Ch.1 General Provisions, General Provisions III: Arts 1.6–1.12—Application of the PICC, Art.1.8

Author(s):  
Vogenauer Stefan

This commentary focuses on Article 1.8 of the UNIDROIT Principles of International Commercial Contracts (PICC), which states that a party cannot act inconsistently with an understanding it has caused the other party to have and upon which that other party reasonably has acted in reliance to its detriment. A party that behaves inconsistently within the meaning of Art 1.8 acts in bad faith. Therefore, Art 1.8 can be seen as the most general of the various specific applications of the general obligation to act in accordance with good faith and fair dealing — spelled out in Art 1.7 — that are contained in the black letter rules of the PICC. Art 1.8 covers the requirements for inconsistent behaviour, remedies for inconsistent behaviour, and exclusions or limitations of the provision on inconsistent behaviour.

Author(s):  
Zuloaga Rios Isabel

This commentary focuses on Article 2.1.15 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning negotiations in bad faith. Art 2.1.15 establishes liability for pre-contractual conduct in general terms. It stipulates that a party is free to negotiate and is not liable for failure to reach an agreement. However, a party who negotiates or breaks off negotiations in bad faith is liable for the losses caused to the other party. In particular, it is bad faith for a party to enter into or continue negotiations when intending not to reach an agreement with the other party. This commentary also discusses the consequences of failure to observe the principle of good faith and fair dealing, with particular emphasis on damages and the right to request performance of the obligation to negotiate in good faith, along with exclusion or limitation of liability and burden of proof.


Author(s):  
Wintgen Robert

This commentary analyses Article 10.1 of the UNIDROIT Principles of International Commercial Contracts (PICC). Art 10.1 provides an overview of the scope of Chapter 10 of the PICC concerning ‘limitation periods’. According to this provision, the exercise of rights governed by the PICC is barred by the expiration of the limitation period. Chapter 10 does not govern the time within which one party is required under the PICC, as a condition for the acquisition or exercise of its right, to give notice to the other party or to perform any act other than the institution of legal proceedings. This commentary discusses the rights governed by the PICC, exclusion of notice requirements with regard to limitation periods, and prevailing mandatory rules of domestic law on limitation periods. It also considers the implications of inconsistent behaviour, good faith and fair dealing for limitation periods.


Author(s):  
Rowan Solène

This commentary focuses on Article 5.3.4 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning the duty to preserve the rights of a party. Art 5.3.4 imposes obligations on the parties during the period of suspension of the condition. It requires the parties not to act, contrary to the duty to act in accordance with good faith and fair dealing, act so as to prejudice the other party's rights in case of fulfilment of the condition. Art 5.3.4 applies to both suspensive and resolutive conditions, but it should arguably apply with less intensity to resolutive conditions. This commentary discusses the prejudicial act that breaches the duty of good faith and fair dealing, the relationship between Arts 5.3.3 and 5.3.4, remedies for breach of Art 5.3.4, and the intensity of the obligation.


Author(s):  
Naudé Tjakie

This commentary focuses on Article 2.1.20 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning so-called surprising terms. Art 2.1.20 stipulates that no term contained in standard terms which is of such a character that the other party could not reasonably have expected it, is effective unless it has been expressly accepted by that party. In determining whether a term is of such a character regard shall be had to its content, language and presentation. Art 2.1.20 is an exception to the rule that a party which accepts the standard terms of the user is in principle bound by them, irrespective of whether it actually knows their contents. In this sense, it reflects the general principle of good faith and fair dealing. This commentary discusses express acceptance of surprising terms as required by Art 2.1.20, along with the burden of proof relating to such terms.


2021 ◽  
Vol 17 (2) ◽  
pp. 35-44
Author(s):  
V. I. Boyarinova

The article discusses the issue of the content of the pre-contractual legal relationship and the role of good faith in it. As a result of the analysis, it is concluded that the content of the pre-contractual legal relationship includes only one pre-contractual obligation – to negotiate in good faith. It should be considered as a duty that includes separate elements – manifestations of the general obligation of the parties to behave in good faith, arising at the pre-contractual stage, or, in other words, requirements for good behavior. These elements include the obligation to inform; the obligation not to interrupt negotiations without giving reasons if the other party relied on the person's intention to conclude a contract; the obligation to keep the information received in confidentiality if the party knows that the information is secret and cannot be used by third parties. An attempt has been made to prove that the meaning of good faith is not in addition to the pre-contractual obligation, but in its specification.


2017 ◽  
Vol 2 (1) ◽  
pp. 93
Author(s):  
Agnieszka Kacprzak

THE SALE OF STOLEN GOODSSummary The most complex analysis of the legal consequences resulting fromthe sale of stolen goods can be found in the Digest 18,1,34,3. Paul frames three separate hypotheses, in which the solutions differ depending on whether the contracting parties, or at least one of them, when stipulating the contract, were aware that the goods for sale had been stolen. If both parties were aware that the object of sale was res furtiva, the contract was void, i.e. neither party was obliged towards the other. Where only the buyer was aware of the circumstances then the seler was not bound by the contract. However, only if he voluntarily delivered his performance, could he demand payment. If only party aware that the goods were stolen was the seller, whereas the buyer concluded the contract in good faith, the sale was valid as a whole. This judgement conforms with the opinion of earlier jurisprudence, especially that of Pomponius.The question of what reason underpinned the jurists’ decision on the invalidity of sale, which had res furtiva as an object and was concluded by the parties aware of this fact, appears the first problem to be solved. I would rather dismiss the notion that such a solution could have been based either on the idea of impossibility of performance or on the mere mala fides of the contracting parties.Given that the seller was not bound to transfer ownership to the buyer, the execution of the contract of sale, the object of which was res furtiva, had to be considered possible. Neither does it seem plausible that the invalidity of the contract was provoked merely by the mala fides of the parties. It would be difficult indeed to speak of one party’s bad faith, if there is no good faith to be protected on the other side of the contract.In all probability the objective the jurists had in mind when excluding the validity of a deliberate sale of res furtivae, was to stop the circulation of such goods and render it easier for the owners to recover them. Therefore a deliberate sale of a stolen thing must have been considered invalid on the ground that it tended to violate one of the principles of legal order and hence was contra bonos mores.From the analysis of the three hypotheses considered by Paul results, that the validity of the sale of res furtiva depended on the good faith of the purchaser. Wherever he was unaware that the object of sale had been stolen, the contract was valid, irrespective of the good or bad faith of the seller. On the contrary, if the purchaser was aware, that the object of sale was res furtivay the contract was void in principle. The seller however, if in good faith, was granted the possibility to convalidate it by spontaneous performance.The reason for such a differentiation was probably the fact, that of the two reciprocal performances, which constituted the substance of the contract of sale, only the one, to which the seller was obliged, could violate the legal order and thus was considered defective. Therefor it was precisely the claim of the purchaser, trying to force such an execution in spite of His knowledge of the status of the goods, that was contra bonos mores and hence invalid. In such a situation the seller was not obliged to deliver his performance. Considering the principle of reciprocity of the contract of sale, one must conclude, that the purchaser could not be obliged towards the seller either, and thus, in principle, the whole contract was void.On the other hand, even though the seller could not have been forced to deliver his performance, he did have the possibility to deliver it voluntarily. In such a case, on the basis of the principle of reciprocity, he could claim payment from the purchaser. On this basis the contract became valid. 


2013 ◽  
Vol 03 (09) ◽  
pp. 56-61
Author(s):  
Ebrahim Shoarian Sattari

Good Faith is one of the important principles in contract law. This principle is inherited from Roman law and it has been mostly developed in civil law system. Observation of Good faith and Fair dealing in French and German law and many other countries is considered as legal obligation. Good faith, also, is of special stand In Chinese law of contract. Since Good faith is considered as important and valuable, it has been recognized in Common Law System and adopted in English and American law. Islamic law also contains numerous examples of obligations that are based on Good Faith principle. Nowadays, good faith principle has been incorporated in important international instruments such as CISG, UPICC, PECL, and DCFR and its scope has been developed. If good faith principle was being considered in fulfilling of contracts, today it also is considered as important in pre-contractual and conclusion stages of contracts. The aforementioned documents contain regulations for observing good faith in preliminary negotiations, conclusion of contract, fulfilling of contract and the interpretation thereto. The present Article is attempted to show that Good faith is important in all stages including preliminary negotiation and it should be incorporated in domestic legislations. Remedy for breach of this duty in the pre-contractual sphere should be limited only to compensation for damages.


Laws ◽  
2020 ◽  
Vol 9 (4) ◽  
pp. 30
Author(s):  
Alexander V. Demin

The principle of certainty of taxation is the dimension of a general requirement of certainty in the legal system. The purpose of this article is to argue the thesis that uncertainty in tax law is not always an absolute evil, sometimes it acts as a means of the most optimal (and in some cases the only possible) settlement of relations in the field of taxes. On the contrary, uncertainty and fragmentation in tax law are colossal problems subject to overcome by the efforts of scientists, legislators, judges, and practicing lawyers. Uncertainty in tax law is manifested in two ways: on the one hand, negatively—as a defect (omission) of the legislator and, on the other hand, positively—as a set of specific legal means and technologies that are purposefully used in lawmaking and law enforcement. In this context, relatively determined legal tools are an effective channel for transition from uncertainty to certainty in the field of taxation. A tendency towards increased use of relatively determined legal tools in lawmaking processes (for example, principles, evaluative concepts, judicial doctrines, standards of good faith and reasonableness, discretion, open-ended lists, recommendations, framework laws, silence of the law, presumptive taxation, analogy, etc.), and involving various actors (courts, law enforcement agencies and officials, international organizations, citizens, organizations and their associations) allow making tax laws more dynamic flexible, and adequate to changing realities of everyday life.


Obiter ◽  
2016 ◽  
Vol 37 (3) ◽  
Author(s):  
Fiona Leppan ◽  
Avinash Govindjee ◽  
Ben Cripps

While good-faith bargaining is recognized in many overseas jurisdictions and by the International Labour Organisation, such a duty has not been incorporated in South African labour legislation. Given the many recent examples of labour unrest in South Africa, it is time to consider whether there should be a duty to bargain in good faith when taking part in collective bargaining. Recognizing such a duty would arguably benefit both employers and employees and South Africa as a whole.


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