Published by De Gruyter

Volume 2 Issue 1

Issue of European Review of Contract Law

Contents
Journal Overview

May 9, 2006

Editorial

Page range: 1-3

Abstract

With this issue, the European Contract Law Review starts its second year. This might be an appropriate moment to recall what we had in mind in creating the journal and to thank the authors who have contributed so far. Moreover, we would like to formulate a few encouragements for the future.

May 9, 2006

The Unfair Commercial Practices Directive: a Law and Economics perspective

Fernando Gomez

Page range: 4-34

Abstract

Directive 2005/29 on unfair commercial practices constitutes an ambitious attempt at building a general regulatory framework for the conduct of businesses towards consumers in the marketplace. The declared objectives of the Directive, namely consumer protection and eliminating barriers for the internal market, do not seem to provide enough support for such an overreaching legal intervention. The paper explores whether other rationales can justify the new rules and critically examines the scope and the tools to determine unfairness in commercial practices. From an efficiency perspective, Directive 2005/29, although not devoid of merit and interesting solutions, is lacking both in terms of over-optimism in regulating practices that differ widely across markets for a whole range of goods and services, and disregarding several factors that greatly affect the necessary cost-benefit analysis for the major regulatory options. Résumé La directive 2005/29 sur les pratiques commerciales déloyales constitue une ambitieuse tentative de construire un cadre général de régulation des comportements des entreprises vis-à-vis des consommateurs. Les objectifs déclarés de la directive, en particulier la protection des consommateurs et l'élimination des barrières du marché interne, ne semblent pas soutenus par des moyens à la hauteur d'une telle ambition législative. L'article explore les autres raisons qui peuvent justifier les nouvelles règles et procède à un examen critique du but et des moyens employés pour caractériser la déloyauté dans les pratiques commerciales. Dans une perpective d'efficacité, la directive 2005/29, bien que non dénuée de mérites et de solutions intéressantes, pèche à la fois par son optimisme excessif dans la régulation de pratiques qui diffèrent largement d'un marché à l'autre pour toute une série de biens et de services, et aussi par le fait qu'elle ignore plusieurs facteurs qui affectent l'analyse coûts/avantages nécessaire pour choisir entre les principales options de régulation. Kurzfassung Die Richtlinie 2005/29 über unlautere Geschäftspraktiken stellt einen ambitionierten Versuch dar, einen allgemeinen Regelungsrahmen für das Geschäftsgebaren von Unternehmern gegenüber Verbrauchern aufzustellen. Den erklärten Zielen der Richtlinie, namentlich Verbraucherschutz und Hindernisse für den Binnenmarkt zu beseitigen, scheinen jedoch nicht ausreichend Anlass für solch ein überzogenes gesetzgeberisches Vorhaben zu bieten. Der Beitrag untersucht, ob andere Gründe eine solche Neuregelung zu rechtfertigen vermögen und setzt sich kritisch mit der Zielsetzung und den Grundsätzen, nach denen die Unlauterkeit von Geschäftspraktiken bestimmt wird, auseinander. Obgleich ihr einige Verdienste und interessante Lösungen nicht abgesprochen werden können, krankt die Richtlinie unter Effizienzgesichtspunkten doch an ihrem übersteigerten Optimismus, Praktiken, die für eine ganze Reihe von Gütern und Dienstleistungen in den Märkten voneinander abweichen, zu vereinheitlichen. Darüber hinaus lässt sie einige Faktoren für eine Kosten-Nutzen-Analyse zur Bestimmung der wesentlichen Regelungsoptionen auβer Acht.

May 9, 2006

Protection Against Discrimination in European Contract Law

Jörg Neuner

Page range: 35-50

Abstract

Protection against discrimination in European contract law stands at the point of tension between the principle of freedom of contract and the principle of equal treatment. Both principles will be examined separately. One must distinguish between substantive and formal models of freedom, on the one hand, and conceptions of anti-discrimination based on ‘defensive rights’ (Abwehrrechte) and ‘participation rights’ (Teilhaberechte), on the other hand. The appropriate degree of protection can be better determined by employing this analysis. In so doing, it is demonstrated that protection similar to that against discrimination based on reasons of ‘race’ and gender is also required to address the problem of discrimination based on disabilities. Therefore, a further directive that corresponds to the Council Directives 2000/43/EC and 2004/113/EC should be enacted and provide protection for people with disabilities. The article closes by looking at the EU's competence to regulate in the field of contractual protection against discrimination. Résumé La protection contre la discrimination en droit européen des contrats se situe au milieu d'un conflit fondamental entre le principe de liberté contractuelle et le principe d'égalité de traitement. Dès lors, les deux principes seront d'abord présentés séparément tout en distinguant entre les concepts de liberté matérielle et formelle d'un côté et les conceptions anti-discriminatoires fondées sur des ‘droits de défense’ (Abwehrrechte) et des ‘droits de participation’ (Teilhaberechte) de l'autre côté. Sur cette base sera déterminé le niveau de protection adéquat. L'examen révèlera la nécessité d'instaurer une protection contre la discrimination en raison du handicap en plus de l'interdiction de la discrimination en raison de la ‘race’ et du sexe. Pour l'accomplissement de cette protection, une directive européenne pour la protection des personnes handicapées devrait être prise, en correspondance avec les directives 2000/43/CE et 2004/113/CE. Finalement, la contribution éclairera les compétences normatives de l'UE en matière de non-discrimination en droit des contrats. Kurzfassung Der Diskriminierungsschutz im Europäischen Vertragsrecht bewegt sich im Spannungsverhältnis zwischen den Prinzipien der Vertragsfreiheit und der Gleichbehandlung. Es werden daher zunächst beide Prinzipien separat dargestellt, wobei einerseits zwischen materialen und formalen Freiheitsmodellen und andererseits zwischen abwehrrechtlichen und teilhaberechtlichen Antidiskriminierungskonzeptionen zu unterscheiden ist. Auf dieser Grundlage kann sodann das sachgerechte Schutzniveau näher bestimmt werden. Dabei zeigt sich, dass neben dem Schutz vor Diskriminierungen aus Gründen der ‘Rasse’ und des Geschlechts auch ein Schutz vor Benachteiligungen aufgrund von Behinderungen indiziert ist. Analog zu den Richtlinien 2000/43/EC und 2004/113/EC sollte daher noch eine weitere Richtlinie zum Schutz von Menschen mit Behinderungen erlassen werden. Der Beitrag schlieβt mit einem Blick auf die Regelungskompetenz der EU im Bereich des vertraglichen Diskriminierungsschutzes.

May 9, 2006

On the Development of European Standard Contract Terms

Simon Whittaker

Page range: 51-76

Abstract

This article considers the desirability of the development of sector-specific European standard contract terms. This idea was put forward by the ECCommission in a series of communications between 2002 and 2004, and while in September 2005 it appeared to back-peddle on its earlier proposals, it nevertheless advanced something rather similar, though couched in the more regulatory language of a sector-specific ‘26 th regime.’ The author argues that there are four main reasons why the development of European standard contract terms should be given a cool reception: reasons stemming from the language or languages by which such standard terms would be expressed, from the different normative contexts in which they would take effect, from differences in national approaches to contractual interpretation and from differences in the national regulation of unfair contract terms. While the last of these reasons would not apply if such European standard terms were able to override national controls on the fairness of contract terms, it is argued that this abandonment of established national and EC controls would be unjustified given the likely nature in practice of the process by which such standard terms would be agreed. Résumé Cet article s'interroge sur l'opportunité de développer en droit européen des clauses-types par secteur. L'idée a été avancée par la Commission européenne dans une série de communications entre 2002 et 2004, et alors qu'en septembre 2005 elle avait semblé revenir sur ses précédentes propositions, elle a néanmoins persévéré en ce sens, bien que la proposition soit rédigée dans le langage plus réglementaire d'un <26 ème régime> spécifique à un secteur. L'auteur soutient qu'il y a quatre raisons principales pour lesquelles le développement des clauses-types européennes devrait recevoir un accueil réservé: des raisons tenant à la langue ou aux langues dans lesquelles de telles clauses-types seraient exprimées, aux différents contextes normatifs dans lesquels elles prendraient effet, aux différences dans les interprétations nationales, et enfin aux différences dans les réglementations nationales des clauses abusives. Tandis que la dernière raison ne s'appliquerait pas si de telles clauses-types européennes pouvaient échapper aux contrôles nationaux sur le caractère abusif des clauses contractuelles, il est soutenu que cet abandon des contrôles nationaux et communautaires seraient injustifié compte tenu du processus probable par lequel de telles clauses-types seraient en pratique acceptées. Kurzfassung Der Beitrag behandelt die Entwicklung sektorspezifischer Allgemeiner Geschäftsbedingungen auf europäischer Ebene. Den Anstoß lieferten Mitteilungen der Kommission in den Jahren 2002 bis 2004. Obgleich diese im September 2005 von ihren früheren Vorschlägen Abstand zu nehmen schien, legte sie doch etwas ganz Ähnliches vor, freilich eher als Regulierung in Form eines sektorspezifischen „26. Regimes“. Der Autor beurteilt die Entwicklung solcher Allgemeiner Geschäftsbedingungen aus vier wesentlichen Gründen eher zurückhaltend: Fraglich ist schon, welche Sprache(n) zu wählen ist (sind); sodann ist auf die Unterschiede in den normativen Zusammenhängen, in denen solche Allgemeinen Geschäftsbedingungen Wirkung entfalten würden, hinzuweisen; hinderlich sind außerdem unterschiedliche Ansätze der Vertragsauslegung und die unterschiedlichen nationalen Regelungen zu unangemessenen Allgemeinen Geschäftsbedingungen. Zwar würde der letzte Grund nicht entgegen stehen, wenn solche Allgemeinen Geschäftsbedingungen auf europäischer Ebene die nationale Kontrolle unangemessener Geschäftsbedingungen außer Kraft setzen würden. Dagegen wird aber gerade eingewandt, dass es ungerechtfertigt wäre, die bestehenden nationalen und europäischen Kontrollen abzuschaffen, wenn man die Art und Weise bedenkt, wie in der Praxis solche Geschäftsbedingungen vereinbart werden.

May 9, 2006

Case: ECJ – Sintesi Spa v Autorità Lavori Pubblici

Nino Paolantonio

Page range: 77-85

Abstract

Judgment of the Court of 7 October 2004, Sintesi SpA v Autorità per la Vigilanza sui Lavori Pubblici, reference for a preliminary ruling under Article 234 EC from the Tribunale amministrativo regionale per la Lombardia (Italy), Case C-247/02, [2004] ECR I-9215.

May 9, 2006

European Community Legislation and Actions

Stéphanie Pelet, Rossella Delfino

Page range: 86-89

Abstract

NB: This section presents a series of non legislative actions and legislative acts directly or indirectly linked to contract law, which were adopted at European level between end July 2005 and October 2005.

May 9, 2006

Recent developments in the law governing the free movement of goods in the EC's internal market

Stephen Weatherill

Page range: 90-111

Abstract

This report surveys recent developments in the law governing the free movement of goods in the EC. This covers both the application of Articles 28–30 EC to control national measures that obstruct inter-State trade and Article 95 EC as the source of the EC's programme of legislative harmonisation. It shows how and why private law in general and contract law in particular have come to be affected by the law of the EC's internal market. The report demonstrates that the judgments of the European Court in Keck and in Tobacco Advertising are significant for their recognition that the mere fact of diversity between national laws is not of itself an adequate reason for EC law to intervene in local regulatory autonomy. This may, in short, assist arguments designed to shelter national contract law from the effect of EC law, but it is explained that, despite a degree of unavoidable ambiguity in the state of the law, there are nonethless circumstances in which national private law and EC trade law must seek a modus vivendi. More generally it is argued that the growth of a ‘European contract law’ provides an excellent case study for examination of constitutionally and culturally fundamental questions about the desirable degree of centralisation in Europe.

May 9, 2006

Hungary

Lajos Vékás

Page range: 112-123

Abstract

A draft proposal of a new Civil Code has been published in Hungary which, if enacted, will replace the present one that has existed since the socialist period. The social and economic changes that took place during the 1990s necessitated a comprehensive reform of the Civil Code and the draft proposal is the result of intensive work towards that end. This article focuses on a number of the contract law elements contained in the first draft of the proposed new Civil Code. The article deals specifically with the models of codification used in the draft, the rules concerning consumer contracts, the implementation of European directives, and it highlights several innovations utalised in the draft to address classical contract problems, including, for example, the fields of validity and breach of contract.

May 9, 2006

Books Received and Book Reviews

Giovanni Comandé, Richard Sutton

Page range: 124-130

Abstract

Cristina Amato, Per un diritto europeo dei contratti con i consumatori. Problemi e tecniche di attuazione della legislazione comunitaria nell'ordinamento italiano e nel Regno Unito (On A European Contract Law. A study of the Techniques and the Problems Deriving From the Implementation of the European Legislation in Italy and in the United Kingdom). Milano, Giuffrè, 2003, pp 522. (Giovanni Comandé) Rick Bigwood, Exploitative Contracts, Oxford: Oxford University Press, 2003 (Richard Sutton)

About this journal

This Journal deals with contract law and serves as a pan-European platform for discussion and analysis. The concept of a European Contract Law is still rather recent: the phrase was first coined in the 1990s. Since the early 2000s when this journal was created, European Contract Law has come to encompass an increasingly comprehensive body of law. There were three driving forces behind this development: the EC harmonisation of laws in the area of the internal market, a generally increased interest in comparative law discussions in contract law, and the European Commission’s Communication on European Contract Law, the Commission’s Action Plan and the Common Frame of Reference process. These developments brought about a changed climate of discussion. The foundations of contract law, examined from many perspectives and in view of various national legal systems and an increasing number of disciplines, are currently being discussed in great detail in the European arena. In 10 years contract law may be the first area of European private law to be regulated in a fully fleshed out European Code.

European Contract Law comprises diverse areas of the law such as sales, standard contract terms, distribution chains, marketing practices, research and development agreements, contract law copyright aspects, financial and investment services contracts, insurance contracts and e-commerce as well as non-discrimination within and beyond labour law and more generally, important aspects of labour contracts and other symbiotic contracts.

The importance and breadth of the field and the methods and questions involved are such that ERCL has established itself as the specialised European journal in this area. Since 2004 the standard of information and discussions on this platform have been consolidated: ERCL discusses the body of law in three sections: articles, case law, and literature on EC Contract Law. This takes place mainly in book reviews and, in addition, contains short sections on the most recent EC legislation, sectoral developments, national developments and other news. The Review focuses on existing law at the EC level and all rules influencing the formation, content and execution of contracts from default rules to regulation, from marketing aspects to the content of contracts, from consumer (and also labour) law to general contract law. The Review is open to a variety of approaches and provides the opportunity to read traditional 'dogmatic' explanations of the upcoming and existing law, assessments through comparative law studies as well as economic analysis and discussions of the philosophical foundations and major structural features. The Review is and has been the site of intense discussion of proposals for codification or, more generally, systemisation and comprehensive development of contract law at the EC level. The European Contract Law Code is too realistic an option and much too important not to be thoroughly discussed as transparently as possible with as many competing ideas and approaches as possible. Several special issues have followed this process in great detail. The journal is meant to help in establishing a functional market of ideas in one of the core areas of private law and one of the most important areas of European private law. ERCL is the journal covering this large body of law and the modern solutions to the problems encountered.