Stefanie Jung explores whether German law grants or should grant negotiators leeway to engage in certain misrepresentations in a business context. Drawing on legal history, legal dogmatics, comparative law, and economic and empirical arguments, she elaborates a nuanced solution for various types of deception.
In business negotiations, deception is a fairly common practice and is aimed at influencing the negotiation outcome. Lies are primarily made about aspects such as better alternative offers, deadlines, the availability of a product, or the company's internal guidelines. The literature on business negotiations regards many of these lies relating to matters other than the subject matter of the contract and the price as acceptable business practices. Yet a first glance at Section 123 (1), 1. Alt. BGB (avoidance due to fraudulent misrepresentation) implies that intentional, causal misrepresentations are considered unlawful without exception. However, a study carried out for this work demonstrates that, for instance, German judges do not demand legal consequences for some of these lies. Against this backdrop, Stefanie Jung explores whether German law grants or should grant negotiators leeway to engage in certain misrepresentations in a business context. Drawing on legal history, legal dogmatics, comparative law, and economic as well as empirical arguments, she elaborates a nuanced solution for various types of deception.