Case Law on VII ZR 10/24 New Decision on Crafts Compensation: Impacts of the Judgment VII ZR 10/24
On September 19, 2024, the Federal Court of Justice made a significant ruling regarding crafts compensation in the case with the file number VII ZR 10/24. This judgment is of substantial importance for many craft businesses as well as private builders, as it addresses fundamental aspects of contract design and payment claims.
The core issue of the proceedings was whether a craftsman has a claim to the remuneration of his services when there is no written agreement regarding the compensation. The Federal Court of Justice ruled that the right to remuneration remains even if the contractual services are not documented in detail. The court emphasized the significance of oral agreements and the judicial assessment of the services rendered based on fairness.
In the case, a construction company claimed that the work performed should be compensated, even though there was no formal agreement. The Federal Court of Justice determined that the actual circumstances of the individual case are crucial and underscored that identifying the services provided and the usual compensation in the industry play an important role. It was highlighted that while oral agreements may not have the same evidentiary value as written contracts, they are not inherently invalid.
This decision could have far-reaching effects on the crafts sector.Many specialized companies were unsure whether their contracts were legally secured without formal agreements. The Federal Court of Justice made it clear in its reasoning that it depends on various factors, such as the circumstances of the commissioning and the usual prices in the industry. The plaintiff was able to demonstrate the quality of his work as well as the market-standard remuneration, which was crucial for the success of his claim.
The ruling can have significant financial consequences for both builders and artisan businesses. It underscores the necessity to clearly document verbal agreements and to be aware of the industry-standard remuneration. This not only reduces the risk of disputes but also increases planning certainty for both parties.
In the future, it will be particularly important for artisan businesses to ensure that agreements made during initial discussions about contracts are recorded to avoid misunderstandings and legal conflicts. This ruling could be seen as a guiding precedent for many future disputes in the construction industry and thus contribute to clarity in the remuneration of artisan services.
Author: Anita Faake, Wednesday, October 30, 2024
