Freedom to enter into contracts

Freedom to enter into contracts is the freedom of a person, to decide on his own terms whether, where, when and with whom he wishes to enter into a contractually binding relation with another. This freedom is in practice limited by the law speaking of obligation to contract. An example of an obligation contract is for the supply of electricity, where the electricity provider must supply the customer. The freedom to chose who to contract with means one should actually be allowed to choose who to contract with. The Civil Law Notary is also obliged to contract with parties in relations to his Notarization activities.

Rescission of the contract

Rescission of the contract means that one may withdraw from the contract after he has entered into it. Rescission of the contract only exists with the mutual agreement of the parties or when it is explicitly stated in the contract.

Freedom of the contractual form

Freedom of the contractual form means that one must not use a set form for the contract and must not choose a form defined by statute. Freedom of contractual form is not though absolute with a few types of contract being specified by statute, for instance with property deals, where the form has the function of warning the parties and can subsequently serve as proof.

Freedom of the content

Under freedom of content one can determine the content of the contract as he wishes, allowing the creation of new types of contract. Freedom of the content may be limited by certain obligations under German substantive law.