• 2 In making a decision under paragraph (1), regard shall be had to the circumstances existing at the time the contract was concluded, the terms of the contract and subsequent circumstances.

At the suggestion of my Contracts instructor, I noted this new rule in the margin of my textbook (alongside the prior version of § 36). Indeed, since hardly a week had passed since I learned the main rule that that ‘promises and contracts are binding,’ I was tempted to scribble a few more words in margin, maybe something like this:

In Denmark, since 1975, reasonable promises and contracts are binding.

That, however, would have overshot the mark, not least because the new § 36 was mainly intended for application in consumer contract contexts. On the other hand, the text of the General Clause is indeed general: it clearly covers all kinds of contracts, and it was therefore understandable that its advent sent a few nervous shivers down the backs of foreign merchants whose contracts might be subject to Danish law. 950

These Danish General Clause recollections take me even further back, to 1967, when, as a first-year student at NYU Law, I learned about § 2-302 of the Uniform Commercial Code (UCC) – a rule which, in pertinent part, provides:

  • 1 If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result. 951