20 The principle of binding force

If the parties have concluded a contract freely and with adequate information, then the contract should normally be treated as binding on them unless they (again freely) agree to modification or termination or, where the contract is for an indefinite period, one has given the other notice of a wish to end the relationship.1. These rules are set out clearly in the DCFR.2. It also sets out rules on the termination of a contractual relationship in more detail. Examples are — besides the rules on termination for non-performance — the right to terminate by notice where that is provided for by the contract terms and the right to terminate where the contract is for an indefinite duration. In the latter case the party wishing to terminate must give a reasonable period of notice.3. The principle of binding force (often expressed still by the Latin tag,pacta sunt servanda) was qualified classically only when without the fault of either party performance of the contractual obligations became impossible for reasons that could not have been foreseen. A more modern development is the right of withdrawal granted to consumers in certain situations. The reasons for this exception vary, but can be seen in the specific situations where such withdrawal rights exist. One example is the right to withdraw from contracts negotiated away from business premises (e. g. at the doorstep or at a distance).4. In such situations the consumer may have been taken by surprise or have been less attentive than he or she would have been in a shop. A further example is provided by some complex contracts (e. g. timeshare contracts)32, where consumers may need an additional period for reflection. The right to withdraw gives the consumer who concluded a contract in such situations a ‘cooling off period’ for acquiring additional information and for further consideration whether he or she wants to continue with the contract. For reasons of simplicity and legal certainty, withdrawal rights are granted to consumers, irrespective of whether they individually need protection, as a considerable number of consumers are considered to be typically in need of protection in such situations.