Some Thoughts on the Harmonisation of Commercial Law and the Impact on Cross-Border Transactions
THE BOUNDARIES OF COMMERCIAL AND TRADE LAW, C.Twigg-Flesner, G.Villalta Puig, eds., Munich, Sellier, 2011
28 Pages Posted: 10 Nov 2011
Date Written: July 29, 2011
The focus of this chapter is on the process of “harmonising” Commercial (Contract) Law as a key means of promoting cross-border transactions between businesses. One key question appears to have not been considered adequately with many harmonisation initiatives: what is in the best interests of business? Business, whether domestic or transnational, has its own system of rules and norms which implicitly govern transactions, and the law often plays only a secondary role. The adoption of harmonising measures runs the risk of colliding with the rules and norms of the business community,which could have the eff ect of either stifling cross-border transactions, or the harmonising measure being ignored by business, or both. The particularboundaries of Commercial Law explored in this chapter are the extent to which the law can really promote cross-border transactions through harmonisation/unification of law, and the potential mismatch between business practice and the formal legal rules adopted.
Keywords: Transnational Commercial Law, harmonization
JEL Classification: K12, K20
Suggested Citation: Suggested Citation