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THEHIGHCONTRACTINGPARTIEStotheTreatyestablishingtheEuropeanEconomicCommunity,ANXIOUStocontinueinthefieldofprivateinternationallawtheworkofunificationoflawwhichhasalreadybeendonewithintheCommunity,inparticularinthefieldofjurisdictionandenforcementofjudgments,WISHINGtoestablishuniformrulesconcerningthelawapplicabletocontractualobligations,
HAVEAGREEDASFOLLOWS:
TITLEISCOPEOFTHECONVENTION
Article1
ScopeoftheConvention
1.TherulesofthisConventionshallapplytocontractualobligationsinanysituationinvolvingachoicebetweenthelawsofdifferentcountries.
2.Theyshallnotapplyto:
(a)questionsinvolvingthestatusorlegalcapacityofnaturalpersons,withoutprejudicetoArticle11;
(b)contractualobligationsrelatingto:
-willsandsuccession,
-rightsinpropertyarisingoutofamatrimonialrelationship,
-rightsanddutiesarisingoutofafamilyrelationship,parentage,marriageoraffinity,includingmaintenanceobligationsinrespectofchildrenwhoarenotlegitimate;
(c)obligationsarisingunderbillsofexchange,chequesandpromissorynotesandothernegotiableinstrumentstotheextentthattheobligationsundersuchothernegotiableinstrumentsariseoutoftheirnegotiablecharacter;
(d)arbitrationagreementsandagreementsonthechoiceofcourt;
(e)questionsgovernedbythelawofcompaniesandotherbodiescorporateorunincorporatesuchasthecreation,byregistrationorotherwise,legalcapacity,internalorganizationorwindingupofcompaniesandotherbodiescorporateorunincorporateandthepersonalliabilityofofficersandmembersassuchfortheobligationsofthecompanyorbody;
(f)thequestionwhetheranagentisabletobindaprincipal,oranorgantobindacompanyorbodycorporateorunincorporate,toathirdparty;
(g)theconstitutionoftrustsandtherelationshipbetweensettlors,trusteesandbeneficiaries;
(h)evidenceandprocedure,withoutprejudicetoArticle14.
3.TherulesofthisConventiondonotapplytocontractsofinsurancewhichcoverriskssituatedintheterritoriesoftheMemberStatesoftheEuropeanEconomicCommunity.Inordertodeterminewhetherariskissituatedintheseterritoriesthecourtshallapplyitsinternallaw.
4.Theprecedingparagraphdoesnotapplytocontractsofre-insurance.
Article2
Applicationoflawofnon-contractingStates
AnylawspecifiedbythisConventionshallbeappliedwhetherornotitisthelawofaContractingState.
TITLEIIUNIFORMRULES
Article3
Freedomofchoice
1.Acontractshallbegovernedbythelawchosenbytheparties.Thechoicemustbeexpressedordemonstratedwithreasonablecertaintybythetermsofthecontractorthecircumstancesofthecase.Bytheirchoicethepartiescanselectthelawapplicabletothewholeorapartonlyofthecontract.
2.Thepartiesmayatanytimeagreetosubjectthecontracttoalawotherthanthatwhichpreviouslygovernedit,whetherasaresultofanearlierchoiceunderthisArticleorofotherprovisionsofthisConvention.AnyvariationbythepartiesofthelawtobeappliedmadeaftertheconclusionofthecontractshallnotprejudiceitsformalvalidityunderArticle9oradverselyaffecttherightsofthirdparties.
3.Thefactthatthepartieshavechosenaforeignlaw,whetherornotaccompaniedbythechoiceofaforeigntribunal,shallnot,wherealltheotherelementsrelevanttothesituationatthetimeofthechoiceareconnectedwithonecountryonly,prejudicetheapplicationofrulesofthelawofthatcountrywhichcannotbederogatedfrombycontract,hereinaftercalled"
mandatoryrules"
.
4.TheexistenceandvalidityoftheconsentofthepartiesastothechoiceoftheapplicablelawshallbedeterminedinaccordancewiththeprovisionsofArticles8,9and11.
Article4
Applicablelawintheabsenceofchoice
1.TotheextentthatthelawapplicabletothecontracthasnotbeenchoseninaccordancewithArticle3,thecontractshallbegovernedbythelawofthecountrywithwhichitismostcloselyconnected.Nevertheless,aseverablepartofthecontractwhichhasacloserconnectionwithanothercountrymaybywayofexceptionbegovernedbythelawofthatothercountry.
2.Subjecttotheprovisionsofparagraph5ofthisArticle,itshallbepresumedthatthecontractismostcloselyconnectedwiththecountrywherethepartywhoistoeffecttheperformancewhichischaracteristicofthecontracthas,atthetimeofconclusionofthecontract,hishabitualresidence,or,inthecaseofabodycorporateorunincorporate,itscentraladministration.However,ifthecontractisenteredintointhecourseofthatparty'
stradeorprofession,thatcountryshallbethecountryinwhichtheprincipalplaceofbusinessissituatedor,whereunderthetermsofthecontracttheperformanceistobeeffectedthroughaplaceofbusinessotherthantheprincipalplaceofbusiness,thecountryinwhichthatotherplaceofbusinessissituated.
3.Notwithstandingtheprovisionsofparagraph2ofthisArticle,totheextentthatthesubjectmatterofthecontractisarightinimmovablepropertyorarighttouseimmovablepropertyitshallbepresumedthatthecontractismostcloselyconnectedwiththecountrywheretheimmovablepropertyissituated.
4.Acontractforthecarriageofgoodsshallnotbesubjecttothepresumptioninparagraph2.Insuchacontractifthecountryinwhich,atthetimethecontractisconcluded,thecarrierhashisprincipalplaceofbusinessisalsothecountryinwhichtheplaceofloadingortheplaceofdischargeortheprincipalplaceofbusinessoftheconsignorissituated,itshallbepresumedthatthecontractismostcloselyconnectedwiththatcountry.Inapplyingthisparagraphsinglevoyagecharter-partiesandothercontractsthemainpurposeofwhichisthecarriageofgoodsshallbetreatedascontractsforthecarriageofgoods.
5.Paragraph2shallnotapplyifthecharacteristicperformancecannotbedetermined,andthepresumptionsinparagraphs2,3and4shallbedisregardedifitappearsfromthecircumstancesasawholethatthecontractismorecloselyconnectedwithanothercountry.
Article5
Certainconsumercontracts
1.ThisArticleappliestoacontracttheobjectofwhichisthesupplyofgoodsorservicestoaperson("
theconsumer"
)forapurposewhichcanberegardedasbeingoutsidehistradeorprofession,oracontractfortheprovisionofcreditforthatobject.
2.NotwithstandingtheprovisionsofArticle3,achoiceoflawmadebythepartiesshallnothavetheresultofdeprivingtheconsumeroftheprotectionaffordedtohimbythemandatoryrulesofthelawofthecountryinwhichhehashishabitualresidence:
-ifinthatcountrytheconclusionofthecontractwasprecededbyaspecificinvitationaddressedtohimorbyadvertising,andhehadtakeninthatcountryallthestepsnecessaryonhispartfortheconclusionofthecontract,or
-iftheotherpartyorhisagentreceivedtheconsumer'
sorderinthatcountry,or
-ifthecontractisforthesaleofgoodsandtheconsumertravelledfromthatcountrytoanothercountryandtheregavehisorder,providedthattheconsumer'
sjourneywasarrangedbythesellerforthepurposeofinducingtheconsumertobuy.
3.NotwithstandingtheprovisionsofArticle4,acontracttowhichthisArticleappliesshall,intheabsenceofchoiceinaccordancewithArticle3,begovernedbythelawofthecountryinwhichtheconsumerhashishabitualresidenceifitisenteredintointhecircumstancesdescribedinparagraph2ofthisArticle.
4.ThisArticleshallnotapplyto:
(a)acontractofcarriage;
(b)acontractforthesupplyofserviceswheretheservicesaretobesuppliedtotheconsumerexclusivelyinacountryotherthanthatinwhichhehashishabitualresidence.
5.Notwithstandingtheprovisionsofparagraph4,thisArticleshallapplytoacontractwhich,foraninclusiveprice,providesforacombinationoftravelandaccommodation.
Article6
Individualemploymentcontracts
1.NotwithstandingtheprovisionsofArticle3,inacontractofemploymentachoiceoflawmadebythepartiesshallnothavetheresultofdeprivingtheemployeeoftheprotectionaffordedtohimbythemandatoryrulesofthelawwhichwouldbeapplicableunderparagraph2intheabsenceofchoice.
2.NotwithstandingtheprovisionsofArticle4,acontractofemploymentshall,intheabsenceofchoiceinaccordancewithArticle3,begoverned:
(a)bythelawofthecountryinwhichtheemployeehabituallycarriesouthisworkinperformanceofthecontract,evenifheistemporarilyemployedinanothercountry;
or
(b)iftheemployeedoesnothabituallycarryouthisworkinanyonecountry,bythelawofthecountryinwhichtheplaceofbusinessthroughwhichhewasengagedissituated;
unlessitappearsfromthecircumstancesasawholethatthecontractismorecloselyconnectedwithanothercountry,inwhichcasethecontractshallbegovernedbythelawofthatcountry.
Article7
Mandatoryrules
1.WhenapplyingunderthisConventionthelawofacountry,effectmaybegiventothemandatoryrulesofthelawofanothercountrywithwhichthesituationhasacloseconnection,ifandinsofaras,underthelawofthelattercountry,thoserulesmustbeappliedwhateverthelawapplicabletothecontract.Inconsideringwhethertogiveeffecttothesemandat