Contract law of third countries

As you have already learnt in the chapter on cross-border contracts, you and your contractual partners can agree that the law of a particular third country is to apply to the contract. 

The following also applies here: although you have agreed the application of a specific legal system, it is possible that fundamental protective provisions of another legal system apply to your contract (public order, “odre public”), such as human rights.

To do: Before you sign a contract, it always makes sense to seek advice from experts and acquire basic knowledge of the applicable law.

If you and your contractual partner have not made a choice of law and the contract has points of contact with different countries, the applicable law must be determined in accordance with the rules of private international law ("conflict of laws"). The applicable law is often only determined in the event of a legal dispute by the court before which the legal dispute is brought.

To do: Private international law is a complex subject. You should therefore seek legal advice before concluding a cross-border contract without a choice of law.