Glossary entry

German term or phrase:

dem wirtschaftlichen Erfolg am nächsten kommt

English translation:

the economic effect of which approaches most closely

Added to glossary by Sebastian Witte
Mar 25, 2022 18:49
2 yrs ago
42 viewers *
German term

wirtschaftlicher Erfolg

German to English Law/Patents Law: Contract(s)
This is from a certain business set-up (you know, of the manufacturer-dealer type) that those guys are putting in place.
So there is this specific, yet pretty common version of that boilerplate clause and it reads " durch eine solche zu ersetzen, die dem wirtschaftlichen Erfolg am nächsten kommt.":

https://www.juraforum.de/lexikon/salvatorische-klausel

EN: The parties undertake, in such a case, to replace the invalid provision by one ***that comes closest to the economic success of the originally intended legal design***.
OK? In any case, I understand that "that comes closest to the economic success" on its own will not quite cut it.



DE:
Für diesen Vertrag gilt das Recht der Bundesrepublik Deutschland unter Ausschluss des UN Kaufrechtes (CISG).
Dies gilt auch für alle Einzelkaufhandlungen und -verträge.
Gilt der X rechtlich als Kaufmann, so gilt als Gerichtsstand der Geschäftssitz von Z für alle Streitigkeiten aus oder im Zusammenhang mit diesem Vertrag bzw. den Einzelkaufverträgen.
Änderungen und Ergänzungen bedürfen grundsätzlich der Schriftform zur Erlangung der Gültigkeit.
Sollte eine Bestimmung des Vertrages unwirksam sein oder werden, so wird dadurch die Wirksamkeit der übrigen Bestimmungen nicht berührt.
Die Parteien verpflichten sich in einem derartigen Falle die unwirksame Bestimmung durch eine solche zu ersetzen, die dem ***wirtschaftlichen Erfolg*** am nächsten kommt.

Best regards,
Change log

Mar 26, 2022 22:16: Sebastian Witte changed "Edited KOG entry" from "<a href="/profile/60654">Sebastian Witte's</a> old entry - "die unwirksame Bestimmung durch eine solche zu ersetzen, die dem *wirtschaftlichen Erfolg am nächsten kommt"" to ""to replace the invalid provision by one the economic effect of which comes as close as possible to that of the invalid provision""

Mar 27, 2022 15:09: Sebastian Witte changed "Edited KOG entry" from "<a href="/profile/60654">Sebastian Witte's</a> old entry - "die unwirksame Bestimmung durch eine solche zu ersetzen, die dem wirtschaftlichen Erfolg am nächsten kommt"" to ""to replace the invalid provision by one the economic effect of which comes as close as possible to that of the invalid provision""

Mar 27, 2022 15:09: Sebastian Witte changed "Edited KOG entry" from "<a href="/profile/60654">Sebastian Witte's</a> old entry - "dem wirtschaftlichen Erfolg am nächsten kommt"" to ""the economic effect of which approaches""

Proposed translations

+3
31 mins
Selected

...the economic effect of which...

See (c) as a fairly standard English wording

Document-Id: 938750, Please cite as: "https://www.trans-lex.org/938750"
Principle
No. IV.7.5 – Severability of contract provisions

(a) Unless otherwise agreed by the parties or prohibited by law, each of the provisions of a contract is severable and distinct from the others.

(b) If at any time during the existence of the contract one of its provisions, which is severable and distinct from the others pursuant to Subsection (a), is determined to be or to have become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of the contract shall not in any way be affected or impaired.

(c) The parties shall negotiate in good faith pursuant to Principle IV.6.7 to replace such invalid, illegal or unenforceable provision with a valid, legal and enforceable provision the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provision.

https://www.trans-lex.org/938750/_/severability-of-contract-...
Peer comment(s):

agree Donatello Wilhelm
58 mins
thanks
agree Johanna Timm, PhD
1 hr
thanks
agree David Hollywood : spot on :)
6 hrs
thanks!
neutral Ted Wozniak : Not an agree only because the usual English phrase is "economic intent" as Johanna illustrates below.
16 hrs
If you look at the last two of her examples they say "intent and effect"; intent on its own is not enough, it's the effect of the substitute clause which is crucial here
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4 KudoZ points awarded for this answer.
2 hrs

tenor

Nothing to do with the 'Three Tenors', as in nessun dorma.

In the words of a German Rechtsanwalt taking a German / English contract workshop in Berlin a few years ago, 'wirtschaftlich' as a contract closer is more like practical effect than economic or commercial.

Note that the other meaning of tenor equates with Laufzeit / term e.g. enforce payment of a bill of exchange according to its tenor.

> die dem ***wirtschaftlichen Erfolg*** am nächsten kommt : that or which comes closes to the tenor thereof (of the ineffective / nugatory provision):

'Upon receipt of an affidavit of an officer of the Bank as to the loss, theft, destruction or mutilation of this Agreement or any Related Document which is not of public record and, in the case of any such mutilation, upon surrender and cancellation of such document, the Borrower will issue, in lieu thereof, a replacement document of like *tenor*.'

--------------------------------------------------
Note added at 2 hrs (2022-03-25 21:16:26 GMT)
--------------------------------------------------

that or which comes *closest* to the tenor thereof ..
Example sentence:

IATE: fr économie du contrat COM en economics of the contract > structure; tenor (of a *provision*), FHS Bridge

must concern only the interpretation or validity of a provision of EU law, ... (b) the tenor of any national provisions applicable in the case

Peer comment(s):

neutral AllegroTrans : This is one form of drafting for a non-severance clause but it isn't what the asker's German text says
1 hr
Well, it depends whether future generations are members of the literal, narrowly economic or 'fuzzy-match' school of T&I. Though 'tenor' or 'practical result' went out in my translations with impunity for 4 decades, my CL is deliberately relegated.
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+1
1 day 17 hrs

business effect

My preferred version. Or 'business intent'. I prefer to avoid 'economic' as it reminds me of a narrower definition of 'economics'.
The asker also wonders about "of the originally intended legal design" - I don't really like 'design' here and would rephrase 'approaches most closely the originally intended business effect' or something along those lines.
I tend to write 'approaches most closely' rather than 'comes as close as possible to' - I can't see a problem here.
Example sentence:

The parties agree in such a case to replace the invalid/ineffective provision by one which approaches most closely the busiiness effect of the original.

Peer comment(s):

agree Adrian MM. : and v. close to the English contract term of art of giving a contract 'business efficacy' : https://askinglot.com/what-is-the-business-efficacy-test
27 mins
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Reference comments

1 hr
Reference:

a few more examplaes

41. SEVERABILITY
Should any provision of this Order or application thereof be deemed invalid, illegal, unenforceable, then that provision shall be deemed severed from this Order and the remainder of this Order will remain valid, enforceable and in full force and effect. The Company and the Seller shall negotiate in good faith in order to agree the terms of a mutually acceptable and satisfactory provision of like economic intent and effect.
https://geospectrum.ca/standard-terms-conditions-of-purchase...

Severability. Should any part, term or provision of ... clause or condition of which the economic intent comes as close as possible to the economic intent.
https://advancing-diagnostics.eu/wp-content/uploads/2020/01/...

Severability. If any provision of this Purchase Order or ...a provision of like economic intent and effect
https://www.raytheon.com/suppliers/rtnwcm/groups/public/docu...

..to substitute a provision of similar economic intent and effect.
https://bog3.sites.olt.ubc.ca/files/2021/02/4_2021.02_-UBC-C...
Peer comments on this reference comment:

agree AllegroTrans : It seems the word "economic" is de rigueur
1 hr
agree Björn Vrooman : Agree w Ted. Oft-used alternative: "wirtschaftliche Zielsetzung." Hope Sebastian is aware of the dangers of such a clause in EN and DE especially: https://www.pillsburylaw.com/images/content/4/4/v2/4483/Arti...
17 hrs
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