Privity of Contract and Third Party Rights in European Construction Projects

Privity of contract has lately been criticized in several European jurisdictions, particu-larly due to the onerous consequences it gives rise to in arrangements typical for the modern exchange such as chains of contracts. Privity of contract is a classical premise of contract law, which prohibits a third party to acquire or enforce rights under a contract to which he is not a party. Such a premise is usually seen to be manifested in the doctrine of privity of contract developed under common law, however, the jurisdictions of continental Europe do recognize a corresponding starting point in contract law. One of the traditional industry sectors affected by this premise is the construction industry. A typical large construction project includes a contractual chain comprised of an employer, a main contractor and a subcontractor. The employer is usually dependent on the subcontractor's performance, however, no contractual nexus exists between the two. Accordingly, the employer might want to circumvent the privity of contract in order to reach the subcontractor and to mitigate any risks imposed by such a chain of contracts. From this starting point, the study endeavors to examine the concept of privity of con-tract in European jurisdictions and particularly the methods used to circumvent the rule in the construction industry practice. For this purpose, the study employs both a com-parative and a legal dogmatic method. The principal aim is to discover general principles not just from a theoretical perspective, but from a practical angle as well. Consequently, a considerable amount of legal praxis as well as international industry forms have been used as references. The most important include inter alia the model forms produced by FIDIC as well as Olli Norros' doctoral thesis "Vastuu sopimusketjussa". According to the conclusions of this study, the four principal ways to circumvent privity of contract in European construction projects include liability in a chain of contracts, collateral contracts, assignment of rights as well as security instruments. The contempo-rary European jurisdictions recognize these concepts and the references suggest that they are an integral part of the current market practice. Despite the fact that such means of circumventing privity of contract raise a number of legal questions and affect the risk position of particularly a subcontractor considerably, it seems that the impairment of the premise of privity of contract is an increasing trend in the construction industry.

Yllättävä ja ankara ehto verkossa tehtävässä vakiosopimuksessa

Tässä työssä tutkitaan verkossa tehtävän vakiosopimuksen ehtoja sopimuksen ollessa elinkeinonharjoittajien välinen. Kun sopimuksen on laatinut neuvotteluasemaltaan vahvempi osapuoli, ei toisella osapuolella ole muuta mahdollisuutta kuin hyväksyä tai hylätä sopimus. Tällainen sopimus on nimeltään liittymissopimus. Epätasaisen neuvotteluvoiman johdosta vahvempi osapuoli voi sopimuksen ehtoja laatiessaan pyrkiä puoltamaan omaa etuaan. Tämä voi johtaa tilanteeseen, jossa sopimuksen ehtoihin sisältyy yllättäviä ja ankaria ehtoja. Tarkoituksena on selvittää oikeuskirjallisuuden perusteella millaiset ehdot voivat olla lähtökohtaisesti yllättäviä ja ankaria. Jotta tällaiset ehdot tulisivat sitovasti sopimuksen osaksi, niitä tulee korostaa. Empiirisen tutkimuksen avulla halutaan selvittää miten edellä mainittujen ehtojen korostaminen onnistuu mobiilisovelluskehittäjien jakelusopimuksissa. Verkossa toteutettu kyselytutkimus suunnattiin suomalaisille mobiilisovelluskehittäjille. Tutkimuksen mukaan on selvää, ettei suurin ongelma ole sopimusehdoissa, vaan suurin ongelma on sopimuksen lukemisen transaktiokustannus. Tämän seurauksena liityntäsopimuksen hyväksyjät ovat tietämättömiä sopimuksen solmimisen seurauksena heihin kohdistuneista vastuista ja velvoitteista. Koska sovelluskehittäjät näkevät itsensä jo lähtökohtaisesti sopimuksen osapuolina ilman neuvotteluvoimaa, eivät he koe hyötyvänsä sopimuksen lukemisesta. Johtopäätöksenä todetaan, että tiedon epäsymmetrisyyteen tulisi vaikuttaa. Järjestäytymällä sovelluskehittäjien olisi mahdollista kasvattaa neuvotteluvoimaa, mutta myös lisätä tietoisuuttaan sopimusehtojen sisällöstä. Sopimusehtoihin vaikuttaminen ei ole mahdollista tällä hetkellä ennen kuin useammat sopimuksen hyväksyjät lukevat sopimuksen.

Diverse Routes from School, via Higher Education, to Employment. A Comparison of Nine European Countries

The central theme for this study is graduate employment and employability in European-wide discussion. In this study, the complex relationships between higher education and the world of work are explored from the vantage point of how individuals make use of the higher education system in their transition from education to employment. The variation among individual transition processes in nine European countries is analysed with the help of a comparable graduate survey. Countries in this study are Italy, Spain, France, Austria, Germany, the Netherlands, the United Kingdom, Finland, and Norway. The data used for the study is commonly known as the “CHEERS” or “Careers after Higher Education, A European Research Survey.” The data was collected in 1999. The study discusses the possibilities and limitations the higher education system has in supporting the initial education-to-work transitions of youth. The study also addresses problems with comparing national higher education systems in terms of enrolment and graduate employability. A central purpose for this study is to reflect on concerns about the prolongation of individual transitions with a framework that simultaneously considers both the graduate employability and the duration of the education-to-work transition process. The key concept for this study is the standard student/graduate; synonym concepts are the traditional and the conventional student/graduate. Standard graduates are relatively young individuals who are performing their initial transition from education to working-life and who complete the degree-earning process within the stipulated time frame. In all nine countries, standard graduates make up a considerable share of the student flow, passing from higher education to the labour markets. The share of standard graduates is by far the largest in France, where they comprise the overwhelming mass. The proportion of the standard graduates is the lowest in Italy, Finland, and Austria where approximately one in four graduates completed the process of higher education within the stipulated time frame. Of the nine countries compared, employability of the whole graduate population is the greatest in Norway, the UK, Finland, and the Netherlands. Compared with employability of the whole graduate population, variation among the countries is considerably reduced when reviewing the employability of only the standard graduates. Thereby, even though the ranking among countries remains largely unchanged, the variations among them are smaller when the duration of degree earning process is standardized. The study also discusses other ideal types of student careers (or transition processes) besides the standard student/graduate. Results of regression analyses indicate that that at the pan-European level analysis, the graduate labour markets are not heavily segmented in terms of the type of the individual transition process. When considering within-country differences between the graduates, the field of studies is clearly a more powerful explanatory variable than the type of the transition process. There are, nevertheless, clear indications that, irrespective of the country, chances of finding a high status job are, on the average, highest amongst those who graduate within the stipulated duration of the degree program and who thereby have experienced the standard student career, whereas, participating in working life while studying protects against unemployment after finishing one’s degree.