chapter  3
37 Pages

Scope of applicability and party autonomy

The purpose of this chapter is to consider some fundamental general provisions of international instruments and to extract the general principles and ingredients of these provisions. Provisions regulating the scope of application of international instruments provide an optimal lens to generally assess their fundamental policies and key objectives. International secured transactions instruments are related to each other and their link is carefully regulated so that they do not overlap. Party autonomy is a key concept under the instruments. The particular issue with the party autonomy is that there should be limits to it, to the extent that it deals with proprietary aspects of secured transactions. It is perfectly normal to fall back to party autonomy as it refl ects contractual freedom. However, as long as the issue at hand affects third parties who are not party to the contract, party autonomy should be restricted. International instruments ensure that balance, by embodying principles that agreements cannot affect the rights of any person that is not a party to that agreement.1