The Government has today launched a Call for Evidence seeking views on the European Commission’s Green Paper on potential changes to contract law.

The European Commission’s Green Paper, which was published on 1 July, sets out a number of proposals for progressing towards a European Contract Law for consumers and businesses. The Green Paper is based on the premise that the variety and divergence of contract laws operating in each of the EU Member States hinders the smooth operation of internal markets and makes dispute resolution across EU borders difficult. It looks at whether such situations require a European Union level response and details seven possible approaches ranging from maintaining the status quo through to the creation of a mandatory common code of contract law.

The UK Government’s Call for Evidence seeks views on the Commission’s proposed options and asks what, if any, changes are needed in cross-border contract law. The views and opinions gathered will help inform the Government’s response to the European Commission in the New Year.

Justice Minister Lord McNally said:

‘Contract law is a crucial aspect of trade and commerce and it is vital that these laws provide an environment of security which allows all parties to trade with confidence. When there is a dispute it is important that there is adequate legal certainty about how that dispute will be resolved. It is vital that we maintain this confidence when operating across EU borders.

‘The Government wants to hear views to ascertain whether changes to cross-border contract law are needed and to assess what the impact of each of the European Commission’s options will be. It is important that the Government provides a well-evidenced response to the European Commission and I encourage all those with an interest to share their views.’

The Call for Evidence seeks views on whether the current regulation of contract law and any divergence of laws at national level present any problems or concerns for businesses and consumers. It also asks for opinions on the advantages and disadvantages of each of the European Commission’s options and what an appropriate response might be.

Notes to editors:

1. The Government’s Call for Evidence on the European Commission’s Green Paper on policy options for progress towards a European Contract Law for consumers and businesses
2. The Government’s Call for Evidence, which has been developed in association with the Devolved Administrations, closes on 26 November 2010
3. The European Commission’s Green Paper on policy options for progress towards a European Contract Law for consumers and businesses
4. For more information contact the Ministry of Justice press office on 020 3334 3536

http://www.justice.gov.uk/news/newsrelease180810a.htm