Place of performance, place of fulfilment and place of success

Place of performance, place of fulfilment and place of success / Leistungsort, Erfüllungsort und Erfolgsort

December 14, 2022

The distinction between place of performance and place of success is important for the classification of the debtor's obligations and the related classification into debt to be discharged at the creditor's domicile, debt to be discharged at the debtor's domicile or debt to be discharged at the debtor's domicile under the German Civil Code.

Place of performance or place of fulfilment

The place of performance, also known as the place of fulfilment, is the place where the performance owed must be rendered. In other words, the place where the debtor must perform the owed service. This is illustrated by the following example: If a craftsman is to install a cupboard in the client's home, the debtor, the craftsman, can only perform his service in the home of the creditor, the client. The place of performance here is the creditor's home. If, on the other hand, the principal brings his car to the workshop for repair, for example, the workshop is to be regarded as the place of performance. The debtor must "perform" there, hence the place of performance.

It follows from section 269 (1) BGB that the place of performance is, in case of doubt, the debtor's domicile.

Place of success

The concept of the place of performance must be distinguished from the concept of the place of success. The place of performance is the place where the owed success occurs. In the above examples, the place of performance is also the place of success. The owed success, i.e. repair of the car or installation of the cabinet, also occurs at the place of performance.