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In contract law, the lex loci contractus is the Law Latin term meaning "law of the place where the contract is made". [1] [2] It refers (in the context of conflict of laws) to resolving contractual disputes among parties of differing jurisdictions by using the law of the jurisdiction in which the contract was created.
In Mount Albert Borough Council v Australasian etc Assurance Society Ltd, it was held that, in default, the court has to impute an intention by asking, as just and reasonable persons, which law the parties ought to, or would, have intended to nominate if they had thought about it when they were making the contract. [6]
Article 11 covers the situation where two persons physically present in the same state make a contract, and both parties have capacity under the lex loci contractus. One party cannot invoke incapacity under another law unless the other party was aware of this incapacity at the time the contract was made or was not aware of the incapacity as a ...
If so, the court may be able characterize the claim as a breach of the contract, instead of a tort, and apply the law of the State A either because it was the place where the contract was made (the lex loci contractus) or, if it were the place where the wage or salary was to be paid, where the contract was intended to be performed (the lex loci ...
it counts the factors that connect or link the legal issues to the laws of potentially relevant states and applies the laws that have the greatest connection, e.g. the law of nationality (lex patriae) or the law of habitual residence (lex domicilii). (See also 'European Harmonization Provisions': "The concept of habitual residence is the civil ...
Choice of law clauses add predictability about the law to be applied should a contractual dispute arise. [3] As business transactions and contractual obligations may cross jurisdictional borders within a nation, as well as international borders, both physically and electronically, choice of law issues may arise.
The lex fori determines whether a foreign judgment can be recognised and, if so, how it will be enforced, e.g. what property belonging to the defendant may be taken to satisfy the judgment (see enforcement of foreign judgments). But in the Law of Contract, this is subject to Article 10 of the Rome Convention 1980 which provides that the ...
Similarly, picking the lex loci solutionis, i.e. the law of the place where the contract is to be performed, may prove to be equally irrelevant, assuming that there is only one place where performance is to occur: in the example, there is manufacture in Greece, delivery to Belgium, loading in Belgium, carriage on the high seas, and unloading in ...