General clauses and the abuse of contractual freedom: Experiences from the Early 20 th Century

Between the nineteenth and twentieth centuries, judicial control of freedom of contract was based on an innovative use of equity and general clauses, such as good morals and good faith. The essay aims to highlight the original features of Italian experience, analysing some cases related to the exploitation of financial need in money loans (usury), hardship and unfairness of standard terms. In that historical period, general clauses were an important legal tool by which Italian judges softened the rule of the binding force of contract and promoted a rethinking of liberal contract law. Even though its foundations were not questioned, nevertheless it was thus more fair and next to a goal of social justice.