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Contract: Rules and Theory

Arguments for a European or global law of contract

  • 3 things to know
  • A2 Units 3 and 4

Overview

Vienna Convention on Contracts for the International Sale of Goods, principles of European Contract Law and UNIDROIT Principles of International Commercial Contracts.

What you need to know

Answer each one before you reveal it.

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Evaluation

Give three arguments against harmonising contract law across Europe.

Key term

Why do differing national contract rules impose costs on cross border trade?

Key term

Distinguish an optional instrument from mandatory harmonisation of contract law.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why do differing national contract rules impose costs on cross border trade?

    Model answer

    A trader must take advice on each foreign system, adapt its contracts and litigate under unfamiliar rules, and the resulting legal cost and uncertainty deter smaller businesses from selling abroad at all.

  2. 2

    What is the Vienna Convention on Contracts for the International Sale of Goods?

    Model answer

    It is a 1980 treaty supplying a uniform code for international sales of goods between businesses in contracting states, and the United Kingdom has not ratified it.

  3. 3

    What are the Principles of European Contract Law?

    Model answer

    They are a set of model rules of general contract law drafted by an academic commission led by Ole Lando, intended as a basis for harmonisation and as a statement of the shared core of European contract law.

  4. 4

    What are the UNIDROIT Principles of International Commercial Contracts?

    Model answer

    They are a non binding restatement of general contract rules for international commercial contracts, which parties may choose to govern their agreement and arbitrators often apply.

  5. 5

    What was the Draft Common Frame of Reference?

    Model answer

    It was an academic text published in 2009 setting out model rules and definitions for European private law, produced as a possible toolbox for a future European contract code.

  6. 6

    What happened to the proposed Common European Sales Law?

    Model answer

    It was proposed in 2011 as an optional regime that parties to a cross border sale could choose instead of national law, and it was withdrawn in 2015 after failing to gain sufficient support.

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