, LJU4804 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 15 September 2025 ; 100%
correct solutions and explanations.
2.1
When a court follows the objective approach to determining the
proper law of a contract, it does not attempt to delve into the
subjective, unexpressed intentions of the parties. Instead, it applies a
framework of objective criteria that point to the legal system most
closely connected to the contract. This approach is grounded in
conflict of laws principles and is particularly useful in cross-border
or international commercial transactions where multiple
jurisdictions may be implicated.
The proper law of a contract can generally be determined in three
stages: (i) express choice, (ii) implied choice, and (iii) closest and
most real connection. The objective approach guides the court
through each of these steps in a systematic and neutral way.
(i) Express choice of law
The court begins by investigating whether the parties have
expressly stipulated a governing law clause in the contract. Where
such a clause is present, it is usually decisive because it reflects the
autonomy of the parties. For example, a clause that reads, “This
agreement shall be governed by the laws of England and Wales”
will normally be respected.
However, even an express choice is subject to limitations:
The choice cannot violate public policy of the forum.
Semester 2 2025 - DUE 15 September 2025 ; 100%
correct solutions and explanations.
2.1
When a court follows the objective approach to determining the
proper law of a contract, it does not attempt to delve into the
subjective, unexpressed intentions of the parties. Instead, it applies a
framework of objective criteria that point to the legal system most
closely connected to the contract. This approach is grounded in
conflict of laws principles and is particularly useful in cross-border
or international commercial transactions where multiple
jurisdictions may be implicated.
The proper law of a contract can generally be determined in three
stages: (i) express choice, (ii) implied choice, and (iii) closest and
most real connection. The objective approach guides the court
through each of these steps in a systematic and neutral way.
(i) Express choice of law
The court begins by investigating whether the parties have
expressly stipulated a governing law clause in the contract. Where
such a clause is present, it is usually decisive because it reflects the
autonomy of the parties. For example, a clause that reads, “This
agreement shall be governed by the laws of England and Wales”
will normally be respected.
However, even an express choice is subject to limitations:
The choice cannot violate public policy of the forum.
