In addition, in the wake of the COVID 19 pandemic, the German legislature has improved consumer protection for those affected by the pandemic. With the 27th The COVID-19 pandemic bill, passed on March 27, 2020, introduced a borrower`s right under a consumer credit contract (before March 15, 2020), to defer interest and/or principal payments for up to three months (April-June 2020) if payments cannot reasonably be expected due to an exceptional financial situation related to COVID-19. In addition, borrowers and lenders are working to reach a bilateral agreement on possible credit restructuring and, if they do not, the loan will be extended by three months. As long as such a deferral applies, the lender is not allowed to terminate the consumer loan due to the deterioration of the borrower`s financial situation or the value of the guarantee. The above safeguards do not apply if they cause undue hardship for the lender. There are additional safeguards under COVID-19 legislation, such as a moratorium on payments. B in other essential consumer contracts with permanent obligations and a temporary suspension in the event of termination of a lease (retail or commercial) when the taker is unable to pay rent for the period from April to June 2020 due to financial difficulties related to COVID-19. The scope of COVID 19 measures could be expanded by government decisions. In the absence of agreement and if this cannot be determined by the interpretation of the contract, the legal consequences for the contract are governed by the provisions of impossibility (s. 275, 326 BGB) and the termination of the commercial base (Art. 313 BGB).
For example, the obligation to benefit may be completely strangled because of the impossibility or the parties may have a right of withdrawal. The English and American legal concepts of trusts are very different from the fiduciary instruments available under German law. The Bundesgerichtshof (Bundesgerichtshof – BGH) decided in a case that trusts (foreign law) relating to German law might not be compatible with German law. A simple trust contract would also not be sufficient to separate the assets from the seller`s insolvency mass and would probably not be recognized by the German insolvency courts in the event of the seller`s bankruptcy. However, under trust law, it is not inevuitable for German courts to recognize trusts on assets that are not subject to German law, in order to separate the assets from the seller`s insolvency mass. In addition, at the opening of the (definitive) insolvency proceedings, the purchaser can only withdraw the claims if the transaction is not rectified as a secured loan transaction. In the event of a re-characterization, the assignment of the receivables could be considered a security transfer (guaranteed loan). In such a case, the purchaser would have no right of segregation (right of withdrawal), but only a right to preferential treatment (right to severity), in which case the judicial administrator would have the right to recover the claims and deduct a certain discount from the redemption (see question 4.9 above and question 6.2 below). The German workers` right of invention provides for the obligation for the worker to immediately declare to the employer a created invention.