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• Functions and interpretation of principles in the German contract law

  Andrea Csécsy

  Views:

  48

  To describe the functions of principles we can say that all of them are fundamental basis of an area of law. They declare or solve concrete debates between the parties. If there is a problem with interpreting of a rule in the civil code, judges has this helping hand. In Germany the development of principles in the field of contract law has a really unique historical root. At the time of BGB’s birth, the German Civil Code did not accept any exculpation under the rule pacta sunt servanda. Moral philosophers acknowledged that a contract as private interest of the parties needs special protection from the state. It is not only a personal relationship, because self welfare leads to welfare of the public. The law has to regulate this field and give instruments of protection for both parties to ensure peace and equality in the field of public relations and moral.

  After the First World War, Rechtsmark (German currency) had its deepest point in its history. The inflation was so high that the performance of a contract made before the war was absolutely unfair for the supplier. For the cost of one galloon gas anyone could buy the entire stock after the war. There was a too late and too small reaction from the state for this situation. An Act had been accepted in 1925 about revalorization. The main fault of this Act was the strict and very small applicability in the field of contracts. The regulations of it were applicable only for contracts with large economic potential.

  German jurisdiction had to solve the problem. The most difficult part of this process was how to dissolve the strict paradigm of pacta sunt servanda. Oertmann, a German legal expert created the collapse of the foundation of the transaction. It meant that changed circumstances deprive the contract from its ground, the need of the party. Anybody who signs a contract has a need and tries to create all conditions of that specific contract to harmonize with his or her needs and interest. In case of an essential change of circumstances this interest modifies and the original transaction became tremendously onerous for him or her. The doctrine of Oertmann was insisted on pacta sunt servanda, so after the change of circumstances the whole contract failed.

  Jurisdiction in Germany accepted Oertmann’s doctrine with a completion. Judges vindicated the right for themselves to modify the contract to be suitable for the new interests of the parties. This modification meant the implementation of clausula rebus sic stantibus into German contract law. It became applicable worldwide in the field of long term relationship of the parties.

  In this essay I examine not only the development of these contractual principles in Germany but the effectiveness and functions of them. I describe and define the legal interest of regulating contracts and what is the connection between private and public interest in the field of the law of contracts. As a defect of the contractual procedure non-performance and other breach of a contract have special importance in civil law. Good faith is a basic principle of civil law in Hungary too and in most European civil codes. The interpretation of German good faith theory (Treu und Glauben) is significant from the viewpoint of the judicial modification of contracts. In case of clausula rebus sic stantibus if the party wants to ground his or her claim, he or she has to prove the good faith as a moral standard to be an exculpation under the heavy burden of pacta sunt servanda. The conclusion is that in Germany the basic element of private contracts is not the consent of parties but good faith of them. The socially excepted moral appears through the requirement of good faith of the parties. The law has to ensure that in any period of a contractual relationship this good faith exists.

• Suspension of Application of Bilateral Treaties Owing to an Armed Conflict

  28-32

  Anikó Szalai

  Views:

  58

  The effect of armed conflict on bilateral international treaties of the belligerent parties has undergone a considerable change in the past century. From the concept of termination as the effect of armed conflict by the time of World War II practice of the States had reached the position of suspension of application or no effect at all. This question is regulated solely under customary international law, but the practice of states and doctrine is not readily available and sometimes may be contradictory.
  Suspension in the case of armed conflict considerably differs from the rules set out in the 1969 Vienna Convention on the Law of Treaties. The lengthy procedure which is based on the negotiation of the parties of the relevant bilateral treaty is almost impossible in the circumstances of an armed conflict, especially with respect to the hostile relationship between the parties.
  When dealing with this issue one finds that in the practice of States non-application of treaties during an armed conflict exists, however from the viewpoint of principles of international law, namely the principles of pacta sunt servanda, good faith, ex injuria jus non oritur and rule of law this practice - to say the least - is questionable.

• Rethinking principles of civil procedure - expectations and experiences:

  118-127.

  Tamás dr. Molnár

  Views:

  195

  The central topic of the present study is certain features of the principles re-regulated during the codification of the Hungarian Code of Civil Procedure. It can be said that the number and content of the principles have also become more concentrated as a result of codification.

  The Act CXXX of 2016 on the Code of Civil Procedure (hereinafter “CPC”) brought a number of conceptual changes, which can also be observed in terms of principles. The principles chapter of the CPC has been renewed, some principles that are not yet known in Hungarian civil procedure law have been laid down. The present study reviews these changes and also seeks to take a position on the content of the principles, with a separate examination of the Principle of Concentration of Proceedings, which has also been identified as a priority objective by the legislator.

  The paper analyzes the academic debates on the principles and attempts to answer whether the experience of the period since its entry into force has met some of the expectations for the reform of the principles. The study examines the changed regulations that have led to opposing views in the literature.

  An important topic of the study is that, in line with the divided structure of the proceeding, the court's intervention activities have also changed. This change can also be observed in the principles, as the Principle of Court's Obligation to Intervene has emerged as a new principle. Some features of the Principle of Truth-telling and Principle of Good Faith are also analyzed.

  The study seeks to shed light on the fundamental issues of civil procedure through foreign examples, in which certain elements of German legislation are mainly mentioned.

• Interpretation anomalies in the Vienna Sale Convention damages practice

  14-26.

  Sándor Boros

  Views:

  232

  The essay is about the interpretion anomalies in connection with damages law practice of The United Nations Convention on Contracts for the International Sale of Goods (CISG). This seems to be an essential problem regarding to that the Convention’s breach of contract-system is highly relevant, whereas it must provide a mechanism, which serves international trade between countries with huge legal, economic and social disparaties. At the heart of the system we find damages, which provides an efficient and rapid solution to cure the dysfunctions which can occur with respect to cross-border commercial relationships.

  The provisions of the Convention are of a universal nature, thus they require uniform interpretation and application by the courts of the Contracting States, therefore Article 7, which deals with interpretation of rules and the filling of legal gaps, is indispensable for the successful application of the Convention and the achievement of its objectives. In this essay by analyzing the relevant case law, I was primarily seeking the answer to whether the judges of different countries validate the universiality of the Convention with respect to damages law. In order to answear the question I have analyzed the Convention’s damages practice in relation to interpretation principles set out in Article 7. Within this I have systematically reviewed the practice of Article 74 of the Convention, analyzing a total of 144 cases from 2006 to 2016.

  The revision shows that nine decisions were made during the period under review, where the court has applied national doctrine of liability, law, or practice in connection with the interpretation of Article 74. This method obviously does not promote the realization of uniformity. An internationally uniform sales law will only be realized if it is uniformly applied. For the purpose of the interpretation of the Convention, it follows that requirement the Convention’s provisions must be understood and applied autonomously, separated from their possible national roots. The legal problems discovered in this essay tries to highlight on those issues, which require more attention from the courts, thus confirming the universal character of the Convention.