Negotiation of contractual clauses
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Transcript of Negotiation of contractual clauses
Online terms & conditions
!Jacques(Folon(www.folon.com(!Partner(Edge(Consulting(!Maître(de(conférences((Université(de(Liège((Chargé(de(cours((ICHEC(Brussels(Management(School((Professeur(invité((Université(de(Lorraine((Metz)(ESC(Rennes(!
http://www.nyls.edu/institute_for_information_law_and_policy/conferences/visualizing_law_in_the_digital_age/
Online terms & conditions are binding contractual offers and are today the most complex legal environment
Basic principles about contracts
Nemo censetur ignorare legem
legal fiction!!
!
!
!
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freedom of contracting
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Consensualism
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Source de l’image: http://www.contrat-agile.org/images/balance.jpg
principally a contract must not be in writing
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But online contracts must be saved and archived by
the merchant
Consent◆ free!
◆ understanding!
◆ mistakes!
◆ consumer protection!
◆ Cooling off periodhttp://mpchristianity.com/wp-content/uploads/2009/11/james-bond-holding-gun-600x360.jpg
A contract is a law for the parties
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DON’T FORGET!A WEDDING CONTRAT IS ONLY WRITTEN
FOR THE DAY OF THE DIVORCE !!!
13Source de l’image : http://www.linternaute.com/argent/impots/contrat-mariage/
ONE MAY NOT SIGN A CONTRAT! FOR A THIRD PARTY
• PROXY!
• POST RATIFICATION!
• POWER OF ATTORNEY
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Source de l’image: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTweadE3u2MHLsU2pXJe4eTnsFakN_4jleT8W5g2XFTQj4ON3vU
A BADLY WRITTEN CONTRACT IS A POSSIBILITY OF CONFLICTS
Source de l’image: http://media.comprendrechoisir.com/public/image/public/studio/image/content/259184/mainImage-main-4346798.jpg
THE ONE WHO HAS THE PEN !WRITES THE LAW
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THE MORE IMPORTANT READER !IS THE JUDGE!
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Source de l’image: http://phandroid.s3.amazonaws.com/wp-content/uploads/2011/07/judge-judy.jpg
ITERPRETATION ONLY EXISTS! IF THE CONTRACT IS UNCLEAR
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THE LAW MAY ADD OR SUPPRESS SOME ARTICLES OF A CONTRACT !
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LEGAL ADVISER OR LAWYER
• LEGAL ADVICE!
• CONTRACT!
• COURT CASE
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WHO IS A « GOOD » LAWYER?
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ONE MAY DISCUSS FEES
• TIME SHEET!
• HOURLY RATE!
• SUCCESS FEE
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UNBALANCED!
➢CONSUMER (=> PROTECTION)!
➢SIZES IN B2B!
➢TECHNICALITIES!
➢LACK,OF PRECISENESS
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!
• GOOD!
• SERVICE!
• B2B!
• B2C
REASON OF THE CONTRACT
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• WHAT ARE THE
CONTRACTUAL DOCUMENTS ?
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MAIN CONTRACTUAL CLAUSES
The consumer has the right to contractual terms written in plain and understandable language and this applies as well online.
!
Where there is doubt about the meaning of a term, the interpretation most favourable to the
consumer shall prevail
Any consumer in the EU, also in the digital environment, is protected
from unfair standard contract terms by traders that create an
unreasonable imbalance to the detriment of the consumer.
!
If a contract contains such terms, the consumer is not bound by them,
although the contract itself usually remains valid.
• BE PRECISE
• CONSUMER ? VAT?
• COUNTRY OF THE MERCHANT
• INFORMATION REQUESTED BY CONSUMER PROTECTION
WHO ARE THE PARTIES ?
Every online consumer concluding a contract in the EU has the right to have easy, direct and permanent access to at least!
!the name and geographic address of the provider, !the electronic mail address or website, !the trade register in which the provider is entered and his registration number,!the professional title and professional body with which the provider is registered, !the VAT details where applicable !any other detail allowing rapid and effective contact with the provider!access to codes of conduct to which the provider subscribes !to contract terms and general conditions in a way that allows him to store and reproduce (print) them.
WHO IS THE MERCHANT ?
• WELL KNOWN?!
• LOCALIZED IN AN UNUSUAL COUNTRY!
• E-REPUTATION ?
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• IMPORTANT FOR INTERPRETATION
• IMPORTANT FOR THE UNDERSTANDING
WHEREAS
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ENTRY IN FORCE
➢ COOLING OFF PERIOD OF 14 DAYS!
➢ PRODUCT OR SERVICE UNAVAILABLE!
➢ SUSPENSION CLAUSE!
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TYPE OF CONTRACTS
• T & C => NO NEGOCIATION!
• AGAINST MONEY - FREE - FREEMIUM!
• ONE SHOT - MONTHLY!
• GOODS OR SERVICES!
• DIGITAL GOODS!
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• FIXED PRICE
• MUST BE CLEAR
• ONE PAYMENT OR SUCCESSIVE
• ON DELIVERY - BEFOREHAND
• LATE PAYMENT INTERESTS
• DELIVERY INCLUDED?
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PRICE
WHAT IS SOLD ?!INTELLECTUAL PROPERTY?
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Every consumer in the EU has the right to receive clear, correct and comprehensible key information
from a trader about the product or service before making an online
purchase.!
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This information must include the main characteristics of the product, !
price inclusive of taxes, delivery costs, the arrangements for payment, delivery or performance, identity and geographical address of the trader, the existence of a right of withdrawal or cancellation (for products which involve such right), the period for which the offer or the price remains valid if applicable, the minimum duration of the contract.
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Unless contracts are concluded exclusively by exchange of electronic mail or by equivalent individual communications, this information must also contain the different technical steps to follow to conclude the contract; whether or not the contract will be filed and accessible; the technical means for identifying and correcting input errors, and the languages offered for the conclusion of the contract !When the consumer places his order online, he has the right to receive an acknowledgment of the receipt of the order without undue delay and by electronic means
Drugs, forbidden products (in certain countries ), medical products, etc.
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• FIXED TERM OR NOT
• IF NOT HOW TO STOP IT
• WHAT IS THE BEST WAY?
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LENGHT
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• DELIVERY OF SERVICE
• CONFLICT OF LAWS
• CONTRACT APPLICABLE LAW
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COUNTRY
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• IMPORTANT IF APPLICABLE
• Copyright vs. Droit d’auteur
• TRANSFER OF RIGHTS
• WHAT IS AUTHORIZED?
Source: http://digitallife.vanderbilt.edu/copyright2.jpg42
INTELLECTUAL PROPERTY
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• WHEN ? • ON DELIVERY? • WHO IS RESPONSIBLE • EVIDENCE OF DELIVERY •
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TRANFER OF OWNERSHIP
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• B2B!
• INternational COmmercial TERMS
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• DELIVERY & RECEPTION
• DOES DELIVERY MEANS ACCEPTANCE?
• ACCEPTANCE PROCEDURE IS NEEDED
TRANSFERT DE !LA PROPRIETE
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• « milestones »
• PAYMENT FOR WHAT IS DONE AND ACCEPTED
• PERIODIC MEETINGS50
PLANNING FOR SERVICES
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• BENEFITS!
– NO NEWS NO RELATIONSHIP!
– NEW PRODUCTS OR SERVICES!
– ANTICIPATE PROBLEMS!
– PRE-COURT CASE FILE
TIMELINE
MILESTONES
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• UNSEEN AT RECEPTION
• ONLY FOR GOODS
• WHO IS RESPONSIBLE?
• UPGRADING OR REPAIRS POSSIBLE
HIDDEN DEFECTS
PRIVACY POLICY IS MANDATORY FOR B2C
• HOT LINE!
• WEBSITE!
• FAQ!
• SERVICE LEVEL AGREEMENT
TECHNICAL ASSISTANCE
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Texte
SERVICE LEVEL AGREEMENT
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CONFIDENTIALITY
• LIMITS RESPONSIBILITY!
• LEGAL WARRANTY B2C!
• AGAINST THIRD PARTY CLAIMS IN IPR!
• AMOUNT MAY BE LIMITED
WARRANTY
• ACCEPTABLE
• UNLESS IF NOT LEGALLY ACCEPTED
• MAY NOT BE EXCESSIVE
LIMITATION !OF !
RESPONSIBILITY
BODY SHOPPING
✓ MISSION!
✓ WHO IS THE BOSS?!
✓ LOCAL RULES!
✓ MATERIAL !
✓ CONFIDENTIALITY!
✓ SECURITY
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CHANGE IN THE T&C!!
THEY MUST BE ACCEPTED BY THE
OTHER PARTY
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http://blogs.iq.harvard.edu/netgov/2010/05/facebook_privacy_policy.html
• BASIC
– REIMBURSE OR SEND BACK
• CAUSES MUST BE DEFINED
INEXECUTION
WHO MUST DEMONSTRATE THE EVIDENCE OF THE
CONTRACT!!
IN B2C!IN B2D
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CANCELLATION !CLAUSES
• A PARTY DID NOT FULFILL ITS OBLIGATION • BANKRUPCY • …
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• IN ORDER TO COMPENSATE
– A DAMMAGE
– BAD PERFORMANCE
– TIMING NOT RESPECTED
• THEY MUST NOT BE EXCESSIVE
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PENALTIES
FORCE MAJEURE!!
IRRESISTIBLE!NOT PREVISIBLE!
NOT DEPENDING ON A PARTY!
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• PREVIOUS ACCEPTANCE
• RESPONSAIBILITY
TRANSFER OF THE! CONTRACT
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SUB CONTRACTORS
• IDENTITY
• PREVIOUS ACCEPTANCE
• DEFINITION OF QUALIFICATIONS
• RESPONSIBILITY
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MEDIATION
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ARBITRATION OR COURT ?
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APPLICABLE LAW & TRIBUNAL
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Drafting T&C is a quite complex job
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QUESTIONS ?
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