Horse bought in Germany: which law applies?
A German seller, a Dutch buyer and a horse that turns out not to be what was agreed. Which law applies, and where can you bring proceedings?
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For Dutch riders and dealers, Germany is an important market for sport and breeding horses. If something goes wrong after the sale, the first question is often not whether the buyer is right, but which law applies and which court has jurisdiction. Those questions determine the time limits, the burden of proof and the cost of proceedings.
Did you choose a governing law?
If the purchase agreement states which law applies, that law will in principle govern. Many horses, however, are sold without a written contract, or under the seller's standard contract choosing German law. Consumers enjoy an important protection here: a choice of law may not deprive a consumer of the protection of the mandatory rules of the country where he lives, if the professional seller directs its activities at that country.
No choice of law
In the absence of a choice of law, the European Rome I Regulation in principle designates, for the sale of goods, the law of the country where the seller has his habitual residence. With a German seller, that usually means German law. For consumers buying from a professional seller who targets the Netherlands, Dutch law may apply. Between businesses, the Vienna Sales Convention (CISG) may also apply, unless the parties have excluded it.
What does German law mean for the buyer?
Under German law too, the horse must be free from defects at the time of delivery, and in the event of a defect the buyer is entitled to repair, a price reduction, termination or damages. In consumer sales, as in the Netherlands, there is a statutory presumption that a defect which becomes apparent shortly after delivery was already present. For live animals, that period is six months. Between traders, a strict duty to give notice applies: defects must be reported without delay. The limitation periods also differ from the Dutch ones.
Which court has jurisdiction?
Within the EU, the Brussels I bis Regulation determines which court has jurisdiction. In principle, the seller can be sued in the country where he is domiciled. For the sale of goods, the court of the place of delivery may also have jurisdiction. Consumers can, subject to conditions, bring proceedings in their own country. A judgment given in one Member State can be enforced in another.
Practical tips
When buying in Germany, put your agreements in writing on the intended use, the vetting, the governing law and the competent court. Preferably have the horse vetted by a vet of your own choosing. And report a defect in writing straight away, because the time limits can be short.
Because our firm includes both Dutch lawyers (advocaten) and German Rechtsanwälte, we handle such cases in both countries from a single file.
This article contains general information and does not constitute legal advice. Legislation and case law may change, and the outcome always depends on the circumstances of your situation. For advice on your matter, please get in touch with us.
