Applicable Law in Commercial Contracts of Corporation with State

Document Type : Original Article

Authors

1 Assistant Professor of Private Law, Islamic Azad University, Karaj Branch, Karaj, Iran

2 M.A. in Private Law, Islamic Azad University, Karaj Branch, Karaj, Iran

10.22055/ajkrl.2020.29405.1042

Abstract

Today, international relations have expanded, we see different types of business relationships. Many business relationships, take place between a business company and a government. Sometimes countries in pursuit of political and economic goals, have to deal with foreign Business companies. Here the proper law come into important. The starting point of all contracts is the Principle of freedom of the parties. This principle shadows all aspects of all contract. Dispute settlement authorities respect this principle for the right decision. The opinions on choosing the applicable law is vary. Some people believe in the law enforcement of the contract. In these views we see emphasis on legal changes. Some consider the choice of law of country. Of course some are commenting on this: the contract must have a note for applicable law. In the majority of commercial contracts that one of the contracting parties is a government, there is such a note: The right to choose the applicable law for the state party or refer to third country law. Sometimes the parties do not choose the law. In this rare case proposed law is the law of the place of agreement. This is acceptable in most countries. Of course in many case referees believe to rule “general legal principles”.

Keywords

Academic Journal of Knowledge and Research of Law
Volume 5, Issue 1
September 2019
Pages 1-22

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