The UNIDROIT Principles as Reference for the Uniform Interpretation of National Laws: Report on Hungarian Law

Abstract

The report is mainly based on the provisions of the new Hungarian Civil Code (hereafter HCC) which was enacted in 2013. The influence and inspiration of UPICC was expressly admitted by the Editorial Committee preparing the original draft of the HCC. The HCC Section on usages may become a gateway towards the inclusion of UPICC into contracts having an international dimension or can serve as an interpretative background. Despite of the above described influence of UPICC on law-making, we do not find express references to UPICC—as applicable rules of law or interpretative tool—in Hungarian jurisprudence. The HCC does not use expressly the term negotiations in bad faith, however it covers the situation described in UPICC. The HCC contains a general duty of good faith amongst its introductory provisions and the obligation to cooperate is a fundamental principle of contracts. There is a strong conceptual resemblance between UPICC and the HCC Section on standard contract terms becoming part of the contract. The HCC is less detailed on issues of interpretation, the UPICC may become an inspiring source of interpretation in this respect. Regarding the terms of payment of monetary debts, the approach of HCC is close to that of UPICC, focusing on the currency of the place for payment, although the Hungarian rules are again less detailed. The HCC does not use the concept of fundamental non-performance. However, the sophisticated rules of UPICC like the analysis whether the non-performance substantially deprives the aggrieved party of what it was entitled to expect under the contract could enrich Hungarian jurisprudence. Besides the general provisions on late payments there are special, stricter rules applicable to undertakings implementing Directive 2011/7/EU in HCC—demonstrating the strong impact of EU law in this field. Regarding the interest on damages HCC follows the same approach and leads to the same result as UPICC, however, it is necessary to take into consideration several provisions of HCC in order to establish this conclusion.