Conflict of Laws: Contract Flashcards
(8 cards)
What is the main legal framework that governs the law applicable to contractual obligations in England and Wales post-Brexit?
A. Rome I Regulation as retained in UK law
B. Hague Convention on Choice of Court Agreements
C. Rome II Regulation
D. The Judgments Regulation
A. Rome I Regulation as retained in UK law
Explanation: After Brexit, Rome I continues to apply in England and Wales via domestic regulations, with minor amendments.
Alpha Ltd (UK) contracts with Beta GmbH (Germany) to deliver software services in Berlin. The contract has no express choice of law clause. Which law is most likely to apply?
A. UK law because Alpha is the service provider
B. German law because the services are performed in Berlin
C. The law of whichever country the payment is received in
D. The Hague Convention will apply
A. UK law because Alpha is the service provider
Explanation: Under Article 4(1)(b) of Rome I, the applicable law for service contracts is the law of the service provider’s habitual residence.
Which of the following is the correct default rule for a contract for the sale of goods, where no choice of law is made?
A. Law of the buyer’s habitual residence
B. Law of the seller’s habitual residence
C. Law where the goods are delivered
D. Law where payment is made
B. Law of the seller’s habitual residence
Explanation: Under Article 4(1)(a) of Rome I, the law of the seller’s habitual residence applies to a sale of goods contract if no choice is made.
What is required for a choice of law clause to be effective under Rome I?
A. It must be signed by both parties and witnessed
B. It must be registered with a court
C. It must be in writing or clearly demonstrated by circumstances
D. It must refer to a common law jurisdiction
C. It must be in writing or clearly demonstrated by circumstances
Explanation: Rome I Article 3 requires the choice to be express or clearly demonstrated by the terms or circumstances.
Vision Ltd (UK) agrees to promote a Spanish product in Spain for Dominguez SL (Spain). The work is subcontracted to Spanish freelancers. Payment is in Euros to a Spanish account. No law is chosen in the contract. Which country’s law may ultimately apply?
A. UK law under the characteristic performance test
B. Spain under Article 4(1)(a) as a sales contract
C. France due to location of freelancers
D. Spain if the contract is manifestly more closely connected to it
D. Spain if the contract is manifestly more closely connected to it
Explanation: Article 4(3) allows displacement of the usual rules if the contract is clearly more closely connected to another country.
No choice of law is made. A UK-based architect designs a hotel in Portugal for a Portuguese developer. The services are provided remotely from the UK. What law applies?
A. Portuguese law because the project is in Portugal
B. English law because the architect is based in the UK
C. EU law as the default fallback
D. Portuguese law under Rome II
B. English law because the architect is based in the UK
Explanation: Under Article 4(1)(b), for service contracts, the law of the service provider’s habitual residence applies.
What is meant by ‘characteristic performance’ under Article 4(2) of Rome I?
A. The payment made by the buyer
B. The place where the contract was signed
C. The key obligation that gives the contract its identity
D. The party with most contractual power
C. The key obligation that gives the contract its identity
Explanation: Characteristic performance refers to the core obligation that defines the nature of the contract, usually not payment.
A UK buyer and a Dutch seller agree on a contract to deliver tulip bulbs. The contract is silent on governing law. Delivery and payment are both in the Netherlands. What law applies?
A. Dutch law under Article 4(1)(a)
B. UK law as the buyer is based there
C. Hague Convention due to EU connection
D. Rome II because it is a cross-border contract
A. Dutch law under Article 4(1)(a)
Explanation: This is a sale of goods contract. Under Article 4(1)(a), the seller’s habitual residence governs — here, the Netherlands.
