Bank guarantee case
The Bank guarantee case or Bürge BVerfGE is a German contract law case, concerning the interpretation of private law, and particularly the law of contract, in a way that is compatible with basic human rights principles. It was held that the power of freedom of contract must be interpreted in a way that protects people's genuine autonomy, in those situations where there is a structural inequality of bargaining power.Facts
The case concerned a series of claimants, including spouses and children, of a party which had mortgaged the family home, in order to secure a loan from a bank. The banks had required that, in return for the loans, the family would guarantee the debts. The validity of these contracts were challenged.Judgment
