As a general rule, pure economic loss is unrecoverable in the German law of torts. This has provoked an expansion of contractual actions to compensate for the deficit in the law of torts. One of the most important instruments in this regard is the ‘contract with protective effects for third parties’. The interaction between judicial decisions and scholarly writings is very interesting. In the German law the absence of a provision which prohibits the reference to the writings of legal scholars improves the judicial decisions. However, even after the ‘Schuldrechtsmodernisierungsgesetz’ (Act on the Modernisation of the Law of Obligations), some judicial decisions concerning the contract with protective effects for third parties are very criticized. The requirement of a close relationship between the contractual creditor and the third party has been relaxed by some recent judicial decisions. Especially in the liability of experts, often the third party protected by the contract is no longer closely related to the principal and, sometimes, their interests are conflicting. In these cases, the legal basis of contractual liability has been questioned.