DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM, A.P., INDIA

PROJECT TITLE

Karl Renner

SUBJECT

Jurisprudence

NAME OF THE FACULTY

Zain Saleh

Name of the Candidate

Ch.Shriya

Roll No. 2016024

Semester III

1
 Acknowledgement:

I am using this opportunity to express my gratitude to everyone who supported me

through the course of the project. I would like to thank our teacher who encouraged,
guide and supported me for doing this project.
I express my warm thanks to Zain Saleh for his support and guidance to the project
without his help it would be difficult task for us. It was all my pleasure to have you as
my teacher and guider throughout this project for this I am thanking you from my
heart.

2
 CHAPTERIZATION PLAN (CONTENTS):

1. Introduction ……………………………………………………..…10

2. Life in Politics…………………………………………………..…..10

3. Renner’s Works and Contributions………………………………11

4. His analysis of Property in Capitalistic Society…………………..12

5. Comments and Criticism…………………………………………...13

6. Conclusion…………………………………………………………...14

3
 LITERATURE INDEX:

S.No Author Title Citation Link

1. R.A Social and Economic Control R. A. MacDonald, Social and
MacDonald through Law - A Review of Economic Control through Law - A
Karl Renner's the Institutions Review of Karl Renner's the
of Private Law and Their Institutions of Private Law and Their
Social Functions
 Social Functions, 25 Chitty's
L.J. 7,
18 (1977)

2. Morton J. The Transformation of Eugene D. Genovese, The

Horwitz
 American Law Transformation of American Law,
1780-1860 by Morton J. Horwitz, 91
Harv. L. Rev. 726,
736 (1978)

3. Kanishka Globalization, Law, and the Kanishka Jayasuriya, Globalization,

Jayasuriya Transformation of Law, and the Transformation of
Sovereignty: The Emergence Sovereignty: The Emergence of Global
of Global Regulatory Regulatory Governance, 6 Ind. J.
Governance Global Legal Stud. 425, 456 (1999)

4. Eugene A Marxist Theory of Law, Eugene Kamenka, A Marxist Theory

Kamenka Law in Context: A Socio- of Law, 1 Law Context: A Socio-Legal
Legal Journal J. 46, 72 (1983)

5. Alan Stone The Place of Law in the Alan Stone, The Place of Law in the
Marxian Structure- Marxian Structure-Superstructure
Superstructure Archetype Archetype, 19 Law & Soc'y Rev. 39,
68 (1985)

6. Bruno Kreisky Austria Draws the Balance Bruno Kreisky, Austria Draws the
Balance, 37 Foreign Aff. 269, 281
(1959)

4
7.
Hans Ulrich Characteristic Obligation in
Jessurun the Draft - EEC Obligation
Hans Ulrich Jessurun D'Oliveira,
D'Oliveira Convention
Characteristic Obligation in the Draft -
EEC Obligation Convention, 25 Am. J.
Comp. L. 303, 331 (1977)

8. Marc Amstutz Global (Non) Law: The Marc Amstutz, Global (Non) Law: The
Perspective of Evolutionary Perspective of Evolutionary
Jurisprudence Jurisprudence, 9 German L.J. 465, 476
(2008)

9. Alice Erh- Marxism, Socialism and the Alice Erh-Soon Tay; Eugene
Soon Tay; Theory of Law Kamenka, Marxism, Socialism and the
Eugene Theory of Law, 23 Colum. J.
Kamenka, Transnat'l L. 217,
250 (1985)

10. Karl Renner

The Institutons of Private law Transaction Publishers
A. Javier : And Their Social Functions New Brunswick (U.S.A) and London
Trevino With new introduction by A. (U.K)
Javier Trevino

11. Jeremy What is Private Property Jeremy Waldron, What is Private

Waldron Property, 5 Oxford J. Legal Stud. 313,
349 (1985)

12. Carole Lewis The Modern Concept of Carole Lewis, The Modern Concept of
Ownership of Land Ownership of Land, 1985 Acta
Juridica 241, 266 (1985)

13. Carl A. The Relation of Legal Carl A. Auerbach, The Relation of

Auerbach Systems to Social Change Legal Systems to Social Change, 1980
Wis. L. Rev. 1227, 1340 (1980)

Encrico Pattaro A Treatise of Legal Springer Science & Business Media,

14. Corrado Philosophy and General 2016
Roversi Jurisprudence Volume 12

5
15. Pavlos The Analysis of Property
Pavlos Eleftheriadis, The Analysis of
Eleftheriadis Rights
Property Rights, 16 Oxford J. Legal
Stud. 31, 54 (1996)

16. Michael E. Right of Property and the Michael E. Tigar, Right of Property
Tigar Law of Theft and the Law of Theft, 62 Tex. L. Rev.
1443, 1476 (1984)

17. Joseph W. Law in a Shrinking World: Joseph W. Dellapenna, Law in a

Dellapenna The Interaction of Science Shrinking World: The Interaction of
and Technology with Science and Technology with
International Law International Law, 88 Ky. L.J. 809,
884 (1999)

18. Geoffrey Public and Private Law: A Geoffrey Samuel, Public and Private
Samuel Private Lawyer's Response Law: A Private Lawyer's Response, 46
Mod. L. Rev. 558, 583 (1983)

19. Brendan Post-Property: A Postmodern Brendan Edgeworth, Post-Property: A

Edgeworth Conception of Private Postmodern Conception of Private
Property Property, 11 U.N.S.W.L.J. 87, 116
(1988)

20. Carl A. The Relation of Legal Carl A. Auerbach, The Relation of

Auerbach Systems to Social Change Legal Systems to Social Change, 1980
Wis. L. Rev. 1227, 1340 (1980)

6
 Review of Literature

THE INSTITUTIONS OF PRIVATE LAW: AND THEIR SOCIAL

FUNCTIONS BY KARL RENNER AND WITH A NEW INTRODUCTION BY
A. JAVIER TREVINO:

In the English-speaking world, Karl Renner is the best known among the Austro-
Marxists who were active in the Austrian socialist movement during the first few
decades of the twentieth century. Recognition of Renner's scholarship is due largely
to the English translations of his works on Marxism, as well as to the secondary
writings on his notions of socialist legality. Renner has for over half a century been
celebrated for the only book of his that has, to date, been wholly translated into
English. His work The Institutions of Private Law and Their Social Functions
remains the classic socialist attempt to offer a realistic understanding of the role of the
legal institution of private property in modern society. In this book they discusses the
volume's relevance for today, and briefly describes that aspect of Renner's life that
occupied most of this time and energy: his involvement in Austrian social democratic
politics. The substance of Renner's exposition remains intact. The text provides one of
the best insights into the relationship between capitalism and property's economic
functions.

THE PLACE OF LAW IN THE MARXIAN STRUCTURE-

SUPERSTRUCTURE ARCHETYPE BY ALAN STONE:

Law occupies a critical place in a Marxist theory of society. Yet Marx did not provide
a coherent and detailed discussion of law. Subsequent writers in the Marxist tradition
have either developed simplistic versions of the unsustainable thesis that the capitalist
class dominates the legal apparatus in a capitalist society even Renner was a member
of the Austro- Marxist group. Renner's work on law follows the same path. Avoiding
any serious attempt to probe Marx's structure-superstructure language, Renner found
only a weak connection between economic development and law. 1Law cannot cause
economic development or change, according to Renner, but can be gradually modified

1
Alan Stone, The Place of Law in the Marxian Structure-Superstructure Archetype, 19 Law & Soc'y
Rev. 39, 68 (1985)

7
to meet changed economic conditions. This article further deals with how Renner had
acute perceptions about durability and adaptability legal concepts as contract and tells
about how he failed to grasp an important part of what he had shown.

THE RELATION OF LEGAL SYSTEMS TO SOCIAL CHANGE BY CARL A.

AUERBACH

The most influential effort to utilize Marxist sociology as a basis for legal theory is
that of the distinguished Austrian jurist, Karl Renner. But Renner's position is difficult
to reconcile with Marx's theory of law. He criticizes the Marxist theory how economy
brings about the effect of law is unexplained. Renner is not confident on his decision
and he takes back his premature conclusion and contents with the more modest
proposition that "economic change does not immediately and automatically bring
about changes in the law", he contended because additional investigation "might show
that the economic substratum would eventually transform the law also". 2

GLOBALIZATION, LAW, AND THE TRANSFORMATION OF

SOVEREIGNTY: THE EMERGENCE OF GLOBAL REGULATORY
GOVERNANCE BY KANISHKA JAYASURIYA

Renner points out that the notion of property as a legal category played a vastly
different role in simple commodity production, where producers of goods are
independent artisans who own the means of production, from the situation that
prevails in a modern complex capitalist economy.3 Renner's argument demonstrates
the need to analyze the evolution of the legal institution in terms of the distinction
between legal categories that may remain static, and the social functions of these
categories, which are more dynamic. Therefore, the critical analytical task is to
understand the role played by legal categories under different economic structures. As
Renner puts it, "this constant divergence between legal norm and social efficacy
provides the only explanation for the evolution of the law."' In short, the adoption of
Renner's methodology allows us to move beyond static and formalistic

2 Carl A. Auerbach, The Relation of Legal Systems to Social Change, 1980 Wis. L. Rev. 1227, 1340
(1980)
3
Karl Renner, The Institutions Of Private Law And Their Social Functions 105-22 (0. Kahn-Freund
ed. & Agnes Schwarzschild trans., 1949).

8
understandings of sovereignty and have a better appreciation of a contingent model of
sovereignty.

Social And Economic Control Through Law by R.A. MACDONALD

In this article Renner undertakes an historical examination of the institution of

property. From his deduction that norms may be functionally transformed follows the
corollary that “it is not the law that causes economic development.” 4 Renner concedes
that the existence of society depends on, and presupposes a determined, historically
conditioned legal order, but argues that because this legal order cannot prevent
changes in the substratum, it is primarily other forces which control and shape social
and economic development. The value of Renner's work is not to be found in the
specific conclusions he draws, but in the manner with which he deals with the issues
he raises.

4 Karl Renner, The Institutions Of Private Law And Their Social Functions 105-22 (0. Kahn-
Freund ed. & Agnes Schwarzschild trans., 1949).

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 Introduction

Karl Renner is the best known among the Austro-Marxists who were active in the
Austrian socialist movement during the first few decades of the twentieth century.
This current recognition of Renner's scholarship is due to the English translations of
his works on Marxism, as well as to the secondary writings on his notions of socialist
legality and national cultural autonomy and his main book is The institutions of
Private Law and their social functions. In addition there are two interesting things, in
part, which helps to assess Renner's personal character is as an intellectual and
political leader. Within socio-legal studies, Renner has for over half a century been
recognized—and celebrated—for the only book of his that has, to date, been wholly
translated into English and that remains the classic socialist attempt to offer a realistic
understanding of the role of the legal institution of private property in modern society:
The Institutions of Private Law and Their Social Functions. Renner's life that
occupied most of this time and energy: his involvement in Austrian social democratic
politics.

Life in Politics

The seventeenth child (the eighteenth, since he was a twin) of impoverished peasants,
Karl Renner was born on December 14, 1870 in the Moravian village of Unter-
Tannowitz, which was then part of the Austro-Hungarian Empire, and is now part of
the Czech Republic. 5 Upon completing his secondary education the young Renner
joined the army, primarily because custom demanded that he do so, but also for the
eminently practical and necessary reason that he needed to support him. At the end of
his year in the military, in 1891, he enrolled at the University of Vienna opting to
study law rather than philosophy as he had originally intended. 6 His dedication to law
apparently stemmed up. At the university Renner diligently attended various lectures
given by the socialist who is one of the founders of the Austrian Fabian society.
Renner’s involvement in Friends of Nature which was a non-profit organization with
a background in the Social Democratic movement whose sole purpose was to make

5 The Institutions of Private Law: And Their Social Functions by Karl Renner
6
https://www.britannica.com/biography/Karl-Renner

10
nature accessible to the community coupled with his law studies culminated in his
decision to follow a life of politics.
Renner joined the newly established Austrian Social Democratic Party. And he started
his career, as a parliamentary librarian Renner was able to utilize resources of the
library to conduct research, which lead to his first publications. Due to his civil
service status he wrote published many books. Karl Renner’s first, and arguably most
important; publication was State and Nation where he formulated a solution to
prevent national conflicts from fragmenting the Social Democratic Party. From his
Marxists perspective, Renner sought to abolish class hatred by means of personal
autonomy. Karl stated that a person was a citizen who was subject to the laws of
their association instead of the laws of their physical location.
Later he completely rejected Jewish demand for cultural autonomy by keeping them
as a religious group instead of a national group. Unfortunately for Renner his program
failed and instead of the Social Democratic Party uniting it fragmented into national
groups. Karl Renner become Austria’s first government head after the collapse of the
Austro-Hungarian Empire in 1918. Renner created the first Cabinet of the Austrian
Republic and after elections; he became State Chancellor within the newly established
government for two successive ministries from 1918 to 1920. As one of his first and
main duties as Chancellor, Karl Renner signed the Treaty of Saint-Germain, which
prohibited Austria’s union with Germany due to this Renner fail to unite Germany
with Austria, which was his original goal. As the Second Republic's first president
from Dec. 20, 1945, he secured vital respect and legitimacy for the republic both at
home and abroad. He died in office in Vienna on Dec. 31, 1950.7

Renner’s Works and Contributions

Renner produced numerous works on a number of topics, making important

contributions to several disciplines, including sociology, economics, law and
government. His early books in the latter field such as The Struggle of the Austrian
Nations over the State and Principles of the Austro-Hungarian Monarchy-tended to be
highly nationalistic, no doubt in keeping with the trend of the time. His first
publications on socioeconomic questions had to appear under a pseudonym because

7http://www.encyclopedia.com/people/history/austria-and-hungary-history-
biographies/karl-renner

11
of his civil service status. Besides his political activities, Renner continued writing
and publishing in the fields of law, sociology, and politics. His best-known sociolegal
work, Die Rechtsinstitute des Privatrechts and ihre soziale Funktion: Ein Beitrag zur
Kritik des biirgerlichen Rechts (The Institutions of Private Law and Their Social
Functions: A Contribution to Critique of the Civil Law), was originally published in
1904 under pseudonym Josef Kramer. Here Renner dealt with how legal institutions
like property, contract, or inheritance, formally unchanged over long periods, can take
on profoundly different social functions.
Renner’s main work is The Institutions of Private Law and Their Social Functions: A
Contribution to Critique of the Civil Law in that book Renner's view is that it is not
necessary to abolish property and contract; their "elasticity" allows them to adapt to
the changed socioeconomic conditions as their legal norms are replaced with new
ones. Similarly, property and contract would remain primary legal institutions in
capitalism as well as in socialism, though with different economic functions. In time,
property and contract will acquire a socialized function.

His analysis of Property in Capitalistic Society:

Renner chooses the legal institution of ownership as the basis of an investigation to

the extent of social function of institution corresponded with the legal order. Renner
first corrects the orthodox Marxist position and at the same time, rejects Stammler’s
view with the contention that legal institutions are neither automatically determined
by the economic substarta nor a mere form super imposed upon it. When the
ownership of a complex things that are regarded as a capital for now will no longer
coincides with the substrata of personal work. Instead it becomes a new power of
command. Marx had articulated his thought in such a way that :
The capitalist is not a capitalist because he directs, but he becomes an industrial
commander, because he is a capitalist. Industrial command has becomes an attributes
of capital, as under feudalism the power of command was, in war and in the law, an
attribute of ownership of land.
Another change of function takes place is the unity of ownership , typical of the
former economic conditions , is broken up as a specialization in the various functions
of ownership develops.

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 Comments and Criticism

Renner's main tenet in Institutions is very simply that economic systems have a
significant, but limited, influence on the functions of property and contract. Their
influence is significant to the extent that property and contract law is transformed
(through the legislative process as well as through judicial reinterpretation) in the
transition from one economic system to another. But it is limited in that these
institutions' legal form, or structure, remains largely constant. For example, despite
the long-standing practice of workers having controlling interests (i.e., ownership of
more than 50 percent of a corporation's voting shares), it cannot be said that the
relationship between labor and management has been significantly altered. What is
more, this practice does not fundamentally threaten the sovereignty of the institution
of private property: there is no sense in which there has been an expropriation, in the
Marxian sense—no earnest move toward "spreading the wealth," legally or
economically. Whatever the merits of Renner's basic thesis, it is his second argument
that capitalism utilizes property and contract, but not deliberately so, in order to
organize labor, power, and goods with which I take issue for one main reason: it
suffers grievously from extreme anthropomorphism. And it is on the basis of this
metaphorical personification of economic systems which endows them with a kind of
social existentialism of the collective consciousness that Renner makes two
epistemological assertions; both of which are not only conceptually misguided, but
have largely been proved by history. I conclude with one final criticism: that Renner
overstates the classic, but now outdated distinction between private and public law.
While the private-public polar duality did indeed have a marked influence on the law
of contract from the nineteenth century until about 1940, it is no longer as tenable in
today's postmodern legal culture.

13
 Conclusion

I finally conclude by stating few of the Renner’s philosophies and his sayings. The
text provides one of the best insights into the relationship between capitalism and
property's economic functions. Avoiding any serious attempt to probe Marx's
structure-superstructure language, Renner found only a weak connection between
8
economic development and law. Law cannot cause economic development or
change, according to Renner, but can be gradually modified to meet changed
economic conditions. This article further deals with how Renner had acute
perceptions about durability and adaptability legal concepts as contract and tells about
how he failed to grasp an important part of what he had shown. He says that
“economic change does not immediately and automatically bring about changes in the
law", he contended because additional investigation "might show that the economic
substratum would eventually transform the law also". Renner points out that the
notion of property as a legal category played a vastly different role in simple
commodity production, where producers of goods are independent artisans who own
the means of production, from the situation that prevails in a modern complex
capitalist economy. He says, “it is not the law that causes economic development.”
That, means that there is some external feature which causes the change.

Bibliography

Social And Economic Control Through Law by R.A. Macdonald

Globalization, law, and the transformation of sovereignty: the emergence of
global regulatory governance by Kanishka Jayasuriya
The relation of legal systems to social change by carl a. auerbach
The place of law in the marxian structure-superstructure archetype by Alan
stone:
The institutions of private law: and their social functions by karl Renner and
with a new introduction by a. Javier Trevino:
www.encyclopedia.com
www.britannica.com

8
Alan Stone, The Place of Law in the Marxian Structure-Superstructure Archetype, 19 Law & Soc'y
Rev. 39, 68 (1985)

14