Law to provide framework for cross-border EU contracts

The European Parliament is scheduled to adopt its version of a common European sales law, which would for the first time provide a legal framework for cross- border contracts applicable throughout the European Union.

The vote next Wednesday (26 February), with a debate the day before, sets out the Parliament’s position ahead of negotiations with the member states on a draft put forward by the European Commission in October 2011.

It is not clear whether negotiations will start before the Parliament goes into recess ahead of EU-wide elections in May; the member states have not agreed a position. France, Germany and the UK remain unconvinced of the need for a new regulation.

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The European sales law would not replace national laws; businesses and consumers could choose to apply EU or national rules to their cross-border transactions. If there was no agreement, national law would apply, as at present. The Commission argued that this would lower the costs of cross-border transactions for businesses by allowing small or medium-sized enterprises to offer their goods in new markets without having to adapt to numerous sets of national laws.

It also said that consumers would gain access to cheaper goods from other member states. The law would apply only to distance-selling contracts, primarily in online shopping. Online banking or financial services would be excluded from the sales law.

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