BGH: Automatic extension of brokerage contracts permitted

A broker concluded a single brokerage contract with a client for six months to sell her condominium.

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BGH: Automatic extension of brokerage contracts permitted

A broker concluded a single brokerage contract with a client for six months to sell her condominium.

Read more …

Go back

BGH: Automatic extension of brokerage contracts permitted

The case: broker claims damages


A broker concluded a single brokerage contract with a client for six months to sell her condominium. This means that the client may not commission any other broker to sell during the contract period. After the minimum contract period, the defendant commissioned another broker who successfully sold their apartment. The broker appealed to the automatic contract extension, sued and claimed damages in the amount of the commission plus interest.


The verdict:

The extension is generally permitted
The Federal Court of Justice ruled that the automatic contract renewal is normally permitted and that brokers are entitled to compensation in such a case. In this special case, however, the broker goes away empty-handed. The reason for this is that the clause was not a direct part of the contract, but was contained in an annex entitled "Information for consumers". (BGH AZ I ZR 40/19)

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