UNIDROIT

As an independent intergovernmental organization, The International Institute for the Unification of Private Law (UNIDROIT) studies methods for modernising, harmonising and coordinating private and in particular commercial law as between States and groups of States. With respect to legally binding instruments such as international conventions, the “UNIDROIT Principles of International Commercial Contracts” are a non-binding or “soft-law” instrument of commercial practice. As a close partner to UNIDROIT, ICC monitored the process and appreciates its results.

Particularly in the field of international agency agreements, the lack of uniform rules creates difficulties for the parties: They have to rely on national laws. Not only do these laws differ from country to country, but do also not take into account the international nature of the contract.

The “ICC Model Commercial Agency Contract” provides an alternative solution. To assist business people engaged in international trade and using uniform contractual rules, the model incorporates prevailing practice in international trade as well as the principles generally recognized by the domestic laws on agency. The revised 2002 version includes the “UNIDROIT Principles of International Commercial Contracts” in the appendix. Those principles offer a legal framework to the majority of general contractual problems (e.g. formation of contract, validity, performance, non-performance, damages, etc.).

Additionally, “ICC Model Distributorship Contract” as well as “ICC Model International Franchising Contract” gives parties the opportunity to contract into the “UNIDROIT Principles of International Commercial Contracts”. “UNIDROIT Principles of International Commercial Contracts” are also permanently subject of discussion during ICC conferences and seminars.