The Hague Principles and the Choice of Non-State 'Rules of Law' to Govern an International Commercial Contract
29 Pages Posted: 21 Jun 2015
Date Written: 2014
In March 2015, the Hague Principles on Choice of Law in International Commercial Contracts were adopted by the Hague Conference on Private International Law. More than five years in the making, these Principles reflect a broad international consensus on party autonomy, recognizing that parties to international commercial contracts should have the freedom to designate the law governing their contractual relationship. In so doing, the Principles recognize that parties can also designate non-State law, called "rules of law" in the Principles, following the terminology current in arbitration statutes and regulations. Moreover, the Principles provide that such a choice of non-State law should be operative before State courts and not only, as is currently the case, before arbitral tribunals. This article traces the drafting history behind the rule on non-State law in the Principles, considers its justification, examines the challenges that it may pose in practice and how these might be addressed.
Keywords: International commercial contracts, choice of law, non-state law, Hague Principles
JEL Classification: K12, K33
Suggested Citation: Suggested Citation