German Legal Terms I-L
I
Immission — Nuisance or emission, the discharge of substances or effects (noise, odours, fumes, vibrations) onto neighbouring property, governed by the Federal Immission Control Act (BImSchG) and sections 906–907 BGB. The property owner must tolerate immissions that do not substantially impair the use of the property or that are customary in the locality and cannot be avoided by economically reasonable measures. Compensation is available for intolerable immissions.
Inhaber — Holder or bearer, particularly of a right, instrument, or commercial operation. Inhaberpapiere (bearer instruments) are transferred by delivery alone, while Orderpapiere require endorsement. The term distinguishes the factual holder from the legal owner. In business law, the Inhaber of a sole proprietorship bears unlimited personal liability.
Initiativrecht — Right of initiative, the power to propose legislation or bring matters before a decision-making body. In German constitutional law, the Federal Government, the Bundestag, and the Bundesrat each possess the right to initiate federal legislation under Article 76 GG. In corporate law, shareholders holding a specified percentage of share capital may demand that items be placed on the agenda of the shareholder meeting.
Insolvenz — Insolvency, the financial condition of a debtor unable to pay debts as they fall due (illiquidity, Zahlungsunfähigkeit) or whose liabilities exceed assets (over-indebtedness, Überschuldung). Insolvency triggers the commencement of insolvency proceedings under the Insolvenzordnung. The managing directors of a GmbH are required to file for insolvency without culpable delay, and no later than three weeks after the onset of insolvency.
Insolvenzordnung — The Insolvency Code (InsO), enacted in 1994 and effective 1999, replacing the Bankruptcy Act (Konkursordnung) and the Composition Act (Vergleichsordnung). The InsO governs collective proceedings for the satisfaction of creditors through administration and distribution of the debtor’s assets. It introduced consumer insolvency proceedings and the possibility of debt discharge (Restschuldbefreiung) for natural persons after six years of good conduct.
Instanz — Instance or level of court. German civil and criminal procedure typically provides three instances: first instance (erste Instanz), appeal on fact and law (Berufung), and appeal on law only (Revision). The instance system ensures that factual errors are corrected by the second instance while the third instance concentrates on ensuring uniform development of the law.
Irrtum — Mistake, a ground for avoidance of a legal transaction under sections 119–122 BGB. German law distinguishes between Inhaltsirrtum (mistake about the content of a declaration), Erklärungsirrtum (mistake in expression), and Eigenschaftsirrtum (mistake about essential characteristics of a person or thing). A party entitled to avoid on grounds of mistake must pay damages to the other party for reliance losses, subject to the limit of the expectation interest.
J
Juristische Person — Legal person, an entity with independent legal personality distinct from its members or founders. Legal persons under German law include private-law corporations (AG, GmbH, e.V.), public-law corporations (municipalities, professional chambers), foundations (Stiftungen), and certain other entities. Legal persons have capacity to hold rights and be subject to obligations, may own property, enter contracts, sue and be sued, and are liable for their obligations to the extent of their assets.
K
Kausalität — Causation, the connection between an act or omission and the resulting harm. German law applies a two-stage test: conditio sine qua non (but-for causation, also known as the equivalence theory or Äquivalenztheorie) establishes factual causation, while Adäquanztheorie (adequate causation) limits liability to consequences that are generally foreseeable. The Schutzzwecklehre (protective purpose doctrine) further restricts liability to harm falling within the scope of the rule that has been violated.
Kautionsrecht — Suretyship law, governed by sections 765–778 BGB. A surety (Bürge) undertakes to answer for the obligations of a principal debtor. The surety’s obligation is accessory: it depends on the existence and extent of the principal obligation. The surety who pays the creditor acquires the creditor’s claim by subrogation. Consumer sureties receive special protection under the BGB, requiring a written form and limiting liability where the surety is economically overburdened.
Klage — Lawsuit or legal action. The Klageschrift (statement of claim) initiates civil proceedings and must identify the parties, specify the subject matter, state the relief sought, and set out the factual basis of the claim. The action becomes pending (rechtshängig) upon service. The Klageerwiderung is the statement of defence. German procedure distinguishes between Leistungsklage (action for performance), Feststellungsklage (action for declaratory judgment), and Gestaltungsklage (action for constitutive judgment altering legal relations).
Kläger — Claimant or plaintiff, the party who brings a legal action. The Kläger bears the burden of proof (Beweislast) for the facts supporting the claim and must specify the relief sought. In criminal proceedings the equivalent term is Ankläger (prosecutor), while the victim may participate as a private accessory prosecutor (Nebenkläger) in serious offences.
Körperschaftsteuer — Corporation tax, governed by the Corporation Tax Act (KStG), imposed on the income of legal persons including corporations, associations, and foundations. The standard rate is 15 per cent, plus the solidarity surcharge and trade tax. The corporate income tax system was reformed in 2008 to reduce the rate and broaden the tax base.
Kollektivarbeitsrecht — Collective labour law, the branch of labour law governing collective bargaining between trade unions and employer associations, the conclusion and effect of collective agreements (Tarifverträge), industrial action (strikes and lockouts), and worker participation through works councils (Betriebsrat) and the supervisory board (Aufsichtsrat). The right to form unions and bargain collectively is protected by Article 9(3) GG.
Kommanditgesellschaft — Limited partnership (KG), a commercial partnership composed of at least one general partner (Komplementär) with unlimited personal liability and at least one limited partner (Kommanditist) whose liability is limited to a fixed capital contribution. The KG is governed by the Commercial Code (HGB). A special form, the GmbH & Co. KG, uses a limited liability company as the sole general partner, achieving limited liability for all participants.
Körperverletzung — Assault or bodily harm, a criminal offence under sections 223–231 StGB. Simple bodily harm (einfache Körperverletzung) is punishable by imprisonment up to five years or a fine. Dangerous bodily harm (gefährliche Körperverletzung, section 224 StGB) carries increased penalties where the harm is inflicted by a weapon, by dangerous means, or as part of a group assault. Grievous bodily harm (schwere Körperverletzung, section 226 StGB) covers cases where the victim suffers permanent impairment.
Kostenerstattung — Costs reimbursement, the obligation of the losing party in litigation to reimburse the successful party’s court costs and legal fees. Under the Code of Civil Procedure (ZPO), costs follow the event: the unsuccessful party bears the costs of the proceedings. The amount recoverable is determined by the Lawyers’ Remuneration Act (RVG) and is calculated by reference to the value in dispute (Streitwert).
Kündigung — Termination or notice of termination, the unilateral act by which a contractual relationship is brought to an end. German law distinguishes between ordinary termination (ordentliche Kündigung) with statutory notice periods and extraordinary termination for cause (außerordentliche Kündigung). Employment termination is subject to the Protection Against Unfair Dismissal Act (KSchG), which requires social justification based on personal, behavioural, or operational grounds in businesses with more than ten employees.
L
Landesrecht — State law, the law of the German Länder (states) as distinct from federal law (Bundesrecht). The Länder exercise legislative power in areas not reserved to the federation, including education, policing, local government, and culture. State law takes precedence over federal law only within the limits of the constitutional division of competences. State laws are published in the respective state law gazettes.
Leistung — Performance, the act of rendering what is owed under an obligation. The concept is fundamental to the law of obligations: every obligation entitles the creditor to demand performance from the debtor. Leistung may consist of a positive act (giving, doing) or a negative obligation (refraining, tolerating). The place of performance (Leistungsort) and time of performance (Leistungszeit) are determined by the parties’ agreement or by supplementary construction of the contract.
Leistungsfähigkeit — Ability to pay, the economic capacity of a person to meet financial obligations. In tax law, the principle of taxation according to ability to pay (Besteuerung nach der Leistungsfähigkeit) is a constitutional requirement derived from Article 3(1) GG (equality), requiring that the tax burden be distributed according to taxpayers’ economic capacity. In family law, Leistungsfähigkeit determines the amount of child support and spousal maintenance obligations.
Lizenzvertrag — Licence agreement, a contract by which the owner of an intellectual property right grants another person the right to use that right for a specified purpose, territory, and duration. Licence agreements are governed by the general contract law of the BGB and the specific provisions of intellectual property statutes. An exclusive licence (ausschließliche Lizenz) excludes the licensor and all others from using the right, while a non-exclusive licence (einfache Lizenz) permits the licensor to grant further licences.
Löschung — Cancellation or removal, particularly the deletion of an entry from a public register. In company law, Löschung refers to the removal of a company from the Commercial Register (Handelsregister), which may occur upon dissolution, merger, or judicial order. In property law, the Löschung of a mortgage or land charge from the Land Register (Grundbuch) extinguishes the encumbrance. In data protection, Löschung means the erasure of personal data.
Lösung — Resolution or avoidance, the termination of a contractual relationship. The term includes Rücktritt (withdrawal from a contract), Anfechtung (avoidance for mistake or fraud), and Kündigung (termination by notice). The Lösung vom Vertrag may have retrospective effect (ex tunc) in cases of avoidance or prospective effect (ex nunc) in cases of termination.
Lugano-Übereinkommen — The Lugano Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (2007), concluded between the EU and Denmark, Iceland, Norway, and Switzerland. The Convention mirrors the Brussels I Regulation (1215/2012), extending its jurisdictional rules and the free movement of judgments to the EFTA States. The CJEU and the EFTA Court interpret the Convention uniformly.