Council Resolution On "A More Coherent European Contract Law"
Date: 2003-10-14
Institutions: Council of the European Union
Subjects: EU law, action programme, contract

14.10.2003

EN

Official Journal of the European Union

C 246/1

I

(Information)

COUNCIL

Council Resolution On ‘A More Coherent European Contract Law’

(2003/C 246/01)

THE COUNCIL OF THE EUROPEAN UNION

I. RECALLING THAT:

1. As a follow-up to its Communication of

European Contract
Communication entitled:
‘A more
Contract Law — An Action Plan’ (2).

law (1),

July 2001 on
the Commission adopted a
coherent European

2. The European Parliament adopted a resolution on this

Communication on 2 September 2003.

3. Taking into account the contributions received after July
2001, this Action Plan, on which views from all interested
parties are being sought, suggests a long-term strategy based
on a mix of non-regulatory and regulatory proposals.

the Community acquis

4. In addition to appropriate sector-specific interventions, the
increasing the
Action Plan includes proposals aimed at
area of
coherence of
law, at promoting the elaboration of general
contract
the
terms intended to be applied throughout
contract
European Union and at
further examining whether the
diversity of contract law in the European Union may also
require non-sector-specific solutions.

in the

II. CONSIDERING THAT:

1. Community law rules, in particular in the area of contract
law, should be consistent and ensure proper transposition
into national law. In this context, the Common Frame of
Reference suggested by the Commission could contribute to
improving the quality and consistency of both existing and
future Community legislation in this area. This Common
Frame of Reference would not be a legally binding
instrument.

2. It is essential to ensure a smooth and efficient functioning
of cross-border transactions in the internal market. In this
context,
to take appropriate and
proportionate measures to facilitate the conclusion of cross-
border contracts, to decrease transaction costs, and to allow
all economic operators and consumers to make full use of

it would be useful

(1) Doc. 10996/01.
(2) Doc. 7780/03.

the Common Frame of Reference,

the advantages offered by the internal market. Any measure,
should
including
correspond to the realities of
the internal market and,
therefore,
to the practical needs of economic operators
and consumers. Member States should be actively involved
in their preparation and elaboration.

3. The coherence between the follow-up to the Action Plan
and to the Green Paper on the conversion of the Rome
Convention of 1980 on the law applicable to contractual
obligations into a Community instrument and its modern-
isation should be guaranteed. The need for coherence with
international conventions aiming at the
existing relevant
the United
harmonisation of private law,
Nations Convention on Contracts for
the International
Sale of Goods of 11 April 1980, should also be taken
into account.

in particular

III. WELCOMES:

1. The Commission Action Plan on ‘A more

coherent

European contract law’.

2. The Commission's intention to elaborate a Common Frame
of Reference, prepared on the basis of a research project
under the Sixth Framework Programme for research and
technological development (3),
taking due account of all
the different legal traditions of Member States.

The Commission's
intention to inscribe the proposals
included in the Action Plan inter alia within the objective
of developing an area of freedom, security and justice and
to ensure that they are complementary with the follow-up
to the Green Paper on the conversion of
the Rome
Convention of 1980 (4) on the law applicable to contractual
obligations into a Community instrument and its modern-
isation (5).

(3) Decision 1513/2002/EC of the European Parliament and of the
Council of 27 June 2002 concerning the
sixth framework
programme of the European Community for research, technological
development and demonstration activities, contributing to the
creation of the European Research Area and to innovation (OJ L
232, 29.8.2002, p. 1).

(4) Convention on the law applicable to contractual obligations opened
for signature in Rome on 19 June 1980 (80/934/EEC; OJ L 266,
9.10.1980, p. 1; consolidated version: OJ C 27, 26.1.1998, p. 34).

(5) Doc. 5516/03.

C 246/2

EN

Official Journal of the European Union

14.10.2003

IV. UNDERLINES THAT:

V. CALLS UPON THE COMMISSION TO:

1. In order to achieve greater transparency, coherence and
it also appears particularly
the

simplification of contract law,
useful
existing EC legislation in the area of contract law;

improve, consolidate and codify,

to further

2. The elaboration of EU-wide general contract terms can be
useful; however, such general terms should be developed by
the contractual parties themselves and respect mandatory
Community law and national provisions,
including the
provisions regarding the protection and information of
it seems
consumers. At
particularly useful to gather information on existing and
future initiatives through the web-site envisaged by the
Commission.
It should nevertheless be understood that
publication on this web-site should not be interpreted as
a form of approval of such initiatives.

this stage and in this context,

including a discussion forum,

Establish appropriate mechanisms both at political and expert
level,
in order to allow all
Member States, the Council and the European Parliament, as
well as researchers, legal practitioners and other stakeholders,
to actively participate in the elaboration of the Common Frame
through
of Reference. These mechanisms
the
adequate consultation schemes,
the elaboration of
the
Common Frame of Reference takes into due account
principle of subsidiarity,
the practical needs of economic
operators and consumers and the established structures and
legal cultures in Member States. Furthermore,
the research
project referred to in III.2 above should be carried out in a
way to reflect all legal traditions of Member States.

should ensure,

that

VI. CALLS UPON THE MEMBER STATES TO:

Actively participate to the work of the Commission on the
proposed follow-up measures and encourage the contributions
of national
at
Community level.

to the ongoing discussions

stakeholders

3. Further reflection is necessary on the need for non-sector
specific measures, for example an optional instrument in the
area of European contract
the Commission should
pursue this reflection, in close collaboration with Member
States and taking due account of the principle of contractual
freedom.

law:

VII. INVITES THE COMMISSION TO:

Regularly inform the Council and report to it at least every 12
months on the results of the ongoing discussion process and
on the progress made in the area of European contract law.