Geschäftsbesorgung

Geschäftsbesorgung is a legal concept found in civil law systems, particularly in Germany. It describes a contract where one party, the Geschäftsbesorger (agent or contractor), undertakes to perform a specific business or service for another party, the Auftraggeber (principal or client). This undertaking is typically for consideration, meaning the agent is paid for their services. The core of the Geschäftsbesorgung lies in the management or execution of business affairs on behalf of another. This can encompass a wide range of activities, from managing property to providing legal advice or carrying out financial transactions.

The legal framework for Geschäftsbesorgung is primarily found in the German Civil Code (Bürgerliches Gesetzbuch). It defines the rights and obligations of both the principal and the agent. The agent is generally obligated to act with the diligence of a prudent businessman, to inform the principal about the progress of the business, and to render an account upon completion. The principal, in turn, is obligated to compensate the agent for their services and to reimburse them for necessary expenses incurred during the performance of the contract. The concept is distinct from employment contracts, as the agent typically operates independently and is not subject to the principal's continuous direction and control. It is also different from a simple mandate (Auftrag) in that it often involves more complex business management rather than merely performing a specific task.