How do French and German legal systems differ in their treatment of authority and mandate?

The French and German legal systems differ significantly in their conceptualization of agency, particularly regarding the relationship between authority and mandate.

The French Approach

The French Civil Code does not recognize agency as an independent legal institution. Instead, it treats agency as a subordinate aspect or external effect of a mandate. Under this system, the power to act as an agent is considered merely a component of the mandate itself, rather than a distinct legal concept. Consequently, French commercial agents are generally subject to the rules governing the mandate.12

The German Approach

In contrast, modern German law—along with other systems like those of Switzerland and Japan—draws a sharp distinction between the internal contractual relationship (mandate) and the external, unilateral act of authorization. This distinction, developed by 19th-century scholars such as Rudolf von Jhering and Paul Laband, recognizes the agent’s power to create legal obligations as an institution independent of the underlying contract. Furthermore, the German Civil Code adheres to a principle of freedom of form, generally not requiring specific formalities for granting authority, unlike systems that prescribe strict written requirements.13