New risks of recourse due to liability for defects under German Sales Law

Published by Hendrikje Herrmann

Abstract

On 01.01.2018, the German “Act on the Reform of Building Contract Law and on Liability for Defects under Sales Law” came into force. The new regulations lead to significant changes of liability within supply chains and the underlying sales contracts. Consequently, significant new risks of recourse for manufacturers, suppliers and sellers arise. Under the new rules, also in the B2B business costs for removal of defective goods and installation of the new goods have to be borne by the seller regardless of fault. In this JusLetter we set out the consequences of the new statutory provisions and how this might affect your business with German buyers.