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THE LAW OF CONTRACT THE GENERAL REGIME OF OBLIGATIONS AND

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  • What are the rules governing contracts?

    The Code of Obligations, adopted in 1911, consists of two categories of rules governing contracts: General rules, which are applicable to all categories of contracts and are outlined in articles 1 through 39 of the code; and Special rules, which are applicable to specific types of nominate contracts.

  • Is contract law governed by common law or civil law?

    Like other areas of private law, contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jurisdictions, civil law jurisdictions, or mixed-law jurisdictions that combine elements of both common and civil law.

  • What is a contract for the transport of goods and passengers?

    Contracts for the transport of goods and passengers are subject to a variety of distinct provisions both under international law and under the law of individual countries. Presently, different provisions apply at the international level to contracts for transport by maritime, land, and air transport.

  • Why are nominate contracts regulated?

    In civil law jurisdictions rooted in the French or German tradition, nominate contracts are regulated in order to prevent unfair terms. The law of obligations typically includes a duty to rescue which would make cases such as Hurley v. Eddingfield far less likely.

Pre-Contractual Relations

New article 1104 provides that contracts must be negotiated, concluded and performed in good faith1(previously the implied obligation of good faith applied only to performance) and failure to comply with such obligation can not only trigger the payment of damages, but also result in the nullification of the contract. New article 1112-1 provides spe

Preference Pacts and Unilateral Promises

Under new article 1123, if the undertaking party in a preference pact enters into an agreement in violation of this preference pact, the original beneficiary may obtain damages, and, if the new counterparty knew of the existence of the preference pact and the intention of the beneficiary to benefit thereby, the beneficiary may bring an action to ha

Economic Violence and Unequal Clauses

New article 1143 provides that violence exists when a party, abusing the state of dependency in which its co-contracting party finds itself, obtains from such co-contracting party an undertaking which such co-contracting party would not have otherwise agreed to in the absence of such constraint, and benefits thereby from a manifestly excessive adva

Interpretation and Nullification of Contracts

French law has historically provided that a court interpreting an ambiguous contractual provision must determine the parties’ actual subjective intention rather than simply construing the actual words of the contract in an objective manner. This has been traditionally opposed to the Anglo-American principle of interpreting ambiguous provisions in t

Hardship and Force Majeure

New article 1195 provides that if a change in circumstances which could not have been predicted at the time the contract was entered into renders performance of the contract excessively onerous for a contractual party who had not assumed such risk, such party may request its counterparty to renegotiate the contract. The requesting party must contin

Transfer of Contracts, Rights and Obligations

New article 1216 provides that a contracting party may, with the consent of its co-contracting party, assign its position as party to a contract; such an “assignment of contract” (cession de contrat) will simplify considerably the manner in which contractual transfer occurs under French law. Such consent may be given in advance, including in the co

Remedies For Non-Performance

As revised, the Civil Code now sets out several different remedies for contractual non-performance: 1. Refusal of the performing party to perform its own obligations or suspension of such performance (exception d’inexécution), not only when the other party is already failing to perform, but also when it is manifestly clear that the other party will


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THE LAW OF CONTRACT THE GENERAL REGIME OF OBLIGATIONS AND
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