29/11/2007 p1 PELSC Construction v. Consumer Law IUS COMMUNE – Workshop Contract Law –...
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Transcript of 29/11/2007 p1 PELSC Construction v. Consumer Law IUS COMMUNE – Workshop Contract Law –...
29/11/2007 p1
PELSC Construction v. Consumer
Law
IUS COMMUNE – Workshop Contract Law – 29/11/2007
Benoît KOHLLL.M. Cambridge
Lecturer University of LiègeSolicitor (Stibbe Brussels)
29/11/2007 p2
Background
“Recent” development of a specific need to protect the owner against the contractor when the building has to be erected for the occupation of the owner
(presumed not be able to protect his own interests)
29/11/2007 p3
Emergence of the ideology of home ownership
(cfr Lord Diplock : “(…) the emergence of a property-owning, particularly a real-property-mortgaged-to-a-building-society-owning, democracy”) (Pettitt v
Pettitt [1970] AC 777 at 824)
29/11/2007 p4
Some countries of the EU have developed specific rules : ex.: Belgium : Loi Breyne (1971)
France : The « Code de la Construction et de l’Habitation” : contains specific protection to the individuals in the house building industry
Netherlands: “Nieuw Burgerlijk Wetboek” has been completed by a Statute dated June 5, 2003 (Title 7:12)
Italy « Disposizioni per la tutela dei diritti patrimoniali degli acquirenti di immobili da costruire » (20 June 2005)
Germany: « Makler- und Bauträgerverordnung » (1974)
29/11/2007 p5
Why focus on consumer construction law ?
29/11/2007 p6
Compare with Harmonisation of « classical » construction law :
Examples :- C.E.C. Jansen’s Thesis- PELCS - Works of the GAIPEC- Mathurin Report
29/11/2007 p7
Problems :
A complete harmonisation of “classical” Construction law would suppose that the Member States reach compromises on several points of law that go to the roots of the Private Law of each legal system
(ex: binding character of the offer; the need for consideration; the pre-contractual duty to inform; the reconciliation of the liability in Tort and in Contract; the damages for breach of contract…)
29/11/2007 p8
→ Such works are welcomed BUT it seems unlikely that the works currently undertaken could lead in the short or medium term to practicable or concrete results.
29/11/2007 p9
See the Commission’s opinion (Action Plan 2003):
“Further reflection on the opportuneness of non-sector specific measures such as an optional instrument in the area of European contract law »
Current work: C.F.R.
29/11/2007 p10
→ Postponement sine die of the adoption of a European Civil Code
(cfr. M.B.M. Loos, Spontane harmonisatie in het contracten- en consumentenrecht, Den Haag, Boom, 2006, p. 31)
29/11/2007 p11
Then : Let’s focus on consumer law. Arguments :
1. Emergence of cross-border transactions in this field
2. Development of national protections in the house construction sector : Coherent or not ?
29/11/2007 p12
3. Dissociation between consumer construction law and classical construction law is possible.
>< PELSC’s approach→ Long-term approach : “Trajan
Horse” method (cfr B. Tilleman)
29/11/2007 p13
→ preliminary focus on consumer protection : already been suggested by the EU: See a.o. - Mathurin report (construction)- Mc. Millan Scott report (crossborder real estate transactions)
29/11/2007 p14
Does such an approach comply with the provisions of the Green Book on the Review consumer acquis ?
EU Commission suggests horizontal measures rather than vertical ones.
BUT several issues regarding the consumer protection in the construction sector are too specific to be caught by a general measure (such as the Unfair Commercial Practices Directive)
29/11/2007 p15
See G. Howells : detailed rules « can be valuable in targeting particular practices and providing clear guidance on what is acceptable »
(G. Howells, « The Rise of European Consumer Law. Whither National Consumer Law ? », Syndey L.R., 2006, pp. 63
ff., at p. 80)
29/11/2007 p16
EU Consumer law : content de lege ferenda
Scope of the harmonisation : “Consumer” : private individual who wishes to
become the owner of a new home (house or flat) constructed by a professional, regardless of the type of contract, institution or other legal method which may be used to achieve this result.
I.e. : Construction contract, sale “off plan” (or “sleutel op deur”, or “VEFA”, koopaannemingsovereenkomst, “contrat de promotion immobilière”),…..
29/11/2007 p17
Need to take in account, not only Member States’ legislative Acts, but also standard contracts
Importance of Self Regulation in some countries
England : NHBC (+ JCT Forms ?)Netherlands : GIW (+ UAV ?)
29/11/2007 p18
Consumer’s rights. Short overview
29/11/2007 p19
Formation of the contract
- Advertisement : Acquis communautaire
- Distance Selling + Door to door : idem
(note : need of an extension to the transfer of immovable property)
- Contract in writing- Compulsory clauses - Cooling off period ?
29/11/2007 p20
Perfomance of the contract- Stage payments- Guarantee against insolvency- Inspection and Acceptance :
assistance by a professional (architect/surveyor/inspector/…)
- Exceptio non adimpleti contractus (see art 2:109(6) PELSC : automatic in consumer contracts? )
29/11/2007 p21
Guarantee against defectsSee French Law: mandatory
“assurance dommages-ouvrage” UK – Neth. : NHBC and GIW’s
guaranteesDuration ?Link with builder/promoter’s
liability ?
29/11/2007 p22
CONCLUSION
29/11/2007 p23
- Specific harmonisation (consumer construction law) is possible and desirable
- European principles do exist in this field
- Hard law v. Soft law : try out the coregulation method (see White Book on Governance)
29/11/2007 p24
THANK YOU
Benoît KOHLLL.M. CambridgeUniversity of LiègeSolicitor (Stibbe Brussels)