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European Contract Law-Common Frame of Reference

The exchange of goods and services is governed by contract law. Problems in relation to using, agreeing, interpreting and applying contracts in cross-border transactions may therefore affect the smooth functioning of the internal market.

To date the EU has addressed problems in contracting in the Internal market by adopting measures relating to specific contracts or sectors. This sector-specific approach has, however, not been able to solve a number of problems. The European Parliament and Council have consistently affirmed the need for greater coherence in order to ensure the proper functioning of the internal market.

The European Commission has undertaken a series of initiatives aimed at increasing the overall coherence of European contract law:

The Common Frame of Reference (CFR) is a long-term project which aims at providing the European Legislators (Commission, Council and European Parliament) with a "toolbox" or a handbook to be used for the revision of existing and the preparation of new legislation in the area of contract law. This toolbox could contain fundamental principles of contract law, definitions of key concepts and model provisions.

In the area of consumer contract law the preparatory work for the CFR of the researchers and of stakeholders has already served as a starting point for the Green Paper on the Review of the Consumer Acquis , adopted by the Commission on 8 February 2007.

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Background

EC Consumer Law Compendium: a Comparative Analysis and a database of the EU Consumer Law Acquis

The First Annual Progress Report on European Contract Law and the Acquis Review - 2005 DE FR pdf (COM (2005) 456 of 23.09.2005) summarises the progress of the European Contract Law (ECL) initiative and the review of the acquis since the 2004 Communication and outlines the review process. It also forms the basis for Council Conclusions pdf adopted on 29 November 2005, which welcome the Review exercise.

The Commission Communication on European Contract Law and the revision of the acquis : the way forward (COM(2004) 651 of 11.10.2004) outlined the need to improve the quality and consistency of existing Community legislation in relation to consumer contracts.

The review of existing Community legislation relating to consumer protection ("consumer acquis") was first foreseen in the Consumer Policy Strategy 2002-2006 pdf.

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