Last Updated on June 27, 2021 by LawEuro
German Civil Code (BGB) German law
Title 11
Promise of a reward
Section 657
Binding promise
Anyone offering by means of public announcement a reward for undertaking an act, including without limitation for producing an outcome, is obliged to pay the reward to the person who has undertaken the act, even if that person did not act with a view to the promise of a reward.
Section 658
Revocation
(1) The promise of a reward may be revoked until the act is undertaken. Revocation is only effective if it is announced in the same way as the promise of a reward was or if it occurs by means of a special announcement.
(2) Revocability may be waived in the promise of a reward; in cases of doubt, a waiver may be seen in the setting of a period of time for undertaking the act.
Section 659
Act undertaken more than once
(1) If an act for which a reward has been promised is undertaken more than once, then the reward is due to the person who undertook the act first.
(2) If the act has been undertaken simultaneously by more than one person, then each is entitled to an equal portion of the reward. Where the reward cannot be shared due to its quality, or if, according to the terms of the promise of a reward, only one person is to be given the reward, then the matter is decided by drawing lots.
Section 660
Collaboration by more than one person
(1) If more than one person has contributed to an outcome for which the reward is promised, then the person promising the reward must apportion the reward at his reasonably exercised discretion, taking into account the contribution of each one to the outcome. The apportionment is not mandatory if it is evidently inequitable; in such a case the matter is decided by court decision.
(2) If the apportionment by the person promising the reward is not recognised as binding by one of those concerned, then the person promising the reward is entitled to refuse fulfilment until those concerned have settled the dispute on their entitlement among themselves; each of them may demand that the reward is deposited for all of them.
(3) The provision of section 659 (2) sentence 2 applies.
Section 661
Prize competition
(1) The promise of a reward relating to a prize competition is only valid if a period of time is set for submission of entries in the announcement.
(2) The decision on whether an entry submitted within the period of time meets the requirements of the promise of a reward or which entry among more than one is to be given preference, is to be made by the person designated in the promise of a reward or, where such a person is lacking, by the person promising the reward. The decision is binding on the participants.
(3) In the case of entries of equal merit, the provisions of section 659 (2) are applicable to awarding the prize.
(4) The person promising the reward may only transfer ownership of the work if he has stipulated in the promise of a reward that the transfer is to occur.
Section 661a
Promises of prizes
An entrepreneur who sends promises of prizes or comparable announcements to consumers and creates the impression through the design of such mailings that the consumer has won a prize must give the consumer that prize.
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