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European Contract Law Part I. Laura M. Franciosi Fall Semester – a.y. 2010-2011. Introduction to the Course. Structure Purpose Content Assignments Final Exam. Basic Knowledge. Comparative Law Legal traditions: - civil law - common law Legal formants Areas of Law.
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European Contract LawPart I Laura M. Franciosi Fall Semester – a.y. 2010-2011
Introduction to the Course • Structure • Purpose • Content • Assignments • Final Exam
Basic Knowledge • Comparative Law • Legal traditions: - civil law - common law • Legal formants • Areas of Law
European Legal Framework • National Laws • European Law • International Law (i.e. International Conventions) • Soft Law (e.g.: Unidroit Principles) • Projects of unification
EU Law • “Original” European Law • “Derivative” European Law: • Regulations • Directives • Decisions • Recommendations and Opinions
Life of a contract • Negotiation • Formation • Execution • (Termination) • (Breach) • (Litigation)
Key Issues • Has been a contract entered into? • Kind of contract • Governing law
Governing Law • Parties’ will (complying with mandatory law provisions) • National law (parties’ choice or conflict of laws) • EU law • International Conventions (for example: CISG) • Soft Law (for example: UNIDROIT Principles and DCFR)
Governing Law • EU Law: - so far: mandatory rules for certain contracts (i.e. Directives for consumer contracts) - for the future: Project of an European Contract Law ( DCFR, PECL)
Has been a contract entered into? In order to provide an answer to such an issue, we have to take into account: • The definitions of contract; • The fact that the formation of a contract is not a static process but, rather, a dynamic one; • According to points (i) and (ii) above, when all the requirements of a contract are fulfilled, and, therefore, the formation process is completed, a contract is entered into.
Definitions • French Civil Code - Art. 1101 “A contract is an agreement (convention)* by which one or more persons obligate themselves to or more other persons to give, or to do, or not to do, something”. * Agreement (Convention)= Any agreement intended to produce legal effects
Definitions • Italian Civil Code - Art. 1321 “A contract is an agreement between two or more parties for the purpose of creating, providing for or extinguishing amongst themselves a legal patrimonial relation”.
Definitions • Dutch Civil Code – Art. 6:213 “A contract … is a multi-lateral juridical act whereby one or more parties assume an obligation towards one or more other parties”. • German Civil Code (BGB) - § 305 “For the creation of an obligation by a juristic act, and for any alteration of the substance of an obligation, a contract between the parties is necessary, unless otherwise provided by law”.
Definitions • English Law: there is no legal definition of contract, but, according to the case-law, a contract exists when the following requirements are fulfilled: • Offer • Acceptance • Consideration • Intent to create legal relationship
Definitions • U.S. – Restatement 2nd of Contracts, §1 “A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty” .
Kind of Contract 1. According to the status of the parties: - Consumer Contract, or - Business Contract 2. According to the nature/effect/object of the contract: - sale; franchising, leasing, insurance contract, etc.
Consumer Contracts • No General Definitions • Main characteristics: - from a subjective perspective; - from an objective perspective.
Assignment (Mandatory) • NEXT Class: look for comparative advertising (TV commercials, advertising in newspapers, …) and bring it in class (if possible). Be ready to discuss about it.