IV Negotiable Instruments Choice-of-Law Rules in the Various Systems

Subject(s):

International financial law — International monetary law — Choice of law

This chapter studies the existing choice-of-law frameworks set in the statutory provisions under the UK Bills of Exchange Act, the Geneva Conflicts Conventions, the American Second Restatement, and the Inter-American Convention. These various frameworks show very little evidence of the three major developments outlined in the previous chapter. Generally, the various frameworks have remained loyal to the classical choice-of-law doctrine of stringent territorial connecting factors. There is almost no trace of party autonomy or the most significant relationship principle. The requirement of a ‘foreign element’ presence in the factual matrix of the case seems to be the foremost precondition to choice-of-law analysis. Finally, the chapter demonstrates the global adherence to the ‘several laws’ approach; the advantage of avoiding a ‘single rule’ for the selection of a law applicable to a contract; and the desirability of having the same law governing both intrinsic and extrinsic validity for each party. The chapter also contends that the Second Restatement, although not flawless, sets up the most comprehensive and responsive scheme of those analysed.