International Law Business
The two legal systems wolrdwide
Civil law systems : Based upon codifeid rules , funded on principles and exceptions, supposed to be
applicable generally to all cases and situation.
Common Law systems : based upon judge-law,
One common understanding : The ignorance of the law is no defense.
One Synthetic approach ; the Vienna convention on the international sale of goods (1980)
The EU Law :
Regulations and directives are very different legal texts.
A regulation is a law that is applicable and binding in all member states directly. No need to be
passed into national law alhtough national laws may need to be changed to avoid conflicting with the
regulation. Direct effect
A Directive is a law that binds the member stats , to achieve a particular objective. The result must
be reached and the member states , individually, decide how this is done. Directive must be
transposed into national law to become effective. No direct effect.
The treaties.
Treaty is a written document agreed to by nations that have ratified it. Essentially contracts between
nations. A treaty must then be ratified by the government of each signatory state in order to become
binding on that state.
Treaty become law in ratifying countries. Article VI of the USA constitution provides that all treaties
made and sign under the autohrity of USA , shall be te supreme law of the land. In France , a treaty
becomes an automatic written source of law.
Treaty for international commercial transactions is the CISG, it focused on B&B sales of goods
exclusively between companies whose places of business are in different contracting states. The
CSIG’s scope relates to the formation of the contracte , to the partie’s obligations
Treaty for international arbitration is the New York Convetion.
The lex Mercatoria
Lex mercatoria is used to describe international general principles and rules that are so deeply
entrenched in the international community and are generally accepted worldwide. Identify what LM
contains can be difficult BUT we can found in the LM the standard and practices regulated by the
International Chamber of Commerce.
Statute is a law voted by the parlemient
, Eu regulations is mainly ruled by treaties : Rome conventions / Brussels and the lugano conventions.
Standized international trade practice is one solution to find an alternative to the absence of a
governing law clause.
Example of international trade usages:
International commercial terms , or “Incoterms” developed in 1936 by the International chamber of
commerce. Guide to the buyer and the seller gives instructions and how allocating transport costs
ands risks, determining responsibility for insurance and customs.
Uniform Customs and Practice for documentary credits.
Mananging Applicabe Law
An international contract is signed by individuals or companies settled in different states.
Which Law governs the contract?
The parties , most of time, can select the which country’s law can govern their transaction. They also
can decide to apply the lex mercatoria and/or Unidroit principles. But some countries as USA , apply
some restricitions or conditions to the parties’freedom of choice.
The parties to a contract can choose the governing law, it may be applied to only a part or the whole
of the contract, it can be change at any time as long as all parties agree.
In the absence of choice?
1. When no international convention is applicable
The answer will be given by reference to the domestic laws of the parties to the contract ; these
domestic law may very well conflict. There is a big lack of uniformity in this case.
2. The provisions of the CISG
The CSIG will apply by default if both parties are from countries that are contracting states to the
CISG , or if the rules of private international law lead to the law of a country that is a contracting
state country.
3. What about the EU?
The Rome conventions apply to individuals and companies headquartered in EU Member states. CF
regulation N°593/2008. Know as Rome 1. It determines what the applicable law will rule:
- How a contract is interpreted and what must be done to fulfil its terms
- Consequences of breaching a contract’s obligations.
- The varrions ways of putting an and to contractual obligations.
4. Specific contracts.
For certain specific types of contract, the regulation also sets outs the options for choice of law and
determines the applicable choice where no choice has been made. These include:
▪ contracts for the carriage of goods : country of habitual residence of the carrier.
The two legal systems wolrdwide
Civil law systems : Based upon codifeid rules , funded on principles and exceptions, supposed to be
applicable generally to all cases and situation.
Common Law systems : based upon judge-law,
One common understanding : The ignorance of the law is no defense.
One Synthetic approach ; the Vienna convention on the international sale of goods (1980)
The EU Law :
Regulations and directives are very different legal texts.
A regulation is a law that is applicable and binding in all member states directly. No need to be
passed into national law alhtough national laws may need to be changed to avoid conflicting with the
regulation. Direct effect
A Directive is a law that binds the member stats , to achieve a particular objective. The result must
be reached and the member states , individually, decide how this is done. Directive must be
transposed into national law to become effective. No direct effect.
The treaties.
Treaty is a written document agreed to by nations that have ratified it. Essentially contracts between
nations. A treaty must then be ratified by the government of each signatory state in order to become
binding on that state.
Treaty become law in ratifying countries. Article VI of the USA constitution provides that all treaties
made and sign under the autohrity of USA , shall be te supreme law of the land. In France , a treaty
becomes an automatic written source of law.
Treaty for international commercial transactions is the CISG, it focused on B&B sales of goods
exclusively between companies whose places of business are in different contracting states. The
CSIG’s scope relates to the formation of the contracte , to the partie’s obligations
Treaty for international arbitration is the New York Convetion.
The lex Mercatoria
Lex mercatoria is used to describe international general principles and rules that are so deeply
entrenched in the international community and are generally accepted worldwide. Identify what LM
contains can be difficult BUT we can found in the LM the standard and practices regulated by the
International Chamber of Commerce.
Statute is a law voted by the parlemient
, Eu regulations is mainly ruled by treaties : Rome conventions / Brussels and the lugano conventions.
Standized international trade practice is one solution to find an alternative to the absence of a
governing law clause.
Example of international trade usages:
International commercial terms , or “Incoterms” developed in 1936 by the International chamber of
commerce. Guide to the buyer and the seller gives instructions and how allocating transport costs
ands risks, determining responsibility for insurance and customs.
Uniform Customs and Practice for documentary credits.
Mananging Applicabe Law
An international contract is signed by individuals or companies settled in different states.
Which Law governs the contract?
The parties , most of time, can select the which country’s law can govern their transaction. They also
can decide to apply the lex mercatoria and/or Unidroit principles. But some countries as USA , apply
some restricitions or conditions to the parties’freedom of choice.
The parties to a contract can choose the governing law, it may be applied to only a part or the whole
of the contract, it can be change at any time as long as all parties agree.
In the absence of choice?
1. When no international convention is applicable
The answer will be given by reference to the domestic laws of the parties to the contract ; these
domestic law may very well conflict. There is a big lack of uniformity in this case.
2. The provisions of the CISG
The CSIG will apply by default if both parties are from countries that are contracting states to the
CISG , or if the rules of private international law lead to the law of a country that is a contracting
state country.
3. What about the EU?
The Rome conventions apply to individuals and companies headquartered in EU Member states. CF
regulation N°593/2008. Know as Rome 1. It determines what the applicable law will rule:
- How a contract is interpreted and what must be done to fulfil its terms
- Consequences of breaching a contract’s obligations.
- The varrions ways of putting an and to contractual obligations.
4. Specific contracts.
For certain specific types of contract, the regulation also sets outs the options for choice of law and
determines the applicable choice where no choice has been made. These include:
▪ contracts for the carriage of goods : country of habitual residence of the carrier.
