Do Some Business Relationships Fall within the Scope of the Principles of Life Time Contracts?

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The essay examines the question of whether the Principles of Life Time Contracts, formulated by the European Social Contract (EuSoCo) group, could, or even should, be extended to business relationships, which do not lead to a simple spot-market exchange of instant execution, but rather establish long-term relationships between firms, instrumental to the ongoing needs of their respective economic activity. This happens primarily in cases in which the contract is the means by which one firm (usually, but not always, small) is integrated in the business organization of a bigger company, on whose behalf the former carries out a step of the economic activity of the latter, adjusting its own work process in relationship to the latter’s needs. Such contractual relationships should, therefore, be included in the category of Life Time Contracts, not only in consideration of mere continuous performance of obligations, but also because at least one of the fundamental interests pursued by parties requires ongoing satisfaction throughout the contract’s term. For these reasons, this form of contractual integration to one party is not a sole instrument to make a profit, but is also the way of self-realization through its professional activities. At the same time, this cooperation leads to economic dependence, comparable with that of an employed worker, increasing the risk of abuse and unfair conduct by the stronger party.
Original languageEnglish
Title of host publicationEmbedding the Principles of Life Time Contracts. A Research Agenda for Contract Law
Pages57-72
Number of pages16
Publication statusPublished - 2018

Keywords

  • Business relationship
  • Life time contracts
  • contractual integration
  • economic dipendence

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