Meaning
General tort principles in the German Civil Code establish liability for intentional damage caused in a manner contrary to public morals. Within this framework, section 826 bgb functions as a broad safety net for cases that fall outside the specific definitions of property damage or physical injury. It applies to economic losses where the defendant acted with the knowledge that their conduct would harm another party.
Immorality Standard
Courts determine whether an action violates the sense of decency held by an average person in the relevant community. In a commercial context, section 826 bgb addresses deceptive practices that go beyond hard competition, such as the deliberate spreading of false information to ruin a competitor. The threshold is high, requiring more than a simple breach of contract or an error in judgement.
Intentional Damage
Liability under this provision requires the plaintiff to prove that the defendant intended to cause the loss or at least accepted it as a certainty. This subjective element distinguishes the claim from standard negligence where the failure to take care is sufficient. In cases involving defective products, the concealment of a known risk from the public can trigger this liability.
Remedy Range
Successful claimants are entitled to full compensation for the financial position they would have held if the harmful act had not occurred. This include lost profits and the costs of mitigating the damage. Because the provision is part of the general civil code, it remains a consistent factor in the risk assessment of any business operating in the German market.
