Landmark Decision of the Federal Court of Justice in Germany

    View Authors March 2018

    The End of Remedying Breaches of the Written Form Requirement in Long-term Hotel Lease Agreements.

    • Do you have a hotel lease agreement in Germany? Either as the lessor or the lessee? If yes, you should read on.
    • Will this hotel lease agreement still run for a longer term and are you relying on it being valid for a long term? If yes, you should check now whether this is still correct.
    • Do you think that the clauses at the end of your lease agreement, which are usually written by lawyers and are not given a great deal of attention, will help you? If yes, you should review your hotel lease agreement again now in more detail.

    On September 27, 2017, the German Federal Court of Justice (BGH, case no. XII, ZR 114/16) decided that all clauses on remedying breaches of the written form requirement are invalid in all hotel lease agreements in Germany. Such clauses violate mandatory statutory law laid down in Sections 550, 578 of the German Civil Code (BGB). Any pre-formulated contractual conditions that have been written by lawyers or the contracting parties are now deemed invalid, even if the remedying of breaches of the written form requirement has already been negotiated for individual contracts.