Exculpatory clauses in Germany and in the United States

[deutscher Text]

D. Sharon Pruitt/ commons.wikimedia

D. Sharon Pruitt/ commons.wikimedia

German law may not enforce a wide range of general contract terms.  The German Federal Ministry of Justice and Consumer Protection (Bundesministeriums der Justiz und für Verbraucherschutz) recently sponsored a study that warns that basic tools of contract law like exculpatory clauses and liquidated damages clauses may not work in Germany.

But one argument of the study, that parties wishing to rely on common exculpatory clauses should be careful not to enter into contracts in Germany but rather in the United States, may be less certain than the authors believe.