References without law book default to BGB.

Case - Cash Payment

Facts

K wants to buy a new PC and chooses a suitable model in V’s store. The PC costs EUR 999. They agree that V will give him the PC when K pays the purchase price. He pays immediately in cash. Two weeks later, V returns to K and demands EUR 999 from him. Can V claim EUR 999 from K?

Solution

Slides Solution

• Issue: Can V claim EUR 999 from K according to § 433 II BGB?
• Rule: V can claim the purchase price if he entered into a contract with K and K has not yet paid the agreed price (§ 433 II BGB).
• Application:
  • (1) Is there a valid contract?
    • V and K agreed that K will buy a specific PC from V for EUR 999.
    • Matching declarations of intent (DoI) containing essential elements (essentialia negotii):
      • Parties: V & K → (+)
      • Price: EUR 999 → (+)
      • Good: Specific PC → (+)
      • Intention to be legally bound: Present → (+)
    • Consequence: Sales contract is formed. → (+)
  • (2) Is the claim excluded or extinguished?
    • Problem: Can V still claim the purchase price, even if K has already paid EUR 999?
    • Under § 362 I BGB (Extinction by performance), an obligation is extinguished if the performance owed is rendered to the obligee.
    • K paid the purchase price immediately in cash. The delivery and transfer of ownership of the cash to V constitutes the performance owed.
    • K has fulfilled his obligation to pay the purchase price. → (+)
• Conclusion: K’s obligation is extinguished. V cannot claim EUR 999 from K.

Write-Up

Issue: Can V claim the purchase price of EUR 999 from K under § 433 II BGB?

I. Claim for payment of the purchase price under § 433 II BGB

Rule: Under § 433 II BGB, the seller can claim the purchase price from the buyer. This requires the formation of a valid sales contract through an offer and acceptance (§§ 145, 147 BGB). Under § 362 I BGB, an obligation is extinguished if the performance owed is rendered to the obligee.

Application:
1. Claim Incurred
For the claim to have arisen, the parties must have formed a valid sales contract. K went to V’s shop and they agreed on the sale of a specific PC for the price of EUR 999. By expressing mutual agreement on these terms, both parties made matching declarations of intent with the objective intention to be legally bound (Rechtsbindungswille). Thus, a valid sales contract was formed, and V’s claim for the purchase price of EUR 999 against K initially arose under § 433 II BGB.

2. Claim Extinguished
The claim must not have been subsequently extinguished. K paid the purchase price of EUR 999 in cash immediately upon purchase. K owed V the sum of EUR 999 under the purchase agreement. By handing over and transferring ownership of the physical cash (coins and bank notes) to V under § 929 sentence 1 BGB, K rendered the exact performance owed. Consequently, K’s contractual obligation to pay the purchase price was fully performed and therefore extinguished pursuant to § 362 I BGB.

II. Conclusion
Conclusion: Since K’s obligation to pay was extinguished by performance, V has no remaining claim against K for payment of EUR 999 under § 433 II BGB.