Abstract

In its decisions of 24 February 2022 and 7 February 2019, the German Federal Labour Court (BAG) ruled that German labour courts should take into account whether a breach of the requirement of fair negotiation had occurred in assessing the validity of termination agreements. The Court thereby aimed to improve the protection of employees who have been improperly pressured by their employer into concluding a termination agreement. Arguably, the principle of undue influence in US contract law fulfils a comparable function. This article analyses the BAG decision then addresses the question of the comparability of the legal concepts. Since the concept and scope of undue influence are not easy to grasp, the definition in US case law and the practical application of the legal concept are analysed. Based on this analysis, the article considers whether a US civil court would have decided the BAG case in the same way. The article concludes that the principles in German and American law lead to similar outcomes. Requirement of Fair Negotiation, Undue Influence, German Labour Court, US Contract Law, US Civil Courts

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