Edited by JOHN CARTWRIGHT STEFAN VOGENAUER and SIMON WHITTAKER HART- PUBLISHING
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1 Reforming the French Law of Obligations Comparative Reflections on the Avant-projet de reforme du droit des obligations et de la prescription ('the Avant-projet Catala') Edited by JOHN CARTWRIGHT STEFAN VOGENAUER and SIMON WHITTAKER HART- PUBLISHING OXFORD AND PORTLAND, OREGON 2009
2 Contents Preface Contributors List of Abbreviations v xv xvii Part I Introducing the Avant-projet de reforme 1 The Avant-projet de reforme: An Overview STEFAN VOGENAUER 3 I. Background 3 (a) Codification, Decodification and Recodification 4 (b) European and Global Challenges 7 II. Genesis 9 III. Structure, Presentation and Style 10 IV. Content 11 V Reception 15 VI. Conclusions 20 Bibliography 22 Part II Assessing the Avant-projet de reforme A. Negotiation and Renegotiation 2 Negotiation and Renegotiation: A French Perspective BENEDICTE FAUVARQUE-COSSON 33 I. Negotiation 34 (a) Good Faith During Negotiations 35 (b) Sanctions 38 II. Renegotiation 43 (a) Articles 1135 to of the Avant-projet 43 (b) Comparative Perspective 45 III. Conclusion 48 3 Negotiation and Renegotiation: An English Perspective JOHN CARTWRIGHT 51 I. Negotiation 5 1
3 viii Contents (a) English Law: No General Duty between Negotiating Parties 52 (b) French Law: The Move Towards a Protected Relationship? 57 (c) Essential Differences in the Approach to the Negotiations 60 II. Renegotiation 62 (a) French Law: A Link between Negotiation and Renegotiation 62 (b) English Law: Breaking Down the Resistance to a Duty to (Re)Negotiate? 65 (c) Parallels and Differences 68 B. A Future for la cause} 4 A Future for la cause} Observations of a French Jurist JUDITH ROCHFELD 73 I. The Renewal of the Definition: from Counterparty to Interest 75 (a) The 'Concretisation' of Cause: The Consideration of the Real Interest 77 (b) The 'Subjectivisation' of Cause: The Consideration of Individually Defined Aims 81 II. The Renewal of the Uses of Cause: from an Abstract Control of Balance to a Control of the Real Utility of the Contract 83 (a)the Imposition of a Minimum Inviolable Reasonable Interest, or Typical Cause 84 (b) The Control of the Reasonable Interest According to the 'Desired Economic Outcome' or Atypical Cause 87 (c) Cause, Proportionality and Coherence 90 III. The Renewal of the Sanction: from the Nullity of the Contract to the Eradication of Clauses Undermining Goals 93 (a) The Recognition of the Protection of Individual Interests: Relative Nullity 93 (b) The Defence of the Essence of Contract: The Invalidation of a Clause Undermining the Goal 94 IV Conclusion 99 5 La cause or the Length of the French Judiciary's Foot RUTH SEFTON-GREEN 101 I. Fair Exchange and Making Good Choices 103 (a) Judicial Assessment of the Parties' Substantive Bargain 103 (b) Judicial Elimination of Terms of the Contract that are Incompatible with the Contract's Core 112 II. The Legitimacy of Judicial Intervention: Paternalism 117
4 Contents ix (a) Evaluating the Extent of Judicial Intervention 118 (b) Justification for Judicial Intervention: The Acid Test 118 C. Enforcement of Contractual Obligations 6 The Enforcement of Contractual Obligations: A French Perspective YVES-MARIE LAITHIER 123 I. The Preference for the Voluntary Performance of Contractual Obligations 124 (a) Performance of the Contract in Which the Debtor has an Interest 124 (b) The Performance of a Contract Which has Lost its Point for the Debtor 128 II. The Preference for the Enforced Performance in Kind of Contractual Obligations 131 (a) The Obstacles to Enforced Performance in Kind 132 (b) Contractual Arrangements for Enforced Performance in Kind The Enforcement of Contractual Obligations: Comparative Observations on the Notion of Performance LUCINDA MILLER 141 I. Introduction 141 II. Execution en nature and the Avant-projet 143 (a) Proposed Article 1154; the Primacy of execution en nature 143 (b) Execution en nature and (Non)-Performance 149 (c) Protection of the 'Performance Interest' 152 III. Penalty Clauses and Performance 158 (a) The clause penale within the Code civil 160 (b) Avant-projet Modifications 162 IV Conclusion 165 D. Termination for Non-performance and its Consequences 8 Termination of Contract: A Missed Opportunity for Reform MURIEL FABRE-MAGNAN 169 I. The Only Question Considered: Termination of Contract as a Remedy for Non-performance by One Party of his Obligations (Termination for Non-performance) 170 (a) The Conditions for the Remedy 170
5 x Contents (b) The Effects of the Remedy 175 II. The Neglected Issue: Termination of Contract as a Right for Each Party to Extricate Himself from a Contract of Indefinite Duration (A Right to Unilateral Prospective Termination) 177 (a) Unilateral Prospective Termination of Contracts of Indefinite Duration 178 (b) The Adaptation of the General Law of Contract to the Diversity of Contractual Instances 'Termination' for Contractual Non-performance and its Consequences: French Law Reviewed in the Light of the Avant-projet de reforme SIMON WHITTAKER 187 I. 'La revoke du droit contre le code' 190 II. Resolution and the Avoidance of Logic 198 (a) The Survival of Some Contract Terms after resolution 198 (b) Contractual Liability in Damages and its Measure 200 III. Concluding Observations 203 E. The Effects of Contracts on Third Parties 10 Contracts and Third Parties in the Avant-projet de reforme DENIS MAZEAUD 207 I. Reproducing the Current Law 210 (a) The Relative Effect of Concluded Contracts 210 (b) The Obligational Effect of Contracts in Progress 214 (c) The 'Opposability' of Contractual Non-performance 218 II. Reform of the Current Law 223 (a) The Attractive Effect of Contractual Non-performance 223 (b) The Principle of the Attractive Effect of Contractual Groups The Effects of Contracts on Third Parties: The Avant-projet de reforme in a Comparative Perspective STEFAN VOGENAUER 235 I. Reinforcing Relative Effect 235 II. Reinforcing Exceptions to Relative Effect 239 (a) Stipulations for the Benefit of a Third Party 239 (b) A Multitude of Further Exceptions 263 III. Reinforcing Relative Effect? 268
6 Contents xi F. The Definition of la faute 12 The Definition of la faute in the Avant-projet de reforme JEAN-SEBASTIEN BORGHETTI 271 I. Assumed Faithfulness to the Existing Law 275 (a) Endorsing the Objective Conception of Fault 275 (b) Endorsing the Definition of Objective Fault Espoused by Academic Writers 277 II. Confirmation of a Development 283 (a) Fault, an Increasingly Abstract and Disembodied Idea 284 (b) Fault, Merely a Criterion for the Imputation of a Duty to Make Reparation? The Role of la faute in the Avant-projet de reforme PAULA GILIKER 289 I. Introduction 289 II. A Recategorisation of Contractual and Delictual Liability 291 III. General or Special Regimes of Liability: A Re-examination of faute in the Law of Delict 293 IV Article 1362: Liability for les activites dangereuses A Step Too Far? 299 V Conclusion 302 G. Damages, Loss and the Quantification of Damages 14 Damages, Loss and the Quantification of Damages in the Avant-projet de reforme PAULINE REMY-CORLAY 305 I. A Victimophile Law on Reparation 310 (a) A Law on Reparation 310 (b) The Right to Compensation: Personal Injury 315 II. A Law of Reparation Seeking the Fusion of Contract and Delict 318 (a) The Distinctiveness of Contractual Liability? 318 (b) Reparation in Kind as Contrasted with Performance in Kind 322
7 xii Contents 15 Comparative Observations on the Introduction of Punitive Damages in French Law SOLENE ROWAN 325 I. Introduction 325 II. The Rationale Underlying Punitive Damages 327 III. The Circumstances Giving Rise to Punitive Damages 328 IV The Justification for, and Itemisation of, Punitive Damages Awards 333 V The Level of Punitive Damages 334 VI. To Whom may Punitive Damages be Awarded? 336 VII. Insurance 339 VIII. Is The Introduction of Punitive Damages in French Law Desirable? 340 IX. Conclusion 343 H. Reforming the French Law of Prescription 16 Reforming the French Law of Prescription: A French Perspective ROBERT WINTGEN 347 I. What Would Change 348 (a) With Regard to Periods 348 (b) The Causes of Interruption and Suspension 352 II. What Would Not Change 354 (a) The Retention of Certain Provisions Relating to the Causes of Suspension 354 (b) The Retention of the Unitary Approach to Acquisitive and Extinctive Prescription Reforming the French Law of Prescription: An English Perspective JOHN CARTWRIGHT 359 I. Some Fundamental Questions (and Instincts?) about the Law of Prescription 362 (a) Legal Instincts? Striking a Balance 362 (b) Roman Law: Instincts and Policies 363 (c) English Law: Instincts and Policies 365 II. The Pressures for Reform in Modern French Law and English Law 366 (a) Problems in the Existing French Law 366 (b) Problems in the Existing English Law 368
8 Contents xiii III. The Proposals of the Avant-Projet and some English Law Comparisons 370 (a) Overview: A 'Limited Reform'? 370 (b) Limitation Periods 371 (c) The Starting-point for the Running of the Period 373 (d) Suspensions and Interruptions 375 (e) The Place of the Court and of the Parties 376 IV Harmonisation of the Law of Prescription? 376 V Postscript: The Proposals for the Reform of the Law of Prescription as an Illustration of Different Approaches to Law Reform 378 I. The Perspective of the Judiciary 18 The Work of the Cour de cassation on the Avant-projet de reforme PIERRE SARGOS 383 I. The Reform of the Law of Obligations 388 II. The Reform of the Law of Civil Liability and the Law of Prescription 394 III. Conclusions 401 J. Summaries of the Discussions and Emerging Themes 19 Summaries of the Discussions SIMON WHITTAKER, STEFAN VOGENAUER AND JOHN CARTWRIGHT 405 I. Discussions on the Law of Contract: Negotiation and Cause (Simon Whittaker) 405 II. Discussions on the Law of Contract: Enforcement, Termination and Effects on Third Parties (Stefan Vogenauer) 407 III. Discussions on the Law of Delict and Prescription (John Cartwright) 409 (a) Delict 409 (b) Prescription Emerging Themes HUGH BEALE, PHILIPPE THERY AND GERHARD DANNEMANN 413 I. Emerging Themes in the Law of Contract: Negotiations and Cause (Hugh Beale) 413
9 xiv Contents II. Emerging Themes in the Law of Contract: Enforcement, Termination and Effects on Third Parties (Philippe Thery) 416 III. Emerging Themes in the Law of Delict (Gerhard Dannemann) 419 Part III Translating the Avant-projet de reforme 21 Translating the Avant-projet de reforme SIMON WHITTAKER AND JOHN CARTWRIGHT 425 I. General Observations 426 II. The Translation of French Terms with Multiple Significance 429 (a) 'de plein droit' 429 (b) 'acre' and 'fait' 432 (c) 'contrat' and 'convention' 435 III. Translating Difference: The Analytical Structure of Contractual Obligations and their Effects 437 APPENDIX: Avant-projet de reforme du droit des obligation et de la prescription (original French text by PIERRE CATALA and parallel English translation by JOHN CARTWRIGHT AND SIMON WHITTAKER) 445 Index 917
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