The end of the written form problem in (commercial) tenancy law? - On the planned reform of § 550 BGB
Commercial leases in particular are usually concluded for a fixed period of time - eight, ten or even fifteen years are the rule rather than the exception. During this period, the rental agreement can only be terminated for good cause, i.e. extraordinary termination; ordinary termination, on the other hand, is excluded. Even with a longer term, there is no obligation to conclude the tenancy agreement and to agree significant addenda in a specific form - this can also be done by email or even verbally. According to the law, a contract concluded in this way is not invalid - on the contrary: according to Section 550 BGB, a tenancy agreement that has not been concluded in writing for longer than one year or that has been amended in key points is even valid for an indefinite period. However, this also means that the contract - contrary to the original intention of the parties - can be terminated with notice. Both landlords and tenants repeatedly use this circumstance to get out of unpleasant, unfavorable or unsuitable rental agreements without much effort. the Bundesrat wants to counter this practice and therefore presented the "Draft Act to Revise the Written Form Requirement in Tenancy Law" on 20.12.2019.
Real estate law, public & private construction law, public procurement law
