EU contract law may cover financial services

Author: Gemma Varriale | Published: 13 Oct 2011

Plans for a pan-European contract law are gaining momentum. But yesterday’s publication of the EC’s proposals have prompted speculation that the unpopular scheme will soon encompass the financial services industry.

In their present form, the proposals only apply to selling goods and digital content. "One of the worries is that they might be extended to cover other areas such as financial services or insurance," said Vanessa Knapp of Freshfields in London.

UK businesses used to working on the assumption that the court will enforce the parties’ agreement now face the possibility of a court applying EU law to...