Contracts and Non-State Law in Latin America

Abstract

Legal enactments, where they introduce profound changes, lose effectiveness unless they are accompanied by well-conceived and systematic efforts in the legal culture itself. If the new rules are not properly understood, they may not be applied correctly or, worse, not at all. This explains why the far-reaching reforms that have dramatically transformed the legal landscape in Latin America have not been considered from the standpoint of their potential consequences, particularly in relation to contracts and non-state law, as legal scholars and legal practice in general still lag far behind. This contribution will highlight the relevant changes that have taken place in the region. Important lessons may be drawn from the Latin American experience. Emphasis will be placed here on two aspects: first, the general trend, i.e., the fact that the applicability of non-state law to contracts is widely accepted in the region through a vast array of legal and conventional enactments, and second, the fact that, in general, the legal community in the area may not be fully or adequately aware of the powerful consequences of these regulatory developments.