Unification and Harmonization of Contract Law

Unification and harmonization of contract comes to rule where there is involvement of international law or international trade laws. At many times there will be conflict or overlapping.

Harmonization of Contracts

Harmonization is a very broad concept that refers to bringing things together in accordance with a pre-established order. Harmonization in the legal sense entails bringing together legal rules from two or more legal systems to minimize the effect of differences between them. Harmonisation on the other hand seeks to co-ordinate different legal systems by “eliminating major differences and creating minimum requirements or standards”.

“Harmonization” is the process of identifying and reconciling differences in legal systems and cultures to create instruments that standardize terms and practices of cross-border trade. As Professor Twigg-Flesner explains that harmonization can be accomplished “(i) by replacing existing domestic rules with an internationally agreed rule or (ii) by supplementing domestic law with an internationally agreed rule applicable only to international dealings.

In the simplest words, It is the is the standardization of templates to create consistency and efficiency.

Contract template harmonization is a great first step in achieving that consistency within contract types, providing the same starting point in negotiations and a standardized language for clauses and provisions. It facilitates in easier maintenance, accelerated cycle time, reduced costs, and more time for lawyers to practice law.

Sample Clause :

Harmonisation : The Parties shall, where appropriate, endeavour to work towards harmonisation of their respective mandatory requirements taking into account relevant international standards, recommendations and guidelines, in accordance with their international rights and obligations.

Harmonisation. : The Parties shall endeavor to harmonize their standards, including testing and certification procedures, in accordance with Article 3 of the WTO SPS Agreement.

Harmonisation : During both the transitional and operational phases of this Agreement, both Parties intend to continue to participate in the activities of the Global Harmonisation Task Force and utilize the results of those activities to the extent possible. Such participation involves developing and reviewing documents developed by the Global Harmonisation Task Force and jointly determining whether they are applicable to the implementation of this Agreement.

Standardization of contract

A standardized contract, also known as a standard form contract, is an agreement between two parties where one party sets the terms and the counterparty has little or no ability to change them. These “boilerplate” or “take it or leave it” documents are most common in business-to-consumer transactions and allow for the mass distribution of goods and services.

It will be common for all the person who avails the service or products.

Unification of Contract

Unification also focuses on substituting or combining two or more legal systems and replacing them with a single system.

Sample Clause

Unification :?When an economically viable reservoir extends continuously to one or more areas outside the Contract area, THE CONTRACTOR, under agreement with XXX and the interested parties, will, subject to prior approval the competent authority, implement of cooperative plan for unified Exploitation, subject to the provisions of Indian law.

I am conducting a One Month Course on Contract Life Cycle Management in association with Indian Institute of Industrial and Professional Studies . Do Let me know if you are intrested in the Same !!

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Thank you for Ritwij Shrivastava for suggesting this part to add as part of course curriculum !!