LAW-Chapter 4

  1. If no choice of law has been made by the parties to a contract, or the choice is not clear, then according to Art. 4. ECO one has to determine what the [...] of the contract is.Paying money to another party is a common feature of many contracts and for that reason is not in any way "characteristic". So the party receiving payment is therefore the one effecting a [...] of the contract. If the country of the party carrying out the [...] is known, one has to apply the law of that country to the contract.
    Characteristic Performance.
  2. Contract made by a person acting outside a trade or profession at the time of concluding the contract. Art. 6 ECO describes the necessary conditions for a contract to be a [...] under ECO Treaty. Both parties to this contract must be from different states.
    Consumer contract
  3. European Convention on the law applicable to Contractual Obligations. The convention provides rules as to which law determines the obligations of contracting parties who are situated in different states.
  4. The validity of a contract depends on whether the required legal formalities for that type of contract are fulfilled.
    Formal Validity
  5. Contracting parties are free to choose the law which will apply to their contract. The decision should preferably be in writing, but under Art. 3 ECO this is not mandatory.
    Freedom of Choice
  6. The validity of a contract is based on its content such as are the rights and obligations described in the contract legal?
    Material Validity
  7. ECO does not provide immediate solutions to legal problems, but rather indicates which laws should be applied to the problems.
    Rules of Reference.
  8. Whichever law is specified by the ECO will apply, regardless of the fact that this might mean applying the law of a state that has not signed the ECO
    Universal effect
Card Set
LAW-Chapter 4
Chapter 4 - Law