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Remedies for breach of information duties in DCFR

Remedies for breach of information duties in DCFR. Eric Clive. Introduction. No specific rules in DCFR on financial services If rules are added, sanctions for breach of duties should be clearly specified There are however some pre-contractual information duties in DCFR. DCFR II.-3:101(1).

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Remedies for breach of information duties in DCFR

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  1. Remedies for breach of information duties in DCFR Eric Clive

  2. Introduction • No specific rules in DCFR on financial services • If rules are added, sanctions for breach of duties should be clearly specified • There are however some pre-contractual information duties in DCFR

  3. DCFR II.-3:101(1) • … business hasa duty to disclose to the other person such information concerning the goods, other assets or services to be supplied as the other person can reasonably expect …

  4. DCFR II.-3:109(2) and (3) • (2) …business has such obligations under the contract as the other party has reasonably expected as a consequence of the absence or incorrectness of the information • (3) … business … is liable for any loss caused to the other party to the transaction by such failure

  5. DCFR II.–7:201(1)(a) • the party, but for the mistake, would not have concluded the contract or would have done so only on fundamentally different terms and the other party knew or could reasonably be expected to have known this

  6. DCFR II.–7:201(1)(b)(iii) • the other party (iii) caused the contract to be concluded in mistake by failing to comply with a pre-contractual information duty …

  7. DCFR II.–7:201(2) • (2) However a party may not avoid the contract for mistake if: (a) the mistake was inexcusable in the circumstances; or (b) the risk of the mistake was assumed, or in the circumstances should be borne, by that party.

  8. Other possible remedies • Fraud – but must be intention to induce mistake • Unfair exploitation – but not meant for this type of case • Infringement of mandatory rules – probably not applicable in this type of case and, even if applicable, probably no remedy

  9. Conclusion • Damages (by various routes) • No nullity (unless via avoidance for mistake)

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