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Retroactivity in contract law - where and to what extent?

Publication at Faculty of Law |
2021

Abstract

The adoption of new legal regulation always entails the need to address the relatively complex issue of the effect of new norms over time (intertemporality). The more complex the issues, the more complex the adopted regulation, resp. the more legal conditions are to be affected.

Recently, we have encountered this mainly in the recodification of private law. However, the subject of our consideration is not the analysis of all transitional provisions of the Civil Code of 2012, but only the consideration of selected aspects of retroactivity in the law of obligations (hereinafter also contractual retroactivity).

An issue which is not yet united in doctrine and which has not yet been subject to judicial review. Our reasoning will focus on two partial questions, the first of which already has its solution accepted by the doctrine and reflected by the case law.

However, without its brief introduction (rather a summary), it would be difficult to approach the second question that follows it. This concerns, on the one hand, the admissibility of contractual retroactivity as a consequence of the autonomy of the will of the parties and, on the other, the closely related issue of the extent of such retroactive effects (ie the temporal scope of retroactive effect).

To put it simply, how far can the new legislation go, with the agreed retroactive effect, without at the same time overestimating the admissibility of contractual retroactivity?