In German contract law, there are no
legally defined "7 rules". Instead,
it is based on fundamental principles of the
German Civil Code (BGB). For better
orientation, however, these can be summarized into seven
basic rules that concern the
conclusion, validity and binding nature
of contracts:
- Rule 1: Offer and Acceptance – A
contract is concluded when an
offer is made and validly
accepted.
- Rule 2: Legal capacity – The
contracting parties must have legal capacity
or be validly represented.
- Rule 3: Agreement on essential
contract contents – There must be
agreement on the essential
components of the contract.
- Rule 4: No illegality or
immorality – The contract content
must not violate applicable law or
good morals.
- Rule 5: Freedom of form – Contracts are
generally free of form, provided that
the law does not prescribe a special form.
- Rule 6: Contractual fidelity – Validly
concluded contracts must be honored
("pacta sunt servanda").
- Rule 7: Transparency and Fairness –
Especially for terms and conditions,
contract clauses must be clearly, understandably
and fairly formulated.
These principles apply in German civil law
and are supplemented by special regulations, such as in
consumer contract law or by European regulations.