Behind the importance of the choice of the governing law in financial agreements remain a “inherent conflict between the cross-border nature of financial activities (…) and the local and national character of applicable of laws”.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Development
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment critically discusses the relevance and importance of choosing the governing law in financial agreements, exploring the complexities arising from international financial transactions.
- The role of governing law in financial agreements, considering complexities arising from international transactions.
- Factors influencing the choice of governing law, including jurisdiction stability, legal system sophistication, and experienced courts.
- The impact of choice of law on various scenarios, such as insolvency, priority claims, and forum state obligations.
- The implications of international treaties and legal doctrine on the selection of governing law.
- The limits of choice of law in international financial agreements, with emphasis on insolvency regimes, priority claims, and forum state obligations.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introduction highlights the growing importance of transnational investing and the associated legal complexities, particularly regarding the application of domestic securities law to international transactions. It emphasizes the legal risks inherent in international agreements, stemming from the unfamiliarity of one party with the other's legal system. The introduction also discusses the emergence of choice-of-law clauses to address these complexities.
- Development: This section explores the evolution of international finance and the increasing complexity of financial contracts. It analyzes the factors influencing the choice of governing law, including jurisdiction stability, legal system sophistication, and experienced courts. The chapter discusses the importance of jurisdiction in international financial contracts and the shift towards a "multifactor approach" to determine the most relevant connection. It also touches upon the limitations of choice of law, including insolvency regimes, priority claims, and forum state obligations. Finally, the chapter explores two main methodologies for dealing with complex international financial agreements: the unilateral and multilateral approaches.
Schlüsselwörter (Keywords)
Key concepts in this work include: transnational investing, international finance, legal risks, choice of law clauses, governing law, jurisdiction, insolvency regimes, priority claims, forum state obligations, unilateral and multilateral approaches.
Frequently Asked Questions
Why is the choice of governing law critical in financial agreements?
It addresses the inherent conflict between the cross-border nature of finance and the local character of laws, reducing legal risks in international transactions.
What factors influence the selection of a governing law?
Key factors include jurisdiction stability, the sophistication of the legal system, and the presence of experienced courts capable of handling complex financial disputes.
How does the choice of law impact insolvency proceedings?
The choice of law can define priority claims and the rights of creditors, although national insolvency regimes often impose limits on these choices.
What is the difference between unilateral and multilateral approaches in this context?
These are two methodologies for dealing with international financial agreements: one focusing on the forum's own rules (unilateral) and the other on broader international legal doctrine (multilateral).
What are the limits of choice-of-law clauses?
Limits include mandatory forum state obligations, public policy considerations, and specific local regulations regarding priority claims and bankruptcy.
- Quote paper
- Jennie Robinson (Author), 2015, The relevance and importance of the choice of the governing law in financial agreements, Munich, GRIN Verlag, https://www.grin.com/document/432711
