German court rules on invalid contract clause in study placement brokerage
In a recent decision, the German Federal Court of Justice has declared a contract clause regarding the brokerage of study placements to be ineffective. The clause in question stipulated that the full commission was to be paid upon the university’s initial offer of a study place, rather than upon the successful placement of the student.
The case involved a brokerage firm that had contracted with a client to find a study place at a foreign university. The client had initially accepted the offer, but later withdrew from the agreement after the university in Mostar, Bosnia and Herzegovina, had offered the study place. The brokerage firm sued the client for the commission, but the lower courts had ruled in favor of the client, deeming the contract clause to be unfair and therefore invalid.
The Federal Court of Justice has now confirmed these decisions, rejecting the brokerage firm’s appeal. The court emphasized that the clause in question was an allgemeine Geschäftsbedingung, or general business term, subject to the control of § 307 of the German Civil Code. The court found that the obligation to pay the full commission upon the initial offer of a study place was incompatible with the fundamental principles of the brokerage law, which provide that the brokerage fee is only due upon the successful placement of the student.