Bank guarantee case

The case concerned a series of claimants, including spouses and children, of a party which had mortgaged the family home, in order to secure a loan from a bank.

Admittedly, the legal order cannot envisage all situations where negotiating parity is more or less compromised.

For reasons of legal certainty a contract cannot be brought into question or be corrected with every disruption of negotiating parity.

However, in cases of typical types, where one party to a contract may be recognised as being structurally weaker, and if the consequences for the weaker contracting party are significantly imbalanced, the civil law order must react and make correction possible.

On the contrary, it must clarify whether the provision is the consequence of structurally unequal bargaining strength, and where appropriate make correction within the framework of the general principles of the civil law.This article about German law is a stub.