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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 the end, a compromise emerged where the lex loci delicti was the first point of reference but courts retained a discretion to substitute the lex fori if the foreign law was deemed unfair and other practical considerations pointed to the application of forum law. In the U.S., see the New York decision in Babcock v.
Lex causae; Lex fori; Forum shopping; Lis alibi pendens; Connecting factors; Domicile; Lex domicilii; Habitual residence; Nationality; Lex patriae; Lex loci arbitri; Lex loci rei sitae; Lex loci contractus; Lex loci delicti commissi; Lex loci actus; Lex loci solutionis; Lex loci protectionis; Proper law; Lex loci celebrationis; Choice of law ...
Lex causae (Latin for "law of the cause"), in conflict of laws, is the law chosen by the forum court from the relevant legal systems when it judges an international or interjurisdictional case. It refers to the usage of particular local laws as the basis or "cause" for the ruling, which would itself become part of referenced legal canon.
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 ...
Thus, the conflict rules of the lex fori, the domestic law of the forum, (i.e. the court dealing with the case,) are usually applied even if, in extreme cases, the application of only the substantive provisions of the foreign law by the forum court could produce a judgment that neither the lex causae nor the lex fori would normally have produced.
Where an inter vivos or testamentary trust includes immovables, reference must be made to the lex situs on all aspects relating to title and land use. Similarly, title to movables including choses in action, should be determined by lex situs, i.e. the law of place where each item is located at the time the trust is created. Once created, all ...
For these purposes, Article 7 defines "mandatory rules" as rules that must be applied whatever the Applicable Law. In deciding whether rules are mandatory in the lex fori or a law with which the contract has a close connection, regard shall be had to their nature and purpose and to the consequences of their application or non-application.