The risks of contract law

The economic analysis of law may be able to provide some reason why it is efficient to enforce wholly executory contracts, but (I submit) it has not done so.     

Rediscovering the public/private divide in EU private law

This article explores the role of the public/private divide within EU private law. It shows that although EU private law cuts across the boundaries of public and private law, the conceptual distinction between these well‐established categories does matter within it and may lead to better law‐making in the EU more generally. The legal grammar of a particular EU harmonisation measure—which can be more “public” or “private”—may have important implications for the position of private parties at national level, for the CJEU's likely activism in this context, and ultimately for the measure's ability to realise its policy goals. Therefore, instead of ignoring the existing differences between public and private law, EU law should explicitly adopt the public/private law language in its discourse, without, however, introducing any sharp divide between these two areas.     

Economic impossibility in Turkish contract law from the perspective of law and economics

We argue that the proposed introduction of the doctrine of economic impossibility in Article 137 of the reform draft of the Turkish Code of Obligations is in line with economic considerations and facilitates business transactions. This new rule gives courts the explicit power to terminate a contract and relieve the party, which owes specific performance of its obligation, without imposing any duty to pay expectation damages to the other party. We argue that a court??s decision to terminate a contract under economic impossibility should be based on three tests. First, a low-probability-event occurs between contract formation and performance. Second, this event causes an excessive increase in the costs of specific performance. Third, the concept of an excessive increase should take into due consideration the other party??s interest in specific performance. The reform draft includes explicitly the first two tests, but not the third test. We also show under which conditions an excessive performance difficulty should not lead to termination of the contract but rather to an adjustment of the agreed price. We argue that the rule of economic impossibility, if diligently adjudicated, saves the parties transactions costs in comparison to a rule under which the law insists on specific performance or damage payments. We also argue that a specific rule of economic impossibility leads to better and more business-oriented solutions to the underlying problems than the alternative, which is to solve such problems under the broad and unspecific cover of the ??good faith?? or the ??Clausula Rebus Sic Stantibus?? doctrine.     

The limits of contract law harmonization

Contract law harmonization in the European Union has met with some significant but limited success. This Essay explores some of the psychological and political forces that can complicate or even hinder law reform efforts. Even when there is a general institutional drive for law reform, as there is in the EU, scarce reform resources force attention to be focused on salient issues, while a status quo bias in individual member states by government officials can provide a braking inertia regarding nonsalient legal reforms. This braking influence can be seized upon and enhanced by interest groups that oppose reforms, especially where there is an alternative to proposed law reforms for private entities. In the case of contract law harmonization, contract doctrine that is not focused on providing consumer protections remain nonsalient, commercial entities can solve the confusion of diverse laws by choosing their own, and interest groups in nations whose laws and dispute resolution forums are commonly chosen will oppose harmonization. Thus, the current state of affairs may prove relatively difficult to alter.     

房屋买卖合同中的陷阱及法律救济

开发商和购房人之间的权利义务关系规定在购房合同中。由开发商单方面提供的格式合同已提前确定了本应由双方协商的合同条款。本文以某房屋买卖合同为例，指出在房屋买卖合同中常见的不公平、不舍法条款，针对房屋买卖合同中的陷阱提出法律救济途径。     

Authentic assessment in contract law: legal drafting

Legal drafting is a vital skill for lawyers and thus it is important for law students to be exposed to drafting throughout their degree. One of the first year courses most suited to this exercise is contract law. This paper discusses the inclusion of a drafting exercise as part of the contract law assessment over four years in terms of the authenticity of the assessment task and feedback from students about the exercise. A sample exercise is included in the paper. These exercises required students to draft clauses to be inserted into a contract or draft a short contract and this work demonstrated an application of the material being covered in class. Initially, this assessment was set as a largely independent exercise with students being directed to relevant resources. It was found that additional scaffolding was needed and each year more extensive resources were provided. Although the students who participated in the survey were predominantly students who had passed the course, the majority each year believed that it was a useful exercise, of value for their future careers and of more practical relevance than other forms of assessment.     

现代性与私法文化精神论纲

现代性运动展现了差异性、多样性、自由自主性的私人生活领域和活动空间 ,促进了私法文化精神和法治信仰的形成 ;而现代性的当代困境、危机和重建倾向 ,则促进了私法文化精神的当代转型和反思超越。在现代性追求和重建的复杂背景下推进中国法治进程 ,就要积极培育具有时代诉求的私法文化精神 ,以促进私法秩序和法治国家的建立。     

Reviewing the exclusionary principle in English contract law

The exclusionary principle in English contract law is a long established but controversial rule of contractual interpretation. This article considers the jurisprudential origins of the principle and critically analyses judicial justification of the principle. This article also puts forward a case for how the principle can be reformed in order to introduce greater fairness within the process of contractual interpretation.     

论法律适用中的"契约自由"原则——国际合同的自体法

肇始于16世纪的"意思自治"理论,标志着合同准据法理论发展的里程碑,即客观论向主观论的发展,特别是以意思自治为主、辅之以最密切联系原则的合同自体法理论的提出,更是将合同准据法理论推向一个前所未有的高度,它一改过去合同法律适用的机械性做法,强调尊重当事人自主意识,并将契约当做一个整体来看待,体现了国际私法合同法律适用的潮流和趋势。     

国际合同"契约自由"的冲突法规制 --国际合同的自体法

肇始于16世纪的"意思自治"理论,标志着合同准据法理论发展的里程碑,即客观论向主观论的发展,特别是以意思自治为主、辅之以最密切联系原则的合同自体法理论的提出,更是将合同准据法理论推向一个前所未有的高度,它一改过去合同法律适用的机械性做法,强调尊重当事人自主意识,并将契约当做一个整体来看待,体现了国际私法合同法律适用的潮流和趋势.     

How to build European private law: an economic analysis of the lawmaking and harmonization dimensions in European private law

In the process of building a European Private Law, the lawmaking and harmonization dimensions??the modes of harmonization and even more, the scope and reach of the harmonizing effect of the European rules- appear as crucial issues. We show how the harmonization strategy is as important a question as whether we should have European Private Law at all. We present an economic discussion of the different modes of harmonizing Private Law in the abstract, and how they are likely to differently affect outcomes. We also present in informal terms a simple economic model of how to build optimal harmonized rules and standards in a setting of pre-existing separate and diverse national ones, and we systematically explore how the different harmonization regimes (maximum harmonization, minimum harmonization, and pure co-existence of harmonized and national standards) affect the outcomes of the harmonization process.     

试论契约自由及其在我国合同法中的地位

毫无疑问,罗马法应该被视为研究契约自由的起点.正是在罗马法中,契约制度首次得到了全面规定并达到了相当的高度.而且,正是罗马法孕育了契约自由的观念和思想.契约自由从思想到原则的转变是在法国民法典中实现的,而人类进入20世纪之后,契约自由逐步受到限制.在我国合同法中,契约自由也得到了确立,它不仅是我国合同法的一项基本原则,而且也是我国合同法的最高原则.     

Institutional competition of optional codes in European contract law

The Common European Sales Law (CESL) is the European Commission’s most recent policy initiative for European contract law. It aims to address the problem that differences between the national contract laws of the Member States may constitute an obstacle for the European Internal Market. This paper develops a model of the institutional competition in European contract law and uses it to addresses the question as to whether an optional European contract code and the CESL are economically desirable for European contract law. To do so I examine the transaction costs involved in the process of choosing an applicable law that European businesses face when they conduct cross-border transactions in the European Internal Market. I then describe how these transaction costs shape the competitive environment, i.e. what I refer to as the “European market for contract laws” in which the contracting parties choose a law to govern their cross-border contracts. Having identified this environment and the competitive forces operating within it, I propose a model, the “Cycle of European Contract Law”. I use this model to analyze the competitive processes that take place in the European market for contract laws. Based on my results I make recommendations for the optimal implementation of an optional European contract code and the CESL in European contract law.