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Culpa in contrahendo

Culpa in contrahendo is a civil law doctrine that establishes liability for negligent or blameworthy conduct during the pre-contractual negotiations leading to a contract, obligating parties to negotiate in good faith and compensating the injured party for reliance damages, such as expenses incurred in anticipation of the agreement.^[1]^[2] The doctrine addresses the "negative interest" of the party harmed by a sudden or bad-faith withdrawal from talks, requiring elements like preliminary negotiations, breach of good faith, causation, and quantifiable damages.^[1]^[3] The concept traces its origins to 19th-century German scholarship, introduced by Rudolf von Jhering in 1861 to fill gaps in the protection of negotiating parties under existing contract law, and later expanded by French jurist Raymond Saleilles in 1907 to emphasize good faith duties throughout the formation process.^[1]^[3] In Germany, it was judicially developed through the Civil Code (Bürgerliches Gesetzbuch, BGB), particularly Articles 122 and 311, which impose pre-contractual obligations akin to contractual ones.^[1]^[3] Key historical cases, such as the German Supreme Court's Bananenschale decision, further delineated its scope by applying tort principles to negotiation misconduct.^[2] Adoption varies across jurisdictions, often codified in civil law systems influenced by Roman-Germanic traditions. In Italy, Article 1337 of the Civil Code explicitly mandates good faith in negotiations, allowing claims for culpa in contrahendo.^[1] France classifies it as extra-contractual liability under Article 1112 of the Civil Code, focusing on disclosure duties and bad faith.^[3] In the European Union, the Rome II Regulation (Regulation (EC) No 864/2007), Article 12, governs its private international law aspects, applying the law of the contract under negotiation (lex contractus in negotio) to non-contractual obligations from precontractual dealings, effective since 2009.^[2] Other systems, like Chile's Commercial Code (Articles 99-100) and Albania's Civil Code (Article 674 via case law), integrate it to protect against disloyal negotiation tactics, though without dedicated provisions in some cases.^[1]^[3] In contrast to civil law's affirmative precontractual duties, common law jurisdictions like the United States generally do not recognize a broad culpa in contrahendo doctrine, prioritizing freedom of contract and addressing similar issues through narrower remedies such as promissory estoppel, negligent misrepresentation, or implied covenants of good faith post-formation.^[1] This divergence reflects differing emphases: civil law on relational equity during talks, versus common law's resistance to imposing liability absent a binding agreement. International instruments like the UNIDROIT Principles of International Commercial Contracts (Article 2.1.15) harmonize elements of the doctrine to facilitate cross-border trade.^[1]

Origins and Development

Historical Background

The doctrine of culpa in contrahendo, addressing fault in the pre-contractual negotiation phase, draws conceptual roots from Roman law principles emphasizing good faith (bona fides) in dealings and the maxim pacta sunt servanda, which underscored the binding nature of agreements once formed, though ancient Roman law did not explicitly recognize liability for negligent negotiations prior to contract conclusion.^[4] Early notions of pre-contractual fault appeared in Roman contractual practices, where parties were expected to negotiate honestly to avoid deception, but strict Romanist interpretations limited obligations to post-formation stages, viewing culpa (negligence or fault) as insufficient to generate liability without a perfected agreement.^[5] An early codification of liability for negligent negotiations emerged in the 18th century with the Prussian Allgemeines Landrecht für die preußischen Staaten (General State Laws for the Prussian States) of 1794, particularly in Article 284, which imposed duties of care during preliminary dealings and held parties accountable for damages arising from bad-faith or negligent conduct leading to failed contracts.^[6] This provision marked a departure from purely Romanist formalism by extending good faith obligations to the negotiation phase, treating such fault as grounds for compensation even if no contract materialized, and influencing subsequent European civil codes.^[7] In the 19th century, German scholarly debates intensified around these ideas, with the Pandectist school, led by figures like Friedrich Carl von Savigny, adhering to a rigid Roman law framework that denied culpa as a basis for pre-contractual obligations, insisting on formal contract perfection for any liability to arise.^[5] Critics challenged this abstraction, arguing for a more practical approach that accounted for reliance and harm in negotiations, setting the stage for doctrinal innovation. The term culpa in contrahendo was formally introduced in 1861 by Rudolf von Jhering in his seminal essay "Culpa in contrahendo, oder Schadensersatz bei nichtigen oder nicht zur Perfection gelangten Verträgen," published in Jherings Jahrbücher für die Dogmatik des heutigen römischen und deutschen Privatrechts (vol. 4, pp. 1–112), where he advocated liability for damages caused by negligent reliance during bargaining, rejecting Savigny's Romanist dogma and grounding the principle in broader good faith norms.^[8]

Key Theoretical Contributions

The doctrine of culpa in contrahendo received its foundational theoretical articulation from Rudolf von Jhering in his 1861 essay "Culpa in contrahendo, oder Schadensersatz bei nichtigen oder nicht zur Perfection gelangten Vertragen," published in Jherings Jahrbücher für die Dogmatik des heutigen römischen und deutschen Privatrechts. Jhering posited that liability should arise from fault (culpa) committed during the negotiation and conclusion of a contract, particularly in cases where a party's careless conduct creates a false appearance of a binding obligation, leading the other party to incur reliance damages. This approach rejected the prevailing notion of absolute freedom of contract in pre-contractual phases under the Gemeines Recht, arguing instead for compensation of the "negative interest" to restore the injured party to their pre-negotiation position, as seen in examples of mistaken conclusions where one party bears undue costs without fault.^[1] Subsequent advancements came from the German Pandectist school, exemplified by Bernhard Windscheid, who integrated culpa in contrahendo into comprehensive theories of obligations while critiquing Jhering's emphasis on delictual fault. In his Lehrbuch des Pandektenrechts, Windscheid reframed pre-contractual liability as inherently contractual, arising from an implied duty within the negotiation process rather than standalone negligence, thereby embedding it within the broader architecture of obligation law derived from Roman sources. This shift emphasized the doctrinal coherence of treating negotiation faults as extensions of contractual responsibility, influencing the systematic classification of liabilities in later civil codes.^[9] The intellectual groundwork for these theories was shaped by the historical school of jurisprudence, founded by Friedrich Carl von Savigny, whose emphasis on the organic, historical evolution of law from Roman roots encouraged reinterpretations of ancient sources to address modern equitable concerns in pre-contractual relations. Although Savigny himself denied the existence of independent liability for negotiation faults, viewing them outside traditional obligation frameworks, his methodological insistence on contextual historical analysis provided the analytical tools for scholars like Jhering to argue for binding equitable duties during contract formation.^[3]^[10] In the 20th century, Friedrich Kessler expanded the doctrine's scope through his comparative analysis in the 1964 Harvard Law Review article "Culpa in Contrahendo, Bargaining in Good Faith, and Freedom of Contract: A Comparative Study," co-authored with Edith Fine. Kessler linked culpa in contrahendo explicitly to the overarching principle of good faith in bargaining, demonstrating its functionality in mitigating abuses of contractual freedom and drawing parallels to common law mechanisms like promissory estoppel and negligent misrepresentation, thereby facilitating cross-jurisdictional dialogue on pre-contractual duties.^[9]

Core Principles

Duty to Negotiate in Good Faith

The duty to negotiate in good faith, central to the doctrine of culpa in contrahendo, obliges parties engaged in pre-contractual discussions to behave honestly, furnish accurate information, and eschew any conduct that could mislead the counterparty.^[11] This obligation arises during the negotiation phase, where parties must demonstrate serious intent and fair dealing to avoid inducing detrimental reliance in the other party.^[1] The concept, first articulated by German scholar Rudolf von Jhering in 1861, underscores a pre-contractual liability for fault in contracting.^[11] At its core, good faith—derived from the Roman law principle of bona fides—imposes a standard of loyal and reasonable conduct, measured negatively as the absence of bad faith or deceit.^[11] This entails not only refraining from deception but also proactively disclosing material facts that, if withheld, could affect the other party's informed decision to proceed or withdraw from talks.^[1] For instance, a party must respond truthfully to inquiries about contract-relevant facts and correct any inadvertent misstatements that might influence the counterparty's position.^[1] Breaches of this duty typically involve intentional acts that undermine trust, such as deliberately providing false information about essential contract elements, like performance capabilities or pricing estimates.^[11] Other violations include abruptly terminating negotiations after the counterparty has reasonably expected closure, thereby exploiting induced reliance, or failing to warn of known risks that could render the potential agreement unfeasible.^[11] Such conduct contravenes the ethical standards of negotiation by prioritizing self-interest over mutual fairness. Theoretically, the duty serves to mitigate abuses stemming from power imbalances in negotiations, where one party might hold superior information or leverage, preventing opportunistic exploitation and fostering equitable bargaining dynamics.^[12] By enforcing this proactive ethical framework, culpa in contrahendo ensures that pre-contractual interactions align with broader principles of trust and reliability in commercial relations.^[1]

Scope and Elements of Liability

The doctrine of culpa in contrahendo imposes liability for fault occurring during the pre-contractual phase of negotiations, specifically from the initiation of serious discussions until either the formation of a binding contract or the unequivocal termination of talks.^[1]^[2] This scope is confined to non-contractual obligations arising from conduct directly linked to the negotiation process, excluding post-contractual breaches or unrelated harms.^[2] The duty to negotiate in good faith serves as a foundational prerequisite, but liability requires additional demonstrable elements beyond mere ethical breach.^[13] To establish liability, three core elements must be present: fault (culpa), causation, and damage. Fault involves culpable conduct, such as negligence, deception, or bad faith during negotiations that induces reliance in the other party, like failing to disclose material facts or abruptly withdrawing without justification.^[1]^[13] Causation demands a direct link between the faulty conduct and the resulting harm, where the negotiation behavior foreseeably leads to the injured party's reliance or loss, such as forgoing alternative opportunities.^[1]^[14] Damage encompasses verifiable economic losses, including reliance costs like incurred expenses for due diligence or travel, but excludes non-economic or physical harms unrelated to the negotiations.^[2]^[14] Compensable damages under culpa in contrahendo primarily protect the negative interest, reimbursing the injured party for expenditures and losses directly attributable to reliance on the negotiations, such as evaluation costs or missed business prospects.^[1]^[13] Positive interest damages, which would cover hypothetical benefits from a concluded contract (expectation interest), are awarded only in exceptional cases, such as where fraud or intentional misconduct demonstrably prevented contract formation.^[14]^[13] For instance, if a party's deceitful representations lead to the other incurring setup costs assuming a deal, recovery is limited to restoring the status quo ante, not speculative profits.^[1] Defenses against liability include the absence of reliance by the claimant, where no detrimental actions were taken in response to the negotiations, or mutual fault, where both parties contributed to the breakdown through culpable behavior.^[14]^[1] Additionally, if the withdrawal from talks occurs without fault and after clear communication, no liability arises, preserving the principle of contractual freedom.^[1] These limitations ensure the doctrine balances protection against abuse with the risks inherent in preliminary dealings.^[13]

Application in Civil Law Jurisdictions

Germany

In German law, the doctrine of culpa in contrahendo originated in the 19th century as a theoretical construct proposed by Rudolf von Jhering in his 1861 article, which posited liability for fault committed during contract negotiations to protect reliance interests. This idea evolved through judicial interpretation, particularly by the Reichsgericht and later the Bundesgerichtshof (BGH), which integrated it with the general principle of good faith under § 242 of the Bürgerliches Gesetzbuch (BGB), imposing pre-contractual duties to negotiate fairly and provide accurate information.^[8] Over the 20th century, courts expanded its scope to cover negligent misrepresentations and breaches of trust during negotiations, as seen in seminal BGH rulings such as the 1976 decision in VIII ZR 246/74, which applied the doctrine to liability for bodily harm arising from pre-contractual conduct.^[15] The doctrine's modern form was codified in the 2002 reform of the law of obligations, primarily through § 311(2) BGB, which establishes obligations from conduct aimed at concluding a contract, even if no agreement is reached.^[16] This provision creates pre-contractual liability by linking to § 280(1) BGB for damages due to non-performance and § 241(2) BGB for protective effects toward others during negotiations, allowing recovery of reliance damages such as negotiation costs or lost opportunities.^[8] The BGB's original 1900 version lacked explicit regulation, relying instead on judge-made law under good faith, but the reform formalized culpa in contrahendo as an integral part of contract law, reflecting decades of case law development.^[16] Judicial application emphasizes duties of information and care, with BGH decisions in the 1980s underscoring liability for negligent withdrawal from advanced negotiations that induces detrimental reliance.^[8] These cases highlight fault in providing incomplete or misleading information, extending liability to scenarios like failed mergers or sales where one party incurs verifiable expenses.^[8] A unique feature of the German approach is its broad applicability, permitting claims under both contractual provisions (§§ 311(2), 280(1), 241(2) BGB) for economic losses and delictual rules (§ 823 BGB) for personal injury or property damage from pre-contractual acts, thus bridging contract and tort without strict delineation.^[8] This dual framework ensures comprehensive protection while prioritizing contractual remedies for negotiation-related harms.^[16]

Belgium and Other European Systems

In Belgium, pre-contractual liability under the doctrine of culpa in contrahendo is primarily grounded in the general tort provisions of Article 1382 of the Civil Code, which imposes liability for fault causing damage during negotiations.^[17] The 2022 reform of the Civil Code, introducing Book 5 on obligations effective from January 1, 2023, explicitly codifies pre-contractual duties, with Article 5.17 establishing non-contractual liability for faults committed during the negotiation phase.^[18] This includes obligations to negotiate in good faith under Article 5.78, which requires transparency and fairness, and a duty to provide accurate and complete information under Article 5.77.^[19] Liability arises for breaches such as abrupt termination without justification or misrepresentation, allowing recovery of reliance damages like incurred expenses, as affirmed in Belgian jurisprudence.^[17] The Court of Cassation has recognized negotiation faults leading to culpa in contrahendo in cases involving unjustified breaking off of talks, emphasizing the application of good faith principles to prevent abuse.^[20] France's approach to culpa in contrahendo was significantly shaped by the 2016 reform of the Civil Code, which codified pre-contractual duties in Article 1112. This provision declares that the initiation, conduct, and breaking off of negotiations are free but must observe good faith, thereby limiting liability to instances of bad faith rather than mere disappointment in failed deals.^[21] Complementing this, Article 1112-1 imposes a specific duty to disclose relevant information that one party knows and the other ignores or could not discover, with non-compliance resulting in damages for the harm caused by the lack of information.^[22] However, recovery is confined to culpa in the negotiation process, excluding full expectation damages for unrealized contracts; courts typically award only negative interest to cover losses directly attributable to the fault, such as opportunity costs.^[23] In Italy, Article 1337 of the Civil Code expressly mandates good faith in the conduct of negotiations and contract formation, serving as the cornerstone for culpa in contrahendo liability.^[1] This requires parties to avoid misleading actions or omissions that induce reliance, with breaches leading to tort-like responsibility under general provisions. Judicial interpretations have expanded the scope beyond abrupt terminations to include delays in concluding agreements or failures to disclose information affecting contract validity, as seen in Corte di Cassazione decisions such as nos. 26724 and 26725 (2007), which allowed compensation for reduced profitability due to bad faith.^[24] Damages are generally limited to negative interest, covering expenses and lost alternatives, though recent case law has occasionally extended relief to mitigate burdens from disadvantageous but valid contracts.^[24] Spain similarly relies on the overarching good faith principle in Article 7 of the Civil Code, which limits the exercise of rights and implicitly governs pre-contractual negotiations by requiring honest and diligent behavior.^[25] Courts have developed culpa in contrahendo through analogy to tort liability under Articles 1902 et seq., holding parties accountable for damages from unfair negotiation tactics, such as unilateral withdrawal without motive after inducing reliance.^[25] This judicial expansion emphasizes proof of bad faith and causation, with compensation focused on direct losses like incurred costs, excluding indirect or punitive elements, as consistent with civil law traditions.^[25] European Union harmonization efforts have influenced these national systems through Directive 2005/29/EC on unfair commercial practices, which prohibits misleading omissions and aggressive behaviors in business-to-consumer negotiations, thereby reinforcing pre-contractual good faith duties.^[26] By requiring disclosure of material information based on professional diligence (Article 5), the directive promotes consistency in culpa in contrahendo applications, particularly in consumer contexts, and has prompted member states to align tort and contract rules for maximal harmonization by 2007.^[26] This framework complements domestic provisions, such as those in Belgium and France, by extending protections against abusive pre-contractual conduct without fully supplanting civil code principles.^[26]

Application in Mixed and Common Law Contexts

Puerto Rico

Puerto Rico's legal system, rooted in civil law traditions inherited from Spanish colonial rule, retained the doctrine of culpa in contrahendo following the U.S. acquisition of the island in 1898. The Spanish Civil Code of 1889, extended to Puerto Rico in that year, served as the foundational framework, emphasizing pre-contractual duties under general principles of good faith and fault. After 1898, the U.S. administration preserved this civil law structure through the Foraker Act of 1900 and subsequent legislation, with the Political Code of 1902 (Act No. 46) incorporating some general provisions from the Spanish Civil Code, leading to a comprehensive recodification in the Puerto Rico Civil Code of 1930, which adapted Spanish provisions while incorporating some U.S. influences in procedural matters.^[27]^[28] Under the 1930 Civil Code, culpa in contrahendo was developed through jurisprudence as an extracontractual liability grounded in Article 1802, the general tort provision imposing responsibility for damages caused by fault or negligence. This article, mirroring Article 1902 of the Spanish Civil Code, obligated parties to negotiate in good faith during preliminary stages, allowing recovery for reliance damages when one party's culpable conduct—such as abrupt withdrawal or misleading representations—induced detrimental reliance without culminating in a binding contract. The doctrine was not explicitly codified until the 2020 Civil Code revision, which incorporated it into Articles 1271 and 1272, explicitly regulating pre-contractual liability and reinforcing the duty of good faith in negotiations.^[29]^[30] The Supreme Court of Puerto Rico has applied culpa in contrahendo in several rulings, particularly in the late 20th century, to award reliance damages for bad-faith negotiations. In Torres v. Gracia (1987), the court clarified that while the doctrine requires proof of fault inducing reliance, it does not apply absent evidence of deliberate misconduct during talks.^[31] Subsequent decisions in the 1990s, as interpreted in federal diversity cases applying Puerto Rico law, have allowed claims for out-of-pocket expenses and opportunity costs when negotiations reach an advanced stage implying a reasonable expectation of contract formation; for instance, in Shelley v. Trafalgar House Public Ltd. Co. (1996), the U.S. District Court, relying on Supreme Court precedents, denied summary judgment on a culpa in contrahendo claim alleging bad-faith termination of advanced negotiations, allowing potential recovery for the plaintiff's incurred preparation costs. These rulings emphasize the doctrine's restrictive nature, applied only when negotiations reach an advanced stage implying a reasonable expectation of contract formation.^[32] As a U.S. territory, Puerto Rico's culpa in contrahendo interacts uniquely with federal law, treated as a tort claim under Article 1802 for purposes of diversity jurisdiction in U.S. district courts. This allows federal benches to adjudicate claims under 28 U.S.C. § 1332, applying Puerto Rico's civil law principles while aligning with U.S. procedural rules, as seen in cases where reliance damages are equated to tort remedies without invoking common law promissory estoppel. This hybrid approach underscores Puerto Rico's mixed jurisdiction, blending civil law substantive rules with federal oversight.^[29]^[33]

United States Influences

Louisiana stands as a notable exception among U.S. jurisdictions due to its civil law heritage, where elements of culpa in contrahendo are incorporated through the doctrine of detrimental reliance codified in Louisiana Civil Code Article 1967. This provision states that "a party may be obligated by a promise when he knew or should have known that the promise would induce the other party to rely on it to his detriment and the other party in fact relied on it to his detriment," allowing recovery for pre-contractual fault akin to fault in contracting.^[34] In Morris v. Friedman, the Louisiana Supreme Court applied Article 1967 to a case involving negligent misrepresentations during negotiations for a bank stock sale, holding that the plaintiffs could recover reliance damages for their detrimental actions based on the defendant's promises, effectively recognizing pre-contractual liability without a formal contract.^[35] This approach draws from civil law traditions, distinguishing Louisiana from common law states by imposing a duty of care in negotiations to prevent harm from induced reliance.^[36] In other U.S. common law states, culpa in contrahendo receives only occasional and analogical references, often folded into existing doctrines rather than adopted as a standalone principle. For instance, in California, courts have invoked the concept in cases of bad faith negotiations to award reliance damages for misappropriation of ideas or efforts during pre-contractual dealings, as seen in Racine & Laramie, Ltd. v. Department of Parks & Recreation, where the court described culpa in contrahendo as a mechanism to repair damage from such conduct without granting expectation damages.^[37] Similarly, New York jurisprudence occasionally references negotiation duties through implied covenants of good faith, though without a general pre-contractual obligation; for example, in franchise or joint venture disputes, courts may analogize to culpa in contrahendo to address unfair dealing, but typically resolve claims under misrepresentation or specific agreement terms rather than a broad fault doctrine.^[1] U.S. scholars, particularly Friedrich Kessler, have exerted significant influence by advocating for culpa in contrahendo as a tool to infuse good faith into bargaining, arguing in their seminal work that it aligns with social contract ideals and counters the rigidity of common law freedom of contract principles.^[13] Kessler and Edith Fine's analysis highlighted how the doctrine could protect against exploitative negotiations, inspiring academic discourse but failing to lead to national codification, as American courts remain wary of imposing broad duties that might chill commercial dealings.^[38] The doctrine's integration in the U.S. faces inherent challenges, including tension with the paramount value of freedom of contract, which discourages mandatory good faith in preliminary talks to avoid opening "floodgates of litigation."^[1] As a result, pre-contractual claims are often subsumed under promissory estoppel, which requires a clear promise and reliance but lacks the fault-oriented focus of culpa in contrahendo, limiting recovery to out-of-pocket losses in most jurisdictions.^[11]

Comparative and International Dimensions

Civil Law versus Common Law Approaches

In civil law jurisdictions, the doctrine of culpa in contrahendo establishes a proactive and codified duty to negotiate in good faith, imposing liability for fault or negligence during precontractual stages to prevent abuse in negotiations.^[1] This approach, rooted in Roman law principles and developed by scholars like Rudolf von Jhering, treats breaches as tortious, allowing recovery of reliance damages—known as "negative interest"—to cover expenses incurred due to the other party's culpable conduct, such as provoked costs for information or travel.^[11] In some systems, damages may extend to hypothetical profits that would have been realized absent the fault, emphasizing the prevention of unfair withdrawal or deception.^[39] In contrast, common law systems lack a general precontractual tort or codified duty of good faith, instead relying on analogous equitable doctrines like promissory estoppel to protect against detrimental reliance.^[40] Under the Restatement (Second) of Contracts § 90, a promise reasonably expected to induce action or forbearance is enforceable to the extent necessary to avoid injustice if such reliance occurs, typically limiting remedies to reliance damages rather than expectation interests.^[41] The Uniform Commercial Code § 1-304 imposes an obligation of good faith solely in the performance and enforcement of existing contracts or duties, offering no broad precontractual protection.^[42] This judge-made framework prioritizes contractual freedom and requires proof of a clear promise and actual harm from reliance, without imposing a standalone duty to negotiate fairly. Key differences lie in the scope and foundation of liability: civil law's structured, fault-based approach enables broader damages and proactive prevention of negotiation misconduct through statutory mandates, whereas common law's mechanisms are narrower, reliance-dependent, and developed judicially without a general tort for precontractual fault.^[11] Civil law thus fosters relational equity by sanctioning bad faith like capricious termination, while common law avoids imposing duties that might chill negotiations, confining relief to equitable adjustments in exceptional cases.^[39] Illustrative examples highlight these divergences; in English law, the House of Lords in Walford v. Miles 2 AC 128 rejected an enforceable duty to negotiate in good faith, viewing it as inherently uncertain and incompatible with adversarial bargaining principles.^[43] Conversely, U.S. courts have expanded promissory estoppel in misreliance scenarios, as in Hoffman v. Red Owl Stores (1965), where reliance damages were awarded for induced precontractual expenditures without a binding agreement, though applications vary by state.^[39]

Role in International Contract Law

The United Nations Convention on Contracts for the International Sale of Goods (CISG), adopted in 1980, implicitly incorporates elements of good faith in pre-contractual negotiations through Article 16(2)(b), which states that an offer cannot be revoked if it indicates it is irrevocable or if the offeree has reasonably relied on it by acting in reliance on the offer. This provision has sparked scholarly debates on whether it extends to full culpa in contrahendo liability, with some commentators arguing it supports liability for negligent or bad faith conduct during negotiations, while others contend it is limited to reliance-based protection without broader pre-contractual duties.^[1] For instance, courts applying the CISG have occasionally drawn on culpa principles to award damages for negotiation misconduct, though the convention's general good faith obligation under Article 7 provides a foundational interpretive lens.^[44] In the European Union, private international law frameworks address culpa in contrahendo primarily through the Rome II Regulation (EC) No 864/2007, where Article 12 designates the law applicable to the contract (or the one that would have applied had the contract been concluded) as governing non-contractual obligations arising from pre-contractual dealings.^[45] This approach treats such claims as tied to the prospective contract's governing law, promoting uniformity in cross-border disputes. The European Court of Justice (ECJ) has influenced this area through case law on jurisdiction, notably in Case C-265/02 Frahuil SA v Assitalia SpA, where it classified pre-contractual liability claims as matters relating to a contract for the purposes of the Brussels I regime, thereby facilitating forum selection based on the place of contractual performance.^[46] Such rulings underscore the doctrine's integration into supranational conflict-of-laws rules, ensuring consistent application across member states. Beyond the CISG and EU instruments, the UNIDROIT Principles of International Commercial Contracts (2016) explicitly codify pre-contractual liability in Article 2.1.15, holding parties liable for losses caused by negotiating or breaking off negotiations in bad faith, such as entering talks without intent to agree or abruptly terminating them unfairly.^[47] This provision has influenced international arbitration rules, serving as soft law in tribunals under institutions like the ICC, where arbitrators often reference it to resolve disputes over negotiation conduct in global commercial deals. The doctrine's global spread is evident in non-European civil law systems; for example, Russia's Civil Code incorporates pre-contractual good faith duties under Article 10, with Article 429 on preliminary agreements reinforcing liability for failing to negotiate toward a main contract in good faith.^[48] Similarly, Albania's Civil Code of 1994, modeled on Roman-Germanic traditions, recognizes culpa in contrahendo through general good faith requirements in pre-contractual phases, allowing damages for negotiation breaches as per Article 674.^[49]

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[29]
The 2020 Revision of the Puerto Rican Civil Code
One of the last Spanish colonies, Puerto Rico became a US Territory in 1899. The Spanish Civil Code was replaced by a Puerto Rican Civil Code in 1930.
[30]
Shelley v. Trafalgar House Public Ltd. Co., 977 F. Supp. 95 (D.P.R. ...
This Court defines the available remedy under the doctrine of culpa in contrahendo as reliance damages, encompassing both out-of-pocket expenses and non- ...
[31]
[PDF] The 2020 Revision of the Puerto Rican Civil Code
Dec 13, 2023 · Puerto Rico has adopted all UCC articles except articles 2 and 2-A, alt- hough some have not been revised as suggested by the National ...Missing: 1047 | Show results with:1047
[32]
Velazquez Casillas v. Forest Laboratories, Inc., 90 F. Supp. 2d 161 ...
In Puerto Rico, a culpa in contrahendo cause of action is derived from Article 1802 of the Civil Code. Torres v. Gracia, 119 D.P.R. 698, 703, 1987 WL 448259 ( ...
[33]
Shelley v. Trafalgar House Public Ltd. Co., 918 F. Supp. 515 (D.P.R. ...
The doctrine of culpa in contrahendo is a cause of action founded in Puerto Rican tort law, binding parties to act in good faith during preliminary negotiations ...
[34]
ADVANCED FLEXIBLE CIRCUITS INC v. GE SENSING ...
Under Puerto Rico law, the tort-law doctrine of culpa in contrahendo “requires parties to negotiate in good faith.” Ysiem Corp. v. Commercial Net Lease ...
[35]
CC 1967 - Louisiana Laws - Louisiana State Legislature
Art. 1967. Cause defined; detrimental reliance. Cause is the reason why a party obligates himself. A party may be obligated by a promise when he knew or ...
[36]
Morris v. Friedman :: 1995 :: Louisiana Supreme Court Decisions
663 So. 2d 19 (1995) Huey P. MORRIS and Susie T. Morris v. Sam J. FRIEDMAN. No. 94-C-2808. Supreme Court of Louisiana. November 27, 1995. Rehearing
[37]
[PDF] Detrimental Reliance - LSU Law Digital Commons
Based on the few times culpa in contrahendo and venire contra factum proprium non valet have been cited in the Louisiana jurisprud- ence, one might argue that ...
[38]
Racine & Laramie, Ltd. v. Department of Parks & Recreation (1992)
The culpa in contrahendo concept is one of repairing the damage done by bad faith negotiations, rather than awarding the damaged party the benefits or profits ...
[39]
[PDF] Contracts Then and Now: An Appreciation of Friedrich Kessler
His famous and influential article (with Edith Fine) "Culpa in Contrahendo" 37 set forth the importance to modem contract law of broad application of the ...
[40]
[PDF] Crossing the Abyss: A Comparative Analysis of the Enforceability of ...
Culpa in contrahendo is a Latin phrase meaning “fault in negotiating”; the notion has its roots in Roman Law. Friedrich Kessler & Edith Fine, Culpa in ...Missing: sources | Show results with:sources
[41]
The Present Differences between the Civil Law and Common Law ...
Nov 28, 2007 · The article discusses the implementation of the concept of good faith in precontractual negotiations (culpa in contrahendo) as one striking ...Missing: approaches | Show results with:approaches
[42]
Restatement Second of Contracts § 90 (Promissory Estoppel) | H2O
A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such ...Missing: culpa contrahendo
[43]
1-304. Obligation of Good Faith. | Uniform Commercial Code | US Law
Obligation of Good Faith. Every contract or duty within the Uniform Commercial Code imposes an obligation of good faith in its performance and enforcement.Missing: common | Show results with:common
[44]
[PDF] Contract Negotiations and the Common Law: A Move to Good Faith ...
Jul 30, 2022 · Consider, for example, Walford v Miles, where the parties had very different objectives—here the claimants were seeking to purchase a business ...
[45]
[PDF] Looking for the basis of precontractual liablity in the CISG
16(2)(b) CISG. The court also found claims based on negligence ... 175 Friedrich Kessler and Edith Fine, 'Culpa in Contrahendo, Bargaining in Good Faith.
[46]
L_2007199EN.01004001.xml - EUR-Lex
Culpa in contrahendo for the purposes of this Regulation is an autonomous concept and should not necessarily be interpreted within the meaning of national law. ...
[47]
https://www.unidroit.org/wp-content/uploads/2021/06/Unidroit-Principles-2016-English-bl.pdf
[48]
[PDF] unidroit principles of international commercial contracts 2016 ...
These principles set general rules for international commercial contracts, applied when parties agree, and can be used to interpret law. Parties are free to ...
[49]
[PDF] www.ssoar.info On the Issue of Pre-Contractual Liability Qualification
ABSTRACT. The article is devoted to the study of the existing positions in the Russian doctrine regarding the institution of pre- contractual liability.
[50]
[PDF] Modern legal systems and the principle of “Culpa in Contrahendo ...
“Culpa in contrahendo”, as the states with a ... Savigny denied the existence of liability in this ... 3 Yoav Ben-Dror, The Perennial Ambiguity of Culpa in ...