
- •Contents
- •Preface
- •Contributors
- •Abbreviations
- •General abbreviations
- •Introduction and Conclusions
- •Case studies: abbreviations by country
- •Austria
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •From the common law to the civil law: the experience of Israel
- •Note on translations of foreign language statutory provisions
- •1 Introduction
- •A. The Common Core Project
- •b. Method
- •2. Methodological criticism
- •a. Functionalism
- •b. Neutrality, scientific method and the politics of comparative law
- •B. The precontractual liability project
- •1. General
- •2. The questionnaire
- •a. Precontractual liability
- •b. Legal formants
- •3. The cases
- •4. The national reports
- •2 Case studies
- •Case 1: Negotiations for premises for a bookshop
- •Case 1
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 2: Negotiations for renewal of a lease
- •Case 2
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 3: Mistake about ownership of land to be sold
- •Case 3
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 4
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 5: A broken engagement
- •Case 5
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 6: An express lock-out agreement
- •Case 6
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 7: Breakdown of merger negotiations
- •Case 7
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 8: A shopping centre without a tenant
- •Case 8
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 9: Breakdown of negotiations to build a house for a friend
- •Case 9
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 10: Public bidding
- •Case 10
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 11
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 12: Confidential design information given during negotiations
- •Case 12
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •Case 13
- •Discussions
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •3 From the common law to the civil law: the experience of Israel
- •The dilemma
- •Israeli law under the common law: no rule of precontractual liability
- •Section 12 of the Contracts Law
- •Rule of precontractual liability
- •Civil law impact
- •Section 12 and other grounds of precontractual liability
- •Nature of liability under section 12
- •Evaluation of section 12
- •Analysis of cases
- •Case 1 Negotiations for premises for a bookshop
- •Case 2 Negotiations for renewal of a lease
- •Case 3 Mistake about ownership of land to be sold
- •Case 5 A broken engagement
- •Case 6 An express lock-out agreement
- •Case 7 Breakdown of merger negotiations
- •Case 8 A shopping centre without a tenant
- •Case 9 Breakdown of negotiations to build a house for a friend
- •Case 10 Public bidding
- •Case 11 A contract for the sale of a house which fails for the lack of formality
- •Case 12 Confidential design information given during negotiations
- •From a standard to rules: two categories of bad faith
- •Misrepresentation
- •Broken promises and frustrated expectations
- •Was there a price to be paid for the move?
- •4 A law and economics perspective on precontractual liability
- •The problem
- •Law and economics models of precontractual liability
- •An economic perspective on eight hypothetical cases
- •Case 1 Negotiations for premises for a bookshop
- •Case 2 Negotiations for renewal of a lease
- •Case 3 Mistake about ownership of land to be sold
- •Case 5 A broken engagement
- •Case 6 An express lock-out agreement
- •Case 8 A shopping centre without a tenant
- •Conclusion
- •5 Conclusions
- •The problem of precontractual liability
- •Peculiarity of the precontractual phase
- •Imposing liability in the precontractual phase: balancing the arguments
- •The negotiations: a legally significant relationship?
- •Expectation, reliance and shifting the economic risk of the negotiations
- •Placing the liability: contract, tort or tertium quid?
- •Two (extreme?) illustrations: English law and Dutch law
- •English law: the most restrictive?
- •Dutch law: the most expansive?
- •The range of solutions: similarity and difference in particular cases
- •Similarities of result?
- •Differences of result
- •Drawing together the threads
- •Different techniques in dealing with the precontractual phase
- •Influence of other legal practices and policies
- •Commercial context and risk allocation
- •Superficiality of similarity and difference in results
- •A common core?
- •Bibliography
- •1. General bibliography, introduction and conclusions
- •2. Case studies: bibliography by country
- •Austria
- •Denmark
- •England
- •Finland
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Norway
- •Portugal
- •Scotland
- •Spain
- •Sweden
- •Switzerland
- •3. From the common law to the civil law: the experience of Israel
- •Index
introduction 13
during the final editing, or by reporters who did not finalise their reports until 2007, most of the national reports were completed by the end of 2005.
2. The questionnaire
a. Precontractual liability
The questionnaire was intended to cover all types of cases which in any of the European systems are regarded as dealing with liability for conduct (including omissions) during the precontractual stage. Precontractual liability was the focus of the study. It was therefore not concerned mainly with other effects of precontractual misconduct, such as the invalidity of any contract which is formed.47 Indeed, in most cases discussed in this volume no contract is formed at all; usually the party seeks a remedy for the very reason that her hopes of a contract have been dashed as a result of the breakdown of the negotiations, and the losses which she seeks to cover may be the failed expectation of the contract itself, as well as other losses such as expenditure incurred during the period when the negotiations were on foot. We have included, as the last case in the volume, a quite different set of facts where a contract is concluded, for the very reason that we wished to see to what extent the principles which emerge from the answers to the other cases in the book are limited to the case where there is no contract. But in this volume we are generally concerned only with liability which arises during the precontractual48 stage itself.
The national reporters were therefore asked to discuss each case, addressing the questions: (a) whether party A was liable in damages (this may be in tort, contract, restitution, culpa in contrahendo or on the basis of any other doctrine); (b) if so, to what extent she was liable (in particular, reliance or expectation interest); (c) whether party B had any other remedies (such as a court order to continue negotiations, to conclude the contract or to perform the contract); and (d) whether some of the remedies might be cumulated.
47Cf. the volume by Ruth Sefton-Green, Mistake, Fraud and Duties to Inform in European Contract Law (2005), which has a more significant focus on the (in)validity of the contract for certain types of precontractual misconduct and mistake.
48Hence our deliberate use of the word ‘precontractual’ rather than ‘pre-contractual’. The latter may tend to suggest that it is referring to the period before a contract which was in fact concluded.