International Contracts Lecture 1 Introduction Case 1 Matti Rudanko

Lecture 1: Slides Slide sets: 1 – 4 Pdf files: (1) offer – acceptance model, (2) error in expression International Conracts Lecture 1 2

The Views of the Regulator of the Markets – AND THOSE OF BUSINESS International Conracts Lecture 1 3 The views are taken from regulative provisions, from international, European and national legislation, which are effectively harmonized… … but it is our task to find also here the business perspective so that regulatory provisions and other legal models are converted into business tools to create added value… … e.g. by creative use in market strategy planning, contracting and contract management, corporate finance etc.

The “four freedoms” of the Single Market International Conracts Lecture 1 4 The cornerstones of the single market are often said to be the “four freedoms” – the free movement of people, goods, services and capital. One of the “four freedoms” of the Single Market is the free movement of goods. Member States may restrict the free movement of goods only in exceptional cases, for example when there is a risk resulting from issues such as public health, environment, or consumer protection.

Financial Services “Financial Services policy should deliver stable, secure and efficient financial markets and ensure coherence and consistency between the different policy areas, such as banking, insurance, securities and investment funds, financial markets infrastructure, retail financial services and payment systems.” ( ) International Conracts Lecture 1 5

Views on the Markets Economics: markets in the context of political economy Methods of economics and business economics Finance and Accounting: pricing of derivatives, investor behavior, market efficiency, financial instruments, IFRS etc. Communication sciences (e.g. representations of finance in media), sociology etc. Classical question: why regulate the markets? Karl Marx – Adam Smith (the visible / invisible hand) – the modern competition law The special characteristics and role of financial markets may increase the need of regulation (Here:) the (combined) legal view: function of regulation in market context International Conracts Lecture 1 6

Main Views and Objects of Regulation of International Trade International Conracts Lecture 1 7 Market regulation Competition law (EU, national) Monopolies, cartelsMerger control Regulation of the international trade environment WTO and other trade organizations (international conventions) Contract law (national, EU, international) CISG, Unidroit Target: contractual relationship Conclusion of contract, contractual liabilities Regulation of financial markets (national, EU)

Overview of Course Topics (Slide Sets) The Legal Environment of International Markets Slide Set 1 General Doctrine of Contract Law Formation of Contracts Offer and Acceptance Model Non-conforming Reply to Offer Slide Set 2 Contracts of Sale and Carriage in International Trade Slide Set 3 Letter of Credit Slide Set 4 International Conracts Lecture 1 8

Overview of Course Topics, cont. Kauppasopimus: 1) Osapuolten suoritusvelvollisuudet ja vastuut 2) Tavaran virhe Slide Set 5 1. Lainvalinta (kansainvälinen yksityisoikeus) 2. Tuomioistuinten kansainvälinen toimivalta ja tuomioistuimen valinta Slide Set 6 1. Kansainväliset ja pohjoismaiset sopimusoikeusjärjestelmät 2. Merger Clause (entire agreement) 3. ICC:n mallisopimus Slide Set 7 International Conracts Lecture 1 9

Overview of Course Topics, cont. 1.Vastuunrajoitusehdot 2. Yleinen sopimusoikeudellinen korvausvastuu 3. Sopimussakko Slide Set 8 1. Sopimuksen taloudellinen optimointi 2. Law and economics 3. Sopimusosapuolen rajoitettu rationaalisuus Slide Set 9 International Conracts Lecture 1 10

Introduction to the Course Our Approach Regulative Views on the Markets Overview of the Lectures What Else or Your Comments? International Conracts Lecture 1 11

Search of Regulation Material Links to Finnish legislation translations : arch%5Bpika%5D=Act+on+Investment+Firms&submit=Search arch%5Bpika%5D=Act+on+Investment+Firms&submit=Search The Finnish Sale of Goods Act: The Finnish Contracts Act: CISG: Unidroit Principles: ersionprinciples2010-e.pdf ersionprinciples2010-e.pdf Links to EU legislation: (by indicated search keys, e.g. document number) International Conracts Lecture 1 12

Harmonisation of European Contract Law Principles of European Contract Law, Part 2 (Ole Lando,Hugh Beale) ons/private_law_university_amsterdam_en.pdfhttp://ec.europa.eu/justice/news/consulting_public/rome_i/contributi ons/private_law_university_amsterdam_en.pdf mission-impossiblehttp:// mission-impossible Ehdotettu asetus yhteisestä eurooppalaisesta kauppalaista (Common European Sales Law; KOM(2011) 635 lopullinen): content/EN/TXT/?uri=CELEX:52011PC content/EN/TXT/?uri=CELEX:52011PC0635 International Conracts Lecture 1 13

Case 1: Conclusion of Contract, non-complying answer Task: 1. Conclusion of Contract in Nordic and International Contract Law 2. The Legal Effect of an Answer different from the Offer 3. Significance of Payment systems (Only General Outline)

Topics and Issues The Formation of Contract Offer – acceptance model Nordic systems Common law based systems CISG and Unidroit principles Non-complying Reply A reply not conforming with the offer (in terms of sales object, performance time, payment method etc.) Cf late reply Liability Questions Rise of contractual liability Precontractual liability? Liability for unreasoned withdrawal from contract negotiations? International Conracts Lecture 1 15

Other Material and Further Reading Exam textbook: McKendrick, Ewan : Contract Law (9th edition, Palgrave Macmillan) Please make use of your knowledge of IB, Finance, Logistics, and other business economic or legal know how International Conracts Lecture 1 16