The Function of European Contract Law: An Economic Analysis
European Review of Contract Law. Volume 5, Issue 4, Pages 399–426, ISSN (Online) 1614-9939, ISSN (Print) 1614-9920, DOI: 10.1515/ERCL.2009.399, December 2009
33 Pages Posted: 29 Jul 2008 Last revised: 25 Jun 2014
Date Written: July 29, 2008
This paper aims at addressing a fundamental but somewhat neglected issue regarding the discussion of the function of European Contract Law. At a time when both academics and political actors show their interest in drafting a comprehensive body of rules meant to be available to market operators across Europe, a thorough analysis of the aims of such legal instrument is fundamental and cannot be sufficiently addressed by an all-encompassing list of values that European Contract Law is expected to pursue. The work tries to show how using an economic method can be of help at the core of European Contract Law, to identify its function(s) and to provide guidance as to the appropriateness of the rules set to become part of it. Such guidance includes both suggestions as to the appropriate regulatory level, going beyond the incomplete cross-border transaction costs argument, as well as indications as to what constitutes contract law of good quality.
Keywords: European Contract Law, Economic Analysis, Common Frame of Reference, CoPECL
JEL Classification: K12, K33, H73, H77
Suggested Citation: Suggested Citation