Rome Convention—when parties choose an applicable law
Rome Convention—when parties choose an applicable law

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Rome Convention—when parties choose an applicable law
  • Scope of the applicable law
  • Freedom of parties to choose the applicable law
  • Freedom of parties to choose the applicable law—dépeçage
  • Limits on freedom to choose—domestic mandatory rules
  • Limits on freedom to choose—foreign mandatory rules
  • Limits on freedom to choose—international mandatory rules

The UK has voted to leave the EU and this will take place on exit day as defined in section 20 of the European Union (Withdrawal) Act 2018. This has implications for the practitioners considering which applicable law applies as the UK will no longer be a party to the Roe Convention. For guidance, see Practice Note: Brexit—applicable law and No deal Brexit—applicable law.

This Practice Note addresses the issues to consider if the Rome Convention applies when dealing with a situation in which the parties have chosen the applicable law to apply to the contract between them. If dealing with a situation in which the parties have not chosen the applicable law, see Practice Note: Rome Convention—when parties fail to choose an applicable law.

Scope of the applicable law

The applicable law may vary depending on the different nature of disputes that can arise under a contract. For example:

  1. interpretation of the contract (Article 10(1)(a) of the Rome Convention)

  2. performance of the contract (Article 10(1)(b) of the Rome Convention)

  3. consequences of breach of the contract, including the assessment of damages in so far as this is governed by rules of law: this is subject to the limits of the powers conferred on the court by its own procedural law (Article 10(1)(c) of the Rome Convention)

  4. the various ways of extinguishing

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