According to § 433 of the German Civil Code (BGB), the seller is obligated to deliver to the buyer an item free from defects in quality and legal defects within the scope of a purchase agreement. An item is free from defects in quality if, at the time of the transfer of risk, it has the agreed-upon characteristics or, if no agreements have been made, if it is suitable for the assumed or ordinary use (§ 434 paragraph 1 BGB).

If there is a defect in a purchased item, the customer has a right to warranty against the seller. In general, the customer has the option to demand subsequent performance (Section 437 No. 1 of the German Civil Code), to withdraw from the purchase contract, or to reduce the purchase price (Section 437 No. 2 of the German Civil Code), and under certain conditions, to claim damages or reimbursement of futile expenses (Section 437 No. 3 of the German Civil Code). The German Civil Code (BGB) prioritizes subsequent performance, which means that the buyer usually has to set a reasonable deadline for subsequent performance to the seller before they can exercise the other statutory warranty rights under § 437 Nos. 2 and 3 BGB (§ 323 (1) BGB). In the context of subsequent performance, the buyer can choose between rectification of the defect (remedial action) or delivery of a defect-free item (replacement) (§ 439 (1) BGB).

Date: 01.10.2017 - Changes and errors excepted.