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Contract between principal and agent

The order is a contract or a request, where one contracting party (the contractor) obligates to the other contracting party (principal, customer) to perform a certain work (see. § 662 ff German Civil Code (BGB)).  If the order was submitted as a service, work or management agreement (see § 612, § 632 BGB), it will be remunerated. The customer is obliged to take the result of the work and pay for it.

When the contractor is obliged to provide services free of charge to the customer, the order is no longer a mutual but, rather, a bilateral contract. In this context, a service refers to any activity carried out in a third-party’s interest. The free of charge term means the offer does not receive a payment but it does not mean he receives expense compensate. The customer is even obliged to cover all costs of the offer (§ 670 BGB). The offer must yield interest, if he receive money from the customer or uses it for the execution of the order (§ 668 BGB).  The authorized person must not leave the third party to fulfill the order (cp. § 664 BGB). The offer can soft the customer instructions (cp. § 665 BGB) and inform the customer about the current business status and give him all project material after completing the offer (cp. § 667 BGB).

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