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Knowledge & Tools · Legal terms

The law made clear. Term by term.

What lies behind the terms that come up again and again in contracts, wills, debt enforcement and proceedings. Briefly explained, with the legal basis and a note for practice.

A

Advance care directive

Adult protection law

With an advance care directive, you decide yourself who will act on your behalf if you lose capacity of judgement: in personal, financial and legal matters.

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B

Beneficial owner

Company law, transparency register

The natural person who ultimately controls a company, directly or indirectly, usually with at least 25 percent of the capital or votes, or in another way.

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C

Compulsory portion

Inheritance law

The part of an estate to which certain relatives are entitled even against the will of the deceased. Since 2023, descendants receive half of their statutory share, and parents no longer have a compulsory portion.

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Contract of succession

Inheritance law

A contract concerning one's own estate. It is publicly notarised, before two witnesses, and binds the contracting parties. As a rule, it can only be amended or cancelled jointly.

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Court holidays

Civil procedure

Periods during which statutory and court-ordered time limits in civil proceedings are suspended: around Easter, from 15 July to 15 August and from 18 December to 2 January.

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D

Debt enforcement holidays

Debt enforcement law

Periods during which no debt enforcement acts are carried out: seven days before and after Easter and Christmas, and from 15 to 31 July.

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E

Executor

Inheritance law

The person appointed in a will or contract of succession to carry out the last will: administering the estate, paying debts, distributing legacies and preparing the division.

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G

Gift

Law of obligations and inheritance law

A gratuitous transfer from one's own assets. A gift from hand to hand is valid without formalities, a promise to make a gift requires written form, and public notarisation in the case of real estate.

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N

Non-compete clause

Employment law

The written agreement not to compete with the former employer after the employment relationship ends. It applies only under strict conditions and must be reasonably limited.

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R

Reference interest rate

Tenancy law

The interest rate on which rent adjustments are based. The Federal Office for Housing publishes it quarterly on the basis of mortgage interest rates.

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Removal of objection

Debt enforcement law

The court procedure by which a creditor has the debtor's objection set aside so that debt enforcement can continue. Provisional or definitive, depending on the basis.

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S

Shareholders' agreement

Company law

A contract between shareholders on voting commitments, pre-emption rights or joint sales. It is effective only between the contracting parties, not vis-à-vis the company.

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This content does not replace individual legal advice.

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