Not enough though has been given in any European code to the way Essay

Not enough though has been given in any European code to the way contracts might or should be classified Do you agree - Essay Example Main land Europe is looking to create a common civil legal framework which will be developed in a number of steps. This common legal framework is currently being heralded as the European Civil Code and would require coordinated efforts over a number of decades for effective implementation3. The first step has been termed as the PECL4 and is aimed at unifying the contract law prevalent throughout Europe. Success of the PECL and its precedents will determine if it is possible at this stage to develop a common legal framework for the European continent. This could have even wider implications for the global harmonisation attempt given that the obstacles encountered in PECL would be encountered similarly elsewhere too. Importance of the PECL is enhanced by the fact that the European community is looking to create the Common Frame of Reference based on the learning from the PECL5. At this point in time the PECL is not an instrument that has been recognised by governments around Europe. In stead the PECL is more or less a document drafted by academics to serve as a standard reference when hard-core moves to harmonisation are attempted. The PECL is a broad attempt to create a set of â€Å"general rules† which are flexible enough to accommodate future developments and to provide a framework for contract law6. Here due consideration must be provided to the fact that contract law is the first thing that is being attempted in terms of a common legal framework for a number of reasons. Contract law is highly important when it comes to cross border trade. The significant differences between national contract laws make trade beyond borders costly, time consuming and often legally complex. Furthermore, a number of companies are dissuaded from trading in neighbouring nations because of complex trading instruments and their legal ramifications. This in turn promotes domestic trade at the expense of transnational trade which is not beneficial for the commercial interests of the European Union. Europe is currently looking to develop something close to the Lex Mercatoria so that trading and commercial transactions of all kinds are simple all across Europe7. In order to facilitate trading all over Europe with the same legal principles it was necessary to create a common legal framework. The PECL is the resulting legal framework which has emerged from these efforts. In addition there is another reason behind the PECL’s importance. As mentioned before, the PECL will serve as the basis for the future of the Common Frame of Reference so this enhances the important of the PECL even more. Here it must also be mentioned that the success of the PECL and the Common Frame of Reference are critical to the future of harmonisation attempts in Europe. Hence, careful consideration is mandatory in order to provide a framework that is successful and tends to provide solutions that are holistic. Any such framework would need to be carefully thought out. As mentione d before, there is no question of implementation as yet because these harmonised frameworks are merely guidance based as yet and are not strictly enforceable as yet. Drafting a standard set of principles for guidance over the domain of contracts may not be as simple or straightforward as it may seem. Perhaps the greatest obstacle to creating a common contractual framework is coming to