An Optional European Contract Law Code

The nineteen outstanding contributors to this deeply insightful book concur in envisioning a fundamentally new systematic concept of contract law that, while preserving the essential and‘architectureand’ of the existing European codes, would nonetheless find cogent ways to integrate such modern developments as mass transactions, chains and networks of contracts, regulation of markets and contracts to protect consumers, and service and long-term contracts into an optional European code. The book is organised along three major avenues: and• the systematic arrangement of a contract law code - how it deals with core questions of formation and performance or breach of contract, such as mistake and misrepresentation, standard contract terms, and remedies in the case of breach of contract; and• the apparent necessity to merge consumer contract law (i.e. such issues as product safety and liability, warranties, and consumer debt and insolvency) with traditional core contract law concepts; and and• the importance to substantive contract law of the pre-contractual phase, in which information duties are becoming steadily more paramount. The authors perspectives cover a wide range of jurisdictions, including new EU Member States. The bookand’s commitment to an integration of comparative law, EC law, and the debate on European codification offers practitioners and academics fertile ground for the development of a new model of contract law that is more than a common denominator of what has been in force so far. This model may serve as a basis for Europe-wide and perhaps even worldwide discussion.

​The Commission of the European Union has identified divergences between the national contract laws of the Member States as an obstacle to the completion of the European Internal Market and put this issue on its highest political agenda. Alexander J. Wulf analyses and predicts the effects. The study is situated in the context of the recent developments in the discussion on European contract law. The book begins with an introduction to the economic and legal theories that serve as the rationale for the development of the line of argument. These theories are then applied to the issues involved in the current controversy on European contract law. The author develops a model that he uses to analyze the institutional processes of European contract law. Empirical data are employed to test this model and discuss the results. From his analysis the author develops criteria that can serve as a starting point for thinking about the economic desirability of an optional European contract law.

The Common European Sales Law (CESL) is the Commission's most recent policy initiative for European contract law. It aims to address the problem that differences between the national contract laws of the Member States may constitute an obstacle for the European Internal Market. This paper develops a model of the institutional competition in European contract law and uses it to addresses the question as to whether an optional European contract code and the CESL are economically desirable for European contract law. To do so I examine the transaction costs involved in the process of choosing an applicable law that European businesses face when they conduct cross-border transactions in the European Internal Market. I then describe how these transaction costs shape the competitive environment, i.e. what I refer to as the "European market for contract laws" in which the contracting parties choose a law to govern their cross-border contracts. Having identified this environment and the competitive forces operating within it, I propose a model, the "Cycle of European Contract Law". I use this model to analyze the competitive processes that take place in the European market for contract laws. Based on my results I make recommendations for the optimal implementation of an optional European contract code and the CESL in European contract law.

The Principles of European Contract Law, prepared by the so-called Lando Commission, today constitute the most advanced project on the harmonisation of European private law. As well as providing a set of rules which could facilitate cross-border trade within Europe, the Principles can be seen as a modern lex mercatoria which, for example, could be referred to by arbitrators deciding a case according to internationally accepted principles of law. Furthermore, the Principles provide a framework for EU legislation on contract law and, more importantly, they can be viewed as a first step towards a European Civil Code. They may also prove to be a catalyst for the development of national legislation, judicial decisions and legal doctrine. This new title, which follows the first volume covering Parts I and II of the Principles, includes chapters on plurality of parties, assignment of claims, transfer of contract, set-off, prescription, illegality and conditions. It provides a systematic overview of the Principles in comparison with Dutch law, which will be of interest not only in the Netherlands but also to lawyers in other countries who need to gain a clearer understanding of the Dutch contract law system.

The Contract is the core tool of governance in a free market economy. An EU Contract Law Code is now on the political agenda because all three legislative bodies in the EU and most member states favour it in principle. In its communication of July 2001, the Commission proposed three major options: to enhance the existing EC Contract Law by eliminating inconsistencies; introducing a European Code which substitutes national laws; and introducing a European code which only supplements national laws. This book achieves three things: For the first time, European academia is discussing these three options in an extensive and systematic way with pros and cons, in a transparent and systematic way, along broad lines and often also important details. The book contains the views of all protagonists from all those who really drafted the models to all those who illustrated the potential of decentralized rule-making and invented the very idea of an Optional Code. This is the first book in which the optional Code, which is the alternative most likely to come, is thoroughly analysed at all. This work also contains a full map of design possibilities. It is the executive summary of what European academia thinks of the future of European Contract Law and a European Code. It is the Academic Green Paper on European Contract Law.