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Culpa in Contrahendo in German and Dutch Law – A Comparison of Precontractual Liability

On 19 November 1985, an American jury sentenced the well-known oil giant Texaco to pay US$ 10,530 million to Pennzoil, including US$ 3,000 million punitive damages.1 This is the largest award ever made in a civil judgment in the United States and probably in the rest of the world as well. At the heart of the case was the question whether the ‘agreement in principle’ between Pennzoil and Getty Oil obliging the former to purchase a huge amount of Getty’s shares was a binding contract and whether the initiation of negotiations with Getty by Texaco was a tortious interference with prospective economic relations between Pennzoil and Getty Oil. Finally, the case was ended by a peaceful settlement by which Texaco agreed to pay US$ 3,000 million to Pennzoil.2