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There are indeed advantages of German contract law but there are also serious risks. The cost of litigation governed by the (Gerichtskostengesetz) and the (Rechtsanwaltsvergütungsgesetz), covering both court fees and lawyers remuneration respectively can be very high in Germany and any dispute heard under German contracts will be in German courts, with German lawyers speaking German. For those who do not speak German there will then be the cost of translation. Complex commercial cases can be very costly indeed. Legal insurance (Rechtsschutzversicherung) covering the costs of litigation is not normally available for commercial contracts.

Whether or not there are benefits or disadvantages in contracts is only ever tested in litigation and most parties to a contract will elect to have the terms under their own domestic law should such disputes happen.

There will be times when German or French law might be considered but that is usually where there is a German or French element to it. It seems highly unlikely that those wishing to enter domestic contractual arrangements will wish to complicate them more than they already are and drive up both contractual drafting costs by risking litigation in foreign jurisdictions..

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