The freedom of the parties to determine the contents of a contract is a general principle of contract law recognised by almost all legal systems. During the last decades, this principle seems to be gaining so much strength as to destabilize another principle equally important in Western legal systems -that is, the public protection of rights, being the State responsible, through the courts, for their guarantee. In private international law, party autonomy means the freedom of the parties to choose the law applicable to the contract. It also involves the freedom to determine the forum which is to have jurisdiction to hear any potential or actual dispute between them. The main reason for both, jurisdiction and choice of law clauses, in international contracts is that they provide for certainty by determining in advance a forum acceptable to both parties and the law applicable to their transaction. Furthermore, they have the advantage that the parties can choose a neutral forum/law or a forum/law specialised in the relevant subject-matter. All of the above reasons justify and explain the wide acceptance of jurisdiction clauses and the important role they play in international trade and commerce.

ESADE

Back to home

Añoveros Terradas, Beatriz

Party autonomy in international contracts

The freedom of the parties to determine the contents of a contract is a general principle of contract law recognised by almost all legal systems. During the last decades, this principle seems to be gaining so much strength as to destabilize another principle equally important in Western legal systems -that is, the public protection of rights, being the State responsible, through the courts, for their guarantee. In private international law, party autonomy means the freedom of the parties to choose the law applicable to the contract. It also involves the freedom to determine the forum which is to have jurisdiction to hear any potential or actual dispute between them. The main reason for both, jurisdiction and choice of law clauses, in international contracts is that they provide for certainty by determining in advance a forum acceptable to both parties and the law applicable to their transaction. Furthermore, they have the advantage that the parties can choose a neutral forum/law or a forum/law specialised in the relevant subject-matter. All of the above reasons justify and explain the wide acceptance of jurisdiction clauses and the important role they play in international trade and commerce.
More Knowledge
Party autonomy in international contracts
Añoveros Terradas, Beatriz
Meeting (2016). Center for Transnational Legal Studies
Londres (United Kingdom), 02/12/2015 - 03/12/2015

Related publications

Back to home