This article analyzes the process of harmonization of Contract Law in the European Union (EU) in the context of the general debate on the need for international harmonization of commercial law on one hand, and, on the other hand, in the context of the integration of the European market and the omnipresent European discussions on the need for harmonization, appropriate methodologies for reform and on the institutional competence to pursue the harmonization process. Part II of the article establishes interrelationships between major international harmonization efforts in the area of contract law. Part III focuses on the current situation in the EU in regards to harmonization of contract law. It starts from the premise that one of the main integration tools of the EU is its own legal order and acquis communautaire, and focuses on several soft law harmonization attempts that have been made by European legal scholars utilizing the Principles of European Contract Law ("the PECL")' and the Common Frame of Reference ("CFR") related projects. Part IV discusses the Draft Common Frame of Reference ("the DCFR") project. The article closes by commenting on the DCFR's potential to influence international and national law reforms, especially in multi-jural states such as Canada.