[4] The fundamentals of the government's organisation, as well as the method of its election and appointment, along with the procedure for its dismissal, are set down in the sixth section (articles 62 to 69) of the German Basic Law (Grundgesetz).

[5] In addition, the word "cabinet" is commonly used to distinguish between previous and current Federal Governments.

However, the Bundestag is free to disregard the President's proposal (which has, as of 2023,[update] never happened), in which case the parliament may within 14 days hold further ballots and try to elect another individual, which the parties in the Bundestag can now propose themselves, to the post with the same so called Chancellor-majority, whom the President is then obliged to appoint.

If not, the President is free to either appoint the individual, who received a plurality of votes on this last ballot, as Chancellor or to dissolve the Bundestag and call a snap election within 60 days.

Following their election in the Bundestag, the Chancellor-elect will visit Bellevue Palace, the residence of the President, to receive a certificate of appointment.

If the Chancellor loses a simple confidence motion (without the election of a new Chancellor by the Bundestag), this does not force them out of office, but allows the Chancellor, if they wish to do so, to ask the President of Germany for the dissolution of the Bundestag, triggering a snap election within 60 days (this happened in 1972, 1983, and 2005), or to ask the President to declare a legislative state of emergency, which allows the government to use a simplified legislative procedure, in which bills proposed by the government only need the consent of the Bundesrat (as yet, this has never been applied).

According to the principle of departmentalization (Ressortprinzip), the government ministers are free to carry out their duties independently within the boundaries set by the Chancellor's political directives.

A Chancellor can also lead a department; this is not usual, but it has occurred on three occasions with Konrad Adenauer and Willy Brandt also serving as Minister of Foreign Affairs, while Helmut Schmidt held the post of Minister of Defence.

If two ministers disagree on a particular point, the government resolves the conflict by a majority vote (Kollegialprinzip or principle of deference) or the Chancellor decides the case themselves.

According to article 26 of the Basic Law weapons intended for warfare may only be manufactured, transported and placed on the market with the approval of the Federal Government in order to secure international peace.