Rome I—applicable law chosen by the parties
Produced in partnership with Angharad Parry of 20 Essex Street
Rome I—applicable law chosen by the parties

The following Dispute Resolution guidance note Produced in partnership with Angharad Parry of 20 Essex Street provides comprehensive and up to date legal information covering:

  • Rome I—applicable law chosen by the parties
  • Rome I—applicable law chosen by the parties
  • Must the applicable law be the law of a Member State? (Article 2)
  • Freedom of choice (Article 3(1))
  • Changing the chosen applicable law (Article 3(2))
  • Choice of law and non-derogation (Article 3(3)
  • Consent and validity (Articles 10 and 11
  • Formal validity (Article 11)
  • Capacity (Article 13)

Brexit: The UK's departure from the EU on exit day, ie Friday 31 January 2020, has implications for practitioners considering applicable law. For guidance, see: Cross border considerations—checklist—Applicable law—Brexit specific.

This Practice Note considers Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) and explains the ability of the parties to choose the applicable law under Rome I. It looks at whether the law must be that of a state, the freedom of the parties to chose the applicable law—such choice can be express or implied—and changing the chosen applicable law. It also considers choice of law and non-derogaton as well as consent, validity and capacity.

Rome I—applicable law chosen by the parties

Rome I applies to contracts concluded on or after 17 December 2009, relating to civil or commercial matters. This is subject to a number of exceptions: contractual obligations ‘arising under bills of exchange, cheques and promissory notes and other negotiable instruments to the extent that the obligations under such other negotiable instruments arise out of their negotiable character’; arbitration agreements; agreements on choices of court; and certain company matters. For detailed information, see Practice Note: Rome I—scope and exclusions.

Must the applicable law be the law of a Member State? (Article