In 2006, a commercial hall was handed over to a tenant. She planned to use the hall as a workshop for the manufacture of plastic products and as a warehouse. With the conclusion of the lease agreement, a monthly rent of 100 euros plus statutory value added tax was agreed. In addition, a transfer of use was agreed. The tenant was to carry out conversion measures worth around 8,500 euros to increase the value of the commercial building. The agreed measures included repairing and sealing the concrete floor and insulating the wall cladding.
In 2009, the two parties to the lease concluded a new lease agreement; this time, too, the tenant undertook to carry out the value-enhancing measures. In the further course, however, it changed its plans and did not carry out the agreed construction measures on the commercial building. In a letter of termination at the end of November 2017, her landlady therefore demanded payment of damages in the amount of the calculated construction costs (approx. 21,600 euros) and brought an action against her (AZ XII ZR 42/20).
The Regional Court (LG) and the Higher Regional Court (OLG) rejected the claim on the grounds that there was no claim for damages under Section 281 of the German Civil Code (Bürgerliches Gesetzbuch - BGB), as the primary claim for performance of the conversion work was time-barred after three years. The construction work had been due immediately under the contracts concluded in 2006 and 2009. The Federal Court of Justice (BGH), however, reversed the judgment and referred the legal dispute back. It is true that, according to the BGH, the conversion obligation would have been due for immediate performance in accordance with Section 271 (1) of the German Civil Code (BGB). However, this does not mean that the landlady's claims lapse when the rental object is returned. This is because it was contractually agreed that the rental object would be returned in an improved condition, taking into account the agreed claims.
Source: BGH
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