The Classification of Dual-Purpose Contracts in European Private International Law

Abstract

Consumers, as the presumed weaker party, are granted with favourable jurisdiction and choice of law rules under the Brussels Ibis Regulation and Rome I Regulation. The identity of a person as a consumer is the precondition of applying consumer protective rules. However, what if a person is acting partly for professional purpose and partly for private purpose? What criterion should be relied upon to classify a dual-purpose contract? Whether the private purpose must be predominant or primary, or it is irrelevant as long as the professional purpose is non-negligible? What if a person changes the purpose after the conclusion of contract? Whether the original purpose or the subsequent purpose should be decisive? This article aims to clarify the notion of hybrid consumer or dual-purpose contract in European private international law. The CJEU case might show that a less strict criterion is adopted to determine the legal nature of dual-purpose contracts. Compared to the notion of consumer in EU consumer directives and the 2019 Hague Judgments Convention, it might be advisable to adopt the non-predominant or primary purpose criterion. Accordingly, a dual-purpose contract is a consumer contract if the person is acting primarily outside of his trade or profession (primarily for personal, family or household purposes), or the professional purpose is so limited as not to be predominant. Meanwhile, a dynamic or ex post approach, albeit secondary to the static or ex ante approach, shall be adopted in examining the purpose of a dual-purpose contract. The subsequent change of purpose is relevant.