Why is Uniform Law Important?

What is the purpose of uniform private law?

• For individuals, a legal framework of private rights which is an essential bedrock of community life
• For business, an international legal regime designed to facilitate transactions, enhance credit facilities and reduce borrowing costs
• For governments, a means of modernising the laws of their States and bringing them into harmony with those of other States.

To reap full benefit of the international instruments, they must be understood in the same way in all countries, and they must be applied in the same way. The obstacles to achieve this include:

• a lack of information on how they are applied in other countries
• language barriers.

To overcome these difficulties, UNIDROIT is setting up a database (UNILAW) which will provide the information needed, properly classified and indexed, in the form of

• the text of international conventions with the status of ratifications and reservations/declarations
• bibliographical references
• national case law

Examples of Uniform Law Instruments

The instruments adopted by UNIDROIT address specific issues and aim to achieve certain goals:

The 2001 Cape Town Convention on International Interests in Mobile Equipment with

The 2001 Cape Town Protocol on Matters specific to Aircraft Equipment and

The 2007 Luxembourg Protocol on Matters specific to Railway Rolling Stock

States are increasingly hard pressed to make savings in public spending. The drive for privatisation is still strong, as are attempts to create a public/private co-operative relationship. It is therefore urgent to provide the necessary legal instruments to facilitate these developments. The Cape Town Convention and its Protocols are designed to make commercial finance more easily available for high-value mobile equipment which often is strategic for the economic development of nations.

The 1995 Convention on Cultural Property

Trafficking in cultural objects is second only to trafficking in arms. Many objects that are a part of the cultural heritage of their countries of origin, end up in private collections hidden from view. This Convention is intended to help those nations that suffer from this phenomenon to curb this illicit trade. Clearly, the Convention is not aimed at honest trade in art and other cultural objects, only at the illegal trade.

The 2002 Model Franchise Disclosure Law

In recent years an increasing number of countries has adopted franchise-specific legislation. At times, the legislation adopted betrays a certain lack of familiarity with franchising. The Model Law provides legislators who have decided that their country needs franchise legislation with a source of inspiration. States are not obliged to adopt the Model Law, and if they do, they can modify it if they feel that that is necessary to meet the needs of their countries.

The UNIDROIT Principles of International Commercial Contracts:

In international relations often one party tries to impose his national law as the applicable law. This can create difficulties for the other party. By selecting the UNIDROIT Principles as the applicable law, integrated by the otherwise applicable law as necessary, this problem is avoided, and the playing field is levelled.

The Guide to International Master Franchise Arrangements (Second Edition 2007)

Franchising is growing fast. Enterprises spread across the world quickly by using franchising, but often franchising is not familiar to those involved: the busines men and their lawyers. The Guide is intended to provide information on all aspects of first and foremost the master franchise relationship, but also on the traditional unit franchises. It aims at enabling franchise lawyers to ask the right questions of their counterparts, who, in an international situation, are often highly sophisticated franchise lawyers.

Thus, to sum up:

Uniform law is important because:

• relations between individuals and companies in different countries are made easier,
• developing countries and new market economies are assisted in developing legal regimes in their domestic law,
• all countries are assisted in modernising law, to enhance predictability, reduce risk and lower transaction costs,
• the understanding between peoples increases as different legal traditions and different cultures are given due consideration,
• legal co-operation between countries is enhanced, in particular in business law, family relations and the protection of the cultural heritage

Beneficial effects of uniform law:

• a greater certainty in dealings across borders;
• an increased volume and value of international trade and cross-border relations;
• the promotion of improved standards of conduct;
• the establishment of performance benchmarks; and
• the facilitation of more effective international dispute resolution and enforcement of rights.