'Positive' Breach of Contract[252]
(i?) The Claim for Damages
Breach of contract is one of the problem areas of the German law of obligations.[253] [254] Here we find a body of rules that has been developed around a highly artificial concept of impossibility devised by Friedrich Mommsen, and inspired, largely, by the Roman rules applicable to obligations certant rem dare.™" As early as 1902 the commercial lawyer Hermann Staub discovered a 'huge gap' in the system of remedies provided in the Code.[255] While the Code, he argued, had clearly and satisfactorily dealt with the cases where a debtor fails to perform what he has promised under the contract (delay, impossibility of performance) there was no general provision covering cases of a deficient performance. A claim for damages based on 'positive malperformance' (positive Vertragsverletzung) was required to fill the gap. Over the years, Staub's theory has become firmly entrenched; 'positive malperformance' is generally recognized today as a fundamentally important— though uncodified—part of German contract law.[256] Interestingly, however, the first relevant case under the BGB was decided by the Imperial Supreme Court before Staub's study had appeared.’[257] [258] [259] A purchaser had suffered damages as a result of the delivery of damp rye. Without much ado, the Court proceeded to grant a claim for damages based on the following requirements: breach of contractual obligation, fault, damage, and causation. This claim was based on § 276 I 1 BGB:181 a somewhat unconvincing doctrinal peg in view of the fact that this rule is not intended to impose liability but merely to define the (normal) standard of a debtor's liability· The real reason for the Court to grant a claim was that it was eminently sensible to do so and that, moreover, the Court had always done so under the ins commune as well as under the other legal systems applicable in Germany before 1900.[260] It was as inconceivable for the Court as it was for Staub that there should be no general fault-based claim for deficient performance in twentieth-century German law. In countless decisions the Imperial Court continued to rely on § 276 I 1 BGB; only the Federal Supreme Court started to base the claim for damages on the doctrine of 'positive malperformance'.[261] [262] (b) The Right to Withdraw front the Contract There was, however, an additional twist to Staub's theory.[263] The claim for damages in cases of deficient performance was not new; Staub merely wanted to provide it with a proper doctrinal foundation under the Code. But he also argued that, under certain circumstances, the aggrieved party should have the right to withdraw from the contract.[264] This was new. Until the end of the nineteenth century, contract doctrine under the German ins commune had preserved the general rule of Roman law excluding any right of unilateral withdrawal from a contract.[265] The General German Commercial Code of 1861 had broken with this doctrine in cases of mora debitoris (delay on the part of the debtor).[266] The draftsmen of the BGB followed suit and transplanted this successful innovation from commercial into the world of general private law.[267] But it was only in cases of mora debitoris and supervening impossibility that the aggrieved party was granted a right to withdraw from the contract. Extension of this right to cases of deficient performance had certainly not been envisaged by the draftsmen of the Code;[268] this was the point where Staub's doctrine entailed a change in the law. In spite of its allegedly positivistic attitude, the Imperial Court immediately implemented that change, this time expressly referring to Staub's article and endorsing his concept of 'positive malperformance'.[269] Once again, therefore, we see, how little the development of the law was affected by the Code. The Court, on the one hand, continued to grant a claim for damages in cases of deficient performance in spite of the fact that this claim did not find a specific endorsement in the Code. On the other hand, it was prepared boldly to extend the range of sanctions available in these types of cases. The Court thus actively continued a line of development which had started in the commercial law of the latter half of the nineteenth century, and within which the BGB was hardly more than an episode. It is likely, moreover, that the judges of the II. Division of the Imperial Court,194 when they handed down the decision in RGZ 54, 98, were very much aware of the general provision of art. 1184 code civil ('La condition reso- lutoire est toujours sous-entendue dans les contrats synal- lagmatiques, pour le cas où l'uno des deux parties ne satisfera point à son engagement')195 which they had hitherto had to apply. Staub's theory was most welcome in this situation to prevent them from having to take what would have appeared to them as a retrogressive step.196 5.
More on the topic 'Positive' Breach of Contract[252]:
- Breach of contract in German law
- Breach of contract in English law
- Breach of Contract
- 1. Breach of contract in Roman law
- Breach of Contract
- I. BREACH OF CONTRACT IN GENERAL
- Breach of contract under the ins commune
- RESCISSION AS A REMEDY FOR BREACH OF CONTRACT
- IMPOSSIBILITY OF PERFORMANCE AND BREACH OF CONTRACT
- QUOD INTEREST, DAMAGES AND BREACH OF CONTRACT
- 1. Mora creditoris, mora debitoris and breach of contract
- Positive and negative conditions