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Social Justice and the Market in European Contract Law

Abstract European contract law must be developed along lines which are different from those proposed by free market enthusiasts. To this end, it must be based upon the principles enshrined in national constitutions and developed by national courts, in accordance with various technical expedients, but which are all the natural consequence of one political design: to have courts acting as a counterweight in situations where contracting parties are structurally weak. The contract law model contained in the European Constitution is quite different from this. It is based upon the ordoliberal principle of social market economy, which permits contractual freedom only in so far as it contributes to the stability of markets. To devise contract law in line with the doctrines enunciated by national courts does not entail opposition to the market: it merely requires markets to function according to different principles than those currently valued at EC-level, such as those which involve promoting social dialogue as a means for re-examining the current economic model.