Non-State Law in the Hague Principles on Choice of Law in International Commercial Contracts

Author(s):  
Ralf Michaels
Keyword(s):  
Author(s):  
Veneziano Anna

This chapter looks at the relationship between the ‘Model Clauses for the use of the UNIDROIT Principles of International Commercial Contracts’ and Article 3 of the Hague Principles. The Model Clauses were drafted with the aim to give parties to international commercial contracts a range of options in order to make the most appropriate use of the UNIDROIT Principles (UPICC) in accordance with their interests and the specific circumstances of the case. At the same time, their goal is also to raise awareness on the variety of possible ways the UPICC may be used as an advantageous tool in international contracting and dispute resolution. Being drafted as choice of law clauses, they fit within the scope of Article 3 of the Hague Principles. Article 3 opens the way towards a wider acceptance of internationally recognized non-national codifications, expressly allowing the choice of ‘rules of law’, irrespective of whether the dispute is solved by an arbitrator or a national court, when such rules are generally accepted on an international, supranational, or regional level as a neutral and balanced set of rules. The UPICC are expressly cited, in the commentary to Article 3, as ‘rules of law’ satisfying such requirements.


Author(s):  
Rodríguez José Antonio Moreno

This chapter highlights Paraguayan perspectives on the Hague Principles. Paraguay does not have a law dealing comprehensively and organically with Private International Law. The Civil and Commercial Code of 1987 contains the basic regulation on conflict of laws, and other provisions on the field can be found scattered in several special laws dealing with specific matters. Paraguay adhered, as a Member State, to the Hague Conference on Private International Law via Law 2555 of 2005. It is the first country in the world to legislate on international contracts heavily influenced by the Hague Principles. The Paraguayan law on international contracts drawn upon the Hague Principles openly allows the application of non-State law, and the International Institute for the Unification of Private Law (UNIDROIT) Principles clearly qualify as such.


Author(s):  
Hook Maria

This chapter examines the choice of law rules that determine the law applicable to international contracts in New Zealand, comparing them to the Hague Principles. Private international law in New Zealand is still largely a common law subject, and the choice of law rules on international commercial contracts are no exception. The general position, which has been inherited from English common law, is that parties may choose the law applicable to their contract, and that the law with the closest and most real connection applies in the absence of choice. There are currently no plans in New Zealand for legislative reform, so the task of interpreting and developing the choice of law rules continues to fall to the courts. When performing this task, New Zealand courts have traditionally turned to English case law for assistance. But they may be willing, in future, to widen their scope of inquiry, given that the English rules have long since been Europeanized. It is conceivable, in this context, that the Hague Principles may be treated as a source of persuasive authority, provided they are consistent with the general principles or policies underlying the New Zealand rules.


Author(s):  
Heiss Helmut

This chapter looks at Liechtenstein perspectives on the Hague Principles. Rules on choice of law, including international commercial contract law, have been codified by virtue of the Act on Private International Law 1996 (Liechtenstein PILA). The Liechtenstein PILA does not expressly state that conventions will take precedence over national laws. However, it has been held by the Liechtenstein Constitutional Court that international treaties are of at least equal status to regular national laws and that national law must be interpreted in line with public international law. Moreover, an international convention will often be considered to be a lex specialis and be given precedence over national rules on that ground. Liechtenstein courts will refer first of all to (old) Austrian case law and legal literature when dealing with matters pertaining to the parties’ choice of law. Whenever these sources leave ambiguity to a specific question, Liechtenstein courts may and most likely will consider other persuasive authorities. The Hague Principles may constitute such persuasive authority.


Author(s):  
Gebremeskel Fekadu Petros

This chapter reflects on Ethiopian perspectives on the Hague Principles. Ethiopia does not have a codified law regulating matters of private international law, nor is there detailed case law from which one could derive key principles of the subject. While the shortage of private international law in Ethiopia is evident, the problem is most severe in the area of applicable law. In relation to party autonomy in choice of law, the Federal Supreme Court’s Cassation Division has handed down some interesting decisions, and these indeed have the force of law in Ethiopia. Nevertheless, the approach of the Ethiopian courts in respect of party autonomy is not very developed and clear, including in the field of international commercial contracts. While it would be prudent for Ethiopian courts to refer to the Hague Principles as persuasive authority, this requires awareness of the existence of the Hague Principles. In the long term, the Hague Principles will surely find their way into Ethiopian law.


2017 ◽  
Vol 18 (4) ◽  
pp. 72-77
Author(s):  
Bryan L. Barreras ◽  
Barbara M. Goodstein ◽  
Kevin C. McDonald

Purpose To explain the Hague Securities Convention in the context of secured financing transactions in the US and to discuss the implications of the Convention on new and existing transactions, as well as on market practice going forward. Design/methodology/approach This article provides a broad overview of the Hague Securities Convention and the impact of the Convention’s choice of law rules on secured financing transactions in the US involving intermediated securities, including how this deviates from previously applicable laws (such as the Uniform Commercial Code), and provides practical considerations with respect to secured financing transactions. Findings While in most circumstances the Convention provides for the same choice of law as previously applicable laws, there are certain scenarios where the Convention will produce a different result. Market practice with respect to perfecting security interests will likely change to take account of the Convention and to provide the parties with certainty regarding the law applicable to secured transactions. Practical implications The Convention calls for increased diligence with respect to the law governing the account agreement between the debtor and the securities intermediary and whether the securities intermediary has a qualifying office in that jurisdiction. Originality/value Practical guidance from experienced finance lawyers.


Author(s):  
Lindsey David M ◽  
Lahlou Yasmine

This chapter focuses on applicable arbitration law in the context of arbitration agreements and awards that fall under the New York Convention or the Panama Convention, and how those two treaties interact with the U.S. Federal Arbitration Act (FAA), New York state law, and possibly foreign law in the context of international arbitration in New York. It first summarizes the FAA and explains FAA preemption of state law that is inconsistent with the FAA. The chapter then discusses the application of the Conventions and difficult issues that can arise when determining the applicable law. In particular, it focuses on choice of law issues that arise when enforcing the agreement to arbitrate under Article II of the New York Convention. U.S. courts have struggled to employ a consistent choice of law analysis when interpreting the “null and void” provisions in Article II(3) of the Convention.


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