Eu Hazard Ahead

In the next few months EU Ministers are expected to agree the regulations entitled Rome I. These regulations will govern the way contract law disputes are settled within the EU. If it is approved, Rome I will allow any court anywhere in the EU to decide which country's legal system should prevail in deciding an intra-EU civil case. This applies even when all the parties concerned had specifiedand agreed in the contract which country's law they wanted to govern the agreement. The court would have to find that the parties had a close connection in a different country.

This would be a blow to lawyers in England, as English law is widely specified in contracts throughout the World.

The Ministry of Justice has stated that whilst Britain has an opt out from Rome I, it will opt in providing its concerns are addressed. Even if the UK opts out, courts within countries that sign up will still be able to redirect contract disputes to alternative legal systems.European Union

Being able to specify what legal system is to apply gives some measure of certainty as to procedures and costs. The Government has brought about changes to streamline the legal system in the UK, reducing delays and costs. To deny businesses the opportunity to put certainty into the contracts they enter into seems to go against this trend.

By: Rebeccalim

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This article "EU Hazard Ahead" has been published with permission by Rebecca Lim, who works on the website Find A Solicitor