Posted: Tuesday, 2 September 2008 @ 12:25
The Government has recently announced that the UK will be opting in to the Rome I Regulation. This Regulation aims to clarify whose laws are applicable when a dispute arises concerning a contract between people or businesses based in different EU countries. The Regulation is due to come into force in December 2009. A similar Regulation, known as Rome II, applies to non-contractual disputes and comes into force in January 2009.
The Regulations aim to give parties to a contract the freedom to decide what country’s laws should apply to their situation and set out rules as to what laws will apply if the contract does not specify the law to be applied.
Any business dealing with cross-border matters or that deal with customers or suppliers in other EU states should make it clear in all contracts entered into from now on whose laws should apply in the event of a dispute, whether contractual or otherwise. If you don't you could be at the mercy of a legal system you won't like!
For advice on the wording of your commercial contracts contact Cousins Business Law.
Gary Cousins Commercial Dispute Resolution Solicitor.
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