Interpretation of Contracts and Control of Unfair Terms in Asia

Interpretation of Contracts and Control of Unfair Terms in Asia Presented by: Mr. Vogenauer Date: 5 March 2021 Overview - Studies in the Contract Laws of Asia - Interpretation of Contracts - Control of Unfair Terms - Conclusions Studies: Volumes - Remedies for Breach of Contract (2016) - Formation and Third Party Beneficiaries (2018) - Contents of Contracts and Unfair Terms (2020) - Validity (2021) - Ending and Changing Contracts (2022) - Public Policy and Ille.g.ality (2024) Studies III: Coverage of Jurisdictions China Hong Kong India Indonesia Japan Korea (South) Malaysia Myanmar Philippines Singapore Taiwan Thailand 1,392,730,000 7,451,000 1,352,617,328 267,663,435 126,529,100 51,606,633 31,528,585 53,708,395 106,651,922 5,638,676 23,589,000 69,428,524 9,770.80 48,675.60 2,010.00 3,893.60 39,290.00 31,380.10 11,373.20 1,326.00 3,102.70 64,581.90 25,026.00 7,273.60 Vietnam 95,540,395 2,566.60 Total 3,584,682,993 (47.21% of the world population of 7,592,886,796) Average $19,252 (compared with the world average GDP of $11,317) Studies: Problems - Authors: • English as the language of the project • Unreliable translations or no available translations • Dynamic development of Asian private laws, e.g. CC Vietnam 2015 (01/01/2017), Indian Consumer Protection Act 2019, CC Japan Reform (01/04/2020), CC China (01/01/2021) - Editors: • Lack of le.g.al and linguistic expertise in most of the jurisdictions covered (,,law in the books and law in action") • Western bias (,,false friends" vs „le.g.al orientalism") Studies: Structure of Individual Volumes - Introductory chapter, including the questionnaire - Country reports (one or two per jurisdiction), with hypothetical scenarios - Concluding comparative chapter - Bibliography Interpretation of Contracts Interpretation: Themes - Subjective' and 'objective' approaches • - Aids to interpretation • - → 'shark meat': falsa demonstration vs rectification Recourse to negotiations vs exclusionary rule Priority rules in the event of conflicting aids to interpretation • → contextualism vs literalism • → 'supplementary interpretation' vs implied terms Interpretation: Specific Issues - Path dependencies and le.g.al transfer (terminology, categories, individual solutions): • 'double transfers', e.g. Indian Evidence Act 1872 • 'rejected transfers', e.g. plain meaning rule in India and Indonesia; exclusionary rule in India; AG of Belize in Singapore and Malaysia • 'sticky transfers', e.g. AG of Belize in Hong Kong • 'irrepressible transfers', e.g. s 157 BGB (good faith interpretation) in Taiwan • 'localized transfers', e.g. higher threshold for implication of terms in fact in Malaysia und Singapore; the role of good faith in Korea, Taiwan Control of Unfair Terms: Themes - Policy considerations • → consumer protection vs protection against standard terms vs protection against types of clause that are typically unfair - The basis for judicial control • - → general law of contract vs specific legislation 'flanking measures' (procedures, special tribunals etc.) • → 'law in the books' vs 'law in action' Control of Unfair Terms: Specific Issues - (Limited) path dependencies and le.g.al transfer (terminology, categories, individual solutions): • 'sticky transfers', e.g. warranties/conditions/innominate terms distinction in Malaysia; narrow doctrine of unconscionability in Singapore • 'irrepressible transfers', e.g. s 138(2) BGB (usury) in Japan • 'localized transfers', e.g. modification of UCTA 1977 in Hong Kong: linguistic capacities of the parties to be considered when determining whether term 'fair and reasonable'; the role of good faith in Korea, Taiwan etc.