International and European contracts

I just have researched same main topic, main juristic features of contracts that have to be known and used even the financial manager. Contracts come in different shapes and sizes. Some involve large sums of many, others trivial sums. Some are of long duration, while others are of short duration. The content of contracts are different may include contracts of sale, hire-purchase contracts, contracts of employment, consumer credit contracts, contracts for the sale of goods, contracts for the sale of land, marriage contracts, mortgage and leasehold contracts. Nevertheless, we aren’t concerned with all such contracts we are interesting in commercial contracts. This chapter is concerned with the “general principals” of the contract and the “general principle” to derive commercial contract to the invest project.

The general principals of the contracts are content of formation, misrepresentation, mistake, content, illegality, capacity, duress and discharge, subject to statutory qualification. Freedom of the contract and sanctity of the contract are the dominant ideologies. Parties have to be as free as possible to mare contract on their own terms with out the interference of the courts and their contracts have to be represented, upheld and enforced by the courts. Contract is based upon the “promise-principle”, by which` person may impose on themselves obligations where not existed before.

World which is becoming more interdependent and markets becomes no longer local they are, increasingly, international. The creation of world markets is providing the development of an international contracting. The most important example of international contract law is the UNIDROIT Principles of International Commercial Contracts. The Principles were published in 1994 and republished in expanded form in 2004 and consists 185 Articles. The UNIDROIT Principles now have significant role to use in international commercial arbitration. They are particularly useful then parties from different parts of the world and are unable to agree on the low of the contract. The UNIDROIT Principles offer a neutral set of principles which possible to accepts to both parties to the contract. Standard contract terms also have an important role to play in international commerce. INCOTERMS are the set of standard terms sponsored by the International Chamber of Commerce. The FIDIC set condition for Works of Civil Engineers. These international documents have achieved widespread acceptance in international sale and contraction contracts. There can be little object to developments because they seek to bring about harmonization through persuasion rather then imposition.

The most notable example of an international convention is the United National Convention on Contract for the International Sale of Good, commonly known as the Vienna Convention (CISG).

The Convention has been in force since 1988 and it has been ratified by many major trading nations, such USA, Russia, France, Germany and China (United Kingdom has not yet ratified it). Convention promotes the development of international trade by ensuring common standards in different nations. Contracting parties have great opportunities to deal with party from a different nation and such uniformity has result in lower cost because there will be no need to spend time arguing about which law should govern the transaction and no need to spend time and many seeking to discover the relevant rules which prevail in another jurisdiction.

The creation and development of the Single Market within European Community is likely to fuel demands for a single European Contract Law. Union is likely to have this rind of law. An example of these activities to issue in 1999 the Unfair Terms in Consumer Contracts Regulation (SI1999, No.2083). On 13 July the 2001 the European Commission issued a Communication on European Contract law to the Council. In February 2003, Commission proposed the quality of existing and future legislation; produce common frame of reference (C.F.R.) which should contain common rules and terminology in the field of European contract law. On 11 October 2004 the Commission issued a further Communication on a European Contract Law and Revision `The Way Forward (COM (2004) 651 Final). The C.F.R. will play a crucial role in the development from European Contract Law to the European Civil Code, but it is very much a long-term goal.