Störung der Geschäftsgrundlage. Section 313 BGB allows a contract to be adjusted where the circumstances that formed its basis have changed so severely that holding a party to it would be unreasonable. The remedy is adjustment rather than release. The law’s instinct is to restore the balance rather than to end the relationship.
Review of standard terms
AGB-Kontrolle. German courts review standard terms and conditions for fairness and strike out clauses that unreasonably disadvantage the other side — and they do it between businesses, not only against consumers. A German company cannot rely on having got a hard clause into its own paperwork. A court will read it and may simply remove it.
Usury as a crime
Wucher. Usury is a criminal offence in Germany, not only a civil one. Taking grossly disproportionate advantage of someone’s weakness is prosecuted. The state treats an imbalanced bargain as a matter for the criminal courts.
Contrary to good morals
Sittenwidrigkeit. Section 138 BGB voids a legal transaction that offends good morals, and specifically one where a party exploits another’s predicament, inexperience or weakness to obtain a conspicuously disproportionate advantage. A German contract can be void because the bargain was too one-sided. Not misrepresented, not coerced — just too unequal.
Good faith
Treu und Glauben. Section 242 of the German Civil Code requires performance according to good faith, with regard to common usage. One sentence, and it is among the most heavily used provisions in German law.
Courts apply it to strike down conduct that is formally within a contract but unacceptable in substance. The agreement being signed does not settle whether it is enforceable.
Berlin Alexanderplatz
Berlin Alexanderplatz by Alfred Döblin (1929). Franz Biberkopf, an ex-convict, becomes entangled with a criminal gang led by Reinhold, who attempts to manipulate Franz into criminal activities, framing it as a mutually beneficial arrangement. Franz initially tries to assert his autonomy, but Reinhold’s manipulative, transactional approach overwhelms him. The emphasis on reciprocal obligations and maintaining one’s word, even in criminal dealings, underscores the cultural weight given to agreements and commitments in German culture.
stable, predictable
After World War II, the German government implemented strict price controls to stabilize the economy during the Wirtschaftswunder. The emphasis on fair pricing was institutionalized as a mechanism to prevent profiteering and ensure equitable access to essential goods. These post-war regulations reinforced the idea that prices should be stable, predictable, and based on objective calculations rather than speculative market fluctuations. The German social market economy emphasizes balancing free market principles with social welfare, including fair pricing practices that prevent consumer exploitation.