Formmängel und ihre Sanktionen

Section 125 of the BGB (German Civil Code) declares contracts that lack legally required formalities to be void. In this work, the author shows that voidness is neither required by the very nature of formal rules nor is it necessary in order to enforce such provisions. Voidness is described as relative in the sense that only the protected party may plead lack of formality. Referring to substantial compliance theories found in the Anglo-American legal systems, the author argues that minor non-compliances with formal requirements must not necessarily be sanctioned. Further exceptions are made on the grounds of estoppel.