MoPeG: No "GbR with Limited Liability" – Need for Action Regarding Partnership Agreements

§ 720(3) of the German Civil Code (BGB), newly introduced by the Act to Modernise the Law on Partnerships (MoPeG), makes clear that a limitation of the liability of the partners of a civil-law partnership (GbR) vis-à-vis third parties is ineffective even if such a limitation has been made known to them. Corresponding provisions in older partnership agreements, in particular the designation as a "GbR with limited liability" (GbR mit beschränkter Haftung) or the like, are therefore without effect. The partnership agreement should be reviewed and adapted to the requirements of the MoPeG.