Reformulating Contract Law from the Perspective of the Association of Southeast Asian Nations

Abstract

Contract law was reformulated from the Perspective of The Association of Southeast Asian Nations (ASEAN). As the ASEAN Economic Community (AEC) opens for business, the number of International legal transactions increases. Retaining contract law principles as fundamental model laws were developed for parties to use for enforcing transactions. Usually in international private law conflicts parties choose the contract law of one country points to enforce transactions. Inconveniences and lack of confidence result in dealing with international commercial contracts. Instead soft model laws may preserve neutrality and confidentiality better than domestic contract law in enforcing transactions. These were formulated to harmonize with extant domestic contract law. In the West, the International Institute for the Unification of Private Law (UNIDROIT) is an intergovernmental organization on harmonization of private international law. The Draft Common Frame of Reference (DCFR), a joint project of the Study Group and Acquis Group, was funded by the European Commission. ASEAN legal experience, although influenced by civil or common law, has specific social and, cultural identities. This suggests that appropriate and fair new ASEAN rules might be formulated according to principles of ASEAN contract law, taking into account regional difference between national contract laws, by using Western laws as an example. Formulations, validity, were considered in, initially establishing contract laws.