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Document-ID: 919000
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(a) A valid contract is binding upon the parties. It can only be modified or terminated by consent of the parties or if provided for by the law. The parties to a contract must, unless legally excused from performance, perform their respective duties under the contract ("pacta sunt servanda").
(b) A valid unilateral promise or undertaking is binding on the party giving it if that promise or undertaking is intended to be legally binding without acceptance.
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[doctrine ] [arbitral awards ] [court decisions ] [national legislation ] [principles / restatements ] [international legislation ] [model laws ] [model terms ] close X Black, Henry Campell, Black's Law Dictionary, 6th ed., St. Paul 1990 Cheng, Bin, General Principles Of Law as Applied by International Courts and Tribunals, reprinted, Cambridge 1987 Dalhuisen, Jan H. - Legal Orders and Their Manifestation: The Operation of the International Commercial and Financial Legal Order and Its Lex Mercatoria, (2006) 24 Berk J Intl L 129. Dasser, Felix, Internationale Schiedsgerichte und Lex Mercatoria, Zürich 1989 Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006 Ebenroth, Carsten Thomas, Code of Conduct, Konstanz 1987 Fouchard, Philippe, L'Arbitrage Commercial International, Paris 1965 Horn, Norbert, Das Recht der internationalen Anleihen, Frankfurt a.M. 1972 Lauterpacht, Hersch, Private Law Sources and Analogies of International Law, New York, Toronto 1927 Laviec, Jean-Pierre, Protection et Promotion des Investissements, Paris 1985 Nassar, Nagla, Sanctity of Contracts Revisited, Dordrecht, Boston, London 1995 Osman, Filali, Les Principes Généraux de la Lex Mercatoria, Paris 1992 Samuel, Adam, Jurisdictional Problems in International Commercial Arbitration. A Study of Belgian, Dutch, English, French, Swedish, USA and West German Law, Zürich 1989 Schmitthoff, Clive, International Trade Usages, Institute of International Business Law And Practice Newsletter, Special Issue, ICC Publ.440,4, Paris 1987 van Hof, Jacomijn J., Commentary on the UNCITRAL Arbitration Rules, The Hague 1991 Wühler, Norbert, Application of General Principles of Law, in van den Berg (ed.), Planning efficient Arbitration Proceedings - The Law Applicable in International Arbitration, p. 553 et seq. Blessing, Marc, Das neue internationale Schiedsgerichtsrecht der Schweiz - Ein Fortschritt oder ein Rückschritt?, in: Böckstiegel (ed.), Die internationale Schiedsgerichtsbarkeit in der Schweiz (II), Cologne, Berlin, Bonn, Munich 1989, at 13 et seq. Coing, Helmut, La Détermination de la Loi Contractuelle en Droit International Privé Allemand, in: Klein/ Vischer (eds.), Colloque de Bâle sur la Loi régissant les Obligations Contractuelles, Basel, Frankfurt a.M. 1983, at 29 et seq. Drobnig, Ulrich, General Principles of European Contract Law, in: Volken/ Sarcevic (eds.), International Sale of Goods - Dubrovnik Lectures, New York, London, Rome 1986, at 305 et seq. Goldman, Berthold, The Applicable Law: General Principles of Law - the Lex Mercatoria, in: Lew (ed.), Contemporary Problems in International Arbitration, London 1986, at 113 et seq. Goldstaijn, Aleksandar, The New Law Merchant Reconsidered, in: Festschrift Schmitthoff, Frankfurt a.M. 1973, at 171 et seq. Horn, Norbert, Uniformity and Diversity in the Law of International Commercial Contracts, in: Horn/ Schmitthoff (eds.), The Transnational Law of International Commercial Transactions, Antwerp, Boston, London, Frankfurt a.M. 1982, at 3 et seq. Jenks, Edward et al., A Digest of English Civil Law, London, Sydney, Calcutta, Winnipeg, Wellington 1921. Lando, Ole, CISG and Its Followers: A Proposal to Adopt Some International Principles of Contract Law, in: American Journal of Comparative Law 53, Berkley 2005. Majeed, Nudrat, Good Faith and Due Process: Lessons from the Shari'ah, 1 Arb. Intl'l 2004, at 97 et seq. Mayer, Pierre, Le Principe de Bonne Foi devant les Arbitres du Commerce International, in: Festschrift Pierre Lalive, Basel, Frankfurt a.M. 1993, at 543 et seq. Schulze, Reiner, Gemeineuropäisches Privatrecht und Rechtsgeschichte, in: Müller-Graff (ed.), Gemeinsames Privatrecht in der Europäischen Gemeinschaft, Baden-Baden 1993, at 71 et seq. van Houtte, Hans, Changed Circumstances and Pacta Sunt Servanda, in: Gaillard (ed.), Transnational Rules in International Commercial Arbitration (ICC Publ. Nr. 480,4), Paris 1993, at 105 et seq. Verdross, Alfred, The Status of Foreign Private Interests Stemming from Economic Development Agreements with Arbitration Clauses, in: The Southwestern Legal Foundation (ed.), Private Investors Abroad, Dallas 1964, Albany, NY 1965 Braeckmans, H., Paralegale Normen En Lex Mercatoria, 23 TvPr. 1986, at 1 et seq. Dickstein, Michael E., Revitalizing the International Law Governing Concession Agreements, 5/6 Int’l Tax & Bus.Lawy. 1987/88, at 54 et seq. Ehricke, Ulrich, Zur Einführung: Grundstrukturen und Probleme der lex mercatoria, 30 JuS 1990, at 967 et seq. Hyland, Richard, Pacta Sunt Servanda: A Meditation, 34 VJIL 1994, at 405 et seq. Jennings, Robert Y., What is International Law and How Do We Tell It When We See It ?, Schw.Jb.Int.R. 1981, at 59 et seq. Lowenfeld, Andreas F., Lex Mercatoria: An Arbitrator's View, Arb.Int’l 1990, at 133 et seq. Magnus, Ulrich, Die allgemeinen Grundsätze im UN-Kaufrecht, 59 RabelsZ 1995, at 469 et seq. Marrella, Fabrizio, La nuova lex mercatoria, Principi Unidroit ed usi di contratti des comercio internazionale, CEDAM, Tratto di dritto commerciale e di dritto publico dell‘economia, Volume 30, Padova 2003 Molineaux, Charles, Moving Toward a Lex Mercatoria - A Lex Constructionis, 14 J. Int‘l Arb. 1997, No. 1, at 55 et seq. Mustill, Michael, The New Lex Mercatoria: The First Twenty-five Years, Arb.Int'l 1988, at 86 et seq. Paulsson, Jan, La Lex Mercatoria dans l‘Arbitrage C.C.I, Rev.d.Arb. 1990. at 55 et seq. Ripert, Georges, Les Règles du Droit Civil Applicables aux Rapports Internationaux (Contribution à l'Etude des Principes Généraux du Droit Visés au Statut de la Cour Permanente de Justice Internationale), 44 Rec.Cours 1933-II, at 569 et seq. von Hoffmann, Bernd, "Lex mercatoria" vor internationalen Schiedsgerichten, 4 IPRax 1984, at 106 et seq. Wehberg, Hans, Pacta Sunt Servanda, 53 AJIL 1959, at 775 Fouchard Gaillard Goldman on International Commercial Arbitration (edited by Emmanuel Gaillard and John Savage) The Hague 1999 Craig, W. Laurence/ Park, William W./ Paulsson, Jan, International Chamber of Commerce Arbitration, 3rd ed., Dobbs Ferry 2000 Aguilar Alvarez, Guillermo, note to ICC Award No. 4972, Clunet 1989, at 1105 et seq. suggest references The TransLex-Team is thankful for any contribution.
close X ICC Award No. 1795, YCA 1999, at 196 et seq. ICC Award No. 2321, YCA 1976, at 133 et seq. (also published in: Clunet 1975, at 938 et seq.) ICC Award No. 3344, Clunet 1982, at 978 et seq. ICC Award No. 4761, Clunet 1987, at 1012 et seq. ICC Award No. 5485, YCA 1989, at 156 et seq. ICC Award No. 5953, Clunet 1990, at 1056 et seq. ICC Award No. 7331, Clunet 1995, at 1001 et seq. ICC Award No. 8365, Clunet 1997, at 1078 et seq. ICC Award No. 8486, YCA 1999, at 162 et seq. (also published in: 10 ICC Bull. No.2, 1999, at 69 et seq.; Clunet 1998, at 1047 et seq.) ICC Award No. 10422, Clunet 2003, 1142 etseq. ICSID Award Amco Asia Corp. et al. v. Republic of Indonesia, 24 ILM 1985 at 1022 et seq. (also pblished in: Clunet 1987, at 145 et seq.; ICSID Rep. 1993, at 413 et seq.; Int ICSID Award, AMCO Asia Corpoation et al. v. Republic of Indonesia, Clunet 1987, at 145 et seq. LIAMCO v. The Government of the Libyan Arab Republic, YCA 1981, at 89 et seq. Saphire Award, ILR 1963, at 136 et seq. Texaco Overseas Petroleum Company v. The Government of the Libyan Arab Republic, YCA 1979, at 177 et seq. (also published in: ILM, 1978, at 1 et seq.; Int‘l L. Rep. 1979, at 389 et seq.; Clunet 1977, at 350 et seq.). suggest references The TransLex-Team is thankful for any contribution.
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Please cite as: "Commentary to Trans-Lex Principle No. IV.1.2 - Sanctity of contracts, http://www.trans-lex.org/919000"
1 The Principle is an expression of the general Principle of good faith which above all signifies the keeping of faith. Without such a rule international contract law would be a mere mockery.
2 The respect for this principle requires parties to execute their contractual undertakings. However, the modalities of this execution are not indicated by this general principle. It is the principle of good faith which provides this precision in a way that one can merge both principles into one when it comes to the performance of a contractual obligation: "pacta sunt servanda bona fide".
3 In spite of its pivotal importance, the principle of sanctity of contracts is not without exceptions. One such exception is the principle of hardship. However, since the principle of sanctity of contracts is the rule, the hardship defence is available only in exceptional cases.
4 The Principle applies only between the parties to the contract. It does not prejudice any effect which the contract may have vis-à-vis third parties.