Author: Vajk Varai-Jeges

Franchise Law and Standard Terms and Conditions

Franchisors generally use uniform franchise agreements for the purposes of maintaining a consistent distribution system and ensuring equal treatment of franchisees. These agreements therefore constitute standard terms and conditions within the meaning of section 305(1) sentence 1 of the German Civil Code (BGB). To the extent that they are not individually negotiated by the parties, […]

Execution and Certification of Documents under Hungarian Law from Germany

Unlike in most German federal states, lawyers in Hungary generally perform extensive functions comparable to those of notaries. In the course of doing business in Hungary, you will therefore sooner or later require either a document countersigned by a Hungarian lawyer (ügyvédi ellenjegyzés) or a notarised public instrument (közokirat). The good news is that you […]

A Real Solution for Foreign-Currency Loan Borrowers Instead of “Walking Away”: Foreign Personal Insolvency

The first step in escaping the Hungarian debt trap is to move outside Hungarian jurisdiction. According to an article published today on Index.hu, György Schadl, President of the Hungarian Chamber of Judicial Officers, stated to Magyar Idők that the introduction of the so-called “walk-away” mechanism, already used overseas, could solve the problems of many foreign-currency […]

Landowners in Hungary who are parties to “pocket contracts” face up to five years’ imprisonment and expropriation. Is there a solution?

Until the end of April 2014, EU nationals were, as a rule, also prohibited from acquiring arable land in Hungary, owing to a temporary derogation under EU law. For this reason, foreign purchasers — most often from Austria — frequently entered into so-called “pocket contracts” with Hungarian sellers. In most cases, the parties signed an […]

Personal Liability of Managing Directors in the Insolvency of a German GmbH — Also Applies to German AGs

In the insolvency of a German customer, a supplier and creditor is always faced with the problem that, in the customer’s insolvency proceedings, the supplier will often have to accept a reduction of its claim that varies from case to case and will usually have to be satisfied with an insolvency quota. The supplier’s shortfall […]

Budapest Court of Appeal: the liability of executive officers is not unlimited either

In a precedent-setting case before the Hungarian courts, the lawyers of our firm successfully represented the executive officers of a Hungarian cooperative in a damages action brought by members of the same legal entity. The Budapest Court of Appeal fully agreed with our firm’s legal position, according to which the members / shareholders / creditors […]

Specific Features of Civil Proceedings in Commercial Matters Involving a Foreign Party, 10/2017

The seminar presentation by NZP lawyer Nagy, held as part of the continuing legal education programme of the Munich Bar Association, is aimed at certified specialists in international business law as well as in commercial and corporate law, and at in-house counsel. It addresses the practically relevant specific features of private international law and international […]

Discounted Acquisition of Shares from the Employer as Employment Income

If an employee is granted the discounted acquisition of shares from the employer or from a third party in return for their work, this constitutes income from employment under Section 19(1) sentence 1 no. 1 in conjunction with Section 8(1) of the German Income Tax Act (EStG), to the extent that the employer sells the […]

The Chair of the Supervisory Board in Times of Modern Corporate Governance

As the number of legal obligations continues to grow and lawmakers and courts further tighten management liability, the work of supervisory boards is increasingly coming into focus. A substantially higher requirements profile and significantly increased liability risks particularly affect chairs of supervisory boards and supervisory board members with special areas of responsibility. I. Introduction German […]

Compensation Claim of the Authorised Dealer

A compensation claim by an authorised dealer by analogous application of Section 89b of the German Commercial Code is, at least, excluded where the manufacturer is contractually obliged, upon termination of the agreement, to block the customer data provided by the dealer, cease using it and delete it at the dealer’s request. The claimant, a […]