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.