A distance contract is a contract concluded between a business and a consumer using means of distance communication. Means of distance communication include letters, catalogs, telephone calls, faxes, emails, radio, and other media services. Distance contracts can be contracts for the delivery of inventory or the provision of a service. Services include financial services, i.e., banking services and services related to the granting of credit, insurance, retirement provision for individuals, financial investments, or payments.

In contrast to stationary trade, a special right of revocation and return applies to online trade. Consumers, but also traders, should therefore study their rights and obligations particularly carefully. Until the modernization of the law of obligations, the relevant provisions were contained in a separate law, the Distance Selling Act. However, since 2002, the legal provisions have been added to the German Civil Code (BGB).

Legal provisions for distance contracts

Legal provisions on distance contracts are laid down in the following sections of the BGB:

• 312b
• 312c
• 312d

Section 312b explains in detail what a distance contract is and to which types of contracts the section does not apply. Section 312c deals with the information to be provided to the consumer by the entrepreneur. In summary, it states that the entrepreneur must inform the consumer about the general terms and conditions via means of distance communication. For example, the terms and conditions must be enclosed separately with the invoice. Section 312d provides information on the right of withdrawal and return for distance contracts. For example, that instead of the right of withdrawal, the consumer may be granted a right of return for the delivery of inventory.

If a contract is concluded by means of distance communication, this means that the entrepreneur and the consumer are not physically present when the contract is initiated or concluded. Which party uses which means of distance communication can be decided flexibly. For example, the consumer can reply to an email from the entrepreneur by fax. Or the business and consumer first discuss the details by telephone and then the consumer purchases the inventory online. However, if a business uses the means of distance communication, such as the Internet or a catalog, only as an advertising platform and a contract is concluded in a brick-and-mortar store, then this is not a distance contract. This is also because the buyer and seller are face to face and the receipt or invoice is handed over in person at the time of purchase.

For more information, see E-commerce.

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