News on the State of the Business

Section 666 of the German Civil Code sets the information duty of a person who carries out a task for someone else. Der Beauftragte ist verpflichtet, dem Auftraggeber die erforderlichen Nachrichten zu geben, auf Verlangen über den Stand des Geschäfts Auskunft zu erteilen und nach der Ausführung des Auftrags Rechenschaft abzulegen. The agent must give the principal the necessary news. On request, he must report on the state of the business. After the task is done, he must give an account.

Section 665 lets the agent depart from the principal’s instructions if he may assume that the principal bei Kenntnis der Sachlage die Abweichung billigen würde, would approve the change if he knew the facts. Before he departs, he must notify the principal and wait for his decision, unless the delay brings danger. Section 675 applies both rules to paid service and work contracts that involve handling another person’s affairs.

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