Verfügungsrecht

Verfügungsrecht is a term used in German law to denote the legal capacity to make dispositive acts over an asset or a right. A dispositive act (Verfügung) is an act that changes the legal relationship to the thing, such as transferring ownership, creating or removing encumbrances, or terminating rights. The Verfügungsrecht thus describes who may perform such acts and under what conditions.

The scope of Verfügungsrecht depends on the legal relationship to the asset. It generally rests with the owner or with someone who has been granted the authority to dispose of the asset, for example through a power of attorney, a trustee arrangement, or corporate authorization. Restrictions may arise from law (for instance, guardianship or insolvency regimes), from contract (such as limitations in a mandate), or from the statutory form requirements applicable to certain dispositions (for real property, notarization and entry in the land register are often required).

Verfügungsrecht is closely related to, but distinct from, the underlying obligation to perform a transaction. A disposition often consists of a Verfügungsakt (for example, sale, gift, or pledge) that effects a change in the title or rights, but the corresponding obligation to enter into the agreement may be governed by a separate contract. The practical effect of possessing Verfügungsrecht is the authority to initiate, authorize, or complete legally effective changes in ownership or encumbrances.

In practice, questions about Verfügungsrecht arise in everyday transactions, corporate governance, estate administration, and insolvency proceedings. Correctly identifying who holds the right to dispose and ensuring necessary formalities are essential to ensure dispositions are legally effective.