lex loci contractus


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lex loci contractus

in private international law, ‘the law of the place of the contract’.

LEX LOCI CONTRACTUS, contracts. The law of the place where an agreement is made.
     2. Generally, the validity of a contract is to be decided by the law of the place where, the contract is made; if valid, there it is, in general, valid everywhere. Story, Confl. of Laws, Sec. 242, and the cases there cited. And vice versa if void or illegal there, it is generally void everywhere. Id Sec. 243; 2 Kent Com. 457; 4 M. R. 584; 7 M. R. 213; 11 M. R. 730; 12 M. R. 475; 1 N. S. 202; 5 N. S. 585; 6 N. S. 76; 6 L. R. 676; 6 N. S. 631; 4 Blackf. R. 89.
     3. There is an exception to the rule as to the universal validity of contracts. The comity of nations, by virtue of which such contracts derive their force in foreign countries, cannot prevail in cases where it violates the law of our own country, the law of nature, or the law of God. 2 Barn. & Cresw. 448, 471. And a further exception may be mentioned, namely, that no nation will regard or enforce the revenue laws of another country. Cas. Temp. 85, 89, 194.
     4. When the contract is entered into in one place, to be executed in another, there are two loci contractus; the locus celebrate contractus, and the locus solutionis; the former governs in everything which relates to the mode of construing the contract, the meaning to be attached to the expressions, and the nature and validity of the engagement; but the latter governs the performance of the agreement. 8 N. S. 34. Vide 15 Serg. & Rawle 84; 2 Mass. R. 88; 1 Nott & M'Cord, 173; 2 Harr. & Johns. 193, 221; 2 N. H. Rep. 42; 5 Id. 401; 2 John. Cas. 355; 5 Pardes. n. 1482; Bac. Abr. Bail in Civil Causes, B 5; Com. Dig. 545, n.; 1 Supp. to Ves. jr. 270; 8 Ves. 198; 5 Ves. 750.

References in periodicals archive ?
At around the same time that the rule of lex loci delicti was eroding in torts cases, the rule of lex loci contractus (22)--dealing with contracts cases--was undergoing similar changes.
supra note 4, at 74-78 ("[B]y the end of 2003, a total of 41 jurisdictions had abandoned the lex loci contractus rule, while eleven continued to adhere to it.
It seems clear, therefore, on principle, that, whether a legally binding contract has been made can be judged only by the lex loci contractus.
follows the lex loci contractus rule for choice-of-law); see also Chazen
2004) (asserting that lex loci contractus means that a
example of a court applying traditional lex loci contractus principles