Research Focus and Objectives

The Center for Regulation and Contract Law (CRCL) addresses the fundamental question of legitimacy of using contract law for regulatory purposes. It engages in a comparative analysis of various regulatory methods with the aim of enhancing individuals' choices and behavior through contract law. Given that legal scholarship lacks its own set of tools for a legal impact analysis, it particularly employs (behavioral) economic methods. Furthermore, CRCL aims to assess findings from empirical legal research regarding the impacts of legal norms.

The research focus of CRCL encompasses, on the one hand, the role of contracts in economic regulatory theory, i.e., regulatory methods to prevent market failure through contractual relationships and on the other hand, the steering function of contract law for the realization of other public welfare goals. This includes assessing whether and to what extent their achievement conflicts with market-oriented regulation.

Regulatory topics, especially concerning sales contracts (globalization of supply chains, digitalization of goods, servitization), lease contracts (tenant protection, rent control, sharing economy), loan agreements (prevention of over-indebtedness, crowdfunding and lending), and relationships between financial service providers and customers (special rules of conduct and supervisory obligations), are in focus. Across different types of contracts, topics such as smart contracting, automated decision-making based on algorithmic calculation, contract design through general terms and conditions, contracting on platforms, sustainability aspects (e.g., promoting the right to repair, circular economy), pricing, contract adjustment and termination in long-term contracts are of particular interest. The research perspective considers contracts between businesses (b2b), businesses and consumers (b2c), and between consumers (c2c).

Starting with the question of whether these phenomena can be captured by conventional contract law, it is to be analyzed whether they require regulatory measures and how individuals' choices and behavior can best be improved in the specific contractual context. In particular, alternatives such as the enactment of mandatory or default law, rules or standards, opt-in or opt-out models must be evaluated within the framework of regulatory contract law. In the assessment of such measures, criteria of suitability to achieve an improvement in individual decision making, but also the cost of regulation and enforcement are taken into account.

The aim of the Center is to advance research and education in these areas. In order to accomplish this, CRCL seeks to maintain international and interdisciplinary collaborations, organize conferences, and promote new teaching formats and contents. Finally, the Center offers to provide legal assistance to regulators in developing legislative projects.