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In service contracts under German law, a reduction in remuneration due to poor performance is rendered impossible. This is detrimental to exchange justice. Thus, the contractual equivalent interest is not sufficiently protected by employment contracts. Claims for damages only partially close this gap, as any damage suffered does not fully reflect the impaired equivalent interest of the client. Opportunistic parties obligated to render services are thereby given the opportunity to maximise their profits through poor performance. It is correct though that the client must not pay in full for poor performance. From a comparative perspective, this work highlights various ways of enabling a reduction to the remuneration according to current legislation.
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In service contracts under German law, a reduction in remuneration due to poor performance is rendered impossible. This is detrimental to exchange justice. Thus, the contractual equivalent interest is not sufficiently protected by employment contracts. Claims for damages only partially close this gap, as any damage suffered does not fully reflect the impaired equivalent interest of the client. Opportunistic parties obligated to render services are thereby given the opportunity to maximise their profits through poor performance. It is correct though that the client must not pay in full for poor performance. From a comparative perspective, this work highlights various ways of enabling a reduction to the remuneration according to current legislation.