Skip to main content

The Constitutionalisation of Contract Law in Finland

  • Chapter
  • First Online:
More Constitutional Dimensions of Contract Law
  • 349 Accesses

Abstract

This chapter discusses the constitutionalisation of Contract law in Finland and makes frequent comparative references to the other Nordic systems. It aims to describe how Constitutional law has gradually started to influence Contract law. Moreover, the analysis seeks to predict some key future developments concerning Constitutional Contract law in Finland. This chapter illustrates how relevant constitutional actors consider these two areas of law and how these actors may sometimes collide because of key doctrines and the constitutional structure. It is concluded that references to Constitutional and Human rights law are not going to replace traditional Contract law argumentation. In most cases, nevertheless, Constitutional and Human rights law offer a useful means to clarify and modify the arguments used in traditional Contract law reasoning. The authors expect growing significance and legal relevance of the relationship between Constitutional law and Contract law.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    See Husa (2011a).

  2. 2.

    See for an example Andersen and Runesson (2015) and Lando (2016). However, from today’s point of view we may also see problems with the Scandinavian Contract Act. See the critical discussion by Ramberg (2007).

  3. 3.

    See, e.g. Suksi (2014).

  4. 4.

    This section is based on Husa (2011b).

  5. 5.

    For a broader view, see Raunio (2004).

  6. 6.

    About the institutional structure, see Husa (2011b), pp. 41–50; and Saraviita (2012), pp. 237–250.

  7. 7.

    Länsineva (2002).

  8. 8.

    Cf. Länsineva (2012), pp. 117–119.

  9. 9.

    See Pöyhönen (Karhu) (2003).

  10. 10.

    Importantly, The Council of Europe’s revised European Social Charter has been in force since 2002. And, the EU Charter of Fundamental Rights also contains a wide range of ESC rights that may have relevance in the context of contract law. Furthermore, there are other important conventions such as the European Convention on Social Security and many International Labour Organization (ILO) conventions and recommendations.

  11. 11.

    See for a broader discussion Lavapuro et al. (2011).

  12. 12.

    See Husa (2011c).

  13. 13.

    Section 15 provides that, ‘Provisions on the expropriation of property, for public needs and against full compensation, are laid down by an Act.’

  14. 14.

    Section 20 on the responsibility for the environment provides that ‘Nature and its biodiversity, the environment and the national heritage are the responsibility of everyone. The public authorities shall endeavour to guarantee for everyone the right to a healthy environment and for everyone the possibility to influence the decisions that concern their own living environment.’

  15. 15.

    See Husa (2011b), pp. 186–187.

  16. 16.

    KKO 2004:26. (KKO stands for ‘Korkein oikeus’ in English ‘Supreme Court’.)

  17. 17.

    PeVL 45/2002 [PeVL stands for ‘perustuslakivaliokunnan lausunto’, i.e. Statement of the Constitutional Committee].

  18. 18.

    PeVL 25/2005.

  19. 19.

    See Husa (2011b), pp. 186–187.

  20. 20.

    See Ojanen (2009).

  21. 21.

    See Husa (2011b), pp. 78–88.

  22. 22.

    KKO 2006:71. The environmental dimensions of cases like this are dealt with in Sect. 4.2.

  23. 23.

    The Act on the Protection of Rapids (35/1987). The main function of the Act is to protect Finland’s most precious waterways from construction.

  24. 24.

    KKO 2003:60.

  25. 25.

    Arbitration Act (967/1992) Section 46 (3) ‘The arbitrators have the right to demand an advance on the compensation or a security therefor.’

  26. 26.

    Constitution Act Section 21 (1) Protection under the law: ‘Everyone has the right to have his or her case dealt with appropriately and without undue delay by a legally competent court of law or other authority, as well as to have a decision pertaining to his or her rights or obligations reviewed by a court of law or other independent organ for the administration of justice.’

  27. 27.

    For a general description, see Bernitz (2007) (‘flexible, not so doctrinaire approach of Scandinavian law’, p. 29). See also Husa (2011a).

  28. 28.

    See, e.g. Niemi-Kiesiläinen (2007).

  29. 29.

    The Contract Act (228/1929) [Contains several later amendments].

  30. 30.

    There are two recent excellent general presentations of Nordic contract law systems. The book published in 2015 titled The Nordic Contracts Act contains essays in celebration of the 100th anniversary of those laws. Restatement of Nordic Contract Law from 2016 is a systematic overview relating to various sections of the laws.

  31. 31.

    See FCA Chapter 3: Invalidity and Adjustment of Contracts (as amended in 1982).

  32. 32.

    See Husa (2011b), pp. 198–199.

  33. 33.

    Good faith clauses, Section 11(2), Section 19, Section 28(2), Section 32(82), Section 33, Section 34, Section 35 and Section 39. A typical example is Section 39: ‘If, according to this Act, the validity of a contract or other transaction depends on the fact that the person to whom the transaction was directed neither knew nor should have known of a circumstance or that he/she otherwise was in good faith, regard shall be had to what he/she knew or should have known when he/she learned of the transaction.’

  34. 34.

    FCA 36(1): ‘If a contract term is unfair or its application would lead to an unfair result, the term may be adjusted or set aside. In determining what is unfair, regard shall be had to the entire contents of the contract, the positions of the parties, the circumstances prevailing at and after the conclusion of the contract, and to other factors.’

  35. 35.

    See Tolonen (1973).

  36. 36.

    KKO 2010:23.

  37. 37.

    KKO 2010:23.

  38. 38.

    PeVL 3/1982.

  39. 39.

    See Pöyhönen (Karhu) (1988).

  40. 40.

    See Andersen and Runesson (2015).

  41. 41.

    Constitution Act Section 18(1): ‘Everyone has the right, as provided by an Act, to earn his or her livelihood by the employment, occupation or commercial activity of his or her choice…’.

  42. 42.

    Consumer Protection Act 38(1978) 12 1d (1)—Handling of disputes (amended in 1997): ‘A term in a contract concluded before a dispute arises, under which a dispute between a business and a consumer shall be settled in arbitration, shall not be binding on the consumer.’

  43. 43.

    KKO 2003:60.

  44. 44.

    HE 309/1993 (HE stands for ‘Hallituksen esitys’ in English ‘Government’s bill’.)

  45. 45.

    HE 100/2002.

  46. 46.

    PeVL 45/2002.

  47. 47.

    PeVL 4/2008 and PeVL 41/2013.

  48. 48.

    PeVL 45/2002 4–5.

  49. 49.

    Report of the Constitutional Committee PeVM 10/1998.

  50. 50.

    See besides KKO 2006:71, KKO 1991:171, KKO 2000:28 and KKO 2000:97.

  51. 51.

    KKO 2004:26.

  52. 52.

    KKO 2010:23. The amount of the fine in question was 40 € which was the normal level of private fines at that time and which was on par with fines ordered by public parking supervision in similar situations.

  53. 53.

    Statement 57/2010 of the Constitutional Committee.

  54. 54.

    See the Statement of the Constitutional Committee (PeVL 23/2013), which finds a constitutional problem with the Government’s bill and, thus, effectively stops the bill on constitutional grounds.

  55. 55.

    According to Smits (2006), p. 10: ‘The constitutionalisation of private law can be described as the increasing influence of fundamental rights in relationships between private parties, fundamental rights being those rights that were originally developed to govern the relationships between the State and its citizens’.

  56. 56.

    It should be mentioned, however, that when this topic is discussed in the private law academic literature the mainstream attitude is rather restrictive, see for example Helin (2012). Even if the possibility of constitutional arguments is allowed, such an argumentation is seen to have only a limited area of relevance. Our prediction is, notwithstanding, that this situation is changing.

  57. 57.

    See Helin (2012), pp. 25–27.

  58. 58.

    This seems to be one aspect of an ongoing research for a PhD thesis by Mr. Joonas Norr from the University of Turku, where he deals with the additional value of constitutional rights-based argumentation in Contract law.

  59. 59.

    See Pöyhönen (Karhu) (2003).

References

  • Andersen BM, Runesson E (2015) An overview of Nordic contract law. The Nordic Contracts Act. In: Essays in celebration of its one hundredth anniversary. Djøf Forlag, Copenhagen, pp 15–41

    Google Scholar 

  • Bernitz U (2007) What is Scandinavian Law. Scandinavian Stud Law 50:14–29

    Google Scholar 

  • Helin M (2012) Perusoikeuksilla argumentoinnista [About making arguments on fundamental rights]. Juhlajulkaisu Jarmo Tuomisto, pp 11–30

    Google Scholar 

  • Husa J (2011a) The stories we tell ourselves – about Nordic law in specific. Isaidat Law Rev, 1. https://ssrn.com/abstract=2176029 or https://doi.org/10.2139/ssrn.2176029

  • Husa J (2011b) The constitution of Finland – a contextual analysis. Hart, Oxford

    Google Scholar 

  • Husa J (2011c) Nordic constitutionalism and European human rights – Mixing oil and water? Scandinavian Stud Law 55:101–124

    Google Scholar 

  • Lando O (2016) A short survey of the laws of the Nordic countries – the laws in general and contract law in particular. In: Lando O et al (eds) Restatement of Nordic contract law. Djøf Forlag, Copenhagen, pp 13–45

    Google Scholar 

  • Länsineva P (2002) Perusoikeudet ja varallisuussuhteet [Fundamental rights and property relations]

    Google Scholar 

  • Länsineva P (2012) Fundamental principles of the constitution of Finland. In: Nuotio K, Melander S, Huomo-Kettunen M (eds) Introduction to Finnish law and legal culture. Oikeustieteellinen tiedekuntapp, Helsinki, pp 111–125

    Google Scholar 

  • Lavapuro J, Ojanen T, Scheinin M (2011) Rights-based constitutionalism in Finland and the development of pluralist constitutional review. Int J Constitutional Law 9(4):505–531

    Article  Google Scholar 

  • Niemi-Kiesiläinen J (2007) Comparing Finland and Sweden: the structure of legal argument. In: Husa J, Nuotio K, Pihlajamäki H (eds) Nordic law – between tradition and dynamism. Intersentia, Cambridge, pp 89–108

    Google Scholar 

  • Ojanen T (2009) From constitutional periphery toward the center – transformations of judicial review in Finland. Nordic J Hum Rights 27:194–207

    Google Scholar 

  • Pöyhönen (Karhu) J (1988) Sopimusoikeuden järjestelmä ja sopimusten sovittelu [The system of contract law and contract arbitration]

    Google Scholar 

  • Pöyhönen (Karhu) J (2003) Uusi varallisuusoikeus [A new theory of property rights]

    Google Scholar 

  • Ramberg C (2007) The hidden secrets of Scandinavian contract law. Scandinavian Stud Law 50:249–256

    Google Scholar 

  • Raunio T (2004) The changing Finnish democracy. Scandinavian Polit Stud 27:133–152

    Article  Google Scholar 

  • Saraviita I (2012) Constitutional law in Finland. Kluwer Law International, Alphen aan den Rijn

    Google Scholar 

  • Smits J (2006) Constitutionalisation of private law: a sceptical view. In: Barkhuysen T, Siewert Lindenbergh S (eds) Constitutionalisation of private law. Brill, Leiden, pp 9–22

    Chapter  Google Scholar 

  • Suksi M (2014) Markers of constitutional identity. Retfaerd 37:66–91

    Google Scholar 

  • Tolonen J (1973) Om begreppet rättshandling inom det traditionella rättssystemets ram [The concept of transaction in the framework of the traditional legal system]. Tidskrift utgiven av Juridiska Föreningen i Finland 108:340–364

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jaakko Husa .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Husa, J., Karhu, J. (2019). The Constitutionalisation of Contract Law in Finland. In: Siliquini-Cinelli, L., Hutchison, A. (eds) More Constitutional Dimensions of Contract Law. Springer, Cham. https://doi.org/10.1007/978-3-030-15107-2_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-15107-2_2

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-15106-5

  • Online ISBN: 978-3-030-15107-2

  • eBook Packages: Law and CriminologyLaw and Criminology (R0)

Publish with us

Policies and ethics