Bye-bye written-form-curing-clause?

German High Court Bundesgerichtshof (BGH) has dismissed so-called written-form-curing-clauses. With this decision BGH ruled on a long-time controversial issue. Common practice intended to hinder early termination of long term leases by deploying curing clauses. Curing clauses are incompatible with section 550 German Civil Code which is mandatory and, therefore, always void. Seen individually, these clauses  cannot hinder a contracting party to terminate a lease on the grounds of a written form issue, BGH held. However, in the subject matter (BGH , decision  dated 27. September 017 , XII ZR 114/16)  the termination was held invalid. A party who terminates an inconvenient lease on the grounds of a subsequent agreement which does not comply with statutory form requirements is in breach of good faith, if  such agreement was only in favor for the terminating party, BGH ruled. As an outlook, it is probably worth having a closer look on the grounds for termination. On the other hand: Does this really give the axe to curing clauses? Visit this website again to read more  soon.

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Dr. Stefan Kucera
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