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