clause in § 307 (1) BGB?
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What is the main factor determining the legal regulations against which a GTC clause must be measured?
What is the main factor determining the legal regulations against which a GTC clause must be measured?
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Which of the following is NOT considered a potential sign of unreasonable disadvantage under § 307 (2) BGB?
Which of the following is NOT considered a potential sign of unreasonable disadvantage under § 307 (2) BGB?
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What is the primary distinction between the general clause in § 307 BGB and the special provisions in §§ 308, 309 BGB?
What is the primary distinction between the general clause in § 307 BGB and the special provisions in §§ 308, 309 BGB?
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The text describes a legally binding agreement as sufficient for the inclusion of GTCs in business contracts. Which of the following could be considered a legally binding agreement?
The text describes a legally binding agreement as sufficient for the inclusion of GTCs in business contracts. Which of the following could be considered a legally binding agreement?
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Flashcards
Delivery obligation
Delivery obligation
Goods must be offered to the buyer at the destination before payment is due.
Advance performance risk
Advance performance risk
Seller and buyer risk pre-payment issues before delivery occurs.
Right to refuse performance
Right to refuse performance
Consumer cannot waive the right to refuse performance under certain laws.
Formal waiver between entrepreneurs
Formal waiver between entrepreneurs
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Seller's creditworthiness check
Seller's creditworthiness check
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General Terms and Conditions (GTC)
General Terms and Conditions (GTC)
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German Civil Code (BGB)
German Civil Code (BGB)
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Invalid GTC Conditions
Invalid GTC Conditions
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B2B vs B2C GTCs
B2B vs B2C GTCs
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Section 307 BGB
Section 307 BGB
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Section 308 BGB
Section 308 BGB
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Section 309 BGB
Section 309 BGB
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Purpose of the Contract
Purpose of the Contract
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Insolvency proceedings
Insolvency proceedings
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Lack of ability to perform
Lack of ability to perform
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Advance payment obligation
Advance payment obligation
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Discount clauses
Discount clauses
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Contract withdrawal conditions
Contract withdrawal conditions
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Price Adjustment
Price Adjustment
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Buyer-Borne Costs
Buyer-Borne Costs
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Transport Costs Policy
Transport Costs Policy
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Public Charges
Public Charges
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Advance Performance Obligation
Advance Performance Obligation
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Payment Terms Regulation
Payment Terms Regulation
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Place Purchase
Place Purchase
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Distance Sale
Distance Sale
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Cost Clauses
Cost Clauses
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Price Reservation Clause
Price Reservation Clause
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Price Adjustment Clause
Price Adjustment Clause
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Balance of Price and Performance
Balance of Price and Performance
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Price Clause Act (Preisklauselgesetz)
Price Clause Act (Preisklauselgesetz)
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Cost Element Clauses
Cost Element Clauses
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Inflationary Effect
Inflationary Effect
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Form-based Price Clauses
Form-based Price Clauses
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Currency Regulations
Currency Regulations
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Purchase Price in Seller’s Currency
Purchase Price in Seller’s Currency
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Statutory Sales Tax
Statutory Sales Tax
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Input Tax Deduction
Input Tax Deduction
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Destination Principle
Destination Principle
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Cost Allocation in Sales
Cost Allocation in Sales
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Seller's Responsibilities
Seller's Responsibilities
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Buyer’s Responsibilities
Buyer’s Responsibilities
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Study Notes
Purchase Contracts - Disputes
- Disputes frequently arise regarding the precise terms of a contract, particularly when parties' declarations aren't merged into a single, signed contract.
- Often, discrepancies exist concerning performance scope, even with written contracts.
- Formal contract documents are less common in commercial practice, with courts often relying on correspondence (emails, faxes, etc.) to interpret the agreement.
General Terms and Conditions (GTC)
- GTCs are pre-formulated terms applicable to various contracts.
- One party (often the user) imposes GTCs on the other party.
- Negotiation is key to the validity of GTCs; imposing them unilaterally isn't sufficient.
- Contractual partners must have the option to propose alternatives and use their preferred contractual terms.
- The German Civil Code (BGB) imposes minimal requirements for GTC inclusion in business contracts: tacit agreement and actions can suffice for binding contracts.
- GTC provisions are invalid if they significantly disadvantage the contractual partner unfairly, violating good faith principles.
Contractual Terms and Conditions
- Clauses (including details concerning the object of purchase) should be written in detail to avoid disagreements.
- B2B transactions have different regulatory rules than B2C to protect consumers, with more stringent provisions concerning the clauses.
- When specifying general terms & conditions important to consider whether they will apply to business-to-business agreements only or also to consumer transactions; this directly affects certain stipulations under the relevant regulations.
Binding Agreements
- A declarant is legally bound by an offer unless the offer's binding nature is explicitly excluded.
- Revoking an offer requires the revocation declaration to be received by the recipient before or at the same time as the offer.
- Offeror's obligation lasts until the recipient reasonably has time to respond.
- Explicitly consider whether terms and conditions regarding the acceptance of offers are based on business-to-business or business-to-consumer transactions.
- Ensure the terms and conditions make it clear that the parties intended precisely such a legal consequence.
Object of Purchase
- The seller's primary obligations include providing the purchased item and transferring ownership.
- Clear, detailed descriptions of the object of purchase are crucial to avoid disagreements about what was actually sold (especially for intricate items like machinery).
- Precise descriptions help classify a contract as a sales contract (pre-manufactured) or a contract for work (non-manufactured or constructed).
Price and Payment
- Purchase prices should detail whether they include costs like transport, insurance, taxes, etc. ,using a definitive pricing method.
- The currency for payment should be explicitly stated in the contract, or governed by the applicable national laws in cases of a dispute.
- Payment terms (payment periods) are important to avoid disputes surrounding obligations to pay in advance and to adequately address risks surrounding possible insolvency or payment delays.
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Description
This quiz focuses on the key aspects of purchase contracts, including common disputes that arise from unclear terms and the role of General Terms and Conditions (GTC). It emphasizes the importance of negotiation and the legal frameworks guiding these agreements, such as the German Civil Code. Test your understanding of contract law and its practical implications.