The new Civil Code now contains a general prohibition on unfair terms in contracts. Before that, the B2B and B2C legislation had already introduced a similar prohibition, but financial services had been (partially) exempted. Such exemption for financial services, however, does not appear in the new Civil Code. This leaves the question as to what extent contracts on financial services (international corporate lending in particular) are now caught by the general prohibition on unfair terms in the new Civil Code.
This contribution looks into the arguments and attempts to create some clarity in a blurry picture.
Continue reading “The unfair terms prohibition in Article 5.52 of the new Civil Code and financial services in a B2B context: balancing fairness with legal certainty”