Mental reservation

A secret of title ( also mental reservation or mental reservation ) is when the person who makes a declaration of intent, secretly does not want him explained. Secret is the conditional if it is before the one to be delivered against the declaration of intent, concealed; is irrelevant whether third parties have knowledge of it.

A non- serious declaration of intent that you turn in with the expectation that it takes seriously the declaration receiver, also called bad joke. Such a secret reservation, according to § 116 sentence 1 BGB in principle irrelevant, the declaration of intent is so effective and for the one who emits binding.

Exceptionally, however, the declaration of intent is void if the receiver knows the subject, § 116 sentence 2 BGB. What is necessary here is positive knowledge. A must-know is not enough. Often in these cases lies in front of a sham transaction. Then is not explained, but the actually agreed binding from both sides willed, § 117 paragraph 2 BGB. Such transactions are sometimes closed in an effort to save on taxes. However, this is risky. According to settled case-law, declarations of intent is not legally divisible. If the parties to achieve a fiscal success, make a specific civil law agreement, they can not rely in case of dispute the fact that they civilly actually as he have wanted the business.