Basis and Development of Venturesome Theory of Preliminary Negotiations in International Documents and Comparative Law

It has been traditionally accepted that the law should abstain from interfering  in the preliminary negotiations of the parties for contract formation procedure. This makes the preliminary negotiations a risky period. Based on venturesome theory of negotiations, the parties must begin negotiations considering the possibility of non-concluding the contract and bear the risks of leaving the negotiations by the opposing party. Over time, it became clear that non-interference of law in pre-contractual procedure causes unfair results and does not accommodate the social destination of contract. Therefore, modern law recognized the interference in preliminary negotiations. Accordingly, in the Principles of European Contract Law and UNIDROIT Principles of International Commercial Contracts, based on the principle of good faith, certain obligations are undertaken by the parties of the preliminary negotiations and that the breach of these obligations entails liability. This theory has been declining due to the intervention of law in preliminary negotiations and accepting liability at this stage.