ABSTRACT

To ascertain the agency of the parties to choose non-state rules as the applicable law, this chapter provides an in-depth examination of party autonomy in relation to choice of law clauses. The goal is to establish whether a choice for non-state rules is permissible. The chapter examines three different approaches to party autonomy through three case studies: party autonomy is restricted (Brazil), party autonomy is accepted but the law should have a substantial relationship with the contract (US), and choice of law clauses are accepted without the need for this substantial relationship (EU.) Whilst choice of law is permitted to some extent in most jurisdictions a choice of law for non-state rules is problematic. Most jurisdictions restrict this to the choice for a state law and this means a more restricted role for non-state rules. Non-state rules can often be included by reference and as such can in practice play a key role in resolving contractual disputes.