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What is UNDROIT?

Updated: Apr 3

Author: Laura Dirina

Publication date: 19.03.2024

International is nowadays a principle of private law. Almost every business works internationally. That is the reason for the need to unify private international law and commerce laws. It will create equal rules for international commercial transactions regardless of the party's nationality.

What does UNDROIT mean?

UNDROIT is the abbreviation of the International Institute for the Unification of Private Law. UNDROIT is an independent intergovernmental organisation  It is headquartered in Rome.

History of UNDROIT

In 1926, UNDROIT was originally formed as an organization of the League of Nations. With the dissolution of the League of Nations, UNDROIT was re-established as intergovernmental organization. In 1940, the Statutes of UNDROIT were adopted.

Purpose and tasks of UNDROIT

The main goal of UNDROIT is to deal with the unification of private international law. In particular to work with international commercial law. UNDROIT is studying needs and methods for modernizing, harmonizing, and coordinating private and commercial law. UNDROIT makes the formulation of uniform law instruments and principles.


Basically, UNDROIT works in the field of international contract law. The purpose of this work is to create uniform business transaction rules in an international environment.

The most known work of the UNIDROIT is its Principles of International Commercial Contracts. There are various Conventions - International Financial Leasing and International Factoring, the Model Franchise Disclosure Law, and the Model Law on Leasing, UNDROIT has worked in various legal guides. For example, a legal guide to International Master Franchise Arrangements, a Legal Guide on Contract Farming, a Legal Guide on Agricultural Land Investment Contracts, etc.

Future of UNDROIT and Law Unification

Is there a possibility that all around the world will be governed by the same law? Despite the need for unified principles, nowadays political situation does not provide them with legal binding on states but still exists only as a right of recommendation. But by unification of commercial transaction rules is a chance to ensure peace in the world. That is much more in meaning not just the same law for all businesses.

What of UNDROIT can be useful for law professionals?

There are various materials to use available online for freeModel clauses for the use of the UNDROIT principles of international commercial contracts can improve any commercial contract. Lawyers and other law professionals can research UNIDROIT principles of international commercial contracts. The International Programme for Law and Development (IPLD) is provided by the UNDROIT Academy. The goal of IPLD is to promote and disseminate knowledge of the international legal instruments. It is also a meaningful resource with a library, qualitative research, and other useful materials.

Conclusion of UNDROIT

UNDROIT's work enables participants in international business to operate under the same rules of the game. The choice to use the Unified International Principles of Commercial Contracts developed by UNDROIT remains voluntary. However, in today's globalization in turbulent and changing conditions, it provides legal security and trust in cooperation with cross-border partners. In addition, everyone has the opportunity to use high-quality draft contracts, thus providing a solid basis for cooperation.


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