WSB News 24 Jun. 2025

Technical article

What does ... actually mean? WSB about the term "total nullity"

Does the term sound to you like zero-commanix technical jargon? Not at all wrong. Because according to the German Civil Code, if a contract is void in a central point, it is considered completely invalid - but valid to zero!

The law states:
"If a part of a legal transaction is void, the entire legal transaction is void if it cannot be assumed that it would have been carried out without the void part."

Or translated:
§ A contract contains a void provision (e.g. something illegal).
§ Without this provision, the contract would not have been concluded at all.
§ Consequently, the entire contract is invalid from the outset!

One example:
You conclude an employment contract with a relative. You agree on an hourly wage of 5.00 euros and a vacation entitlement of 10 days per year.

The problem: the wage is below the statutory minimum wage and the vacation is below the statutory vacation entitlement.

The consequence: remuneration and vacation entitlement are essential components of the employment contract. As the agreements are unlawful, the entire contract is null and void.

👉 If you have any further problems with strange tax terminology and beyond, please do not hesitate to contact us:
www.wsb-berater.com/kontakt


#Complete nullity #BGB #Contract law #Employment contract #WSB




Contact
Nadja Neubig, Human Resources & Corporate Communications
WSB Wolf Beckerbauer Hummel & Partner Steuerberatungsgesellschaft mbB

Max-Jarecki-Str. 21 | 69115 Heidelberg
Phone: +49 6221 40509-10 | Fax: +49 6221 40509-30

Email: n.neubig@wsb-berater.de


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