Mitigation of the Legal System Differences - Assignment Example

In addition, the legal harmonization work now involves several organizations- both institutions of government and the representatives of the private sector.

In the harmonization process, it is important for the agencies responsible for the formulation to recognize the limits of the instruments they are producing and the possible shortcomings of their working methods. It has been said that the future harmonization of contract law will be consisting of some interaction between the laws binding international conventions and the new phenomenon of principles of contract laws. The agencies formulating need to become more flexible in choosing the instruments and in formulating ways in which soft and hard laws may supplement each other (Ali, 2009).

Lawson's model is more appropriate for modernization and in unifying national laws whenever it is expected that the state will wish to adjust the model text to accommodate local requirements varying from system to system. New economics institutions have been paying increased attention to the impact of the regulatory and legal framework on the quality of social institutions. The laws that are outdated and mechanisms, which are inadequate for the enforcement of legal rights, are being recognized as hindering economic development and sustainability. Harmonization pursuit has been focusing on transactions that are taking place primarily in the international sphere. It has not yet plumbed into the need for reforms in domestic law in economic transitions and developing countries.