Part 2 National and Regional Reports, Part 2.3 Australasia: Coordinated by Brooke Marshall, 41 Australia: Australian Perspectives on the Hague Principles
This chapter analyses the common law choice-of-law rules that determine the law applicable to international and intra-national commercial contracts in Australia. It compares those rules with the Hague Principles and evaluates the extent to which the Principles offer an improvement. The chapter demonstrates that Australia’s core choice-of-law rule for contract, which gives effect to the parties’ choices, is well-established. However, its ‘modal choice of law rules’ and rules that determine the scope of application of the chosen law are incomplete and, in several respects, ambiguous. Adoption of the Principles’ approach to assignment and renvoi, in particular, would redress significant uncertainties in the current law. The Australian Commonwealth government’s 2016 proposal to implement the Principles, via legislation, has since stagnated. It follows that incremental judicial development of the common law, by reference to some of the Principles’ solutions, is the most realistic prospect in the medium term.