Reasonableness in the Principles of European Contract Law PECL) Law

REASONABLENESS IN PRINCIPLES OF EUROPEAN CONTRACT LAW
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The role and significance of the concept of “reasonableness” in Principles of European Contract Law (PECL)
Introduction
Article 1:302 in Principles of European Contract Law (PECL) outlines the perspective under which the judgment of reasonableness is viewed. In this case, the judgment is based on the actions of good faith as well as the conditions surrounding the contract that the parties consider reasonable. The concept of reasonableness in the legal provisions has become a reference point continuously due to factors such as the influence of key international conventions that concern several commercial contracts. These may include the implementation of European Union directives within the field of contract law, where the concept of reasonableness is constantly applicable. The level of attractiveness of reasonableness is dependent on specific features that entail extreme flexibility as well as proximity towards concrete circumstances as compared to strict features of other re-known principles alongside concepts applicable in Civil law such as ‘equity’ and ‘good faith’ (Hondius and Van Kooten, 2002).
The principle of reasonableness resonates with the nature of judgment on those acting in good faith under a similar situation considered reasonable. The assessment of what is reasonable considers the nature as well as the purpose of the contract, the nature of circumstances of the case alongside the practices, and the application of the professions involved. The contract law is considered almost universally to be at the disposition of the parties in the process of modeling their individual contract situation. The significant parts of the provisions of the contract law are usually considered mandatory. The rules are usually confined to popular issues of validity due to immorality, illegality, or incapacity alongside the rudimentary protection of the balance of responsibilities as agreed between the parties involved. In the situations where the partners in the agreement actively negotiate the terms of the contract and especially within the manifold scenario where they do not discuss the conditions, the commercial parties involved as per cross-border transactions fail to consider the substantive law as applicable to the contract. Such a process holds true from the contract drafting stage to the fulfillment of the duties as performed under the duties outlined by the contract (Hondius and Van Kooten, 2002).
The role and significance of the concept of “Reasonableness.”
The principles of European Contract Law entail the principal source that allows for the identification of guiding principles of reasonableness under contract law. On the same note, the concept of “Reasonableness” provides a useful guide applicable in the interpretation and the application of the Principles of European Contract Law. In this case, it makes perfect sense the art of associating reasonableness with Contract Law. In PECL, the concept of reasonableness helps define all relevant factors that should be considered in making a decision upon signing contracts between two parties. The concept ensures the computation of time favors both parties, whereby consideration is made for official holidays as well as official non-working days within the period of the agreement. In this case, the nature and purpose of the contract determine the timeline within which notice of termination, as provided in Article 9:303, is provided, depending on the nature of the action required by the aggrieved party under the contract. Further, the concept of “Reasonableness” ensures that parties involved are served with notice that is appropriate to the circumstance.
In matters of confidentiality, Article 2:302 provides for the regulation in case of breach of confidentiality. In this case, the parties involved have no reasonable obligation to disclose the confidential information of the other party upon request of the other party. In case of such breach of confidentiality, the aggrieved party has the provision of claiming the benefit that the partner receives from the disclosure of such confidential information. At the same time, reasonableness is key in influencing the determination of implied terms of a contract, as indicated in Article 6:102.
In Article 2:101 of the PECL, the concept of reasonableness ensures that the approval and conclusion of any contract could be done in the presence of witnesses so long as the parties involved reach sufficient agreement on the basis of legal binding. The concept introduces the word reasonable, which in turn provides an objective standard within the contract. The concept places a limit on the influence of overly strict obligations. In cases where there is a limitation of the overly strict obligations, there is the requirement that the party explains their status of performance as expected. In the cases where reasonableness is incorporated with the focus of watering down the level of strictness of contract clause, there is the introduction of a common-sense approach that enables interpretation of that which is normally expected from the party’s individual performance. Moreover, the standard that the concept of reasonableness introduces is generally determined by providing a reference to professional third-party acting under the same circumstances.
The concept of reasonableness, at the same time, helps in defining the circumstance of the case, for instance, the notice required to end a distributorship contract that has an indefinite timeline as per Article 6:109, proves longer in the case where the contract lasts for a long period. On the contrary, it proves shorter in the case the contract lasts for a shorter period, and the party makes limited inve...