The European Commission last month published a number of options that it is considering to more closely harmonise contract law in EU member countries. It believes that the patchwork of laws in the 27 EU nations discourages consumers and businesses from engaging in cross-border trade.
One of the options proposed by the Commission is a 28th contract law regime that buyers and sellers could choose to use instead of the regime of one or other party to a sale. It hopes that this will give traders the kind of certainty that will encourage further trade.
The Ministry of Justice has asked businesses and consumers to tell it what they think of the plans in a 'call for evidence' to inform Government policy.
"The [Commission's] Green Paper is based on the premise that the variety and divergence of contract laws operating in each of the EU Member States hinders the smooth operation of internal markets and makes dispute resolution across EU borders difficult," said a Ministry of Justice statement. "It looks at whether such situations require a European Union level response and details seven possible approaches ranging from maintaining the status quo through to the creation of a mandatory common code of contract law."
"The UK Government’s Call for Evidence seeks views on the Commission’s proposed options and asks what, if any, changes are needed in cross-border contract law. The views and opinions gathered will help inform the Government’s response to the European Commission in the New Year," it said.
"Contract law is a crucial aspect of trade and commerce and it is vital that these laws provide an environment of security which allows all parties to trade with confidence," said justice minister Lord McNally. "When there is a dispute it is important that there is adequate legal certainty about how that dispute will be resolved. It is vital that we maintain this confidence when operating across EU borders."
The consultation is open until 26th November.
