Through the normative prism: a critical appraisal of the PICC’s provisions on anticipatory non-performance

Abstract

Abstract The position of the Unidroit Principles of International Commercial Contracts (PICC) as a potential unifying influence and resource within the global competitive market for law is indelibly linked to the justifiability and desirability of the black letter rules embodied in the instrument. This article critically analyses the PICC’s provisions on anticipatory non-performance using two common law-oriented normative paradigms: economic efficiency and relational norms. It argues that the PICC’s remedial scheme for anticipatory non-performance satisfies the normative prescriptions of economic analysis of law in that the self-help measures available represent majoritarian default rules and facilitate early mitigation of loss, thereby maximizing the parties’ net exchange surplus. Furthermore, the article contends that the PICC’s remedial scheme is sensitive to the relational nature of commercial contracts such that it fosters the parties’ commitment, communication, cooperation, and trust, which are vital values in developing and maintaining relational assets.