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Common Frame of Reference
(CFR) and Common European
Sales Law (CESL): Content and
Practical Meaning (Introduction)
Paul Varul
Partner, Law Firm VARUL (Estonia)
Law Firm VARUL
• Established in 1994; Independent Baltic Law Firm
• Nominated among top 4 Baltic law firms by The Lawyer (2012)
• Offices:
– In Estonia: Tallinn, Tartu 36 lawyers
– In Latvia: Riga 23 lawyers
– In Lithuania: Vilnius 24 lawyers
• All major fields of law
• Clients: Finland, Russia, Poland, Sweden, Norway, Germany,
Switzerland, United Kingdom, Belgium, Italy, Malta, Cyprus, USA
From European Civil Code to DCFR
• Study Group on European Civil Code (1999-2008)
• Contract Law• Non-contractual Obligations• Related fields of law
DCFR – Content (1/2)
• Title; abandoning ‘the code’• General part of the DCFR – PECL (formation,
termination, representation, grounds of invalidity, performance, remedies for non-performance, plurality of parties, set-off, prescription)
• Contracts (sales, lease of goods, services, mandate contracts, loan, commercial agency, franchise and distributorship, donation)
DCFR – Content (2/2)
• Non-contractual Obligations (benevolent intervention in another’s affairs, torts, unjustified enrichment)
• Related fields (transfer of movable property ownership, proprietary security rights in movable assets, personal security, trusts)
DCFR - Meaning
• Preliminary purpose: Common European Law• Principles, Definitions, Model Rules• Standard, model law for countries to develop
their own national legislation• Demonstrates the level of legal thinking of
European private law• Source for future development of European
private law
DCFR – CIS Countries
• Model for CIS countries• Translation into Russian (July 2013)• Модельные правила Европейского частного
права. Пер. с англ.; Науч. ред. Н. Ю. Рассказова. – Н.: Статут, 2013
European Common Sales Law
• DCFR – CESL • Optional instrument• Second national law
CESL – Scope of Application
• SME – SME (employees: less than 250; annual turnover: not exceeding EUR 50 million)
• Business – SME • Business – consumer• SME – consumer• Distance contracts – digital content• Sale of goods (?)
CESL – Content
• General provisions (general principles, application)
• Conclusion of contract; pre-contractual information
• Interpretation, unfair terms, defects of consent
• Obligations of parties
• Remedies (requiring performance, termination, price reduction, withholding performance, damages, interest)
• Restitution
• Prescription
CESL and International Private Law
• Uncovered areas – international private law• Plurality of parties, representation, assignment
of claims, etc.
CESL – CIS Сountries
• Model law for drafting• Application upon agreement• Equal legal position – applicable law• Protection of consumers