A re-examination of the conflict rules governing the validity of international contracts

2020 ◽  
Vol 7 (2) ◽  
pp. 41-59
Author(s):  
Prince Obiri-Korang
Keyword(s):  
International Law ◽  
Common Law ◽  
Careful Examination ◽  
Private International Law ◽  
Choice Of Law ◽  
Judicial Decisions ◽  
Legitimate Interest ◽  
The Law ◽  
Governing Law

Generally, under choice of law, the issue of uncertainty associated with the determination of the governing law of international contracts is quite clear. The level of this uncertainty, however, increases when dealing with questions about which law governs the validity of such contracts. Like other areas of private international law, matters concerning validity present several unique challenges both in theory and in practice, making it the most complicated topic in private international law literature. In fact, the uncertainty in this area has led to a situation where different rules are applied by different states, without taking into consideration the link that should exist between the state whose law becomes applicable and the function that the law is expected to serve – determining the validity of a contract. This article attempts to contribute to existing literature on choice of law questions regarding the validity of international contracts and also provides solutions, based on the underlying principles of private international law of contract that effectively address the uncertainty in this area of law. The article submits that the law that governs the validity of an international contract must, at all times, be one that has a legitimate interest in matters concerning the legality or otherwise of such contracts. In this regard, the article strongly opposes the theory that the parties’ intention determines the law that governs the validity of their contract. After a careful examination of literature and landmark judicial decisions in both civil law and common law jurisdictions, the article concludes that the lex loci solutionis is the appropriate law to determine matters relating to the validity of international contracts.

Part 2 National and Regional Reports, Part 2.3 Australasia: Coordinated by Brooke Marshall, 42 New Zealand: New Zealand Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Hook Maria
Keyword(s):  
New Zealand ◽  
International Law ◽  
General Position ◽  
Common Law ◽  
Case Law ◽  
Private International Law ◽  
Choice Of Law ◽  
Legislative Reform ◽  
The Hague ◽  
The Law

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.

Part 2 National and Regional Reports, Part 2.2 Asia: Coordinated by Yuko Nishitani and Béligh Elbalti, 23 Hong Kong: Hong Kong Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Reyes Anselmo
Keyword(s):  
Hong Kong ◽  
International Law ◽  
Common Law ◽  
Case Law ◽  
Private International Law ◽  
English Court ◽  
Choice Of Law ◽  
The Hague ◽  
The Law

This chapter explores Hong Kong perspectives on the Hague Principles. Hong Kong has no enacted code of private international law rules. In relation to contracts dealing with commercial matters, the choice of law principles of Hong Kong law are largely to be found at common law. Decisions of the English court, in particular, are often cited in Hong Kong as exemplifying the law on a given question. To a lesser degree, principles may be found in statute. While Hong Kong judges must look to case law to discern relevant choice of law principles, nothing prevents them from also having regard to the Hague Principles and holding that one or more articles therein accurately reflect Hong Kong law. Indeed, articles of the Hague Principles can be referred to by Hong Kong judges as accurate statements of present day Hong Kong law, as foundations for the refinement of existing common law rules, or as indications of how Hong Kong choice of law principles may be extended to deal with novel situations.

Torts in Private International Law: A New Statutory Framework

1996 ◽  
Vol 45 (4) ◽  
pp. 888-902 ◽  
Author(s):  
C. G. J. Morse
Keyword(s):  
International Law ◽  
Common Law ◽  
General Rule ◽  
Private International Law ◽  
Choice Of Law ◽  
Applicable Law ◽  
The Common ◽  
The Law

Part III of The Private International Law (Miscellaneous Provisions) Act 1995 entered into force on 1 May 19961. As from that date2, the choice of law rules for tort developed in the common law will be abolished, in respect of most causes of action in tort3, and will be replaced by statutory rules of a radically different character4. The new choice of law rules essentially provide that, as a general rule, the law applicable to a tort is the law of the country5 in which the events constituting the tort in question occur6. This general rule may be subject to displacement where, in the light of a comparison between the significance of the factors connecting the tort with the country whose law is applicable under the general rule, and the significance of the factors connecting the tort with another country, it appears substantially more appropriate for the applicable law to be the law of that other country7. The express abolition of the common law rules is (with one significant exception)8 effected by section 10 of the Act. That section provides: the rules of the common law, in so far as they—(a) require actionability under both the law of the forum and the law of another country for the purpose of determining whether a tort or delict is actionable; or(b) allow (as an exception from the rules falling within paragraph (a) above) for the law of a single country to be applied for the purpose of determining the issues, or any of the issues, arising in the case in question,are hereby abolished so far as they apply to any claim in tort or delict which is not excluded from the operation of this Part by section 13 below.

Choice of Law Methods in the Private International Law of Contract

1981 ◽  
Vol 18 ◽  
pp. 161-200
Author(s):  
Joost Blom
Keyword(s):  
United States ◽  
International Law ◽  
Common Law ◽  
The United States ◽  
Private International Law ◽  
Legal Systems ◽  
Choice Of Law ◽  
The Common ◽  
The Law ◽  
Contractual Obligations

This article examines the choice of law methods developed in four legal systems for problems relating to the substantial or essential validity of contracts. The complicated questions of formation and capacity have had to be left aside. The first two parts of this article discussed the choice of law methods used by courts in France, Germany, and the United States. This concluding part deals with the law in England and the common law jurisdictions in Canada, and also, by way of epilogue, with the recently completed European Communities Convention on the law applicable to contractual obligations. Finally, some general conclusions will be offered about the patterns of law that have emerged in the course of this survey.

Part VI The Law of Property, 30 Immovables

2017 ◽  
Author(s):  
Torremans Paul
Keyword(s):  
European Union ◽  
Common Law ◽  
Legal Issues ◽  
Choice Of Law ◽  
Foreign Land ◽  
The Law

This chapter examines the choice of law rules governing immovables. There are a range of circumstances in which the English courts may have jurisdiction (either under common law or European Union rules) over cases which require the determination of legal issues relating to foreign immovable property. These include cases where the question of title arises incidentally in a personal claim against a defendant, or in the administration of a trust, will or divorce over which the English courts have jurisdiction, or in the context of a claim for trespass over foreign land. This chapter first considers the law of the situs rule before discussing specific issues relating to choice of the law applicable to immovables, focusing in particular on the capacity to take and transfer immovables, formalities of alienation, essential validity of transfers, and contracts.

scholarly journals Part 1 General and Special Reports, 1 General Comparative Report: Global Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Girsberger Daniel ◽  
Graziano Thomas Kadner ◽  
Neels Jan L
Keyword(s):  
International Law ◽  
The State ◽  
Soft Law ◽  
Private International Law ◽  
Choice Of Law ◽  
Global Perspectives ◽  
Party Choice ◽  
The Hague ◽  
The Law

This chapter presents the General Comparative Report, which addresses, article by article, the Hague (or HCCH) Principles on Choice of Law in International Commercial Contracts of 2015 (the Hague Principles). The General Comparative Report compares the Hague Principles with the state of the law in over sixty jurisdictions worldwide and with supranational rules and soft law principles. It aims to encourage legislators, courts, practitioners, and academics to further develop their domestic private international law systems and possibly benefit hereby from the Hague Principles by consistently and adequately applying, interpreting, and amending domestic, supranational, and regional private international law (PIL) in the context of party choice of law. The chapter then details the structure of the Report and the questionnaire used to address the issues covered by the Hague Principles. It also provides an introduction and a comparative overview of each of the Articles of the Hague Principles.

30 South Korea

2018 ◽  
Author(s):  
Hong Suhn-Kyoung ◽  
Cheong Seong-Koo
Keyword(s):  
South Korea ◽  
International Law ◽  
Legal Framework ◽  
Civil Code ◽  
Private International Law ◽  
Cross Border ◽  
The Law ◽  
The Right ◽  
Insolvency Proceedings ◽  
Governing Law

This chapter discusses the law of set-off in South Korea, along with certain restrictions on the exercise of the right of set-off in insolvency proceedings. The legal framework for set-off in South Korea is based on the Civil Code. The courts have also generally supported set-off as a means of satisfying a claim or discharging debt. The Korean Private International Law does not expressly lay down the governing law for set-off. This governing law issue is commonly discussed under two scenarios: set-off is undertaken on the basis of a set-off agreement between the parties; and set-off is undertaken in the absence of an agreement. The chapter first considers the governing law of contractual and non-contractual set-off in South Korea before turning to set-off between solvent parties and set-off against insolvent parties. It also analyses issues arising in cross-border set-off.

Part II Preliminary Topics, 5 Renvoi

2017 ◽  
Author(s):  
Torremans Paul
Keyword(s):  
International Law ◽  
Private International Law ◽  
Choice Of Law ◽  
The Law

This chapter examines the doctrine of renvoi in relation to private international law. It first explains the problem associated with the doctrine of renvoi before discussing three possible solutions: applying the internal rules of ‘the law of the country’ only; applying the doctrine of single renvoi; or applying the doctrine of total renvoi. It then considers three objections to the doctrine. First, the total renvoi doctrine does not necessarily ensure uniform decisions. Second, the total renvoi doctrine signifies the virtual capitulation of the English rules for choice of law. Third, the total renvoi doctrine is difficult to apply. The chapter also analyses some decisions supporting the doctrine of total renvoi and concludes with a review of the scope of the application of renvoi by looking at cases where it is inapplicable and issues to which it may apply.

Part 2 National and Regional Reports, Part 2.1 Africa: Coordinated by Jan L Neels and Eesa A Fredericks, 11 Common Law Africa: Common Law African Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Oppong Richard Frimpong
Keyword(s):  
International Law ◽  
Common Law ◽  
Case Law ◽  
Private International Law ◽  
International Treaties ◽  
African Countries ◽  
International Convention ◽  
Judicial Decisions ◽  
The Common ◽  
The Hague

This chapter studies the common law African countries Gambia, Ghana, Kenya, Malawi, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. Their main source of private international law rules is judicial decisions or case law. Because of the relatively underdeveloped nature of their private international law regimes, foreign case law often serves as an important source of persuasive authority. In this regard, the jurisprudence of the English courts is particularly persuasive and is often referred to by the courts. In general, an international convention or treaty does not have the force of law in the legal systems of the countries under study, unless it is expressly incorporated into national law. In essence, they are dualist countries. However, courts in some of the countries under study have demonstrated a willingness to seek guidance from international treaties that are not yet domestically in force, if the circumstances are appropriate. Thus, it is possible, that courts in the countries under study may be receptive to the Hague Principles, especially if argued by counsel.

Part 2 National and Regional Reports, Part 2.4 Europe: Coordinated by Thomas Kadner Graziano, 44 Iceland: Icelandic Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Þorláksson Eiríkur Elís
Keyword(s):  
International Law ◽  
Private International Law ◽  
Choice Of Law ◽  
Recognition And Enforcement ◽  
The Hague ◽  
The Law ◽  
The Republic ◽  
Contractual Obligations

This chapter focuses on Icelandic perspectives on the Hague Principles. The constitution of the Republic of Iceland does not contain any provisions on the principles of private international law. Moreover, there is no general act on private international law in force in Iceland. However, legislation on specific aspects of private international law, such as conflicts of the laws of contract and recognition and enforcement of foreign decisions, can be found in Icelandic law. Moreover, individual provisions on recognition and enforcement, jurisdiction, and choice of law can be found throughout Icelandic legislation. The legislative act which applies to contractual obligations in the field of private international law in Iceland is Act No 43/2000 on the law applicable to contractual obligations. There are no other acts that explicitly aim to address choice of law issues other than Act No 43/2000, but individual provisions can be found indicating the choice of law in specific areas of law; otherwise, Icelandic courts will apply general principles to the case at hand. There is currently no revision of Act No 43/2000 under discussion in Iceland.

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