A state of exception (German: Ausnahmezustand) is a concept in the legal theory of Carl Schmitt, similar to a state of emergency, but based in the sovereign's ability to transcend the rule of law in the name of the public good. This concept is developed in Giorgio Agamben's book State of Exception. A state of exception (German: Ausnahmezustand) is a concept in the legal theory of Carl Schmitt, similar to a state of emergency, but based in the sovereign's ability to transcend the rule of law in the name of the public good. This concept is developed in Giorgio Agamben's book State of Exception.