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EUROPEAN PARLIAMENT

__________________ __________________

Directorate General for Research

ORKING PAPER

THE PRIVATE LAW SYSTEMS IN THE EU:

DISCRIMINATION ON GROUNDS OF NATIONALITY

AND THE NEED FOR A EUROPEAN CIVIL CODE

Legal Affairs Series

JURI 103 EN

2 Systems of private law in the EU - Discrimination - European Civil Code

PE 168.511 This document is available in the following languages:

DE (original)

EN The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy.

Publisher: European Parliament

L-2929 Luxembourg

Authors:

Christian von Bar (head of team), Maurits Barendrecht, Jürgen Basedow, Ulrich Drobnig, Walter van Gerven, Ewoud Hondius, Konstantinos Kerameus, Stelios Koussoulis, Ole Lando, Marco Loos and Winfried Tilmann in consultation with the Study Group on a European Civil Code This study was commissioned at the request of the Committee on Legal Affairs and the Internal Market of the European Parliament.

Editor: Klaus H. OFFERMANN

Directorate General for Research

Division for Social, Legal and Cultural Affairs

Tel.: (00352) 4300-23709

Fax.: (00353) 4300-27723

E-mail: koffermann@europarl.eu.int

Manuscript completed in June 1999.

EUROPEAN PARLIAMENT

__________________ __________________

Directorate General for Research

ORKING PAPER

THE PRIVATE LAW SYSTEMS IN THE EU:

DISCRIMINATION ON GROUNDS OF NATIONALITY

AND THE NEED FOR A EUROPEAN CIVIL CODE

Comparative study of the systems of private law of the EU Member States with regard to discrimination on grounds of nationality and on the scope and need for the creation of a European Civil Code

Legal Affairs Series

JURI - 103 EN

06-2000

Systems of private law in the EU - Discrimination - European Civil Code iii

PE 168.511

Preface

This report, commissioned by the Directorate-General for Research of the European Parliament, examines, on the basis of a comparative study of legal provisions, the scope and need for the creation of a European Civil Code and the competence of the European Union to create such a code. At the same time, it investigates any forms of discrimination on grounds of nationality that may still be permissible under the private law and private procedural law of the EU Member States. The comparative inventory of legal provisions reviews the main differences between the national systems of property and procedural law that are currently represented in the European Union, as well as their common features. Admittedly, in many respects this could only be a fairly crude survey. We were unable to follow up specific details for sheer lack of time and because of the limits on the scope of such a study. We also had to confine ourselves to property law. Work on a European Civil Code, if it is to have any chance of political acceptance, must begin in the economically related domains of private law; harmonisation of family law and the law of succession remains a cura posterior for the time being. Accordingly, the term 'property law' as used in this study excludes these branches of private law. It stands as a general term covering both the law relating to land and chattels and the law of obligations, to use a distinction that applies in some countries, particularly Germany. This also means that we do not use the term 'Civil Code' in this report in the same way as it is used in the civil-law countries of continental Europe. The fact is that we are not yet talking about a complete codification of all private law but rather about the creation of a European legal framework covering a limited range of subject matter; this framework must be designed with a view to seeking out the traditions and principles that are common to the various national systems of property law, developing them sensitively in cases where they need further development and ensuring that they, at least, are enshrined for the first time in European law. Even this is a formidable task; in chapter 3 we discuss why it should be undertaken and how it could be tackled. The report concludes with an analysis of the legislative powers of the EU. It is several years now since the European Parliament first called on scholars of private law to devote themselves to the general theme of this study. 1 1 The first resolution to this effect dates from 26 May 1989 (for the wording, see for example Rabels Official Journal of the European Communities (OJ) C 158/400-401). Systems of private law in the EU - Discrimination - European Civil Code v

PE 168.511

Chapter I - Summary of the main differences between the various systems of property law and civil procedural law in the European Union and their common features

Ole Lando, Copenhagen

Salient features of European contract law ............................................................................3

I. Introduction...............................................................................................................3

II. The binding effect of a party's promise.....................................................................4

III. The claim to performance.........................................................................................6

IV. Legal remedies in the event of non-performance......................................................9

V. Release from liability in the event of a significant change of circumstances.........10

VI. The principle of good faith .....................................................................................12

VII. Unfair contractual conditions..................................................................................14

Maurits Barendrecht and Marco Loos, Tilburg

The law governing service contracts...................................................................................17

I. Introduction.............................................................................................................17

II. Information requirements........................................................................................18

III. Criteria for the assessment of service quality.........................................................19

IV. Liability for the actions of third parties ..................................................................20

V. Entitlements of third parties....................................................................................22

VI. Termination and adaptation of contracts for the performance of a

continuing or recurrent obligation ..........................................................................24

Jürgen Basedow, Hamburg

The law governing insurance contracts...............................................................................29

I. Introduction.............................................................................................................29

II. Freedom to contract................................................................................................30

III. Maximum term of contracts....................................................................................31

IV. Behavioural obligations of policyholders between conclusion of the

contract and occurrence of the event ......................................................................34

Christian von Bar, Osnabrück

Non-contractual obligations, especially the law of tort ......................................................41

I. The basic characteristics of non-contractual liability .............................................41

II. The place of the law of tort in the general structure of private law........................45

III. Negotiorum gestio and unjustified enrichment.......................................................48

vi Systems of private law in the EU - Discrimination - European Civil Code

PE 168.511 IV. Strict liability..........................................................................................................52

V. Legal consequences ................................................................................................54

Ulrich Drobnig, Hamburg

The law governing credit security.......................................................................................57

I. Introductory remarks...............................................................................................57

II. Personal credit security...........................................................................................57

III. Real security............................................................................................................69

Konstantinos Kerameus, Athens

Harmonisation of the law of civil procedure in the European Union in the

context of the creation of a European Civil Code...............................................................83

I. Variations in procedural law within the European Union ......................................83

II. Harmonisation of civil procedural law in general...................................................84

III. Harmonisation of civil procedural law in the European Union..............................88 Chapter II - Discrimination on grounds of nationality

Maurits Barendrecht and Marco Loos, Tilburg

The law governing service contracts...................................................................................95

Jürgen Basedow, Hamburg

The law governing insurance contracts...............................................................................97

Christian von Bar, Osnabrück

Statutory obligations.........................................................................................................103

Ulrich Drobnig, Hamburg

The law governing credit security.....................................................................................109

Konstantinos Kerameus and Stelios N. Koussoulis, Athens

The law of civil procedure................................................................................................113

I. Introduction...........................................................................................................113

II. Overt discrimination.............................................................................................114

III. Covert discrimination ...........................................................................................118

Systems of private law in the EU - Discrimination - European Civil Code vii

PE 168.511

Chapter III - Scope and need for the creation of a uniformCivil Code

Section One: Basic issues and progress to date

Ole Lando, Copenhagen

The rules of European contract law..................................................................................123

I. Introduction...........................................................................................................123

II. Arguments against and in favour of a uniform law of obligations

in Europe...............................................................................................................123

III. The Commission on European Contract Law.......................................................125

Christian von Bar, Osnabrück

The Study Group on a European Civil Code....................................................................133

Ewoud Hondius, Utrecht

Annex: Documentary evidence from the academic discussion on the

creation of a European Civil Code....................................................................................138

Christian von Bar, Osnabrück

A European Civile Code, international agreements and European directives..................147

Section Two: Specific aspects

Maurits Barendrecht and Marco Loos, Tilburg

The law governing service contracts.................................................................................155

I. The need for European legislation........................................................................155

II. Prospects for European legislation .......................................................................156

Jürgen Basedow, Hamburg

The law governing insurance contracts.............................................................................159

I. Creation of the single market................................................................................159

II. The first option: free choice of law.......................................................................160

III. The second option: harmonisation of substantive contract law............................161

IV. Résumé .................................................................................................................163

viii Systems of private law in the EU - Discrimination - European Civil Code

PE 168.511 Christian von Bar, Osnabrück

Statutory obligations.........................................................................................................165

I. The need for standardisation.................................................................................165

II. Scope for standardisation......................................................................................169

Ulrich Drobnig, Hamburg

The law governing credit security.....................................................................................173

I. Personal security...................................................................................................173

II. Real credit security ...............................................................................................175

Chapter IV - The competence of the EU to create a uniform

European Civil Code

Winfried Tilmann, Düsseldorf, and Walter van Gerven, Leuven and Maastricht The competence of the EU to create a uniform European law of obligations and

property and the potential legal bases...............................................................................183

I. Introductory remarks.............................................................................................183

II. Areas of the law of obligations and property in which the need for

standardisation or harmonisation is greatest.........................................................184

III. The potential legal bases in the EC Treaty...........................................................190

IV. Concluding remarks..............................................................................................203

Systems of private law in the EU - Discrimination - European Civil Code 1

PE 168.511

Chapter I

Summary of the main differences between the various systems of property law and civil procedural law in the European Union and their common features Systems of private law in the EU - Discrimination - European Civil Code 3

PE 168.511

Salient features of European contract law

Ole Lando, Copenhagen

I. Introduction

1. On the way to a uniform European system of contract law

Although their systems of contract law are still highly disparate, the States of the European Union have yet to create a uniform system of general contract law. Efforts have been made in that direction. These are reflected in the Principles of European Contract Law (hereinafter referred to as the PECL), the basic rules of European contract law that were formulated by the Commission on European Contract Law. 1

In their

present version, these rules relate to the conclusion of contracts, the authority of agents, substantive validity, interpretation, content, breach of contract and the rights of parties affected by a breach of contract. The work that is still being undertaken relates to rules governing majorities of creditors and debtors, the assignment of claims, the assumption of debts, set-offs, the right to charge compound interest and the statute of limitations.

2. The rules governing the conclusion of contracts, breach of contract and legal remedies for

breach of contract are, to a considerable extent, consistent with the United Nations Convention on Contracts for the International Sale of Goods (CISG). In these and other domains, after conducting a comparative review of the autonomous European legal systems, the Commission based its principles on the national rules which, in its opinion, merited precedence. One example is the authority of agents, the rules governing which were inspired by the concept of Vollmacht in German law. Innovative provisions also exist here and there. The following paper relates the main decisions underlying the Principles of European Contract Law to the leading autonomous legal systems of the

Member States.

1 Lando and Beale (ed.), Principles of European Contract Law, Part I: Performance, Non-performance and Remedies (1995). A German translation can be found in Drobnig and Zimmermann, 'Die Grundregeln des

French, edited by de Lamberterie and Tallon, as Les principes du droit européen du contrat (1997). The second

Commission's findings are set out in Lando and Beale (ed.), Principles of European Contract Law, Parts I and

II, The Hague, 1999. The article numbers referred to in the present text are based on that version. The third

Commission is expected to complete its work in the year 2001.

4 Systems of private law in the EU - Discrimination - European Civil Code

PE 168.511 II. The binding effect of a party's promise

3. Pacta sunt servanda

A party to a contract must be able to rely on the other party keeping his part of the bargain. The binding character of contracts is therefore a basic principle in all countries. All the legal systems in the European Union vigorously uphold this principle. Thequotesdbs_dbs19.pdfusesText_25

[PDF] [PDF] 5 - European Parliament

EUROPEAN PARLIAMENT

Directorate General for Research

ORKING PAPER

THE PRIVATE LAW SYSTEMS IN THE EU:

DISCRIMINATION ON GROUNDS OF NATIONALITY

AND THE NEED FOR A EUROPEAN CIVIL CODE

Legal Affairs Series

JURI 103 EN

2 Systems of private law in the EU - Discrimination - European Civil Code

DE (original)

Publisher: European Parliament

L-2929 Luxembourg

Authors:

Editor: Klaus H. OFFERMANN

Directorate General for Research

Division for Social, Legal and Cultural Affairs

Tel.: (00352) 4300-23709

Fax.: (00353) 4300-27723

E-mail: koffermann@europarl.eu.int

Manuscript completed in June 1999.

EUROPEAN PARLIAMENT

Directorate General for Research

ORKING PAPER

THE PRIVATE LAW SYSTEMS IN THE EU:

DISCRIMINATION ON GROUNDS OF NATIONALITY

AND THE NEED FOR A EUROPEAN CIVIL CODE

Legal Affairs Series

JURI - 103 EN

06-2000

PE 168.511

Preface

PE 168.511

Table of contents

Ole Lando, Copenhagen

Maurits Barendrecht and Marco Loos, Tilburg

Jürgen Basedow, Hamburg

Christian von Bar, Osnabrück

Ulrich Drobnig, Hamburg

Konstantinos Kerameus, Athens

Maurits Barendrecht and Marco Loos, Tilburg

Jürgen Basedow, Hamburg

Christian von Bar, Osnabrück

Ulrich Drobnig, Hamburg

PE 168.511

Section One: Basic issues and progress to date

Ole Lando, Copenhagen

Christian von Bar, Osnabrück

Ewoud Hondius, Utrecht

Christian von Bar, Osnabrück

Section Two: Specific aspects

Maurits Barendrecht and Marco Loos, Tilburg

Jürgen Basedow, Hamburg

PE 168.511 Christian von Bar, Osnabrück

Ulrich Drobnig, Hamburg

European Civil Code

PE 168.511

Chapter I

PE 168.511

Salient features of European contract law

Ole Lando, Copenhagen

I. Introduction

1. On the way to a uniform European system of contract law

In their

2. The rules governing the conclusion of contracts, breach of contract and legal remedies for

Member States.

4 Systems of private law in the EU - Discrimination - European Civil Code

3. Pacta sunt servanda