When is a contract void?
February 8, 2023 | 40,00 EUR | answered by Konrad Höfer
Dear lawyer,
I am reaching out to you because I have significant uncertainties regarding a contract agreement. My name is Benjamin Keck, I am 34 years old, and I work as a freelance graphic designer. Recently, I made a verbal agreement with a potential client regarding the creation of a logo for his company. We agreed on all the details and I have already started working on the project.
However, it has come to light that the client is unwilling to pay the agreed compensation. He claims that the verbal agreement is not legally binding and therefore he is not obligated to pay me. I am concerned that I have done my work for nothing and do not have a legal recourse to claim my fee.
Therefore, my question is: Under what circumstances is a contract void and what options do I have to enforce my right to payment? Are there specific laws in contract law that I can refer to? I would appreciate your assessment and possible solutions to ensure my rights in this situation.
Thank you in advance for your assistance.
Sincerely,
Benjamin Keck
Dear Mr. Keck,
Thank you for your inquiry and trust in my expertise as a lawyer in the field of contract law. I am sorry to hear that you have found yourself in such an unpleasant situation, but I will do my best to assist you in resolving your case.
First and foremost, it is important to understand under what circumstances a contract may be void. A contract can be void for various reasons, including lack of legal capacity of a party, violation of legal prohibitions or immorality, as well as lack of formal requirements. In your case, if you have made an oral agreement, the question of voidness due to lack of formal requirements may be relevant.
According to § 126 of the German Civil Code (BGB), certain contracts, such as a contract for the creation of a logo, must be concluded in writing to be valid. An oral agreement may not be sufficient to establish a legally valid contract. However, there are exceptions to this formal requirement, such as when a contract is formed by implied conduct, that is, by the silent agreement of the parties.
In your case, it is important to assess whether the oral agreement was sufficiently clear and unambiguous to be considered a legally valid contract. If so, you may try to enforce your right to payment by sending a written demand for payment to the customer and, if necessary, initiating legal action.
There are certain laws in contract law that you can rely on to assert your right to payment. These include, for example, §§ 611 et seq. of the BGB, which regulate the obligation of the client to pay compensation. Furthermore, the principles of breach of contract law, such as the duty of good faith in performance, may also be relevant.
To enforce your right to payment, I recommend first contacting the customer and obtaining a written statement regarding their refusal to pay. If the customer still refuses to pay, you may consider seeking legal assistance to enforce your claims in court.
I hope this information is helpful to you and I am available for further questions. Please do not hesitate to contact me if you need further assistance.
Sincerely,
Konrad Höfer, Lawyer
