The Bürgerliches Gesetzbuch (or BGB) is the civil code of Germany. In development since 1881, it became effective on 1 st January Consequently, the BGB contains five books:  the General Part ("Allgemeiner Teil"), sections 1 through 240  the Law of Obligations ("Recht der Schuldverhältnisse"), sections 241 through 853  the Property Law ("Sachenrecht"), sections 854 through 1296  the Family Law ("Familienrecht"), sections 1297 through 1921  the Succession Law ("Erbrecht")

Difference between:  Rechtsfähigkeit = legal capacity  Handlungsfähigkeit = capacity to act Geschäftsfähigkeit = capacity to contract Deliktsfähigkeit = legal capacity to commit tortious acts

Legal Capacity = the capacity of being the subject of your own rights and obligations  A child still living in the womb (Nasciturus) has no legal capacity; to obtain legal capacity, the completion of birth is necessary  However, the Nasciturus is not left without any rights at all; for example, it can possess claims for prenatal injuries only if born alive

 The legal capacity of a natural person ends with their death.  What death means is not legally defined, but it is to be established through medical science (brain death criterion).  Proof of death is done with the help of the Death Register.  If a person disappears, a declaration of death should be made in accordance with the Law of Missing Persons (Verschollenheitsgesetz)

= ability to effectively enter legal transactions  Full capacity to contract = when the person has reached the age of 18  contract is valid  Limited capacity to contract = a minor who has reached the age of 7 but is under 18  contract is valid in case of consent or ratification of the legal representative or if the contract represents only a legal benefit for the child or if the minor effects the payment with own means that were given to him for this purpose or for free disposal by the legal representative or by a third party with the ratification of the representative

 Partial capacity to contract:  If the legal representative, with the ratification of the family court, authorises the minor to operate a trade or business independently, the minor has unlimited capacity to contract for such transactions  If the legal representative authorises the minor to enter service or employment, the minor has unlimited capacity to enter into transactions that relate to entering or leaving service or employment of the permitted nature or performing the duties arising from such a relationship  Incapacity to contract = if the child is not 7 years old yet or if the person is in a state of pathological mental disturbance, which prevents the free exercise of will, unless the state by its nature is a temporary one  contract is invalid with one exception: If a person of full age incapable of contracting enters into an everyday transaction that can be effected with funds of low value, the contract he enters into is regarded as effective

= ability to commit a tort which results into a damage for which compensation is mandatory  No capacity = a person who has not reached the age of 7 is not responsible for damage caused to another person.  Limited capacity = a person who has not yet reached the age of 18 is responsible for damage he inflicts on another person if, when committing the damaging act, he does have the insight required to recognise his responsibility. Exception:A person who has reached the age of 7 but not the age of 10 is responsible for damage that he inflicts on another party in an accident involving a motor vehicle, a railway or a suspension railway if he intentionally caused the injury.  Full capacity = when the person has reached the age of 18.

= associations or assets recognized by the law as legal entities having distinct legal personality Types of legal persons (in Civil Law):  Associations (Vereine)  Foundations (Stiftungen)  Other private companies

= permanently established affiliation of persons having a common purpose and a corporate constitution Types:  Non-commercial association: An association whose object is not commercial business operations acquires legal personality by entry in the register of associations of the competent local court [Amtsgericht]  e.g. Employers' Organization, Ambulatory Health Association, Home and Landowners Association  Commercial association: An association whose object is commercial business operations acquires legal personality, for lack of special provisions under federal law, by state grant. The grant is in the power of the Land in whose territory the association has its seat.  Debt Collector Association, Real Estate Market, Shopping center for officials / union members, Private medical settlement offices

= totality of assets endowed with legal personality for the realization of the purposes of the founder  Foundations are composed only of assets, they have no members; even those who benefit from the foundation are neither members nor organs of the foundation.  The purpose of the foundation occurs from the declaration of will of the founder.  The creation of a foundation with legal personality requires an endowment transaction and recognition of the foundation by the competent public authority of the Land in which the foundation is to have its seat.  The foundation has a distinct legal personality.

 The joint-stock corporation (AG): Only the corporate assets are liable to the creditors for its liabilities. It has an authoried capital split up into shares.  Partnership limited by shares (KGaA): Joint-stock corporation that has on the board personally liable partners.  Company with limited liability (GmbH):The German limited liability company is a commercial company with a separate legal personality which can be established for any legally permissible purpose. The shareholders participate in the company through ownership of one or more shares in the company's share capital. As a result of its separate legal personality, when the company enters into transactions with third parties, its shareholders are not personally liable towards those third parties.  Registered cooperative (eG): an autonomous association of people united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled business.  Mutual insurance association (VVaG): a particular legal form for insurers, namely an association, which intends to perform insurance of its members under the principle of reciprocity.

 Public corporations (Körperschaften): member- based, e.g. church congregation, German Medical Chamber, professional associations  Public institutions (Anstalten): user-based, e.g. broadcasting institutions, hospitals, public libraries, Deutsche Bundesbank  Public foundations (Stiftungen): no association of people, just assets

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