Published by De Gruyter

Volume 4 Issue 1

Issue of European Review of Contract Law

Contents
Journal Overview

February 12, 2008

Contract Law of the Services Directive

Martin Schauer

Page range: 1-14

Abstract

The Directive on services in the internal market, adopted by the Parliament on Dec 12, 2006, was preceded by fierce disputes about its scope and its instruments. Even though there is no provision in the Services Directive that would apply directly to contract law one can find some provisions which are related to contract law but not explicitly named contract law rules. The author gives a review of these provisions, i.e. provisions about precontractual information, non-discrimination and the prohibition of forced application of specific contractual arrangements. In the article it is pointed out that the Services Directive cannot be called a major breakthrough in the field of European contract law. However, it has some provisions which may contribute to its consolidation. Résumé La Directive relative aux services dans le marché intérieur, adoptée par le Parlement européen le 12 décembre 2006, a été précédée de disputes féroces sur sa portée et ses instruments. Même s'il n'y a aucune disposition dans la Directive »services« qui s'appliquerait directement au droit des contrats, on peut trouver certaines dispositions qui sont liées au droit des contrats, même si elles ne sont pas explicitement qualifiées de règles de droit des contrats. L'auteur fait un panorama de ces dispositions, par exemple des dispositions sur les informations précontractuelles, sur la non-discrimination ou encore sur la prohibition de l'application forcée de certains régimes contractuels particuliers. Il est noté dans l'article que la Directive »services« ne peut pas être qualifiée d'avancée majeure dans le champ du droit européen des contrats. Néanmoins, certaines de ses dispositions peuvent contribuer à sa consolidation. Kurzfassung Der Verabschiedung der Dienstleistungsrichtlinie durch das Europäische Parlament am 12. Dezember 2006 ging eine heftige Debatte über ihren Anwendungsbereich und verwendeten Konzepte voraus. Obwohl die Dienstleistungsrichtlinie keine Vorschriften enthält, die im Vertragsrecht direkt anwendbar sind, enthält sie dennoch einige vertragsrechtliche Vorschriften, auch wenn diese nicht so explizit bezeichnet werden. Der Autor gibt einen Überblick über diese Vorschriften, die Aussagen über vorvertragliche Informationen, Antidiskriminierung und dem Verbot bestimmter Einschränkungen der Dienstleistungsfreiheit. In dem Beitrag wird herausgearbeitet, dass die Dienstleistungsrichtlinie nicht als wirklicher Durchbruch im Europäischen Vertragsrecht bewertet werden kann. Dennoch könnten einige der in ihr enthaltenen Regelungen zu dessen Vereinheitlichung beitragen.

February 12, 2008

Termination of Commercial Contracts by giving Notice

Hans Henrik Edlund

Page range: 15-30

Abstract

Some long-term contracts are brought to an end if one of the parties gives notice. Usually, such a step is not considered a breach of contract. It causes the contract to end in accordance with the contract. When no express rules cover the situation, it is often not entirely clear whether or not the contract can be terminated by giving notice. The international UNIDROIT principles and the Lando Commission have included a rule allowing the parties to a contract which is for an indefinite period to give notice, but it can be very difficult to distinguish between indefinite and definite periods. Furthermore, it is open to question whether the continuation of an expired contract is to be considered as a contract for an indefinite period, and whether contracts for definite periods are irrevocable. Even though these questions are not regulated, it is not recommended that new and more detailed principles should be developed. Each case must be considered on the basis of a thorough analysis of its specific contractual circumstances. Résumé Il est mis fin à certains contrats de longue durée lorsqu'une partie en donne notification. Traditionnellement, une telle attitude n'est pas considérée comme une inexécution du contrat. Elle entraîne la fin du contrat mais en accord avec le contrat. Quand aucune règle expresse ne régit la situation, il n'est pas toujours très clair de savoir si le contrat peut ou non cesser par simple notification. Les principes UNIDROIT et ceux de la Commission Lando ont prévu une règle autorisant les parties à un contrat à durée indéterminée de rompre ainsi le contrat, mais il peut être très difficile de distinguer entre les durées déterminées et indéterminées. De plus, la question reste ouverte de savoir si la continuation d'un contrat expiré doit être considérée comme un contrat à durée indéterminée, et aussi celle de savoir si les contrats à durée déterminée sont irrévocables. Les textes ne tranchent pas ces questions, et il ne serait pas souhaitable que de nouveaux principes plus détaillés soient prévus. Chaque cas doit être considéré sur la base d'une analyse minutieuse de ses circonstances spécifiques. Kurzfassung Einige Langzeitverträge werden durch die einseitige Erklärung einer Vertragspartei beendet. Normalerweise wird dies nicht als Pflichtverletzung gewertet. Es führt lediglich dazu, dass der Vertrag beendet wird. Wenn diese Situation im Vertrag aber nicht ausdrücklich geregelt ist, ist es häufig nicht ganz klar, ob der Vertrag durch einseitige Erklärung beendet werden kann oder nicht. Die UNIDROIT-Principles und die Lando-Principles enthalten eine Vorschrift, die es den Vertragsparteien erlaubt, den Vertrag einseitig zu beenden, wenn er unbefristet ist. Das Problem ist dabei, zu bestimmen, ob es sich um einen befristeten oder unbefristeten Vertrag handelt. Außerdem ist fraglich, ob die Fortführung eines beendeten Vertrages zum Entstehen eines unbefristeten Vertrages führt und ob befristete Verträge gekündigt werden können. Obwohl all diese Fragen nicht geregelt sind, sollten keine neuen bzw. detaillierteren Prinzipien entwickelt werden. Stets sollte auf der Grundlage der Umstände des Einzelfalles eine Bewertung stattfinden.

February 12, 2008

Compensation for Commercial Agents in the House of Lords

Michael Bridge

Page range: 31-39

Abstract

I. Introduction In one of the earliest cases on the Commercial Agents (Council Directive) Regulations 1993, Staughton LJ made mention of the belief that ‘commercial agents are a down-trodden race’ entitled to protection from their principals. Down-trodden or not, they receive protection from the Regulations in the form of compensation when their agencies are terminated. The choice of an appropriate and predictable measure of compensation has proved elusive in the English courts because English courts have had to apply the Regulations without quite understanding the rational basis underpinning the protection afforded to commercial agents. Commercial agents are intermediaries between their principals and their principals' business partners, but the Regulations treat them as integral to their principals' businesses. Are commercial agents therefore entitled to compensation on the basis that they are quasi-employees, or are they in some inchoate way quasi-equity-participants in their principals' businesses? Are they being compensated for loss or are they recovering gains that their principals should not retain? The answers to these questions are clearer now that the House of Lords in Lonsdale v Howard & Hallam Ltd has authoritatively laid down the standard for calculating compensation for commercial agents.

February 12, 2008

European Community Legislation and Actions

Rossella Delfino, Stéphanie Pelet

Page range: 40-44

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 and end November 2007.

February 12, 2008

EC Financial Services and Contract Law – Developments 2005–2007

Stefan Grundmann, Jörg Hollering

Page range: 45-64

Abstract

The contribution is a follow-up of the overview published in ERCL 2005, 482. While the law with respect to prudential supervision changed little, contract law developed considerably. This is so despite the fact that no important new legislation has been adopted: In the area of commercial banking, the new Consumer Credit Directive is still under discussion. There is, however, an ambitious project to regulate all payment instruments in one sole legal measure, namely: credit transfers, credit and debit cards and direct debit. In the area of investment banking, the Market in Financial Instruments Directive of 2004 (MiFID) had to be transposed in the Member States until 1st November 2007. This is important because the so-called Lamfalussy regulatory architecture which was used for this directive is about integrating more coherently EC legislation, national transposition and effective implementation. Therefore, while giving a general overview as well, the article concentrates on these two developments: the proposal for a payments directive and the transposition of the MiFID.

February 12, 2008

Chronique de Jurisprudence Française en Droit des Contrats (2005–2007)

Jacques Mestre

Page range: 65-80

Abstract

Résumé Depuis quelques années, le droit français des contrats est manifestement entré dans une phase de profonde réflexion. L'ouverture par la Commission européenne d'un vaste débat sur l'avènement d'un éventuel Code européen des contrats a été pour lui une salutaire occasion de réfléchir tant sur ses récentes évolutions que sur son devenir à moyen terme. Les bicentenaires du Code civil en 2004, puis du Code de commerce en 2007 ont, par ailleurs, suscité de fructueux échanges sur l'impact des codifications et la place corrélative des autres sources normatives. Enfin, l'élaboration de l'avant-projet Catala de réforme de droit des obligations a naturellement donné lieu à un débat nourri, tant de la part des universitaires que des praticiens. Mais en attendant les nouvelles étapes qu'appellent sans doute ces réflexions en cours, la jurisprudence a poursuivi son travail créateur, celui qui, il faut le reconnaître, donne pour l'instant au droit français des contrats sa véritable dimension et en fait finalement sa richesse. C'est donc à cette jurisprudence rendue dans les deux dernières années que sera consacrée la présente chronique, construite de façon très classique par l'étude successive de la formation (I), du contenu (II) et de l'exécution (III) du contrat.

February 12, 2008

Books Received and Book Reviews

Page range: 81-87

Abstract

James Gordley, Foundations of Private Law. Property, Tort, Contract, Unjust Enrichment (Oxford: Oxford University Press, 2006) 481. (Alain Wijffels)

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.