The obligation of the contracting party to the inspection of the price and characteristics in a transaction (A comparative study)

Abstract

To protect the contractor who is unaware of the actual price, defects and characteristics of goods or services, the Law- of contracts- recognizes the right of termination of transaction. But a lack of awareness by the contracting party is sometimes due to ignorance or lack of careful inspection. Analyses of legal texts and doctrines indicate that ignorance of the contracting party does not eliminate the possibility of termination which means that the law is rewarding carelessness! However, keeping solidarity of transactions requires that the right of termination not be recognized, in cases where the contracting party does not reasonably examine the actual price, defects and/or characteristics of goods or services before entering into contract. Critically examining the jurisprudential texts and legal approaches of some European countries, the present study sheds light on the duty of the contracting party to investigation prior to entering a contract. Findings revealed that in the legal systems of France and Germany, in cases where the contracting party was able to observe and become aware of the defect, it is not possible to terminate the contract, while in English law the contractor's negligence will not necessarily deprive him/her of the right to claim deception and therefore to avoid the contract.

Keywords

• lesion option
• option of defect
• option of fraud
• inspection and inquiry
• reasonable human