Agreement In Principle Dutch
An important and regularly applied principle of Dutch contract law is the rule of adequacy and fairness: an agreement has not only the legal effects on which the parties have agreed, but also those arising from law, general practice or standards of adequacy and fairness because of the nature of the agreement (Article 6:248 of the Dutch Civil Code). Under this rule, a civil court may repeal a contractual provision if, in the present circumstances, the application of that rule to the standards of fairness and fairness is unacceptable. If this is precisely the case, the debate is often in dispute, hence the plethora of jurisprudence in this area. Under Dutch contract law, contracts for anchoring or supplementing the probation rule often contain full contractual clauses: the agreement also introduces a new type of pension contract. In this contract, pension rights are more subject to conditions and there will be a lower nominal security objective. There is no longer a need to create buffers (i.e. a 100% funding rate), so pensions are reduced and increased earlier. The agreement in principle favours the transition from current pension benefits to the new pension contract. We believe that the agreement in principle leads first to subsidize the younger generation to the older generation. Because smaller or no reductions are required, the funds paid over the next few years will be higher than would be the case under the current rules. This automatically means that there will be less money available for future generations. Due to the expiry of the solvency cushion requirements, younger generations will no longer be able to benefit from these buffers. It is precisely the pension agreement that has prevented intergenerational conflicts.
In the long run, the plans will effectively have this effect, but only after the disappearance of existing generations. In particular, costs appear to fall on the account of the current 40-60 year olds. This conclusion is confirmed by the Dutch Central Planning Agency (CPB), which also published a report on the subject on 5 June. There appears to be compensation for reducing pension benefits and increasing investment risks. There are certain types of contracts that, by their very nature, require more specific rules, particularly when parties with unequal social positions often enter into such contracts. Employment contracts, real estate purchase contracts and leases are all contracts for which the Dutch Civil Code provides for additional provisions aimed primarily at protecting the socially weak party (employees, tenants or consumers A natural person acting in the context of a profession or company).