On the Role of Precedents and Legal Certainty in German Private Law

The article discusses the role of precedents in the German judicial practice. In the European continental tradition, law enactment is within the legislature, whereas the role of the judiciary is to enforce law. In the continental system, precedent does not constitute a source of law sensu stricto, that is, a formal source of law. In order to guarantee the law utility and, ultimately, the legal certainty, courts interpret legal provisions in a unified manner. It is noteworthy that during the recent years the coherent interpretation of legal provisions and, by the same token, the commitment to law development, have increased. That means that a unified interpretation of law performed by courts may be considered a precedent. In this context, precedents and stare decisis have been replacing the logical interpretation of law in German courts.