Contract law is a fundamental part of civil law, governing the conditions under which contracts are formed, executed, and, if necessary, terminated between parties. It provides the legal framework to ensure that contracts are binding and that the rights and obligations of the contracting parties are clearly defined.

Sales Law

Sales law is a specialized area of contract law that deals with agreements concerning the purchase of movable and immovable goods. It is governed by §§ 433 ff. of the German Civil Code (BGB). In a sales contract, the seller is obligated to deliver the item and transfer ownership to the buyer, who, in turn, is required to pay the agreed purchase price.
Sales law also includes provisions for warranty rights available to the buyer in the event of defective goods. These rights include repair, replacement, price reduction, contract termination, and, in some cases, compensation for damages. Another significant aspect is the law on consumer goods (§§ 474 ff. BGB), which provides special protection for consumers, such as the reversal of the burden of proof for defects within the first twelve months after delivery.

Service Law

Service law governs contracts where the focus is on performing an activity or providing a service. It is particularly relevant in the context of service contracts (§§ 611 ff. BGB) and contracts for work (§§ 631 ff. BGB). In a service contract, the service provider undertakes to perform an activity without guaranteeing a specific result. Common examples include employment contracts or consulting agreements.
In contrast, a contract for work requires the contractor to deliver a specific result, such as completing a construction project or repairing a device. Both contract types include provisions for remuneration, termination, and liability in case of breaches of duty. Consumer protection also plays a critical role in service law, especially in contracts involving unilateral standard terms and conditions (AGB).

Tenancy Law

Tenancy law deals with contracts in which a property is leased for a specified period in exchange for rent. It is governed by §§ 535 ff. BGB. The landlord is obligated to provide the tenant with a usable property and maintain it during the rental period. In return, the tenant must pay rent and handle the property responsibly.
Tenancy law includes detailed regulations, particularly on termination protection for residential leases (§§ 573 ff. BGB), rent increases, and the allocation of operating costs. It primarily protects tenants from unfair disadvantages, such as invalid clauses in rental agreements or arbitrary terminations. At the same time, it ensures landlords' rights to timely rent payments and compensation for contract violations.

Work Contract Law

Work contract law governs agreements where the creation of a specific work is required. It is anchored in §§ 631 ff. BGB. Unlike a service contract, the focus of a work contract is on the successful completion of the agreed work. Examples include building a house, creating an artwork, or repairing a vehicle.
The contractor is obligated to produce the work properly, while the client must pay the agreed remuneration. If the work is defective, the client is entitled to supplementary performance (repair or replacement). If the defects are significant, the client can reduce the price or withdraw from the contract.
Work contract law also includes regulations on acceptance, remuneration, and the transfer of risk. A key feature is that the claim for payment generally arises only after the work is accepted. Additional rules apply to construction contracts or other complex projects, such as those found in construction contract law (§§ 650a ff. BGB).

These specific areas—sales law, service law, tenancy law, and work contract law—demonstrate the breadth and depth of contract law, illustrating how it legally regulates and safeguards various aspects of personal and economic life.