Contract Law Vs Pecl Analysis

Introduction

International contract law comprises legal rules regarding the commercial agreements between the countries. Ambit of the proper law of a contract depends upon the intention of the contracting parties. International contract law becomes applicable where the parties do not agree to abide by the laws of one country, wholly or in part. The UN Convention on Contracts for the International Sale of Goods (hereinafter referred to as ‘the CISG’), the UNIDROIT Principles of International Commercial Contracts (hereinafter referred to as ‘the UNIDROIT Principles’) and the European Principles of Contract Law (hereinafter referred to as ‘the PECL’) can be considered as the most significant international instruments which regulate international

In 1994 the Governing Council of the International Institute for the Unification of Private Law (UNIDROIT) endorsed the UNIDROIT Principles and in the same year the Commission on European Contract Law consisting private scholars concluded its work on the first part of the Principles of European Contract Law.

Neither UNIDROIT principles nor the PECL are legally operative instruments and both have few stated purposes in common. However, the both can be considered as “private codification” prepared by leading jurists in the absence any national or international mandate. Composition of uniform legal principles is the main goal of these two instruments. The both instruments can operate to recognize the ‘general principles of law’, to fill up the gaps in national law and to provide guidelines for national courts and

The style of drafting and the presentation of both instruments are largely similar and the only important variation is that the UNIDROIT Principles are followed by rules to recognize the basic sources used and a concise discussion of how the issue is addressed in the member states of the European Union with distinct legal systems. The provisions of the PECL are a very similar to UNIDROIT Principles and about seventy corresponding principles can be identified.

For instance, the paragraphs 1,2 of the Preamble, Article 1.2 ,1.4 and Article 1.5 the UNIDROIT Principles have literal similitudes in the PECL namely the Article 1.101(2)(3)(a), 2.101(2) and 1.102 respectively. With regards to the chapter on formation in UNIDROIT Principles Article 2.1, 2.2, 2.4 -2.7, 2.9, 2.11, 2.13 2.15, 2.16, 2.22 corresponds the Articles 2.211, 2.201(1), 2.202(1)(2), 2.203, 2.204, 2.206, 2.207, 2.208, 2.103(2), 2.301, 2.302 and 2.209 of the PECL