Volume 19, Issue 2

Business consulting represents one of the most important activities in the service economy, yet its contractual arrangements have rarely been analysed. Various scandals linked to professional consulting in recent times, such as the accounting scandal surrounding the German DAX-company, Wirecard, or the ‘Luanda Leaks’, give reason for a closer look at this activity, as well as the corresponding contractual agreements. Additionally, the regular functioning of consulting agreements is largely undiscussed. The aim of this contribution is (1) to highlight the essential problems of business consultancy contracts, namely the informational advantage of the consultant with regard to the quality of advice and price; structural conflicts of interest, especially in the case of business consultancy by auditors; the possibilities of abusing consultancy contracts for personal gain, as well as the liability of the consultant and the exemption of management from liability through the use of consultants; and (2) to propose solutions to these problems using the existing rules of due diligence and collateral duties, especially by applying general norms in the light of the economic function of management consultants as brokers for knowledge and know-how.

The reasonable expectations standard permeates European contract law. An influential objection against reasonable expectations, related to it being formulated as a standard, is its apparent vagueness: it does not sufficiently specify its criteria, and is thus redundant in providing guidance for individuals’ behaviour. This article argues that European contract law clarifies the content of reasonable expectations by identifying different grounds for them – mandatory rules, action-based rules, default rules, indicative rules, industry-related rules and (unregulated) practices – and establishing a relatively structured hierarchy between them. For this reason, the standard of reasonable expectations contributes to effective guidance for the behaviour of subjects of European contract law.

This article provides an overview of the most relevant cases decided by the Court of Justice of the European Union concerning contract law. The present issue covers the period between the beginning of January 2023 and the end of March 2023. Out of a total of 265 judgments decided in this period, 57 had a contract law dimension.