Published by De Gruyter

Volume 2 Issue 3

Issue of European Review of Contract Law

Contents
Journal Overview

September 28, 2006

‘Capacitas’: Contract Law and the Institutional Preconditions of a Market Economy

Simon Deakin

Page range: 317-341

Abstract

Capacity may be defined as a status conferred by law for the purpose of empowering the holder to participate in the operations of a market economy. This paper argues that because of the confining influence of the classical private law of the nineteenth century, we currently lack a convincing theory of the role of law in enhancing and protecting the substantive contractual capacity of market agents, a notion which resembles the economic concept of ‘capability’ as developed by Amartya Sen. Re-examining the legal notion of capacity from the perspective of Sen's ‘capability approach’ is part of a process of understanding the preconditions for a sustainable market order under modern conditions. Résumé La capacité peut être définie comme un statut conféré par la loi dans le but de permettre à son bénéficiaire de participer aux opérations de l'économie de marché. Cet article soutient qu'en raison de l'influence limitée du droit privé classique du 19 ème siècle, nous manquons actuellement d'une théorie convaincante du rôle de la loi dans le renforcement et la protection de la capacité contractuelle substantielle des agents économiques, c'est-à-dire d'une notion qui ressemblerait au concept économique de «capability» tel que développé par Amartya Sen. Ré-examinant la notion juridique de capacité dans la perspective de Sen permet alors de comprendre les conditions nécessaires à un ordre du marché durable dans le monde moderne. Kurzfassung Die Geschäftsfähigkeit kann als eine von Rechts wegen verliehene Stellung definiert werden, die es dem Inhaber ermöglicht, am Marktgeschehen teilzunehmen. Der Verfasser vertritt die These, dass es aktuell aufgrund des beschränkenden Einflusses des klassischen Privatrechts des 19. Jahrhunderts an einer überzeugenden Theorie zur Aufgabe des Rechts, die substantielle und vertragliche Geschäftsfähigkeit der Marktteilnehmer zu fördern und zu schützen, fehlt, eine Vorstellung, die dem von Amartya Sen entwickelten ökonomischen Konzept der Leistungsfähigkeit (capability) ähnelt. Eine erneute Betrachtung des Begriffs der Geschäftsfähigkeit unter Berücksichtigung von Sen's Ansatz ist Teil eines Prozesses, um die Voraussetzungen für eine zukunftsfähige Marktordnung unter modernen Bedingungen verstehen zu lernen.

September 28, 2006

Die Transformation des Erfüllungsanspruchs in einen Schadensersatzanspruch nach deutschem Recht: Eine Skizze der Neuregelung des Schuldrechtsmodernisierungsgesetzes

Helmut Heinrichs

Page range: 342-365

Abstract

Under German Law, the defendant typically is under a duty to perform the contract and courts can and do order specific performance. On the other hand, the creditor may ask for damages in place of specific performance, provided that the prerequisites of the (‘transformation’) rules in the general part allowing such change are satisfied. The core (‘transformation’) rule under the old BGB was not very transparent and was too complicated; moreover, it did not meet the needs of practice. With the Schuldrechtsmodernisierung, it therefore has been replaced by a new one. This new rule allows the creditor to opt for ‘damages instead of performance’ if he has, to no avail, granted an additional period of time for performance. This claim for damages constitutes the second remedy besides a claim for specific performance. The debtor typically has the right to a ‘second chance’ to perform. The reform did away with the problems caused by the old version. The fact that now two claims are available does, however, also raise new problems which are still awaiting clarification in doctrine and in the courts. Résumé En droit allemand, l'obligation est le fondement d'un droit à l'exécution qui peut être réalisé à travers une action en justice par l'exécution forcée. Le créancier ne peut demander des dommages-intérêts au lieu de la prestation que dans l'hypothèse où, par application des règles du droit général des obligations (inspirées par la Directive sur la vente), le droit de demander l'exécution est devenu un droit de demander des dommages-intérêts. L'ancienne règle sur la transformation du droit à l'exécution en un droit à des dommages-intérêts du BGB était confuse, incommode et compliquée, et elle n'a pas répondu aux besoins de la pratique. Par conséquent, la modernisation allemande du droit des obligations l'a remplacée par une règle d'une nouvelle conception. Elle prévoit surtout que le créancier acquiert, après écoulement du délai accordé par lui-même, un droit de demander des dommages-intérêts. Ce droit s'ajoute au droit à l'exécution et le débiteur a ainsi normalement un droit à cette seconde offre. La réforme éliminait les difficultés pratiques du droit ancien. Cependant, la concurrence du droit à l'exécution et du droit de demander des dommages-intérêts produit de nouveaux problèmes qui ne sont pas encore entièrement résolus. Kurzfassung Nach deutschem Recht begründet das Schuldverhältnis einen durch Klage und Zwangsvollstreckung durchsetzbaren Anspruch auf Erfüllung. Schadensersatz statt der Leistung kann der Gläubiger nur verlangen, wenn aus seinem Erfüllungsanspruch in Anwendung der im allgemeinen Schuldrecht enthaltenen Transformationsregelung ein Schadensersatzanspruch geworden ist. Die Transformationsregelung des BGB war unübersichtlich, umständlich und kompliziert; sie wurde den Bedürfnissen der Praxis nicht gerecht. Die deutsche Schuldrechtsmodernisierung hat sie daher durch eine neu konzipierte Regelung ersetzt. Sie sieht im Kern vor, dass der Gläubiger nach Ablauf einer von ihm gesetzten Frist einen Schadensersatzanspruch statt der Leistung erwirbt. Dieser Schadensersatzanspruch tritt neben den Erfüllungsanspruch, der Schuldner hat in der Regel das Recht einer zweiten Andienung. Die nach altem Recht in der Praxis aufgetretenen Schwierigkeiten hat die Reform beseitigt. Aus der Konkurrenz zwischen Erfüllungs- und Schadensersatzanspruch ergeben sich aber neue, noch nicht endgültig geklärte Probleme.

September 28, 2006

ECJ – Freiburger Kommunalbauten v Hofstetter

Martijn W Hesselink

Page range: 366-375

Abstract

Judgment of the Court (Fifth Chamber) of 1 April 2004, Freiburger Kommunalbauten GmbH Baugesellschaft & Co KG v Ludger Hofstetter and Ulrike Hofstetter, Case 237/02 [2004] ECR I-3403

September 28, 2006

Case: ECJ – Schulte v Badenia

Christian Hofmann

Page range: 376-385

Abstract

Judgment of the Court of Justice of 25 October 2005, Schulte v Badenia Bausparkasse, Case 350/03

September 28, 2006

European Community Legislation and Actions

Stéphanie Pelet, Rossella Delfino

Page range: 386-390

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 January 2006 and April 2006.

September 28, 2006

The Evolution of Public Contracts in European Law

Piergiorgio Alberti

Page range: 391-405

Abstract

The report describes how regulation of public contracts is increasingly being influenced by European law, particularly in the light of European directives Nos. 17 and 18/2004, and provides an overview of the main trends of this regulation. The analysis of the most significant aspects of the law of European public contracts shows that EC regulations are in a state of flux. Other policies are being added to the traditional one of safeguarding competition. These policies include, for example, the proper management of public finance and the efficiency of public authorities' activities. Following the increased and diversified intervention of EC institutions, it can be foreseen that European provisions will regulate not only the tendering procedure for the selection of the contracting party, but also the whole relationship between the public authority and the company being awarded the public contract.

September 28, 2006

The Netherlands

Ton Hartlief, Carlos Bollen

Page range: 406-428

Abstract

On the surface the law of contracts of the Netherlands appears to be in calm waters. No major changes have occurred recently in the Burgerlijk Wetboek (BW), the Civil Code. The authors believe, however, there has been some remarkable case law on a number of topics dealing with broad principles of contract law such as freedom of contract and the binding force of contracts. Furthermore, one can see a certain level of deformalisation, especially in the rules on notice of default. A contrary tendency, viz. a tendency towards formalisation, can be seen with regard to other topics, as in the case-law regarding the duty to hand over general conditions to the other party and the introduction of the formality of a written contract with regard to the sale of real property. Last but not least, there are a number of cases that could be the start of a tendency towards a more paternalistic approach in favour of the non-professional party. In the view of the authors this could prove to be a dangerous development.

September 28, 2006

Books Received and Book Reviews

Page range: 429-440

Abstract

A SPANISH COMMENTARY OF THE GANDOLFI CODE / and some other Spanish publications (Ewoud Hondius) Cases, Materials and Texts on Contract Law, ed by Hugh Beale, Arthur Hartkamp, Hein Kötz, Denis Tallon (Casebooks on the Common Law of Europe) Hart, Oxford 2002, XXIV, 993 p. (F. Ranieri)

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.