§ 181 of the German civil code prohibits self-dealing transactions by the representative. These are transactions that the representative enters into with himself. When you self-contract, the representative is on one side of the contract in its own name, on the other, in foreign name.
Example: V authorized S car to sell. S, which required just a car, sold the car the V is short-hand themselves.
In the longer representation the representative acts on both sides of the contract on behalf of another person.
Example: V authorized S car to sell. D authorizes S to buy him a used car. In order to save time and effort, includes S the name of the V a contract of sale with you in the name of the D.
The prohibition of self-dealing business, to prevent conflicts of Interest. Exceptionally, it is not, or if the principal has/have allowed the Represented the self-dealing transaction if the business consists of the performance of an obligation.
The wording of § 181 of the German civil code, case law affirmed the admissibility of the self-dealing transaction if it is to the Represented only a legal advantage.
Example: The parents (cf. § 1629 BGB) of the minor V give a plot of land. In the case of the Transfer of ownership of the property you are acting as a seller in its own name and at the same time as the acquirer in the name of the V. The Transfer of ownership of the property leads to no personal loads for V, so it is legally advantageous, and is not, therefore, contravene section 181 of the German civil code.
The Text comes from the UTB-book economy private law of Constanze Janda and Udo Pfeifer. 2., revised edition – ISBN 978-3-8252-3824-7.
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