JUSTICE COUNCIL : MINISTERS PONDER FUNDAMENTAL PRINCIPLES FOR EUROPEAN CONTRACT LAW.(European Union)

What could be more ordinary than signing a contract? Signing a cross-border contract can nevertheless prove to be a far more complicated matter. The EU is currently exploring options for the creation of a common frame of reference for European contract law. The aim is to agree at least on certain definitions, fundamental principles, such as contractual freedom, and the development of model rules'. The ministers adopted conclusions on all these items, on 5 June in Luxembourg.

To minimise differences between contract law from one member state to the next, the Council mentions the fundamental principles' that should appear in a common European frame of reference, eg the principles of freedom of contract (autonomy of the parties), legal certainty, binding force of the contract and fair dealing, which includes the concepts of good faith and reasonable behaviour.

Businesses and individuals alike are obliged to sign contracts in their day-to-day existence and this act increasingly takes place at European level.

The Commission will be in charge of developing this common frame of reference for European contract law.

CONSUMER LAW

On the definitions of key concepts of contract law to feature in the European framework, the Council's experts are still hesitant. These should "relate directly" to general contract law. Certain definitions relating to consumer contracts should be a priority as this area represents an "important part" of the EU acquis in contract law. The frame of reference must also be "coherent" with the October 2008 directive on consumer rights, which aims to build Europeans' confidence in cross-border purchases via internet or sales outlets. The Council conclusions nonetheless note that "it is recognised that the two proposals are separate and pursue objectives that may not always be identical".

The model rules' will be inspired by both the fundamental principles and the definitions agreed. They will be general in nature in order to be applicable to all contracts and all contractual situations. The Council does not, however, rule out the possibility of establishing more specific rules, especially on consumer contract law.

The form the frame of reference may take has not been decided. One thing is certain, however: it will not be a binding instrument. It will simply be a set of guidelines that the Council, the European Parliament and the Commission will use as a source of inspiration for the adoption of legislative proposals.

The conclusions are available at www.europolitics.info > Search = 251090a