UK Government strongly opposes any move towards harmonisation of contract law

In July 2009, Lord Bach responded on behalf of The Ministry of Justice re Common Frame of Reference to the letter by Lord Woolf on behalf of the FMLC

His response included that the Government shared many of the concerns of the FMLC and that the Government strongly opposed any move towards harmonisation of contract law.

The letter is available on this page: http://www.fmlc.org/

Lord Woolf on behalf of the Financial Markets Law Committee wrote to the UK Ministry of Justice on the CFR, 1 June, 2009

The Common Frame of Reference (the “CFR”) was raised at a meeting of the FMLC (Financial Markets Law Committee) on 2 April 2009. The project is one of a series of initiatives by the European Commission to increase the overall coherence of European contract law. It began largely as an academic exercise and, in December 2007, a first draft of an ‘academic’ Common Frame of Reference (the “DCFR”) was published. Since that time, there has been a great deal of discussion as to whether the DCFR can be used as a model for a political CFR and, indeed, what uses a political CFR would serve. Now that the DCFR is in final form, the FMLC feels it appropriate to express its views on the project to the UK Ministry of Justice.

To see the FMLC's views on the CFR, see Issue 97 below.

Issue 97: European Contract LawLetter from Lord Woolf to Ministry of Justice re Common Frame of Reference - June 2009

This is brought to you by Paul Abbiati, a CFR-net expert stakeholder

COUNCIL OF THE EUROPEAN UNION GUIDELINES ON THE SETTING UP OF A CFR FOR EUROPEAN CONTRACT LAW

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:

1) certain definitions
2) fundamental principles, such as contractual freedom, and
3) the development of “model rules”.

CFR Fundamental Principles

Of the principles that might apply throughout a contractual relationship the following are mentioned in the recent Council documents:

-the principle of freedom of contract (party autonomy)
-the principle of legal certainty in contractual matters which includes, inter alia,
-the binding force of the contract (pacta sunt servanda)
-the principle of fair dealing which includes, inter alia,
-the principles of good faith and
-of reasonable behaviour.

The CFR Guidelines

On 5 June 2009 The Justice and Home Affairs Council adopted a series of guidelines

The CFR’s Form The guidelines that the Council, the European Parliament and the Commission will use will be a source of inspiration for the adoption or revision of legislative texts.

So,the form of the CFR will not be a binding instrument.

Press Release on the CFR Guidelines: http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/jha/108340.pdf

This information is presented to you by Paul Abbiati, an official CFR-net stakeholder: law@abbiati.co.uk, June 2009