tag:blogger.com,1999:blog-28067072382960652402023-11-15T05:45:11.898-08:00LEGAL LAWSIts all about law & things related to law.Mrs. Nishi http://www.blogger.com/profile/15309433794435170713noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2806707238296065240.post-1339544922517720692017-03-29T05:57:00.000-07:002017-03-29T06:44:32.131-07:00Concept of Legal Research<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "times new roman" , "serif";">Legal
research is the systematic investigation of problems and of matters concerned
with law such as codes, Acts, constitution etc. Judges, lawyer`s, Law
commissions and researcher constantly do research in law. They do make
systematic research into the social, political and other fact conditions which
give rise to the individual rules. For example, in the case of Mc Dowell and
Co. Ltd. v. Commercial Tax Officer. Justice Chinnapa Reddy presented his
investigation and and analysis of cases of tax avoidance in his separate
judgment. It is a research report of tax avoidance in terms of legal
methodology.<o:p></o:p></span></div>
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<span style="font-family: "times new roman" , "serif";">Research
area in law is related to pure law or law in relation to society. Legal
researchers do make systematic research into facts of social, political and
economic conditions which give rise to the individual rules, acts and codes.
They also examine the socio-legal and other effects of the acts or rules.
Research may be pursued to obtain the better knowledge and understanding of any
problem of law, legal institution in society, legal doctrines, legal philosophy,
legal history, comparative study of law, or any system of positive law-
international and municipal.<o:p></o:p></span></div>
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<span style="font-family: times new roman, serif;">Generally, law is influenced by the prevailing social values and ethos. Most of the </span><span style="font-family: "times new roman", serif;">times, law also attempts to mould or change the existing social values and attitudes. </span><span style="font-family: "times new roman", serif;">Such a complex nature of law and its operation require systematic approach to the </span><span style="font-family: "times new roman", serif;">‘understanding’ of ‘law’ and its ‘operational facets’. A systematic investigation into </span><span style="font-family: "times new roman", serif;">these aspects of law helps in knowing the existing and emerging legislative policies, </span><span style="font-family: "times new roman", serif;">laws, their social relevance and efficacy, etc. </span><br />
<br />
<span style="font-family: times new roman, serif;">In this backdrop, the present course on Legal Research Methods intends to acquaint </span><span style="font-family: "times new roman", serif;">the students of law with scientific methods of inquiry into law. It also intends to make </span><span style="font-family: "times new roman", serif;">them familiar with nature, scope, and significance of legal research. In addition, it </span><span style="font-family: "times new roman", serif;">endeavors to make them aware of role of legal research in the development of law and </span><span style="font-family: "times new roman", serif;">legal institutions, in particular and socio-economic development of the country in </span><span style="font-family: "times new roman", serif;">general. </span><br />
<br />
<span style="font-family: times new roman, serif;">With these objectives, the course addresses to sources, categories and types of legal </span><span style="font-family: "times new roman", serif;">research. It focuses on legal research methods and tools. It highlights different </span><span style="font-family: "times new roman", serif;">dimensions and tools of doctrinal legal research as well as non-doctrinal legal </span><span style="font-family: times new roman, serif;">research or socio-legal research. In other words, the course strives to instill in the law </span><span style="font-family: "times new roman", serif;">students basic skill of identifying research problems, planning and executing legal </span><span style="font-family: "times new roman", serif;">research projects and of appreciating the problems associated therewith. It aims at </span><br />
<span style="font-family: times new roman, serif;">instilling in them basic research skills so that they can plan and pursue legal and </span><span style="font-family: "times new roman", serif;">socio-legal research in future. </span><br />
<span style="font-family: "times new roman", serif;"><br /></span>
<span style="font-family: times new roman, serif;"> LAW AND SOCIETY: MUTUAL RELATIONSHIP & INTERACTION</span><br />
<span style="font-family: times new roman, serif;"><br /></span>
<span style="font-family: times new roman, serif;">Law does not operate in a vacuum. It has to reflect social values, attitudes and </span><span style="font-family: "times new roman", serif;">behavior. Societal values and norms, directly or indirectly, influence law. Law also </span><span style="font-family: "times new roman", serif;">endeavors to mould and control these values, attitudes and behavioral patterns so that </span><span style="font-family: "times new roman", serif;">they flow in a proper channel. It attempts either to support the social system or to </span><span style="font-family: "times new roman", serif;">change the prevalent social situation or relationship by its formal processes. Law also </span><span style="font-family: "times new roman", serif;">influences other parts of the social system. Law, therefore, can be perceived as </span><br />
<span style="font-family: times new roman, serif;">symbolizing the public affirmation of social facts and norms as well as means of </span><span style="font-family: "times new roman", serif;">social control and an instrument of social change. Commenting on the </span><span style="font-family: "times new roman", serif;">interrelationship between law and society, Luhman observed: </span><br />
<span style="font-family: times new roman, serif;"> </span><span style="font-family: "times new roman", serif;">All collective human life is directly or indirectly shaped by law. Law </span><span style="font-family: "times new roman", serif;">is, like knowledge, an essential and all pervasive fact of the social </span><span style="font-family: "times new roman", serif;">condition. No area of life-whether it is the family or the religious </span><span style="font-family: "times new roman", serif;">community, scientific research is the internal network of political </span><span style="font-family: "times new roman", serif;">parties-can find a lasting social order that is not based on law ---. A </span><span style="font-family: "times new roman", serif;">minimum amount of legal orientation is indispensable everywhere. </span><br />
<br />
<span style="font-family: times new roman, serif;">Law is not, nor can any discipline be, an insular one. Each rule postulates a factual </span><span style="font-family: "times new roman", serif;">situation of life to which the rule is to be applied to produce a certain outcome. </span><span style="font-family: "times new roman", serif;">Law, in essence, is a normative and prescriptive science. It lays down norms and </span><span style="font-family: "times new roman", serif;">standards for human behavior in a set of specified situation(s). It is a ‘rule of conduct </span><span style="font-family: times new roman, serif;">or action’ prescribed or formally recognized as binding or enforced by a ‘controlling </span><span style="font-family: "times new roman", serif;">authority’. It operates in a formal fashion. It enforces these prescribed norms through </span><span style="font-family: "times new roman", serif;">state’s coercive powers. </span><br />
<br />
<span style="font-family: times new roman, serif;"> However, the societal values and patterns are dynamic and complex. These changing </span><span style="font-family: "times new roman", serif;">societal values and ethos obviously make the discipline of law dynamic and complex. </span><span style="font-family: "times new roman", serif;">Law, therefore, has to be dynamic. </span><br />
<br />
<span style="font-family: times new roman, serif;"> Law has acquired a paramount significance in a modern welfare state as an effective </span><span style="font-family: "times new roman", serif;">instrumentality of socio-economic transformation. It indeed operates as a catalyst for </span><span style="font-family: "times new roman", serif;">such a transformation. </span><span style="font-family: "times new roman", serif;">Such a complex nature of law and its operation require systematic approach to the </span><span style="font-family: "times new roman", serif;">‘understanding’ of ‘law’ and its ‘operational facets’. A systematic investigation into </span><span style="font-family: "times new roman", serif;">these aspects of law helps in knowing the existing and emerging legislative policies, </span><span style="font-family: "times new roman", serif;">laws, and their social relevance. It also enables to assess efficacy of law as an </span><span style="font-family: "times new roman", serif;">instrument of socio-economic changes and to identify bottlenecks, if any. Law, thus, </span><span style="font-family: "times new roman", serif;">has a social context. Law without its social context is simply a noteworthy mental </span><span style="font-family: "times new roman", serif;">exercise. ‘Law without social content or significance is law without flesh, blood or </span><span style="font-family: "times new roman", serif;">bowels’(</span><span style="font-family: times new roman, serif;"> S P Simpson & Ruth Field, Law and the Social Sciences, 32 Va L Rev 862 (1946)).</span><br />
<span style="font-family: times new roman, serif;"><br /></span>
<span style="font-family: times new roman, serif;"> LEGAL SYSTEM: A SYSTEM OF NORMS AND SOCIAL SYSTEM</span><br />
<span style="font-family: times new roman, serif;"><br /></span>
<span style="font-family: times new roman, serif;">In this background, a system of law can be conceptualized in three principal ways. </span><span style="font-family: "times new roman", serif;">First, a legal system can be conceived as an aggregate of legal norms. Second, it can </span><span style="font-family: "times new roman", serif;">be conceived as systems of social behavior, of roles, statutes, and institutions, as </span><span style="font-family: "times new roman", serif;">involving patterned interactions between the makers, interpreters, breakers, enforcers, </span><span style="font-family: "times new roman", serif;">and compliers of the norms of law. Third, legal system may be equated with social </span><span style="font-family: "times new roman", serif;">control systems, involving differential bases of social authority and power, different </span><span style="font-family: "times new roman", serif;">normative requirements and sanctions, and distinctive institutional complexes. </span><span style="font-family: "times new roman", serif;"> Thus, there are three dimensions or aspects of a legal system: (i) legal system as a </span><span style="font-family: "times new roman", serif;">normative system, (ii) legal system as a social system, and (iii) legal system as a </span><span style="font-family: "times new roman", serif;"> </span><span style="font-family: times new roman, serif;">combination of formal and non-formal norms of social control. Each one of these </span><span style="font-family: "times new roman", serif;">dimensions of ‘legal system’, however, raise different queries for investigation and set </span><span style="font-family: "times new roman", serif;">different orbits for inquiry. </span><br />
<br />
<span style="font-family: times new roman, serif;">Legal system, as an aggregate of legal norms, raises a set of typical questions. A </span><span style="font-family: "times new roman", serif;">prominent among them are: How is law generated? What forces in society influenced </span><span style="font-family: "times new roman", serif;">or created particular kinds of law? What makes a system of law out of a vast and </span><span style="font-family: "times new roman", serif;">heterogeneous mass of normative materials? By what concepts and criteria can we </span><span style="font-family: "times new roman", serif;">identify the existence of a legal system? While the second conception of legal system </span><span style="font-family: "times new roman", serif;">warrants a study of institutional behavioral patterns and roles of the lawmakers </span><span style="font-family: "times new roman", serif;">(Legislature), law interpreters (Judges), law-enforcers (the police), law-breakers </span><span style="font-family: "times new roman", serif;">(wrongdoers) and law-compliers (law-abiders) and their influence, individual or </span><span style="font-family: "times new roman", serif;">cumulative, in the legal system and legal processes. The third one addresses to the </span><span style="font-family: "times new roman", serif;">inter-relationship (supportive or otherwise) between the formal (legal) rules and </span><span style="font-family: "times new roman", serif;">(informal) non-legal rules (such as religious, indigenous, or customary norms) in </span><span style="font-family: "times new roman", serif;">shaping law as social control system. </span><br />
<span style="font-family: "times new roman", serif;"><br /></span>
<span style="font-family: "times new roman", serif;">Further, it is necessary to recall, in brief, some of the philosophical explanations of </span><span style="font-family: "times new roman", serif;">law as they have a significant bearing on the social dimension or context of law. </span><span style="font-family: "times new roman", serif;">These explanations look at law in its working and the myths about functioning of law </span><span style="font-family: "times new roman", serif;">and truth about its role (</span><span style="font-family: times new roman, serif;">Adam Podgorecki, Law and Society (Routledge & Kegan Paul, London, 1974) 4)</span><span style="font-family: "times new roman", serif;">. The basic tenet of Marxian approach to law is that ‘law’, </span><span style="font-family: "times new roman", serif;">though social system structures it, is an instrument in the hands of the classes in </span><span style="font-family: "times new roman", serif;">power to use it to protect their own interests. The class in power uses law to exploit </span><span style="font-family: times new roman, serif;">powerless classes. While Roscoe Pound insists that law is an instrument of social </span><span style="font-family: "times new roman", serif;">engineering. He asserts that law can be an effective tool for establishing an egalitarian </span><span style="font-family: "times new roman", serif;">social order. </span><br />
<br />
<span style="font-family: times new roman, serif;">Traditionally, the first dimension of legal system, namely law as a system of norms, is </span><span style="font-family: "times new roman", serif;">the domain of academic lawyers; the second one, i.e. law as a system of social </span><span style="font-family: "times new roman", serif;">behavior, is of sociologists, and the third one is of social anthropologists (</span><span style="font-family: times new roman, serif;">Upendra Baxi, Socio-legal Research in India-A Programschrift (Indian Council of Social Science </span><span style="font-family: times new roman, serif;">Research (ICSSR), New Delhi, 1975))</span><span style="font-family: "times new roman", serif;">. These three </span><span style="font-family: "times new roman", serif;">dimensions of a system of law, in ultimate analysis, broadly speak of normative </span><span style="font-family: times new roman, serif;">character of law (or perceive law as system of norms) and of social context (or </span><span style="font-family: "times new roman", serif;">sociology of law) of law. It treats law as a means to define an end. The traditional </span><span style="font-family: "times new roman", serif;">perception of law as a system of norms concerns with analytical-linguistic study of </span><span style="font-family: "times new roman", serif;">law while the sociology of law highlights the ‘social context’ of ‘law’. </span><br />
<span style="font-family: "times new roman", serif;"> </span><br />
<span style="font-family: "times new roman", serif;"> </span><span style="font-family: times new roman, serif;">ROLE OF LAW IN A PLANNED SOCIO-ECONOMIC DEVELOPMENT</span><br />
<span style="font-family: times new roman, serif;"><br /></span>
<span style="font-family: times new roman, serif;">A contemporary modern state, which endeavors to bring socio-economic </span><span style="font-family: "times new roman", serif;">transformation envisaged in its Constitution, assigns a catalyst role to law. It strives to </span><span style="font-family: "times new roman", serif;">bring such a transformation through a cluster of social welfare legislations enacted in </span><span style="font-family: "times new roman", serif;">pursuance of its constitutional objectives, policies and perceptions. </span><br />
<br />
<span style="font-family: times new roman, serif;"> For example, a careful look at the well-articulated ‘economic objectives’, ‘social </span><span style="font-family: "times new roman", serif;">objectives’, and ‘environmental objectives’ embodied in the FDRE Constitution6 </span><span style="font-family: "times new roman", serif;">reveals laws’ role in accomplishing them. The Government, inter alia, is duty bound </span><span style="font-family: "times new roman", serif;">to ensure that all Ethiopians get equal opportunity to improve their economic </span><span style="font-family: "times new roman", serif;">conditions and to promote equitable distribution of wealth among them and to deploy </span><span style="font-family: "times new roman", serif;">land and other natural resources for the common benefit of the People and </span><span style="font-family: times new roman, serif;">development. It has also to make endeavor to protect and promote the health, welfare </span><span style="font-family: "times new roman", serif;">and living standards of the working population of the country. The Constitution also </span><span style="font-family: "times new roman", serif;">obligates the Government to provide special assistance to Nations, Nationalities, and </span><span style="font-family: "times new roman", serif;">Peoples least advantaged in economic and social development. The Constitution also </span><span style="font-family: "times new roman", serif;">envisages Ethiopians access to public health and other basic amenities. It assures them </span><span style="font-family: "times new roman", serif;">of a clean and healthy environment. All these constitutionally contemplated </span><span style="font-family: "times new roman", serif;">prescriptive obviously assign a greater role to ‘law’ in their accomplishment. </span><br />
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Mrs. Nishi http://www.blogger.com/profile/15309433794435170713noreply@blogger.com3tag:blogger.com,1999:blog-2806707238296065240.post-7645988302052411852017-02-20T03:08:00.000-08:002017-03-29T05:56:59.785-07:00CONFLICTS OF LAWS AND PRINCIPLES OF CONTRACT<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">“CONFLICTS OF LAWS AND PRINCIPLES OF CONTRACT:
APPLICABILITY IN INTERNATIONAL CONTRACTUAL AGREEMENTS”<o:p></o:p></span></b></div>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">CHAPTER I<o:p></o:p></span></b></div>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">INTRODUCTION<o:p></o:p></span></b></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Ideally,
any international commercial contract should include a choice of law clause- a
clause stipulating the law applicable to the contract, such as English law. So
that in case of conflict of laws, the court may know or decide which law should
be applicable to the contracting parties or State. In the early stages of the
international trade and commerce, there came into existence a body of rules,
generally called the law of merchants, which regulated most of the aspects of
international trade and commerce give rise to problems of conflict of laws, it
was inevitable that a body of conflictual rules should develop and regulate the
commercial activities whenever they have a foreign element. Since every
commercial activity is ordinarily preceded by a contract, the main problem of
private international law is of determining the governing law of contracts. The
contract must be construed in accordance with its governing law is almost
self-evident. The aim of the court, when called upon to interpret a contract is
to discover the intention of the parties. Accordingly, the governing law
determines what terms or trade usages are to be implied in to the contract and
what meaning is to be attributed to technical, legal or commercial terms.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"> Conflict of laws- as we all know, is a part of
English law which deals with foreign element. When a commercial contract is
made between two contracting states of different nationality, then the term
“conflict of laws” comes in front and then court has to decide- what law should
be the ‘proper law’ for enforcing the contract and it is court who has to see
whether the contract terms reflects about any choice of law clause or a thing
that shows which law should be applicable on the international contract.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In
the present globalization there exist so many international agreements relating
to international trade law. These agreements will apply only, when the parties
are signatory to the such an agreements, the main problem here arises, is there
lack of consistency in applicability of international agreements in the
countries own law, that is the domestic or private law of a country.
Theoretically there is no conflict between the laws of the countries. But when
these agreement are being applied in practical, then the problem arises. Such a problem may be the consistency between
laws of different laws of countries.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"> In the modern private international law of
most countries, the mooted point is whether the same law should apply to the
formation of contract as well as to the effect of contract. It is also debated
whether all aspects of the formation of contract should be governed by the same
law or whether some aspects could be governed by one law and other aspects by
another law. The theory that is gaining almost world-wide support and
acceptance is the theory of proper law of the contract.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Along
with the development of an appropriate theory of law applicable to
international contracts at national level, there have been attempts at
developing uniform law applicable to all international contracts at
international level, though not with much success. Then in 1939 the institute
of international law at Rome prepared a draft relating to the contracts of
commercial transaction. After that different conference or conventions were
held in relation to this. After along time , a convention held i.e. Rome
convention and the intention of this convention was to create at least a
harmonized if not a unified body of law which can be effectively apply to
contractual obligations. These international agreements touch the problem only
on the fringe, and therefore solution to the problem only on the fringe, and
therefore solution to the problem of conflict laws in commercial contracts has
to be found by the private international law of each individual country. <o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">As
above said the law relating to sale contracts varies from state and any
uncertainty also in respect of rights and obligations of the parties to the
contract and the available remedies in the event of dispute. The purpose of
this research is to find out how the conflict of laws can be applied to
international contractual obligations.<o:p></o:p></span></div>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CONFLICTS OF LAWS – CONCEPT AND MEANING<o:p></o:p></span></b></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DEFINITIONS
OF PRIVATE INTERNATIONAL LAW OR CONFLICT OF LAWS<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In the words of Cheshire: “ Private International Law,
then, is that part of law which comes into play when the issue before the court
affect some facts events or transaction that is so closely connected with a foreign
system of law as to necessitate recourse to that system.”<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[1]</span></span><!--[endif]--></span></a>
<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In the words of Dicey and Morris, English private
international law is that branch of law of England which “ consist of rules
which do not directly determines the rights and liabilities of particular
persons but which determines the limits of jurisdictions to be exercised by the
English courts and also the choice of body of law, whether domestic law of
England or the law of any foreign country by reference to which English courts
are to determine different matters brought before them for decision.”<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn2" name="_ftnref2" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[2]</span></span><!--[endif]--></span></a>
<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Conflict of laws</span></b><span style="line-height: 150%;">, <b>private
international law</b>, or <b>international law (private)</b>, <i>in </i></span><a href="http://en.wikipedia.org/wiki/Common_law" title="Common law"><i><span style="line-height: 150%;">common
law</span></i></a><i><span style="line-height: 150%;"> systems cvx</span></i><span style="line-height: 150%;">, is that
branch of </span><a href="http://en.wikipedia.org/wiki/International_law" title="International law"><span style="line-height: 150%;">international law</span></a><span style="line-height: 150%;"> and
international interstate law that regulates all </span><a href="http://en.wikipedia.org/wiki/Lawsuit" title="Lawsuit"><span style="line-height: 150%;">lawsuits</span></a><span style="line-height: 150%;"> involving a "foreign" law element where
different judgments will result depending on which jurisdiction's laws are
applied as the </span><a href="http://en.wikipedia.org/wiki/Lex_causae" title="Lex causae"><i><span style="line-height: 150%;">lex causae</span></i></a><span style="line-height: 150%;"> or you
can say as the branch of English law known as the conflict of laws is that part
of the law of England which deals with cases having foreign element. By a
“foreign element” is meant simply a contract with some system of law other then
the English law.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn3" name="_ftnref3" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[3]</span></span><!--[endif]--></span></a>
Such a contract may exist, for example, because a contract was made or to be
performed in foreign country, or because a tort was committed there, or because
property was situated there, or because the parties are not English.<o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">In </span><a href="http://en.wikipedia.org/wiki/Civil_law_%28legal_system%29" title="Civil law (legal system)"><i><span style="line-height: 150%;">civil law</span></i></a><i><span style="line-height: 150%;"> systems</span></i><span style="line-height: 150%;">, private international law is a branch of the
internal legal system dealing with the determination of which state law is
applicable to situations crossing over the borders of one particular state and
involving a "foreign element" , (collisions of law, conflict of
laws). <i>Lato sensu</i> it also includes international </span><a href="http://en.wikipedia.org/wiki/Civil_procedure" title="Civil procedure"><span style="line-height: 150%;">civil
procedure</span></a><span style="line-height: 150%;"> and international commercial </span><a href="http://en.wikipedia.org/wiki/Arbitration" title="Arbitration"><span style="line-height: 150%;">arbitration</span></a><span style="line-height: 150%;"> (collisions of jurisdiction, conflict of
jurisdictions), as well as </span><a href="http://en.wikipedia.org/wiki/Citizenship_law" title="Citizenship law"><span style="line-height: 150%;">citizenship
law</span></a><span style="line-height: 150%;"> (which strictly speaking is part of </span><a href="http://en.wikipedia.org/wiki/Public_law" title="Public law"><span style="line-height: 150%;">public
law</span></a><span style="line-height: 150%;">).<o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">There are two major streams of legal thought on the
nature of conflict of laws. One group of researchers regards Conflict of Laws
as a part of international law, claiming that its norms are uniform, universal
and obligatory for all states. This stream of legal thought in Conflict of Laws
is called "universalism". Other researchers maintain the view that
each State creates its own unique norms of Conflict of Laws pursuing its own
policy. This theory is called "particularism" in Conflict of Laws.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Private international law
"sensu stricto" comprising conflict of laws rules which determine the
law of which country (state) is applicable to specific relations. <o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Private international law
"sensu lato" which comprises private international law "sensu
stricto" (conflict of laws rules) and material legal norms which have
direct extraterritorial character and are imperatively applied (material norms
of law crossing the borders of State) - usually regulations on </span><a href="http://en.wikipedia.org/wiki/Real_property" title="Real property"><span style="line-height: 150%;">real
property</span></a><span style="line-height: 150%;">, consumer law, currency control regulations, </span><a href="http://en.wikipedia.org/wiki/Insurance" title="Insurance"><span style="line-height: 150%;">insurance</span></a><span style="line-height: 150%;"> and </span><a href="http://en.wikipedia.org/wiki/Banking_regulation" title="Banking regulation"><span style="line-height: 150%;">banking regulations</span></a><span style="line-height: 150%;">. <o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">In common law systems, conflict of laws, firstly, is
concerned with determining whether the proposed forum has </span><a href="http://en.wikipedia.org/wiki/Jurisdiction" title="Jurisdiction"><span style="line-height: 150%;">jurisdiction</span></a><span style="line-height: 150%;"> to adjudicate and is the appropriate </span><a href="http://en.wikipedia.org/wiki/Venue_%28law%29" title="Venue (law)"><span style="line-height: 150%;">venue</span></a><span style="line-height: 150%;"> for dealing with the dispute, and, secondly, with
determining which of the competing </span><a href="http://en.wikipedia.org/wiki/State_%28law%29" title="State (law)"><span style="line-height: 150%;">state's</span></a><span style="line-height: 150%;"> laws are to be applied to resolve the dispute. It
also deals with the </span><a href="http://en.wikipedia.org/wiki/Enforcement_of_foreign_judgments" title="Enforcement of foreign judgments"><span style="line-height: 150%;">enforcement of foreign
judgments</span></a><span style="line-height: 150%;">.<o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Its three different names — <i>conflict of laws</i>, <i>private
international law</i>, and <i>international private law</i> — are generally
interchangeable, although none of them is wholly accurate or properly
descriptive. The term <i>conflict of laws</i> is primarily used in jurisdictions
of the Anglo-Saxon legal tradition (United States, England, Canada, Australia,
etc.); <i>private international law</i> is used in France (<i>droit
international privé</i>) as well as in Italy, the Spanish-speaking and
Portuguese-countries and Greece; <i>international private law</i> is used in
Germany and the other German-speaking countries (<i>internationales Privatrecht</i>)<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">Within local federal systems where inter-state
legal conflicts require resolution, (such as in the </span><a href="http://en.wikipedia.org/wiki/United_States" title="United States"><span style="line-height: 150%;">United
States</span></a><span style="line-height: 150%;">), the term <i>conflict of laws</i> is preferred
simply because such cases are not an international issue. Hence the term <i>conflict
of laws</i> is a more general term for a legal process for resolving similar
disputes, regardless whether the relevant legal systems are international or
inter-state, though this term is also criticised as being misleading in that
the object is the </span><a href="http://en.wikipedia.org/wiki/Resolution_%28policy_debate%29" title="Resolution (policy debate)"><i><span style="line-height: 150%;">resolution</span></i></a><i><span style="line-height: 150%;"> of
conflicts</span></i><span style="line-height: 150%;"> between competing systems rather than
"conflict" itself. The term <i>conflict of laws<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn4" name="_ftnref4" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="line-height: 115%;">[4]</span></b></span><!--[endif]--></span></a></i>
is usually used by common law countries, while for civil law countries the term
<i>private international law</i> is more appropriate. The term <i>private international
law</i> was coined by American lawyer and Judge </span><a href="http://en.wikipedia.org/wiki/Joseph_Story" title="Joseph Story"><span style="line-height: 150%;">Joseph
Story</span></a><span style="line-height: 150%;">, but was abandoned subsequently by common law
scholars and embraced by civil law lawyers.<o:p></o:p></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">CHAPTER II</span></b><span style="line-height: 150%;"><o:p></o:p></span></span></div>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">PRINCIPLES OF CONTRACT AND CHOICE OF LAW BY
PARTIES TO CONTRACT<o:p></o:p></span></b></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The <i>choice
of law or proper law</i> for the contract is the main system of law applied to
decide the validity of most aspects to the contract including its formation,
validity, interpretation, and performance. This does not deny the power of the
parties to agree that different aspects of the contract shall be governed by
different systems of law. But, in the absence of such express terms, the court
will not divide the <i>proper law</i> unless there are unusually compelling
circumstances. And note the general rule of the <a href="http://en.wikipedia.org/wiki/Lex_fori" title="Lex fori"><i><span style="color: windowtext; text-decoration-line: none;">lex fori</span></i></a><i> </i>which applies the provisions of the <i>proper law</i> as it is
when the contract is to be performed and not as it was when the contract was
made.<o:p></o:p></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The parties
to a valid contract are bound to do what they have promised. So, to be
consistent, the Doctrine of Proper Law examines the <a href="http://en.wikipedia.org/wiki/Party_%28law%29" title="Party (law)"><span style="color: windowtext; text-decoration-line: none;">parties'</span></a>
intention as to which law is to govern the contract. The claimed advantage of
this approach is that it satisfies more abstract considerations of <a href="http://en.wikipedia.org/wiki/Justice" title="Justice"><span style="color: windowtext; text-decoration-line: none;">justice</span></a>
if the parties are bound by the law they have chosen. But it raises the
question of whether the test is to be subjective, i.e. the law actually
intended by the parties, or objective, i.e. the law will <a href="http://en.wikipedia.org/wiki/Imputation_%28law%29" title="Imputation (law)"><span style="color: windowtext; text-decoration-line: none;">impute</span></a> the intention which reasonable men in
their position would probably have had. It cannot safely be assumed that the
parties did actually consider which of the several possible laws might be
applied when they were negotiating the contract. Hence, although the courts would
prefer the subjective approach because this gives effect the parties' own
wishes, the objective test has gained in importance. So the <i>proper law</i>
test today is three-stage:<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">it is the law intended by the parties
when the contract was made which is usually evidenced by an express </span><a href="http://en.wikipedia.org/wiki/Choice_of_law_clause" title="Choice of law clause"><span style="line-height: 150%;">choice of law clause</span></a><span style="line-height: 150%;">; or <o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">it is implied by the court because
either the parties incorporated actual legal terminology or provisions specific
to one legal system, or because the contract would only be valid under one of
the potentially relevant systems; or <o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">if there is no express or implied
choice, it is the law which has the closest and most real connection to the
bargain made by the parties. <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">It is only
fair to admit that the task of imputing an intention to the parties in the
third situation presents the courts with another opportunity for uncertainty
and arbitrariness, but this overall approach is nevertheless felt to be the
lesser of the available evils.<o:p></o:p></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Express
selection</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">When the
parties express a clear intention in a formal clause, there is a rebuttable
presumption that this is the <i>proper law</i> because it reflects the parties'
freedom of contract and it produces certainty of outcome. It can only be
rebutted when the choice is not <i>bona fide</i>, it produces illegality, or it
breaches public policy. For example, the parties may have selected the
particular law to evade the operation of otherwise mandatory provisions of the
law which has the closest connection with the contract. The parties are not
free to put themselves above the law and, in such cases, it will be for the
parties to prove that there is a valid reason for selecting that law other than
evasion.<o:p></o:p></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Implied
selection</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">When the
parties have not used express words, their intention may be inferred from the
terms and nature of the contract, and from the general circumstances of the
case.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn5" name="_ftnref5" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[5]</span></span><!--[endif]--></span></a>
For example, a term granting the courts of a particular state exclusive
jurisdiction over the contract would imply that the <i>lex fori</i> is to be
the <i>proper law</i>. This has been repeated by the court of appeal and has
been approved expressly at least by one of the opinions in the House of Lords.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn6" name="_ftnref6" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[6]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Closest
and most real connection</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In default,
the court has to impute an intention by asking, as just and reasonable persons,
which law the parties ought to, or would, have intended to nominate if they had
thought about it when they were making the contract. In arriving at its
decision, the court uses a list of connecting factors, i.e. facts which have an
unambiguous geographical connection, and whichever law scores the most hits on
a league table created from the list will be considered the <i>proper law</i>.
The current list of factors includes the following:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the </span><a href="http://en.wikipedia.org/wiki/Habitual_residence" title="Habitual residence"><span style="line-height: 150%;">habitual residence</span></a><span style="line-height: 150%;">/</span><a href="http://en.wikipedia.org/wiki/Domicile_%28law%29" title="Domicile (law)"><span style="line-height: 150%;">domicile</span></a><span style="line-height: 150%;">/</span><a href="http://en.wikipedia.org/wiki/Nationality" title="Nationality"><span style="line-height: 150%;">nationality</span></a><span style="line-height: 150%;">
of the parties; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the parties' main places of business and
of </span><a href="http://en.wikipedia.org/wiki/Incorporation_%28business%29" title="Incorporation (business)"><span style="line-height: 150%;">incorporation</span></a><span style="line-height: 150%;">; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the place nominated for any </span><a href="http://en.wikipedia.org/wiki/Arbitration" title="Arbitration"><span style="line-height: 150%;">arbitration</span></a><span style="line-height: 150%;">
proceedings in the event of a dispute (the </span><a href="http://en.wikipedia.org/wiki/Lex_loci_arbitri" title="Lex loci arbitri"><i><span style="line-height: 150%;">lex loci arbitri</span></i></a><span style="line-height: 150%;">);
<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">4.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the language in which the contract
documents is written; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">5.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the format of the documents, e.g. if a
form is only found in one relevant country, this suggests that the parties
intended the law of that country to be the proper law; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">6.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the currency in which any payment is to
be made; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">7.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the flag of any ship involved; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">8.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the place where the contract is made
(which may not be obvious where negotiations were concluded by letter, fax or
e-mail); <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">9.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the place(s) where performance is to
occur; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">10.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">any pattern of dealing established in
previous transactions involving the same parties; and <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l3 level1 lfo11; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">11.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">where any insurance companies or
relevant third parties are located. <o:p></o:p></span></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Dépeçage</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Some legal
systems provide that a contract may be governed by more than one law. This
concept is referred to as <a href="http://en.wikipedia.org/wiki/D%C3%A9pe%C3%A7age" title="Dépeçage"><span style="color: windowtext; text-decoration-line: none;">dépeçage</span></a>.
Article 3(1) of the <a href="http://en.wikipedia.org/wiki/Rome_Convention_%28contract%29" title="Rome Convention (contract)"><span style="color: windowtext; text-decoration-line: none;">Rome Convention on the law applicable to contractual
obligations</span></a> expressly recognises dépeçage in contracting states.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"> <span class="mw-headline">Problems<o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">There are
many problems affecting this area of law, but two of the most interesting are:<o:p></o:p></span></div>
<h3 style="line-height: 150%; margin-left: 1.0in; mso-list: l11 level1 lfo15; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span style="line-height: 150%;">A.<span style="font-stretch: normal; font-weight: normal; line-height: normal;">
</span></span><!--[endif]--><span class="mw-headline"><span style="line-height: 150%;">Incapacity
through age</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">States
approach the issue of <a href="http://en.wikipedia.org/wiki/Intentionality" title="Intentionality"><span style="color: windowtext; text-decoration-line: none;">intentionality</span></a> from two related, but distinct,
conceptual directions:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo12; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><a href="http://en.wikipedia.org/wiki/Liability" title="Liability"><span style="line-height: 150%;">liability</span></a><span style="line-height: 150%;"> in which the law holds individuals
responsible for the consequences of their </span><a href="http://en.wikipedia.org/wiki/Action_%28philosophy%29" title="Action (philosophy)"><span style="line-height: 150%;">actions</span></a><span style="line-height: 150%;">, and <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l1 level1 lfo12; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">exculpability in which fundamental
social policies exclude or diminish the liability that actors would have
incurred in different circumstances. <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Many states
have policies which protect the young and inexperienced by insulating them from
liability even though they may have voluntarily committed themselves to unwise
contracts. The age at which children achieve full contractual <a href="http://en.wikipedia.org/wiki/Capacity_%28law%29" title="Capacity (law)"><span style="color: windowtext; text-decoration-line: none;">capacity</span></a>
varies from state to state but the principle is always the same. <a href="http://en.wikipedia.org/wiki/Minor_%28law%29" title="Minor (law)"><span style="color: windowtext; text-decoration-line: none;">Infants</span></a>
are not bound by many otherwise valid contracts, and their intention is
irrelevant because of the legal incapacity imposed on them by the state of the <a href="http://en.wikipedia.org/wiki/Domicile_%28law%29" title="Domicile (law)"><span style="color: windowtext; text-decoration-line: none;">domicile</span></a>
(the <a href="http://en.wikipedia.org/wiki/Lex_domicilii" title="Lex domicilii"><i><span style="color: windowtext; text-decoration-line: none;">lex domicilii</span></i></a>)
or <a href="http://en.wikipedia.org/wiki/Nationality" title="Nationality"><span style="color: windowtext; text-decoration-line: none;">nationality</span></a>
(the <a href="http://en.wikipedia.org/wiki/Lex_patriae" title="Lex patriae"><i><span style="color: windowtext; text-decoration-line: none;">lex patriae</span></i></a>).
This recognises a set of social values that requires exculpation even though
there is relevant action and consent freely given.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Equally,
states have an interest in protecting the normal flow of trade within their
borders. If businesses had constantly to verify the nationality or domicile of
their customers and their ages, this might slow down business and, potentially,
infringe privacy legislation. Hence, conflicts of public policy can emerge
which complicate the choice of law decision and invite <a href="http://en.wikipedia.org/wiki/Forum_shopping" title="Forum shopping"><span style="color: windowtext; text-decoration-line: none;">forum
shopping</span></a>, i.e. traders will always seek to sue infants with whom
they have contracts in those states which accord priority to commercial
interests, while children will seek the avoidance of liability in the courts
which protect their interests. This would be achieved during the <a href="http://en.wikipedia.org/wiki/Characterisation_%28conflict%29" title="Characterisation (conflict)"><span style="color: windowtext; text-decoration-line: none;">characterization</span></a> stage by classifying the
issue as <a href="http://en.wikipedia.org/wiki/Status_%28law%29" title="Status (law)"><span style="color: windowtext; text-decoration-line: none;">status</span></a> and its incidents rather than contract
because a party's status and lack of capacity would be <a href="http://en.wikipedia.org/wiki/In_rem" title="In rem"><span style="color: windowtext; text-decoration-line: none;">in rem</span></a>.<o:p></o:p></span></div>
<h3 style="line-height: 150%; margin-left: 1.0in; mso-list: l11 level1 lfo15; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span style="line-height: 150%;">B.<span style="font-stretch: normal; font-weight: normal; line-height: normal;">
</span></span><!--[endif]--><span class="mw-headline"><span style="line-height: 150%;">Mistake,
misrepresentation, etc.</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In many
states, fundamental mistakes, misrepresentations and similar defects may make a
contract void <a href="http://en.wikipedia.org/wiki/Ab_initio" title="Ab initio"><i><span style="color: windowtext; text-decoration-line: none;">ab initio</span></i></a>,
i.e. the defect is so serious that it prevents an agreement from ever coming
into being. If this happens, every term in the contract including the express
selection of the <i>proper law</i>, would be unenforceable. This raises the
question of whether the <i>lex fori</i> should operate a policy of saving the
validity of contracts wherever possible. Suppose that a contract would be valid
under many potentially relevant laws but not under the <i>putative</i> <i>proper
law</i>, and that, until problems arose, the parties have acted in <a href="http://en.wikipedia.org/wiki/Good_faith" title="Good faith"><span style="color: windowtext; text-decoration-line: none;">good faith</span></a>
on the assumption that they will be bound by the agreement, some courts might
be tempted to ignore the apparent <i>proper law</i> and choose another that
would give effect to the parties general contractual intentions.<o:p></o:p></span></div>
<h2 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">English
law</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h2>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In <a href="http://en.wikipedia.org/wiki/English_law" title="English law"><span style="color: windowtext; text-decoration-line: none;">English law</span></a>,
the Contracts (Applicable Law) Act 1990 formally incorporates the <i>Convention
on the Law Applicable to Contractual Obligations</i> the "<a href="http://en.wikipedia.org/wiki/Rome_Convention_%28contract%29" title="Rome Convention (contract)"><span style="color: windowtext; text-decoration-line: none;">Rome Convention</span></a>") opened for signature
in Rome on 19th June 1980 and signed by the <a href="http://en.wikipedia.org/wiki/United_Kingdom" title="United Kingdom"><span style="color: windowtext; text-decoration-line: none;">United
Kingdom</span></a> on 7th December 1981; the <i>Convention on the Accession of
the Hellenic Republic to the Rome Convention</i> (the "Luxembourg
Convention") signed by the United Kingdom in Luxembourg on 10th April
1984; and the first <i>Protocol on the Interpretation of the Rome Convention by
the European Court</i> (the "Brussels Protocol") signed by the United
Kingdom in Brussels on 19th December 1988.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Choice
of law-</span></b><b><o:p></o:p></b></span></div>
<h3 style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span style="font-weight: normal; line-height: 150%;">Choice of law</span><span style="font-weight: normal; line-height: 150%;"> is a procedural stage in the litigation of a case
involving the </span><a href="http://en.wikipedia.org/wiki/Conflict_of_laws" title="Conflict of laws"><span style="font-weight: normal; line-height: 150%;">conflict of
laws</span></a><span style="font-weight: normal; line-height: 150%;"> when it is necessary to
reconcile the differences between the laws of different legal jurisdictions,
such as </span><a href="http://en.wikipedia.org/wiki/State_%28law%29" title="State (law)"><span style="font-weight: normal; line-height: 150%;">states</span></a><span style="font-weight: normal; line-height: 150%;">, </span><a href="http://en.wikipedia.org/wiki/State_%28subnational_entity%29" title="State (subnational entity)"><span style="font-weight: normal; line-height: 150%;">federated
states</span></a><span style="font-weight: normal; line-height: 150%;"> (as in
the US), or </span><a href="http://en.wikipedia.org/wiki/Province" title="Province"><span style="font-weight: normal; line-height: 150%;">provinces</span></a><span style="font-weight: normal; line-height: 150%;">. The outcome of this process is potentially to
require the courts of one </span><a href="http://en.wikipedia.org/wiki/Jurisdiction" title="Jurisdiction"><span style="font-weight: normal; line-height: 150%;">jurisdiction</span></a><span style="font-weight: normal; line-height: 150%;"> to apply the law of a different jurisdiction in </span><a href="http://en.wikipedia.org/wiki/Lawsuits" title="Lawsuits"><span style="font-weight: normal; line-height: 150%;">lawsuits</span></a><span style="font-weight: normal; line-height: 150%;"> arising from, say, </span><a href="http://en.wikipedia.org/wiki/Family_law" title="Family law"><span style="font-weight: normal; line-height: 150%;">family law</span></a><span style="font-weight: normal; line-height: 150%;">, </span><a href="http://en.wikipedia.org/wiki/Tort" title="Tort"><span style="font-weight: normal; line-height: 150%;">tort</span></a><span style="font-weight: normal; line-height: 150%;"> or </span><a href="http://en.wikipedia.org/wiki/Contract" title="Contract"><span style="font-weight: normal; line-height: 150%;">contract</span></a><span style="font-weight: normal; line-height: 150%;">. The law which is applied is sometimes referred to
as the "</span><a href="http://en.wikipedia.org/wiki/Proper_law" title="Proper law"><span style="font-weight: normal; line-height: 150%;">proper law</span></a><span style="font-weight: normal; line-height: 150%;">".<o:p></o:p></span></span></h3>
<div class="MsoNormal" style="background: #F8FCFF; line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2; text-align: justify;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Choice of law rule<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: #F8FCFF; line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Courts
faced with a choice of law issue have a two-stage process:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: #F8FCFF; line-height: 150%; margin-left: .5in; mso-list: l0 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the court will apply the
law of the forum (<i>lex fori</i>) to all procedural matters (including,
self-evidently, the choice of law rules); and <o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: #F8FCFF; line-height: 150%; margin-left: .5in; mso-list: l0 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">it counts the factors that
connect or link the legal issues to the laws of potentially relevant states and
applies the laws that have the greatest connection, e.g. the law of </span><a href="http://en.wikipedia.org/wiki/Nationality" title="Nationality"><span style="line-height: 150%;">nationality</span></a><span style="line-height: 150%;"> (</span><a href="http://en.wikipedia.org/wiki/Lex_patriae" title="Lex patriae"><i><span style="line-height: 150%;">lex
patriae</span></i></a><span style="line-height: 150%;">) or </span><a href="http://en.wikipedia.org/wiki/Domicile_%28law%29" title="Domicile (law)"><span style="line-height: 150%;">domicile</span></a><span style="line-height: 150%;"> (</span><a href="http://en.wikipedia.org/wiki/Lex_domicilii" title="Lex domicilii"><i><span style="line-height: 150%;">lex
domicilii</span></i></a><span style="line-height: 150%;">) will define legal </span><a href="http://en.wikipedia.org/wiki/Status_%28law%29" title="Status (law)"><span style="line-height: 150%;">status</span></a><span style="line-height: 150%;"> and </span><a href="http://en.wikipedia.org/wiki/Capacity_%28law%29" title="Capacity (law)"><span style="line-height: 150%;">capacity</span></a><span style="line-height: 150%;">, the law of the state in which land is situated (</span><a href="http://en.wikipedia.org/wiki/Lex_situs" title="Lex situs"><i><span style="line-height: 150%;">lex
situs</span></i></a><span style="line-height: 150%;">) will be applied to determine all questions of </span><a href="http://en.wikipedia.org/wiki/Title_%28property%29" title="Title (property)"><span style="line-height: 150%;">title</span></a><span style="line-height: 150%;">, the law
of the place where a transaction physically takes place or of the occurrence
that gave rise to the litigation (<i>lex loci actus</i>) will often be the
controlling law selected when the matter is substantive, but the </span><a href="http://en.wikipedia.org/wiki/Proper_law" title="Proper law"><span style="line-height: 150%;">proper
law</span></a><span style="line-height: 150%;"> has become a more common choice. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">For example, suppose that Alexandre who has a French
nationality and residence in Germany, corresponds with Bob who has American
nationality, domicile in Arizona, and residence in Austria, over the </span><a href="http://en.wikipedia.org/wiki/Internet" title="Internet"><span style="line-height: 150%;">internet</span></a><span style="line-height: 150%;">. They agree the joint purchase of land in
Switzerland, currently owned by Heidi who is a Swiss national, but they never
physically meet, executing initial contract documents by using </span><a href="http://en.wikipedia.org/wiki/Fax" title="Fax"><span style="line-height: 150%;">fax</span></a><span style="line-height: 150%;"> machines, followed by a postal exchange of hard
copies. Alexandre pays his share of the deposit but, before the transaction is
completed, Bob admits that although he has capacity to buy land under his <i>lex
domicilii</i> and the law of his residence, he is too young to own land under
Swiss law. The rules to determine which courts would have jurisdiction and
which laws would be applied to each aspect of the case are defined in each
state's laws so, in theory, no matter which court in which country actually
accepts the case, the outcome will be the same (albeit that the measure of
damages might differ from country to country which is why forum shopping is
such a problem). In reality, however, moves to </span><a href="http://en.wikipedia.org/wiki/Harmonise" title="Harmonise"><span style="line-height: 150%;">harmonize</span></a><span style="line-height: 150%;"> the conflictual system have not reached the point
where standardization of outcome can be guaranteed.<o:p></o:p></span></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Choice of law clause-</b><o:p></o:p></span><br />
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">A <b>choice
of law clause</b> or <b>proper law clause</b> in a <a href="http://en.wikipedia.org/wiki/Contract_%28conflict%29" title="Contract (conflict)"><span style="color: windowtext; text-decoration-line: none;">contract</span></a> is one in which the <a href="http://en.wikipedia.org/wiki/Party_%28law%29" title="Party (law)"><span style="color: windowtext; text-decoration-line: none;">parties</span></a>
specify which <a href="http://en.wikipedia.org/wiki/Law" title="Law"><span style="color: windowtext; text-decoration-line: none;">law</span></a>
(i.e. the law of which <a href="http://en.wikipedia.org/wiki/State_%28law%29" title="State (law)"><span style="color: windowtext; text-decoration-line: none;">state</span></a> or <a href="http://en.wikipedia.org/wiki/Nation" title="Nation"><span style="color: windowtext; text-decoration-line: none;">nation</span></a> if it
only has a single legal system) will be applied to resolve any disputes arising
under the contract.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">If all the
parties and the relevant factual elements affecting formation, validity, and
performance are geographically located in the same state, it will be obvious
that, if the contract is silent on the point, the local municipal law (usually
called the <i>lex loci contractus</i>, i.e. the law of the place where the
contract was made) will be applied as the law governing substantive issues. The
<a href="http://en.wikipedia.org/wiki/Lex_fori" title="Lex fori"><i><span style="color: windowtext; text-decoration-line: none;">lex fori</span></i></a>,
i.e. the law of the local forum court, will be applied to procedural matters
(such as evidentiary rules, etc). But, as people and transactions now more
frequently cross state lines both physically and electronically, it becomes
necessary to consider which law will be applied in the event of a dispute. Should
the laws be the same, the question will be academic. But, if the laws are
sufficiently different that the <a href="http://en.wikipedia.org/wiki/Judgment" title="Judgment"><span style="color: windowtext; text-decoration-line: none;">judgment</span></a> will change depending on which law the <a href="http://en.wikipedia.org/wiki/Court" title="Court"><span style="color: windowtext; text-decoration-line: none;">court</span></a> applies, the issue
of <a href="http://en.wikipedia.org/wiki/Choice_of_law" title="Choice of law"><span style="color: windowtext; text-decoration-line: none;">choice of law</span></a>
becomes highly significant.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">As an
application of the <a href="http://en.wikipedia.org/wiki/Public_policy_%28law%29" title="Public policy (law)"><span style="color: windowtext; text-decoration-line: none;">public policy</span></a> of <a href="http://en.wikipedia.org/wiki/Freedom_of_contract" title="Freedom of contract"><span style="color: windowtext; text-decoration-line: none;">freedom of contract</span></a>, the parties have autonomy
to make whatever bargain they want. Thus, in principle, the parties are free to
nominate any law as the <a href="http://en.wikipedia.org/wiki/Proper_law" title="Proper law"><span style="color: windowtext; text-decoration-line: none;">proper law</span></a> of their contract even though there
may be no other connection between the substance of the obligations and the law
selected. However, such clauses could be used as a device to <a href="http://en.wikipedia.org/wiki/Evasion_%28law%29" title="Evasion (law)"><span style="color: windowtext; text-decoration-line: none;">evade</span></a>
the application of a mandatory provision of law within a relevant legal system.
Consequently, most states will not honour choice of law clauses unless they are
seen to have been included on a <a href="http://en.wikipedia.org/wiki/Bona_fide" title="Bona fide"><span style="color: windowtext; text-decoration-line: none;">bona fide</span></a> basis. If the clause is recognised as
a <i>good faith</i> term, the 'forum state' must apply the nominated <i>proper
law</i> to resolve the dispute.<o:p></o:p></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="Heading9Char"><span style="line-height: 150%;"> </span></span><span class="mw-headline"><span style="line-height: 150%;">Contracts
and choice of law</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The choice
of law rules for contracts are more complicated than the law affecting other
obligations because they depend on the express or implied intentions of the
parties and their personal circumstances. For example, questions as to whether
a contract is valid may depend on the capacity of the parties to enter into a
contract. This could be decided by reference to the <i>lex domicilii</i>, <i>lex
patriae</i> or habitual residence of the parties, or for policy reasons, by
reference to the <i>lex loci contractus</i>. But, if the contract was made
electronically, where the contract was actually made must first be decided
either by the <i>lex fori</i> or the putative proper law depending on the forum
rules. There may also be problems if the parties selected the place where the
contract was made in the hope of <a href="http://en.wikipedia.org/wiki/Evasion_%28law%29" title="Evasion (law)"><span style="color: windowtext; text-decoration-line: none;">evading</span></a>
the operation of some mandatory provisions in another relevant law.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">On the other
hand, deciding matters relating to <i>performance</i> will usually depend on
the <i>lex loci solutionis</i>. Another unique characteristic of contracts is
that the parties can decide which law should apply for most purposes, and
memorialize that decision into the contract itself (see <a href="http://en.wikipedia.org/wiki/Forum_selection_clause" title="Forum selection clause"><span style="color: windowtext; text-decoration-line: none;">forum selection clause</span></a> and <a href="http://en.wikipedia.org/wiki/Choice_of_law_clause" title="Choice of law clause"><span style="color: windowtext; text-decoration-line: none;">choice of law clause</span></a>) — although not every
jurisdiction will enforce such provisions. For the <a href="http://en.wikipedia.org/wiki/Harmonisation" title="Harmonisation"><span style="color: windowtext; text-decoration-line: none;">harmonising</span></a>
provisions on contractual obligations in <a href="http://en.wikipedia.org/wiki/EU_law" title="EU law"><span style="color: windowtext; text-decoration-line: none;">EU law</span></a>,
see the <a href="http://en.wikipedia.org/wiki/Rome_Convention_%28contract%29" title="Rome Convention (contract)"><span style="color: windowtext; text-decoration-line: none;">Rome Convention (contract)</span></a>.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">
<o:p></o:p></span></b></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="font-size: 14.0pt; mso-fareast-language: EN-IN;">CHAPTER III</span></b><o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">INTERNATIONAL CONTRACTS- SCOPE AND LIMIT<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 9.4pt; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">International
Commercial contracts (terms) (Incoterms)is that how traders can use them in
buyer or seller contracts to make clear who is responsible for the goods at
each point of the transport process. The guide also explains the benefits of
using Incoterms and what each Incoterm means for the buyer and seller, as well
as offering sources of further help and advice for traders.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 9.4pt; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">MEANING</span></b><span style="line-height: 150%;"><o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Incoterms</b>
or <b>international commercial terms</b> (contracts) are a series of international
sales terms that are widely used throughout the world. They are used to divide
transaction costs and responsibilities between buyer and seller and reflect
state-of-the-art transportation practices. They closely correspond to the <a href="http://en.wikipedia.org/wiki/U.N._Convention_on_Contracts_for_the_International_Sale_of_Goods" title="U.N. Convention on Contracts for the International Sale of Goods"><span style="color: windowtext; text-decoration-line: none;">U.N.
Convention on Contracts for the International Sale of Goods</span></a>.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Incoterms
deal with the questions related to the delivery of the products from the seller
to the buyer. This includes the carriage of products, export and import
clearance responsibilities, who pays for what, and who has risk for the
condition of the products at different locations within the transport process.
Incoterms are always used with a geographical location and do not deal with
transfer of title.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">They are
devised and published by the <a href="http://en.wikipedia.org/wiki/International_Chamber_of_Commerce" title="International Chamber of Commerce"><span style="color: windowtext; text-decoration-line: none;">International Chamber of Commerce</span></a>
(ICC). The English text is the original and official version of Incoterms 2000,
which have been endorsed by the United Nations Commission on International
Trade Law (<a href="http://en.wikipedia.org/wiki/UNCITRAL" title="UNCITRAL"><span style="color: windowtext; text-decoration-line: none;">UNCITRAL</span></a>).
Authorized translations into 31 languages are available from ICC national
committees.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn7" name="_ftnref7" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[7]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>PURPOSE AND SCOPE OF
INCOTERMS</b> <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The purpose
of Incoterms is to provide a set of international rules for the interpretation
of the most commonly used trade terms in foreign trade. Thus, the uncertainties
of different interpretations of such terms in different countries can be
avoided or at least reduced to a considerable degree. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Frequently,
parties to a contract are unaware of the different trading practices in their
respective countries. This can give rise to misunderstandings, disputes and
litigation with all the waste of time and money that this entails. In order to
remedy these problems the International Chamber of Commerce first published in
1936 a set of international rules for the interpretation of trade terms. These
rules were known as "Incoterms 1936". Amendments and additions were
later made in 1953, 1967, 1976, 1980, 1990 and presently in 2000 in order to
bring the rules in line with current international trade practices. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">It should be
stressed that the scope of Incoterms is limited to matters relating to the
rights and obligations of the parties to the contract of sale with respect to
the delivery of goods sold (in the sense of "tangibles", not
including "intangibles" such as computer software). <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">It appears
that two particular misconceptions about Incoterms are very common. First,
Incoterms are frequently misunderstood as applying to the contract of carriage
rather than to the contract of sale. Second, they are sometimes wrongly assumed
to provide for all the duties which parties may wish to include in a contract
of sale. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">As has
always been underlined by ICC, Incoterms deal only with the relation between
sellers and buyers under the contract of sale, and, moreover, only do so in
some very distinct respects. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">While it is
essential for exporters and importers to consider the very practical
relationship between the various contracts needed to perform an international
sales transaction - where not only the contract of sale is required, but also
contracts of carriage, insurance and financing - Incoterms relate to only one
of these contracts, namely the contract of sale. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Nevertheless,
the parties' agreement to use a particular Incoterm would necessarily have
implications for the other contracts. To mention a few examples, a seller
having agreed to a CFR - or CIF -contract cannot perform such a contract by any
other mode of transport than carriage by sea, since under these terms he must
present a bill of lading or other maritime document to the buyer which is
simply not possible if other modes of transport are used. Furthermore, the
document required under a documentary credit would necessarily depend upon the
means of transport intended to be used. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Second,
Incoterms deal with a number of identified obligations imposed on the parties -
such as the seller's obligation to place the goods at the disposal of the buyer
or hand them over for carriage or deliver them at destination - and with the
distribution of risk between the parties in these cases. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Further,
they deal with the obligations to clear the goods for export and import, the
packing of the goods, the buyer's obligation to take delivery as well as the
obligation to provide proof that the respective obligations have been duly
fulfilled. Although Incoterms are extremely important for the implementation of
the contract of sale, a great number of problems which may occur in such a
contract are not dealt with at all, like transfer of ownership and other
property rights, breaches of contract and the consequences following from such
breaches as well as exemptions from liability in certain situations. It should
be stressed that Incoterms are not intended to replace such contract terms that
are needed for a complete contract of sale either by the incorporation of
standard terms or by individually negotiated terms. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Generally,
Incoterms do not deal with the consequences of breach of contract and any
exemptions from liability owing to various impediments. These questions must be
resolved by other stipulations in the contract of sale and the applicable law. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Incoterms
have always been primarily intended for use where goods are sold for delivery
across national boundaries: hence, international commercial terms. However,
Incoterms are in practice at times also incorporated into contracts for the
sale of goods within purely domestic markets. Where Incoterms are so used, the
A2 and B2 clauses and any other stipulation of other articles dealing with
export and import do, of course, become redundant.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b> INCORPORATION OF INCOTERMS INTO THE CONTRACT
OF SALE</b> <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In view of
the changes made to Incoterms from time to time, it is important to ensure that
where the parties intend to incorporate Incoterms into their contract of sale,
an express reference is always made to the current version of Incoterms. This
may easily be overlooked when, for example, a reference has been made to an
earlier version in standard contract forms or in order forms used by merchants.
A failure to refer to the current version may then result in disputes as to
whether the parties intended to incorporate that version or an earlier version
as a part of their contract. Merchants wishing to use Incoterms 2000 should
therefore clearly specify that their contract is governed by "Incoterms
2000". <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b> THE STRUCTURE OF INCOTERMS</b> <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In 1990, for
ease of understanding, the terms were grouped in four basically different
categories; namely starting with the term whereby the seller only makes the
goods available to the buyer at the seller's own premises (the "E"
-term Ex works); followed by the second group whereby the seller is called upon
to deliver the goods to a carrier appointed by the buyer (the "F"
-terms FCA, FAS and FOB); continuing with the "C" -terms where the
seller has to contract for carriage, but without assuming the risk of loss of
or damage to the goods or additional costs due to events occurring after
shipment and dispatch (CFR, CIF, CPT and CIP); and, finally, the "D"
-terms whereby the seller has to bear all costs and risks needed to bring the goods
to the place of destination (DAF, DES, DEQ, DDU and DDP). The following chart
sets out this classification of the trade terms. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>INCOTERMS 2000<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn8" name="_ftnref8" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="line-height: 115%;">[8]</span></b></span><!--[endif]--></span></a></b>
<o:p></o:p></span></div>
<table border="0" cellpadding="0" cellspacing="1" class="MsoNormalTable">
<tbody>
<tr>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Group E<br />
Departure </span></b><span style="line-height: 150%;"><o:p></o:p></span></span></div>
</td>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.inservice.ru/documents/incoterms-2000/exw_eng.html"><span style="line-height: 150%;">EXW Ex Works</span></a><span style="line-height: 150%;"> <o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Group F</span></b><span style="line-height: 150%;"><br />
<b>Main carriage unpaid</b><o:p></o:p></span></span></div>
</td>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.inservice.ru/documents/incoterms-2000/fca_eng.html"><span style="line-height: 150%;">FCA Free Carrier (... named place)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/fas_eng.html"><span style="line-height: 150%;">FAS Free Alongside Ship (...named port of shipment)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/fob_eng.html"><span style="line-height: 150%;">FOB Free On Board (... named port of shipment)</span></a><span style="line-height: 150%;"> <o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Group С</span></b><span style="line-height: 150%;"><br />
<b>Main carriage paid</b><o:p></o:p></span></span></div>
</td>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.inservice.ru/documents/incoterms-2000/cfr_eng.html"><span style="line-height: 150%;">CFR Cost and Freight (... named port of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/cif_eng.html"><span style="line-height: 150%;">CIF Cost, Insurance and Freight (... named port of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/cpt_eng.html"><span style="line-height: 150%;">CPT Carriage Paid To (... named place of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/cip_eng.html"><span style="line-height: 150%;">CIP Carriage and Insurance Paid To (... named place
of destination)</span></a><span style="line-height: 150%;">
<o:p></o:p></span></span></div>
</td>
</tr>
<tr>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="line-height: 150%;">Group D</span></b><span style="line-height: 150%;"><br />
<b>Arrival</b><o:p></o:p></span></span></div>
</td>
<td style="background: white; padding: 3.0pt 3.0pt 3.0pt 3.0pt;" valign="top"><div class="MsoNormal" style="line-height: 150%;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.inservice.ru/documents/incoterms-2000/daf_eng.html"><span style="line-height: 150%;">DAF Delivered At Frontier (... named place)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/des_eng.html"><span style="line-height: 150%;">DES Delivered Ex Ship (... named port of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/deq_eng.html"><span style="line-height: 150%;">DEQ Delivered Ex Quay (... named port of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/ddu_eng.html"><span style="line-height: 150%;">DDU Delivered Duty Unpaid (... named place of
destination)</span></a><span style="line-height: 150%;"><br />
</span><a href="http://www.inservice.ru/documents/incoterms-2000/ddp_eng.html"><span style="line-height: 150%;">DDP Delivered Duty Paid (... named place of
destination)</span></a><span style="line-height: 150%;">
<o:p></o:p></span></span></div>
</td>
</tr>
</tbody></table>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Further,
under all terms, as in Incoterms 1990, the respective obligations of the
parties have been grouped under 10 headings where each heading on the seller's
side "mirrors" the position of the buyer with respect to the same
subject matter. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif;">These are the various terms used in international contracts<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn9" name="_ftnref9" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="line-height: 115%;">[9]</span></b></span><!--[endif]--></span></a>-<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify; text-indent: 42.55pt;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Recently the ICC changed basic aspects of the
definitions of a number of INCOTERMS, buyers and sellers should be aware of
this. Terms that have changed have a star alongside them. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span lang="EN-IN" style="line-height: 150%;">EX-Works</span></b><span lang="EN-IN" style="line-height: 150%;"><br />
One of the simplest and most basic shipment arrangements places the minimum
responsibility on the seller with greater responsibility on the buyer. In an
EX-Works transaction, goods are basically made available for pickup at the
shipper/seller's factory or warehouse and "delivery" is accomplished
when the merchandise is released to the consignee's freight forwarder. The
buyer is responsible for making arrangements with their forwarder for
insurance, export clearance and handling all other paperwork. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">FOB (Free On Board)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">One of the most commonly used-and misused-terms, FOB
means that the shipper/seller uses his freight forwarder to move the
merchandise to the port or designated point of origin. Though frequently used
to describe inland movement of cargo, FOB specifically refers to ocean or
inland waterway transportation of goods. "Delivery" is accomplished
when the shipper/seller releases the goods to the buyer's forwarder. The
buyer's responsibility for insurance and transportation begins at the same
moment. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">FCA (Free Carrier)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In this type of transaction, the seller is responsible
for arranging transportation, but he is acting at the risk and the expense of
the buyer. Where in FOB the freight forwarder or carrier is the choice of the
buyer, in FCA the seller chooses and works with the freight forwarder or the
carrier. "Delivery" is accomplished at a predetermined port or
destination point and the buyer is responsible for Insurance. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">FAS (Free Alongside Ship)*<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In these transactions, the buyer bears all the
transportation costs and the risk of loss of goods. FAS requires the
shipper/seller to clear goods for export, which is a reversal from past
practices. Companies selling on these terms will ordinarily use their freight
forwarder to clear the goods for export. "Delivery" is accomplished
when the goods are turned over to the Buyers Forwarder for insurance and
transportation. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CFR (Cost and Freight)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">This term formerly known as CNF (C&F) defines two
distinct and separate responsibilities-one is dealing with the actual cost of
merchandise "C" and the other "F" refers to the freight
charges to a predetermined destination point. It is the shipper/seller's
responsibility to get goods from their door to the port of destination.
"Delivery" is accomplished at this time. It is the buyer's
responsibility to cover insurance from the port of origin or port of shipment
to buyer's door. Given that the shipper is responsible for transportation, the
shipper also chooses the forwarder. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CIF (Cost, Insurance and Freight)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">This arrangement similar to CFR, but instead of the
buyer insuring the goods for the maritime phase of the voyage, the
shipper/seller will insure the merchandise. In this arrangement, the seller usually
chooses the forwarder. "Delivery" as above, is accomplished at the
port of destination. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CPT (Carriage Paid To)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"><br />
In CPT transactions the shipper/seller has the same obligations found with CIF,
with the addition that the seller has to buy cargo insurance, naming the buyer
as the insured while the goods are in transit. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CIP (Carriage and Insurance Paid To)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">This term is primarily used for multimodal transport.
Because it relies on the carrier's insurance, the shipper/seller is only
required to purchase minimum coverage. When this particular agreement is in
force, Freight Forwarders often act in effect, as carriers. The buyer's
insurance is effective when the goods are turned over to the Forwarder. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DAF (Delivered At Frontier)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Here the seller's responsibility is to hire a
forwarder to take goods to a named frontier, which usually a border crossing
point, and clear them for export. "Delivery" occurs at this time. The
buyer's responsibility is to arrange with their forwarder for the pick up of the
goods after they are cleared for export, carry them across the border, clear
them for importation and effect delivery. In most cases, the buyer's forwarder
handles the task of accepting the goods at the border across the foreign soil. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DES (Delivered Ex Ship)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In this type of transaction, it is the seller's
responsibility to get the goods to the port of destination or to engage the
forwarder to the move cargo to the port of destination uncleared.
"Delivery" occurs at this time. Any destination charges that occur
after the ship is docked are the buyer's responsibility. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DEQ (Delivered Ex Quay)*<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In this arrangement, the buyer/consignee is
responsible for duties and charges and the seller is responsible for delivering
the goods to the quay, wharf or port of destination. In a reversal of previous
practice, the buyer must also arrange for customs clearance. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DDP (Delivered Duty Paid)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DDP terms tend to be used in intermodal or
courier-type shipments. Whereby, the shipper/seller is responsible for dealing
with all the tasks involved in moving goods from the manufacturing plant to the
buyer/consignee's door. It is the shipper/seller's responsibility to insure the
goods and absorb all costs and risks including the payment of duty and fees. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">DDU (Delivered Duty Unpaid)<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">This arrangement is basically the same as with DDP,
except for the fact that the buyer is responsible for the duty, fees and taxes.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify; text-indent: 42.55pt;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">These are the various International Trade
contracts. In relation to these whenever dispute occurs then conflict of laws
comes in front and then court has to decide which law will be applicable in
that dispute.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
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<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">CHAPTER IV<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">CONFLICT OF LAWS AND PROPER LAW OF CONTRACT<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The <b>Doctrine
of the Proper Law</b> is applied in the <a href="http://en.wikipedia.org/wiki/Choice_of_law" title="Choice of law"><b><span style="color: windowtext; text-decoration-line: none;">choice of law</span></b></a> stage of a <a href="http://en.wikipedia.org/wiki/Lawsuit" title="Lawsuit"><span style="color: windowtext; text-decoration-line: none;">lawsuit</span></a>
involving the <a href="http://en.wikipedia.org/wiki/Conflict_of_Laws" title="Conflict of Laws"><span style="color: windowtext; text-decoration-line: none;">Conflict of Laws</span></a>.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In a
Conflicts lawsuit, one or more <a href="http://en.wikipedia.org/wiki/State_%28law%29" title="State (law)"><span style="color: windowtext; text-decoration-line: none;">state</span></a>
<a href="http://en.wikipedia.org/wiki/Law" title="Law"><span style="color: windowtext; text-decoration-line: none;">laws</span></a> will be relevant to
the decision-making process. If the laws are the same, this will cause no
problems, but if there are substantive differences, the choice of which law to
apply will produce a different <a href="http://en.wikipedia.org/wiki/Judgment" title="Judgment"><span style="color: windowtext; text-decoration-line: none;">judgment</span></a>. Each state therefore produces a set of rules to
guide the choice of law, and one of the most significant rules is that the law
to be applied in any given situation will be the <i>proper law</i>. This is the
law which seems to have the closest and most real connection to the facts of
the case, and so has the best claim to be applied.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">All laws, to
a greater or lesser extent, are reflections of the <a href="http://en.wikipedia.org/wiki/Public_policy_%28law%29" title="Public policy (law)"><span style="color: windowtext; text-decoration-line: none;">public policies</span></a> of the state that enacted them.
The more important the policy to the <a href="http://en.wikipedia.org/wiki/Society" title="Society"><span style="color: windowtext; text-decoration-line: none;">society</span></a>,
the greater the claim of the relevant law to be applied. Thus, if laws exist to
protect <a href="http://en.wikipedia.org/wiki/Citizen" title="Citizen"><span style="color: windowtext; text-decoration-line: none;">citizens</span></a>,
the law of the place where loss or damage is sustained might have a strong
claim to apply: e.g. in a traffic accident, two cars collide because of faulty
maintenance and both drivers are injured — the local laws exist to provide some
degree of protection for all those who use the roads in that state, setting
minimum standards for the design and maintenance of vehicles, specifying what
levels of <a href="http://en.wikipedia.org/wiki/Insurance" title="Insurance"><span style="color: windowtext; text-decoration-line: none;">insurance</span></a>
should be carried, setting the minimum age and qualifications for the right to
drive, etc.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">But
the problem with accepting the claim of any one state to have its law apply is
that the result may be somewhat arbitrary. So, in the example given, if neither
driver had a residence in the state, and the cars were both maintained outside the
state, the laws of other states may have an equal or better claim to apply. The
advantage of the <i>proper law</i> approach is that it builds in flexibility
rather than offering a mechanical rule. Suppose that there is a </span><a href="http://en.wikipedia.org/wiki/Contract" title="Contract"><span style="line-height: 150%;">contract</span></a><span style="line-height: 150%;">
between an </span><a href="http://en.wikipedia.org/wiki/Italy" title="Italy"><span style="line-height: 150%;">Italian</span></a><span style="line-height: 150%;">
</span><a href="http://en.wikipedia.org/wiki/Company_%28law%29" title="Company (law)"><span style="line-height: 150%;">company</span></a><span style="line-height: 150%;"> and an </span><a href="http://en.wikipedia.org/wiki/English_law" title="English law"><span style="line-height: 150%;">English</span></a><span style="line-height: 150%;">
</span><a href="http://en.wikipedia.org/wiki/Partnership" title="Partnership"><span style="line-height: 150%;">partnership</span></a><span style="line-height: 150%;">
for the </span><a href="http://en.wikipedia.org/wiki/Sale_of_goods" title="Sale of goods"><span style="line-height: 150%;">sale of goods</span></a><span style="line-height: 150%;"> made in </span><a href="http://en.wikipedia.org/wiki/Greece" title="Greece"><span style="line-height: 150%;">Greece</span></a><span style="line-height: 150%;">
to be shipped from </span><a href="http://en.wikipedia.org/wiki/Belgium" title="Belgium"><span style="line-height: 150%;">Belgium</span></a><span style="line-height: 150%;">
on a ship flying the flag of </span><a href="http://en.wikipedia.org/wiki/Panama" title="Panama"><span style="line-height: 150%;">Panama</span></a><span style="line-height: 150%;">
to a </span><a href="http://en.wikipedia.org/wiki/Sweden" title="Sweden"><span style="line-height: 150%;">Swedish</span></a><span style="line-height: 150%;">
port. Adopting a rule such as the </span><a href="http://en.wikipedia.org/wiki/Lex_loci_contractus" title="Lex loci contractus"><i><span style="line-height: 150%;">lex loci contractus</span></i></a><span style="line-height: 150%;">, i.e. apply the
law of the place where the contract was made, might actually select a law
having no other connection with the substance of the bargain made by the
parties. Similarly, picking the </span><a href="http://en.wikipedia.org/wiki/Lex_loci_solutionis" title="Lex loci solutionis"><i><span style="line-height: 150%;">lex loci solutionis</span></i></a><span style="line-height: 150%;">, i.e. the law
of the place where the contract is to be performed, may prove to be equally
irrelevant, assuming that there is only one place where performance is to
occur: in the example, there is manufacture in Greece, delivery to Belgium,
loading in Belgium, carriage on the high seas, and unloading in Sweden. So, if
the contract does not make an express selection of the law to apply (see </span><a href="http://en.wikipedia.org/wiki/Choice_of_law_clause" title="Choice of law clause"><span style="line-height: 150%;">choice of law clause</span></a><span style="line-height: 150%;">), the parties
are deemed to have chosen to be bound by the law with which the contract has
the closest and most real connection.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">The meaning of proper law of
contract<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Many
contracts also provide for what should be done when parties have dispute in the
future, they either prescribe arbitration or designate courts of some place to
resolve the dispute. But what is the law that will be used to judge the conduct
of the parties if a dispute arises in relation to the contract. Normally in a
domestic contract, i.e. one between two persons of the same country the
applicable law will usually be that of country that they belong to. For
instance if a Indian company based in Bombay agrees to erect a power plant in
Karnataka, the applicable law will necessarily
be Indian law. However it is also generally accepted in most
jurisdictions that parties to a contract, involving an international transaction
are free to choose the law that is to be used as the point of reference in
either interpreting the contract or resolving the disputes that arise and perhaps
in even determining whether the contract is a valid one that binds the parties
to the dispute. This condition by the parties of the law that will govern their
relationship is called the proper law of contract.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn10" name="_ftnref10" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[10]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">LORD
ATKIN in formulating the doctrine of proper law of contract observed:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"> “The legal principles, which are to guide an
English court on the question of the proper law, are now well settled. It is
the law, which the parties intended to apply. Their intention will be
ascertained by the intention expressed in the contract, if any, which will be
conclusive. If no intention be expressed, the intention will be presumed by the
court from the contract and the relevant surrounding circumstances.”<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn11" name="_ftnref11" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[11]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In
this regard the statement of Lord McNair, the former President of the
International national courts of justice is also important:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">…
It is often said that the parties to contract make their own law, and it is, of
course, true that, subject to the rules of public policy and <i>order public</i>, the parties are free to
agree upon such terms as they may choose. Nevertheless, agreements that are
intended to have a legal operation (as opposed to a merely social operation)
create legal rights and duties, and cannot exist in vacuum but must have a
place within a legal system which is available for dealing with such questions
as the validity, application and interpretation of contracts, and generally for
supplementing their express provision….<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn12" name="_ftnref12" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[12]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In
a case <i>Rhodia Ltd</i> v. <i>Neon Laboratories Ltd</i>,<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn13" name="_ftnref13" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[13]</span></span><!--[endif]--></span></a>
the appellants are English companies and the respondent is an Indian company.
An agreement was entered into between the English company to give exclusive
marketing and distributing rights in India, Sri Lanka, Bangladesh and Nepal to
the latter, of the goods manufactured in India by the former. The parties in
this case have expressly intended the contract to be governed by and construed
in all respects in accordance with the English law with only limitation that
the intention of the parties must be <i>bonafide</i>
and should not be opposed to public policy. Court in this case held that the
purport of Articles 15.1 and 8.1<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn14" name="_ftnref14" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[14]</span></span><!--[endif]--></span></a>
of the respective agreements, the parties have expressly intended the contract
to be governed by and construed in all respects, including the formation
thereof and performance there under, in accordance with the English law.
Therefore, to my mind, English law will be the “proper law” of the subject
agreements. In other words, the parties to the subject agreements have
expressly intended their contract to be governed by the English legal system. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">The proper law of the contractual
relationship between the confirming bank and the beneficiary<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Under English
common law the relationship between the confirming bank and the beneficiary
(seller) was accepted to have its closest and most real connection to the country
where the branch at which payment was to be made to the seller was situated. The
proper law was thus the law of the country of the confirming bank. According to
Dicey and Morris, the position remains unchanged under the Rome Convention. <a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn15" name="_ftnref15" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[15]</span></span><!--[endif]--></span></a>
This view was also expressed <i>obiter </i>in the <i>Bank of Baroda </i>case.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn16" name="_ftnref16" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[16]</span></span><!--[endif]--></span></a>
It is the confirming bank which effects the characteristic performance either
by (a) providing the banking service of confirmation; or (b) undertaking to pay
the beneficiary upon the presentation of conforming documents.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn17" name="_ftnref17" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[17]</span></span><!--[endif]--></span></a>
Therefore, in the context of the relationship between the confirming bank and
the beneficiary, the presumption contained in article 4(2) of the Rome
Convention leads to the application of the law of the country of the confirming
bank.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn18" name="_ftnref18" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[18]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Where
there is no express choice, the proper law, the law governing the performing
obligations of the parties, may be uncertain, if the parties have not made an
express choice, in which case the proper law is determined, where the seat of
arbitration is in England or wales, by the ordinary rules governing the
ascertainment of the proper law of any contract. Those rules are set out in the
Rome Convention on the law applicable to contractual obligations, and apply to
dispute under contracts between nationals of the states, which are signatories
to the Rome Convention.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn19" name="_ftnref19" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[19]</span></span><!--[endif]--></span></a>
<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"> <o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div align="center" style="text-align: center;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b><span style="font-size: 14.0pt; mso-fareast-language: EN-IN;">CHAPTER V</span></b><o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="line-height: normal; text-align: center;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 14.0pt;">CONVENTION ON THE LAW APPLICABLE TO CONTRACTUAL
OBLIGATIONS (ROME CONVENTION)<o:p></o:p></span></b></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In <a href="http://en.wikipedia.org/wiki/Conflict_of_Laws" title="Conflict of Laws"><span style="color: windowtext; text-decoration-line: none;">Conflict of
Laws</span></a>, the <b>Rome Convention</b> is the <i>Convention on the Law
Applicable to </i><a href="http://en.wikipedia.org/wiki/Contract" title="Contract"><i><span style="color: windowtext; text-decoration-line: none;">Contractual</span></i></a><i> Obligations</i> and it
opened for signature in Rome on 19th June 1980. The intention is to create at
least a <a href="http://en.wikipedia.org/wiki/Harmonisation" title="Harmonisation"><span style="color: windowtext; text-decoration-line: none;">harmonized</span></a> if not a unified body of law applicable
on contractual obligations.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The
Convention on the law applicable to contractual obligations was opened for
signature in Rome on 19 June 1980 for the then nine Member States. It entered
into force on 1 April 1991. In due course, all the new members of the European
Community signed the Convention. When the Convention was signed by Austria,
Finland and Sweden, a consolidated version was drawn up and published in the
Official Journal in 1998. A further consolidated version was published in the
Official Journal in 2005 following the accession of ten new Member States to the
Convention.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The
Convention applies to contractual obligations in situations involving a choice
of laws - even where the law it designates is that of a non-contracting State -
with the exception of:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">questions involving the status or legal
capacity of natural persons; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">contractual obligations relating to
wills, matrimonial property rights or other family relationships; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">obligations arising under negotiable
instruments (bills of exchange, cheques, promissory notes, etc.); <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">4.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">arbitration agreements and agreements on
the choice of court; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">5.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">questions governed by the law of
companies and other corporate and unincorporate bodies; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">6.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the question of whether an agent is able
to bind a principal to a third party (or an organ to bind a company or body
corporate or unincorporate); <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">7.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the constitution of trusts and questions
relating to their organisation; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">8.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">evidence and procedure; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l9 level1 lfo4; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">9.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">contracts of insurance which cover risks
situated in the territories of the Member States (re-insurance contracts are
covered, however). <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The signatories
to a contract may choose the law applicable to the whole or a part only of the
contract and select the court which will have jurisdiction over disputes. By
mutual agreement they may change the law applicable to the contract at any time
(principle of freedom of choice). <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">If the
parties have not made an explicit choice of applicable law, the contract is
governed by the law of the country with which it is most closely connected,
according to the principle of the proper law (place of habitual residence or
place of central administration of the party performing the contract, principal
place of business or place of business responsible for performing the
contract). However, specific rules apply in two cases:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l5 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">where the contract concerns immovable
property, the law applicable by default is that of the country in which the
property is situated; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l5 level1 lfo5; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">where the contract concerns the
transport of goods, the applicable law is determined according to the place of
loading or unloading or the principal place of business of the consignor. <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">To protect
the rights of the consumer, the supply of goods or services to a person is
covered by special provisions, according to the principle of the protection of
the weaker party. Unless the parties decide otherwise, such contracts are governed
by the law of the country in which the consumer has his habitual residence. In
no circumstances may the choice of law work to the disadvantage of the consumer
or deprive him of the protection afforded by the law of his country of
residence where it is more favourable. These rules do not apply to contracts of
carriage or contracts for the supply of services in a country other than that
in which the consumer has his habitual residence.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In the case
of employment contracts one of the following will apply:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l13 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the law of the country in which the
employee habitually carries out his work; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l13 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the law of the country in which the
company which employed the worker has its place of business; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l13 level1 lfo6; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">the law of the country with which the
employment contract is most closely associated. <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">If the
parties decide to select another law to apply to the contract, this choice may
not be at the expense of the protection of the worker. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Present or
future provisions of Community law will take precedence over the terms of the
Convention, in particular as regards the choice of law relating to contractual
obligations in relation to particular matters. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">If, once the
Convention has entered into force, any Member State wishes to adopt new rules
on the choice of law for a particular category of contract within the scope of
the Convention or become a party to an international convention in this field,
it must inform the other signatories. Each of these States has six months in
which to respond and, if it so wishes, ask for consultations. If no reply has
been received within six months or if no agreement has been reached in
consultations within two years (one year in the case of a multilateral
convention), the requesting State may amend its law or accede to the
Convention. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The
Convention will remain in force for ten years. It will then be tacitly renewed
every five years and may be denounced by one of the signatory States.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Two
protocols on the interpretation of the Convention by the Court of Justice of
the European Communities were signed in 1988. A third protocol, signed in 1980
and supplemented in 1996, authorises Denmark, Sweden and Finland to retain
their national provisions concerning the law applicable to the carriage of
goods by sea. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Four joint
declarations were appended to the Convention:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l6 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">in 1980 a number of Member States
stressed the importance of measures adopted by the Community on choice of law
rules being consistent with the terms of the Convention; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l6 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">they also raised the possibility of
conferring jurisdiction for interpreting the Convention on the Court of
Justice; <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l6 level1 lfo7; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">in 1988, after the two protocols had
been signed, an exchange of information between the Member States and the Court
of Justice on judgments relating to contractual obligations was proposed. <o:p></o:p></span></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">In <a href="http://en.wikipedia.org/wiki/Conflict_of_Laws" title="Conflict of Laws"><span style="color: windowtext; text-decoration-line: none;">Conflict of
Laws</span></a>, the <b>Rome Convention</b> is the <i>Convention on the Law
Applicable to </i><a href="http://en.wikipedia.org/wiki/Contract" title="Contract"><i><span style="color: windowtext; text-decoration-line: none;">Contractual</span></i></a><i> Obligations</i> and it
opened for signature in Rome on 19th June 1980. The intention is to create at
least a <a href="http://en.wikipedia.org/wiki/Harmonisation" title="Harmonisation"><span style="color: windowtext; text-decoration-line: none;">harmonised</span></a> if not a unified body of law within
the <a href="http://en.wikipedia.org/wiki/European_Union" title="European Union"><span style="color: windowtext; text-decoration-line: none;">European
Union</span></a>.<o:p></o:p></span></div>
<h2 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">The
uniform rules for contractual obligation under Rome convention-</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h2>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Express
selection</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Article 3
states the general rule that the parties to a contract have freedom of choice
over the Applicable Law. To exercise this choice either express words may be
used or the intention should be demonstrated with reasonable certainty by the
terms of the contract or the circumstances of the case.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The law
chosen may apply to the whole or only a part of the contract, and the choice is
not irrevocable. The parties can at any time agree to change the Applicable Law
and any such variation will not prejudice the formal validity of the agreement
nor adversely affect the rights of third parties.<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Where all
the elements of a contract, at the time of its conclusion, are connected with
only one country, Article 3 may not be used to used to <a href="http://en.wikipedia.org/wiki/Evasion_%28law%29" title="Evasion (law)"><span style="color: windowtext; text-decoration-line: none;">evade</span></a>
the mandatory provisions of the that state (Article 3(4)).<o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">To establish
a choice demonstrated with reasonable certainty, there must have been a
"real choice". That the parties would have chosen a particular law is not sufficient.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn20" name="_ftnref20" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[20]</span></span><!--[endif]--></span></a>
The court will take into account <b>both</b> the terms of the contract and the
circumstances of the case. <o:p></o:p></span></div>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The <a href="http://www.rome-convention.org/instruments/i_rep_lagarde_en.htm" title="http://www.rome-convention.org/instruments/i_rep_lagarde_en.htm"><span style="color: windowtext; text-decoration-line: none;">Guiliano-Lagarde
Report</span></a> gives three examples of situations where a real choice may be
demonstrated with reasonable certainty:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l4 level1 lfo13; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="line-height: 150%;">Standard form contracts</span></b><span style="line-height: 150%;">
The report gives as an example a Lloyd’s policy of marine insurance. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l4 level1 lfo13; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="line-height: 150%;">Jurisdiction and arbitration
agreements</span></b><span style="line-height: 150%;"> <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: .5in; mso-list: l4 level1 lfo13; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: 42.55pt;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><b><span style="line-height: 150%;">Course of dealing<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn21" name="_ftnref21" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><b><span style="line-height: 115%;">[21]</span></b></span><!--[endif]--></span></a></span></b><span style="line-height: 150%;"><o:p></o:p></span></span></div>
<h3 style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: small;"><span class="mw-headline"><span style="line-height: 150%;">Implied
selection</span></span><span style="line-height: 150%;"><o:p></o:p></span></span></h3>
<div style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;">If there is
no express choice, Article 4 provides that the contract shall be governed by
the law of the country with which it is most closely connected. If the
agreement is severable, two Applicable Laws may be selected. For these
purposes, it is presumed that the contract is most closely connected with the <i>lex
loci solutionis</i>, i.e. the law of the place where the contract is to be
performed, or the law of the <a href="http://en.wikipedia.org/wiki/Habitual_residence" title="Habitual residence"><span style="color: windowtext; text-decoration-line: none;">habitual residence</span></a> of the person who is to
perform, or, in the case of a body corporate or unincorporate, where its
central administration is located. However, if it is a commercial or
professional contract, the Applicable Law will be the law of the place in which
the principal place of business is situated or, where under the terms of the
contract the performance is to be effected through a place of business other
than the principal place of business, the country in which that other place of
business is situated except that there is a <a href="http://en.wikipedia.org/wiki/Rebuttable_presumption" title="Rebuttable presumption"><span style="color: windowtext; text-decoration-line: none;">rebuttable presumption</span></a>:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">where
the subject matter of the agreement is immovable property, the </span><a href="http://en.wikipedia.org/wiki/Lex_situs" title="Lex situs"><i><span style="line-height: 150%;">lex situs</span></i></a><span style="line-height: 150%;">
will apply; and contracts for the carriage of goods and charter-parties are
governed by the law of the place in which, at the time the contract is
concluded, the carrier has his principal place of business if that is also the
place in which loading or discharge is to occur or the place where the
consignor has his or her principal place of business,. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">A
call was also made for all new Member States of the Community when signing the
Rome Convention to accede to the protocol on the interpretation of the
Convention by the Court of Justice.<a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftn22" name="_ftnref22" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[22]</span></span><!--[endif]--></span></a><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify; text-indent: 42.55pt;">
<b style="text-indent: 42.55pt;"><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;"> </span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: 2.0in; text-align: justify; text-indent: .5in;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CHAPTER
VI<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; margin-left: 2.0in; text-align: justify; text-indent: .5in;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">CONCLUSION<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">While
applying the conflict of laws to the contractual obligation different problems
arise in case of proper law or choice of law etc.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 150%; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">In
case of choice of law or proper law, I want to say that proper law is primary
system of laws which governs most aspects of the factual situation giving rise
to the dispute. This does not imply that all the aspects of the factual
circumstances are necessarily governed by the same system of law, but there is
a strong presumption that this will be the case. So, the process of legal
analysis undertaken by the courts in each case identifies all the facts that
have a specific geographical connection, e.g. where the parties reside or their
businesses operate, where any agreement was made, where relevant actions were
performed, etc. Once all the relevant connecting factors have been identified,
the law of the state that has the greatest number of connections will be the
proper law. This is only one problem, there are many other problems also which
are as follows:<o:p></o:p></span></div>
<div style="line-height: 150%; margin-left: .5in; mso-list: l7 level1 lfo17; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span lang="EN-IN">1)<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span lang="EN-IN">In case of conflict, one sovereign wishes to apply
his own law to a juridical relation arising on his territory, while another
wishes to throw around his own subject,</span><span lang="EN-IN" style="line-height: 150%;"> </span><span lang="EN-IN">who is one of the parties to the relation, the protection of his
personal law. This give rise to problem of conflict of laws in its application
in contractual obligations. It may create biased decisions. <o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l7 level1 lfo17; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span lang="EN-IN" style="line-height: 150%;">2)<span style="font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span lang="EN-IN" style="line-height: 150%;">The another problem is
that, the traditional choice of law rules produce unsatisfactory </span><span lang="EN-IN" style="line-height: 150%;">decisions because
mechanical precepts whose hard and fast connecting factors indiscriminately </span><span lang="EN-IN" style="line-height: 150%;">invoke foreign law must
inevitably produce hardship.</span><span lang="EN-IN" style="line-height: 150%;"><o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l7 level1 lfo17; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span lang="EN-IN" style="line-height: 150%;">3)<span style="font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span lang="EN-IN" style="line-height: 150%;"> One more problem is that lawyers has showed
lack of interest in the preparation and submission of private international law
aspects in their cases. In India this is major problem in cases of conflict of
laws. It is unfortunate that no positive steps have been taken for introducing
the subject of Private International Law in more and more law colleges in
India.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span lang="EN-IN" style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">The
solution to these problems which I think is that some more and new researches
has to go in order to understand the implication of conflict of laws. So, that
some kind of harmonisation of laws may be achieved. Because the incapacity of
the old laws to tackle the modern needs is not adequate, keeping in view the
changes in technology and other provisions governing contracts. So that the law
is equally implemented between different parties to the contract. This kind of
uniformity will not only enhance the confidence of people in the contract. But
it will also bring about certainty in the laws of the countries. This will also increase in interaction
between parties belonging to different countries both the areas of commercial
contracts and other contracts. Certainly there will be enormous increase in
international trade. Therefore the nation must make a sincere attempt to bring
about harmonisation different conflicting laws of the different countries. <o:p></o:p></span></div>
<div style="line-height: 150%; margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; tab-stops: 151.5pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: 150%; tab-stops: 151.5pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;"> </span><b><span style="line-height: 150%;">BIBLIOGRAPHY<o:p></o:p></span></b></span></div>
<div class="MsoNormal" style="line-height: 150%; tab-stops: 151.5pt;">
<b><span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">BOOKS<o:p></o:p></span></b></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">1.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Cheshire, <i>Private International Law</i> (2004).<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">2.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Dicey, Morris & Collins, <i>The conflict of laws</i> (2006)<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">3.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Carr, Indira and Stone, Peter, <i>International Trade Law </i>(2005)<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">4.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Diwan, paras, Private International Law,
Deep & Deep Publication (1988)<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">5.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Sreekantan, K, Private International
law, Academy of legal publication (1978) </span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">Available
at </span><a href="http://en.wikipedia.org/wiki/Incoterm"><span style="line-height: 150%;">http://en.wikipedia.org/wiki/Incoterm</span></a><span style="line-height: 150%;">
visited on 23mar2008<o:p></o:p></span></span></div>
<div class="MsoFootnoteText" style="line-height: 150%; margin-left: .5in;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">Available
at </span><a href="http://www.incoterms2000.com.htm/"><span style="line-height: 150%;">www.INCOTERMS2000.com.htm</span></a><u><span style="line-height: 150%;">
</span></u><span style="line-height: 150%;">visited
on 3apr2008.<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">Vikram
Raghavan “The proper law of contract : Are there any lessons to learn from the
Rome convention?” Vol.23-24, <i>Indian
Social Legal Journal</i> (1997-98).<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in;">
<span style="font-family: "arial" , "helvetica" , sans-serif; line-height: 150%;">McNair,
“The General Principles of Law Recognised by Civilised Nations”33 <i>British Yearbook of International Law </i>(1957).<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">6.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Available at </span><a href="http://etd.rau.ac.za/theses/available/etd-02142005-121736/restricted/EAF11.pdf"><span style="line-height: 150%;">http://etd.rau.ac.za/theses/available/etd-02142005-121736/restricted/EAF11.pdf</span></a><span style="line-height: 150%;">
visited on 11march2008.<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">7.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Ryder Rodney D. “Contracts, the Choice
of Law and International commercial Arbitration”, Vol.2, <i>Company law journal</i> (1999).<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">8.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Available at </span><a href="http://en.wikipedia.org/wiki/Rome_Convention%20visited%20on%2023mar2008"><span style="line-height: 150%;">http://en.wikipedia.org/wiki/Rome_Convention
visited on 23mar2008</span></a><span style="line-height: 150%;">.<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="line-height: 150%; margin-left: .5in; mso-list: l2 level1 lfo16; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="line-height: 150%;">9.<span style="font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="line-height: 150%;">Diwan, paras, Private International Law,
Deep & Deep Publication, 1988. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="line-height: 150%; tab-stops: 151.5pt; text-indent: 42.55pt;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<br />
<div>
<!--[if !supportFootnotes]--><span style="font-family: "arial" , "helvetica" , sans-serif;"><br clear="all" /></span>
<br />
<hr align="left" size="1" width="33%" />
<!--[endif]-->
<br />
<div id="ftn1">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[1]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Cheshire, <i>Private International Law</i> p.5 (2004).<o:p></o:p></span></span></div>
</div>
<div id="ftn2">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[2]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Dicey and
Morris, <i>Conflict of Law</i> p-5 (2006)<o:p></o:p></span></span></div>
</div>
<div id="ftn3">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[3]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Dicey, Morris
& Collins, <i>The conflict of laws</i> p-3(
2006)<o:p></o:p></span></span></div>
</div>
<div id="ftn4">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref4" name="_ftn4" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[4]</span></span><!--[endif]--></span></a> <span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;">Like any other legal subject, the conflict of
laws has its technical terms, some of which mush now be explained. The rules of
the conflict of laws are, traditionally, expressed in terms of judicial concept
or categories and localizing elements or connecting factors.<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;">The <i>lex causae </i>is a convenient
shorthand expression, the law (usually but not necessarily foreign) which
governs the question. It is used in contradistinction to the <i>lexi fori</i>, which always means the
domestic law of the forum, i.e. (if the forum is English) English law. The <i>lex causae</i><b> </b>may be more specially denoted by a variety of
expressions, usually in latin, such as the <i>lex
domicilii </i>(law of domicile),</span><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[4]</span></span><!--[endif]--></span></span><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> <i>lex partriae </i>(law of nationality), <i>lex loci contractus </i>(law of the country where a contract is made), <i>lex loci solutionis </i>(law of the country
where a contract is to be performed or where a debt is to be paid),<i> lex loci delicti </i>(law of the country
where a tort is committed), <i>lex situs </i>(law
of the country where a thing is situated), <i>lex
loci actus </i>(law of the country where a legal act takes place) etc. are
used.</span><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><o:p></o:p></span></span></div>
</div>
<div id="ftn5">
<div class="MsoFootnoteText">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref5" name="_ftn5" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[5]</span></span><!--[endif]--></span></a>
<i>Supra</i> note 2 at page 1539.<o:p></o:p></span></div>
</div>
<div id="ftn6">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref6" name="_ftn6" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[6]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> See per Lord
Widgney, <i>L.J. Miller </i>v<i>. Whiteworth Street Estates</i>, (1969)1
W.L.R.377, at 383, on appeal (1970)2 W.L.R.728.<o:p></o:p></span></span></div>
</div>
<div id="ftn7">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref7" name="_ftn7" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[7]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Available at </span><a href="http://en.wikipedia.org/wiki/Incoterm"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;">http://en.wikipedia.org/wiki/Incoterm</span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> visited on
23mar2008<o:p></o:p></span></span></div>
</div>
<div id="ftn8">
<div class="MsoFootnoteText">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref8" name="_ftn8" title=""><span class="MsoFootnoteReference"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[8]</span></span><!--[endif]--></span></a>
Available at <a href="http://www.incoterms2000.com.htm/"><span style="color: windowtext; font-family: "times new roman" , "serif";">www.INCOTERMS2000.com.htm</span></a><u><span style="font-family: "times new roman" , "serif";"> </span></u><span style="font-family: "times new roman" , "serif";">visited on 3apr2008.</span><o:p></o:p></span></div>
</div>
<div id="ftn9">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref9" name="_ftn9" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[9]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Carr, Indira
and Stone, Peter, <i>International Trade Law
</i>p 5-52 (2005)<o:p></o:p></span></span></div>
</div>
<div id="ftn10">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref10" name="_ftn10" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[10]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Vikram Raghavan
“<i>The proper law of contract : Are there
any lessons to learn from the Rome convention</i>?”, Indian Social Legal
Journal, Vol.23-24,1997-98.<o:p></o:p></span></span></div>
</div>
<div id="ftn11">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref11" name="_ftn11" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[11]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> <i>Rex v. international Trustee for the
Protection of Bond Holders AG</i>(1937)AC500,at529.<o:p></o:p></span></span></div>
</div>
<div id="ftn12">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref12" name="_ftn12" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[12]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> McNair, The General
Principles of Law Recognised by Civilised Nations.33British Yearbook of
International Law 1 at 7(1957).<o:p></o:p></span></span></div>
</div>
<div id="ftn13">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref13" name="_ftn13" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[13]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> AIR 2002 Bom
502<o:p></o:p></span></span></div>
</div>
<div id="ftn14">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref14" name="_ftn14" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[14]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> The parties
entered into another agreement on the same lines of understanding and
stipulated art 8 and art 15 of the former agreement verbatim.<o:p></o:p></span></span></div>
</div>
<div id="ftn15">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref15" name="_ftn15" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[15]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Dicey and
Morris <i>Conflict of Laws </i>1426<o:p></o:p></span></span></div>
</div>
<div id="ftn16">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref16" name="_ftn16" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[16]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> <i>Bank of
Baroda v Vysya Bank Ltd </i>[1994] 1 Lloyd’s Rep 87.<o:p></o:p></span></span></div>
</div>
<div id="ftn17">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref17" name="_ftn17" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[17]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Dicey and
Morris <i>Conflict of Laws </i>1426. Van Niekerk and Schulze <i>International
Trade </i>221 also<o:p></o:p></span></span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 10.0pt;">accept the general rule that this relationship
is governed by the law of the country where the<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif; font-size: 10.0pt;">confirming bank is situated.<o:p></o:p></span></div>
</div>
<div id="ftn18">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref18" name="_ftn18" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[18]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Available at </span><a href="http://etd.rau.ac.za/theses/available/etd-02142005-121736/restricted/EAF11.pdf"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;">http://etd.rau.ac.za/theses/available/etd-02142005-121736/restricted/EAF11.pdf</span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> visited on
11march2008.<o:p></o:p></span></span></div>
</div>
<div id="ftn19">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref19" name="_ftn19" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[19]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> Ryder Rodney D.
“Contracts, The Choice of Law and International commercial Arbitration”, Vol.2,
<i>Company law journal</i> (1999).<o:p></o:p></span></span></div>
</div>
<div id="ftn20">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref20" name="_ftn20" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[20]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> "This
Article does not permit the court to infer a choice of law that the parties
might have made where they had no clear intention of making such a choice"
(</span><a href="http://www.rome-convention.org/instruments/i_rep_lagarde_en.htm" title="http://www.rome-convention.org/instruments/i_rep_lagarde_en.htm"><span style="font-family: "times new roman" , serif; font-size: 10pt;">Guiliano-Lagarde Report</span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;">).<o:p></o:p></span></span></div>
</div>
<div id="ftn21">
<div class="MsoNoSpacing" style="text-align: justify;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="file:///C:/Users/Nishi/Desktop/Conflicts%20of%20laws%20research%20paper.doc#_ftnref21" name="_ftn21" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"><!--[if !supportFootnotes]--><span class="MsoFootnoteReference"><span style="line-height: 115%;">[21]</span></span><!--[endif]--></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10.0pt;"> <cite>Egon
Oldendorff </cite><cite><span style="font-style: normal; mso-bidi-font-style: italic;"> v. </span> Liberia Corp</cite>, 1 Lloyd’s Rep 380 (1996)<o:p></o:p></span></span></div>
</div>
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Mrs. Nishi http://www.blogger.com/profile/15309433794435170713noreply@blogger.com0tag:blogger.com,1999:blog-2806707238296065240.post-7869761745396337642011-09-26T01:07:00.000-07:002017-03-29T05:47:30.621-07:00the doctrine of stare decisis<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span lang="EN" style="font-size: 14pt;">The doctrine of stare decisis</span></b></div>
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<b><span lang="EN">Introduction</span></b></div>
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<i><span lang="EN">Stare decisis </span></i><span lang="EN">is the policy of the court to stand by precedent. It literally means "to stand by decided matters". The phrase "<i>stare decisis</i>" is itself an abbreviation of the Latin phrase "<i>stare decisis et non quieta movere</i>" which implies "to stand by decisions and not to disturb settled matters"<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn1" name="_ftnref1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[1]</span></span></span></a>.</span>The doctrine of precedent refers to the doctrine that the court is to follow judicial decisions in earliar cases, when the same questions or points are raised before it in subsequent matters. <span lang="EN"></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">According to Salmond, the phrase ‘the doctrine of precedent’ has two meanings. In its loose sense, it means that precedents are reported, may be cited and will probably be followed by courts. In strict sense, it means not only that a precedent has great authority but in certain circumstances, courts are bound by previously decided cases. Thus, what a court really does is to apply principles or decisions laid down in past.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">It may be mentioned here that what is binding in judicial decision is not the entire decision but the reasons or principles based on which a decision is reached or the <i>ratio decidendi</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn2" name="_ftnref2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[2]</span></span></span></a>. </span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The <i>ratio decidendi</i> (reason of deciding) of a case can be defined as the material facts of the case plus the decision thereon.</span></div>
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<span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In Halsbury’s Laws of England it has been observed that ratio decidendi are the general reasons given for a decision or the general grounds upon which it is based, detached oe abstracted from specific peculiarities of a particular case which gives the rise to a particular decision. Similar observations have been made in <i>Krishna Kumar</i> v. <i>Union of India</i>. Broadly there are two tests for determining the ratio of the case, i.e, the Wambaugh test and Goodhart test. According to the Wambaugh test, also known as the reversal test, the proposition of law put forward by the judge should be reversed or negated and if the reversal would alter the actual decision, that proposition is the ratio decidendi of the case. The Goodhart test involves taking into account facts treated as material by the judge who decided the case cited as precedent.</span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></div>
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<span lang="EN">Glanville Williams<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn3" name="_ftnref3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[3]</span></span></span></a> is of similar view that the <i>ratio decidendi</i> of a case can be defined as the material facts of the case plus the decision thereon. He describes the doctrine in practical terms; ‘What the doctrine of precedent declares is that cases must be decided the same way when their material facts are the same. Obviously it does not require that all the facts should be the same. We know that in the flux of life all the facts of a case will never recur, but the legally material facts may recur and it is with these that the doctrine is concerned’.</span></div>
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<span lang="EN">In <i style="mso-bidi-font-style: normal;">Municipal Corporation of Delhi</i> v. <i style="mso-bidi-font-style: normal;">Gurnam Kaur<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn4" name="_ftnref4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[4]</span></b></span></span></a></i>, the court took the observations from the House of Lords Decision in <i style="mso-bidi-font-style: normal;">F.A. and A.B. Ltd.</i> v. <i style="mso-bidi-font-style: normal;">Lupton</i>, that what constitutes a binding precedent in a case is the ratio decidendi which is almost always to be ascertained by an analysis of the material facts. </span></div>
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<span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The process of determining the <i>ratio decidendi</i> is a correctly thought analysis of what the court actually decided – essentially, based on the legal points about which the parties in the case actually fought. All other statements about the law in the text of a court opinion – all pronouncements that do not form a part of the court’s rulings on the issues actually decided in that particular case (whether they are correct statements of law or not), are <i>obiter dicta</i>, and are not rules for which that particular case stands.</span></div>
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<span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The principle of <i>stare decisis</i> can be divided into two components. The first is the rule that a decision made by a superior court is <a href="http://en.wikipedia.org/wiki/Binding_precedent" title="Binding precedent"><span style="text-decoration: none;">binding precedent</span></a> (also known as mandatory authority) which an inferior court cannot change. The second is the principle that a court should not overturn its own precedents unless there is a strong reason to do so and should be guided by principles from lateral and inferior courts. The second principle, regarding <a href="http://en.wikipedia.org/wiki/Persuasive_precedent" title="Persuasive precedent"><span style="text-decoration: none;">persuasive precedent</span></a>, is an advisory one which courts can and do ignore occasionally.<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn5" name="_ftnref5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[5]</span></span></span></a> </span></div>
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<span lang="EN">Basically, under the doctrine of <i>stare decisis</i>, the decision of a higher court within the same provincial jurisdiction acts as binding authority on a lower court within that same jurisdiction. The decision of a court of another jurisdiction only acts as persuasive authority. The degree of persuasiveness is dependent upon various factors, including, first, the nature of the other jurisdiction. Second, the degree of persuasiveness is dependent upon the level of court which decided the precedent case in the other jurisdiction. Other factors include the date of the precedent case, on the assumption that the more recent the case, the more reliable it will be as authority for a given proposition, although this is not necessarily so. And on some occasions, the judge's reputation may affect the degree of persuasiveness of the authority.<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn6" name="_ftnref6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[6]</span></span></span></a></span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Historical Background</span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The doctrine of <i>stare decisis</i> or the doctrine of precedent is essentially a feature, of comman law systems such as England, the United States, India and Australia. However, the concept of precedent was not completely absent prior to its development in that country. Infact, in Rome, even during the time of Justinian, precedent was recognized as having a persuasive value though it was not considered to be binding. Prior to this period, precedent was considered binding. The Emperor Septinus Severus considered the authority of an uninterrupted series of decided cases as having the authority of a statute.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The Position in England</span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In England, most of the law in certain fields such as torts, developed entirely on the basis of prior decisions. In fact what is known as comman law has developed wholly from judicial pronouncements. As noted by the Supreme Court in <i>Waman Rao and Ors</i> v. <i>Union of India</i>, the doctrine of <i>stare decisis</i> is the basis of comman law. The doctrine of <i>stare decisis</i> has essentially developed as a result of progress made in law-reporting. In beginning, there was no doctrine of <i>stare decisis</i> as there was no reporting of the decisions of the courts in England. The origin of reporting of decisions in England can be traced back to 17<sup>th</sup> century when the decisions of <i>Exchequre Courts</i> came to be reported and were giving binding force. In 1833 Chief Justice Park reterated the need for recognizing the binding force of precedents in the historic decision in <i>Mirehouse</i> v. <i>Rennel</i>, later, with the establishment of the supreme court of judicature by the Acts of 1873 and 1875 the doctrine of <i>stare decisis</i> was firmly established. A Heirarchy of courts which is also a pre condition for the <i>stare decisis</i> was established along with the above said Acts.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In England, while initially precedents were considered as guiding principles, with the doctrine of binding precedent developed and around the 20<sup>th</sup> century it was completed in some respects<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn7" name="_ftnref7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[7]</span></span></span></a>.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The decision in <i>London Street Tramways Co. Ltd</i>. v. <i>London County Council</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn8" name="_ftnref8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[8]</span></span></span></a> made the decisions of House of Lords binding on the House of Lords itself. A similar view had been taken in an earlier decisions <i>Attorney general</i> v. <i>Dean of Windson</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn9" name="_ftnref9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[9]</span></span></span></a> wherein Lord Campbell observed that the House of Lords is the court of appeal of last resort and its decisions are authoritative and conclusive declarations of the existing state of law and binding on itself as much as they are on all inferior tribunals<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn10" name="_ftnref10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[10]</span></span></span></a>. This, however, was an impediment to the development of law according to the needs and requirements of society. In 1966, this position was cured through the Practice Note issued which provided that while former decisions of courts would be normally treated as binding, they may be departed from when it appears right to do so.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In so far as the court of appeal are concerned, the Courts of Appeal are bound by the decisions of House of Lords as well as their own previous decisions. In a 1944 decision in <i>Young</i> v. <i>Bristol Aeroplane Co. Ltd.</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn11" name="_ftnref11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[11]</span></span></span></a>, it was held that the Court of Appeal would be bound by its own decisions. There are, however, exceptions to this decision. The Court of Appeal would not be bound by its own decisions where (i) a decision though not expressly overruled, cannot stand with the decisions of the House of Lords; (ii) where it is satisfied that a previous decision is per incurium and; (iii) where there are two conflicting decisions of its own<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn12" name="_ftnref12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[12]</span></span></span></a>. The divisional courts are also bound by decisions of higher forums as well as by its own decisions. So,</span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"> a precedent is a statement made of the law by a Judge in deciding a case. The doctrine states that within the hierarchy of the English courts a decision by a superior court will be binding on inferior courts. This means that when judges try cases they must check to see if similar cases have been tried by a court previously. If there was a precedent set by an equal or superior court, then a judge should obey that precedent. If there is a precedent set by an inferior court, a judge does not have to follow it, but may consider it. The House of Lords however does not have to obey its own precedents.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">As far as the decisions of European Court of Justice are concerned, its decision are not binding on itself though it does follow its previous decisions. The decisions of European Court of Human Rights are not binding on itself, but as in the case of the European Court of Justice, it does apply and follow them.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Reasons behind the Doctrine of <i>Stare Decisis</i></span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The basic reasons behind the doctrine of <i>stare decisis</i> is the maintenance of consistency and certainty. Certainty, predictability and stability in law are considered to be the major objectives of the legal system, and the doctrine of stare decisis aims at achieving these objectives.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In <i>Hari Singh</i> v. <i>State of Haryana</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn13" name="_ftnref13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[13]</span></span></span></a>, it was noted that it is true that in the system of justice which is administered by courts, one of the basic principles to be kept in mind that the courts of co-ordinate jurisdiction should have consistent opinions in respect of similar sets of facts and circumstances or question of law. If opinion given on identical facts are inconsistent, instead of achieving harmony in the judicial systems, it will lead to judicial anarchy. The view that has held the field for a long time must not be disturbed merely because of the possibility of another view<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn14" name="_ftnref14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[14]</span></span></span></a>.</span></div>
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<b><i><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Stare decisis</span></i></b><b><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"> in civil law systems</span></b></div>
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<i><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Stare decisis</span></i><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"> is not usually a doctrine used in <a href="http://en.wikipedia.org/wiki/Civil_law_%28legal_system%29" title="Civil law (legal system)"><span style="text-decoration: none;">civil law</span></a> systems, because it violates the principle that only the legislature may make law. However, the civil law system does have <a href="http://en.wikipedia.org/wiki/Jurisprudence_constante" title="Jurisprudence constante"><span style="text-decoration: none;">jurisprudence constante</span></a>, which is similar to <i>Stare decisis</i> and dictates that the Court's decision condone a cohesive and predictable result. In theory, inferior courts are generally not bound to precedents established by superior courts. In practice, the need for predictability means that inferior courts generally defer to precedents by superior courts. In a sense, the most superior courts in civil law jurisdictions, such as the <i><a href="http://en.wikipedia.org/wiki/Court_of_Cassation_%28France%29" title="Court of Cassation (France)"><span style="text-decoration: none;">Cour de cassation</span></a></i> and the <i><a href="http://en.wikipedia.org/wiki/Council_of_State_%28France%29" title="Council of State (France)"><span style="text-decoration: none;">Conseil d'État</span></a></i> in France are recognized as being bodies of a quasi-legislative nature.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Doctrine of Precedent: Pros and Cons</span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">A number of commentators have explored the pros and cons of the doctrine of stare decisis. </span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Supporters of the system, argue that obeying precedent makes decisions "predictable." Another advantages of this doctrine, as mentioned earliar is that it brings certainty, stability and consistency in law. It also saves time and energy of judges as they are not required to determine the same question of law over and over again once it has been settled. As noted by Bodenheimer, the doctrine also plays a role in curbing arbitrariness on the part of judges as they are bound to follow established precedents thus preventing bias and error. The doctrine brings flexibility in law and law is shaped according to the social, economic and other circumstances. However, critics argue<sup> </sup>that <i>stare decisis</i> is an application of the <a href="http://en.wikipedia.org/wiki/Argument_from_authority" title="Argument from authority"><span style="text-decoration: none;">argument from authority</span></a> logical fallacy and can result in the preservation and propagation of cases decided wrongly. Another argument often used against the system is that it is <a href="http://en.wikipedia.org/wiki/Democracy" title="Democracy"><span style="text-decoration: none;">undemocratic</span></a> as it allows unelected judges to make law. A counter-argument (in favor of the concept of stare decisis) is that if the <a href="http://en.wikipedia.org/wiki/Legislature" title="Legislature"><span style="text-decoration: none;">legislature</span></a> wishes to alter the case law (other than constitutional interpretations) by <a href="http://en.wikipedia.org/wiki/Statute" title="Statute"><span style="text-decoration: none;">statute</span></a>, the legislature is empowered to do so. Critics sometimes accuse particular judges of applying the doctrine selectively, invoking it to support precedents which the judge supported anyway, but ignoring it in order to change precedents with which the judge disagreed.</span></div>
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<span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Regarding constitutional interpretations, there is concern that over-reliance on the doctrine of <i>stare decisis</i> can be subversive. An erroneous precedent may at first be only slightly inconsistent with the <a href="http://en.wikipedia.org/wiki/Constitution_of_the_United_States" title="Constitution of the United States"><span style="text-decoration: none;">Constitution</span></a>, and then this error in interpretation can be propagated and increased by further precedents until a result is obtained that is greatly different from the original understanding of the Constitution. <i>Stare decisis</i> is not mandated by the Constitution, and if it causes unconstitutional results then the historical evidence of original understanding can be re examined. In this opinion, predictable fidelity to the Constitution is more important than fidelity to unconstitutional precedents. Another factor is that the doctrine of binding precedent can in a sense hinder the development of law. Society is not static and there are changes in social, economic and other circumstances with time. Changed circumstances may require a different interpretation of law.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Exceptions to the doctrine of <i>Stare Decisis</i></span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The doctrine of <i>stare decisis </i>requires subsequent courts to abide by the decisions of prior courts, whenever similar of identical questions of law as were decided by the prior courts arise before them. The rule is not absolute. In <i>Bachhan Singh</i> v. <i>State of Punjab</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn15" name="_ftnref15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[15]</span></span></span></a>, it was observed that the rule of adherence to precedents is not a rigid or inflexible rule of law, but is a rule of practice adopted by courts in order to provide uniformity and stability in the law. Where for instance, there is a change in the statutory provision on which the prior decision was based, the prior decision would no longer be a binding precedent. Also, where a particular decision or set of decisions have been overruled again, the decisions would not have a binding force. Other exceptions i.e., situations where a prior decision would not be binding on a subsequent court, include decisions <i>per incurium</i> and decisions <i>sub silentio</i>. In <i>Maktul</i> v. <i>Mst. Manbhari and Ors</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn16" name="_ftnref16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[16]</span></span></span></a>, it was observed that the rule of stare decisis is not an inflexible rule and is inapplicable where the decision is clearly erroneous and where its reversal does not shake any titles or contracts or alter the general course of dealing.</span></div>
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<i><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Per incuriam</span></i><i><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></i></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Per incuriam </span></i><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">means that a court failed to take into account all the relevant and vital statutes or case authorities and that this had a major effect on the decision. In loose sense, it means through </span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">inadvertence or through want of care. The <i>per incuriam </i>rule is a well-established technical rule; but you must be careful here. <i>Per incuriam </i>does not simply mean the earlier court got things wrong. It only means there was a significant oversight. A decision is per incuriam need not be relied upon as precedent. </span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The court is not bound by its own decisions found to have been made <i>per incuriam.</i></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"> The fact that the case being examined had weaknesses in argument, or in the judgment, does not make the decision <i>per incuriam</i>. Thus in <i>Morelle </i>v <i>Wakeling<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn17" name="_ftnref17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[17]</span></b></span></span></a></i>, Lord Evershed MR limited the use of the <i>per incuriam </i>rule to cases where:</span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">there was ignorance of authority which would have been binding on the court; <i>and</i></span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">that ignorance led to faulty reasoning.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The <i>and </i>is very important. It means, it was observed during this case that as a general rule, the only cases in which decisions have been held to be <i>per incuriam</i> are those given in ignorance or forgetfulness of some inconsistent statutory provision or of some authority binding on the courts concerened, so that in such cases, some features of the decisions or some step in the reasoning on which it is based is found on that account to be demonstrably wrong. A similar view was taken in <i>Duke</i> v. <i>Reliance systems Ltd</i>.<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn18" name="_ftnref18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[18]</span></span></span></a> Indian courts have also expressed like opinions in this regard. In <i>Municipal Corporation of Delhi</i> v. <i>Gurnam Kaur</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn19" name="_ftnref19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[19]</span></span></span></a>, it was held that decisions <i>per incurium</i> are those that have been rendered in ignorance of the terms of the statute and of a rule having the force of a statute<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn20" name="_ftnref20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[20]</span></span></span></a>. Raghavachari notes that in cases where a court may have been aware of the decision but did not refer to the same or did not appreciate its relevance would be hit by per-incurium some commentators have also taken the view that judgments which are the result of a manifest error or step would also constitute <i>per incuriam</i>. In <i>Sardari lal Gupta</i> v. <i>Sri Krishna Agarwal</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn21" name="_ftnref21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[21]</span></span></span></a><i>,</i> a decision was held to be <i>per incurium</i> on the ground that it was based on English law and had ignored the position in Indian law. As quoted in Halsbury`s Laws of England, a decision should not be considered to be <i>per incurium</i>, merely due to deficiencies on behalf of parties, and merely as the best possible argument has not been advanced. In <i>State of Bihar</i> v. <i>Kalika kaur@ Kalika Singh<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn22" name="_ftnref22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[22]</span></b></span></span></a></i>, it was noted that unless it is a glaring case of obtrusive omission, it is not reasonable to depend upon the principle of <i>per incurium </i>judgments.</span></div>
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<i><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Sub Silentio</span></i></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">It is a latin word which means under silence or without any notice being taken. Precedents that pass <i>sub silentio</i> are of little or no authority. This is an another exception to the binding precedent. A judgment said to be <i>sub silentio </i>when either a propostion was not the subject matter of argument during the hearing or discussion in the judgment or the proposition was assumed to be correct and the court acted upon that assumption. In <i>Muncipal Corporation of delhi </i>v. <i>Gurnam Kaur </i>, it was observed that, “ A decision passes subsilentio, in the technical sense that has come to be attached to that pharse, when the particular point of law involved in the decision is not perceived by the court or present to its mind”. For instance in a recent case, <i>State of U.P.</i> <i>and ors.</i> v. <i>Jeet S. Bist</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn23" name="_ftnref23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[23]</span></span></span></a>, it was observed that in the decision in <i>All India Association and ors.</i> v. <i>Union of India,</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn24" name="_ftnref24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[24]</span></span></span></a> while directions were given, there was no discussion on whether such direction s could be validly given by the court and thus the decision was found to have been passed <i>sub silentio.</i> If, however, the proposition was discussed at the time of arguments or in the judgment and thereafter a decision was reached, the same could not be said to be <i>sub silentio</i> English courts have in cases held that even an inferior court can ignore the decision of a superior court on the basis of the <i>sub silentio </i>doctrine if the conditions are satisfied<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn25" name="_ftnref25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[25]</span></span></span></a>.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Doctrine of Prospective over Ruling</span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Although the doctrine of precedent is the normal course followed, decisions that are erroneous or that do not hold good in view of challenged circumstances, may be overruled by higher forums. Prof. Laksminath notes that a decision may be overruled where it is recent or there is a divided opinion, the opinion is erroneous, the decision is unclear, causes in convenience and hardship, the error in the prior decision cannot be easily corrected by the legislative process or the decision is vague<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn26" name="_ftnref26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[26]</span></span></span></a>.once overruled, a prior decision is no longer a binding precedent. However, if a precedent is overruled, this may lead to the re opening of old disputes on the ground of change in the legal position and consequently, multiplicity of proceedings. By the application of this doctrine, changes in the position of law that are laid down by the court are made applicable only prospectively from the date that the change in law has been brought about by the court or from any other date specified by the Court so as not to disturb past matters that have been finally settled.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The doctrine of prospective overruling which is a feature of American Jurisprudence and an exception to the normal principles of law, was imported and applied for the first time in LC <i>Golaknath</i> v. <i>State of Punjab</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn27" name="_ftnref27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[27]</span></span></span></a> which overruled its earliar decisions in <i>Shakari Prasad`s</i> case and <i>Sajjan Singh`s case </i>by which the first and seventeenth amendments. The court does not clearly defined the doctrine during this case. But court limited the scope of application of this doctrine by laying down</span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"> “(1) The doctrine of prospective overruling can be invoked in matters arising under the constitution. (2) It can be applied only by the highest court of the country i.e, Supreme Court as it has Constitutional Jurisdiction to declare law binding on all courts in India. (3) The scope of the retroactive operation of the law declared by the Supreme court superseding its earliar decisions is left to its discretion to be moulded in accordance with thee justice of the cause or matter before it”.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The doctrine has been adopted to avoid multiplicity of proceedings, and avoid uncertainity in law<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn28" name="_ftnref28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[28]</span></span></span></a>. It was observed in the case of <i>M.A. Murthy</i> v. <i>State of Karnataka<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn29" name="_ftnref29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[29]</span></b></span></span></a></i> that the doctrine of prospective overruling was a part of the constitutional cannons of interpretation.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">While Golak Nath`s case, certain guidelines have been laid down as regards the application of doctrine of prospective overruling, as observed in <i>Somaiya Organics India Ltd.</i>v. <i>State of U.P.<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn30" name="_ftnref30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[30]</span></b></span></span></a></i></span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The parameters have not been adhered to in practice. It may be mentioned here that unless the court expressly makes the operation of a decision of a decision prospective, it will be retrospective in operation.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">This doctrine has been applied in service matters. In <i>Managing Director, ECIL</i> v. <i>B.Karunakar</i><a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn31" name="_ftnref31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[31]</span></span></span></a><i>,</i> the view was adopted. Prospective over ruling is a part of the principles of constitutional cannon of interpretation and can be resorted to by the Supreme Court while superceding the law declared by it earlier. It is a device innovated to avoid reopening of settled issues, to prevent multiplicity of proceedings and to avoid uncertainty and avoidable litigation. In other words action taken contrary to the law declared prior to the date of declaration are validated in larger public interest. The law as declared applies to future cases. It is for the Supreme Court to indicate as to whether the decision in question will operate prospectively. In other words there shall be no prospective over ruling, unless it is so indicated in the particular decision. It is not open to be held that the decision in a particular case will be prospective in its application by application of the doctrine of prospective overruling. The doctrine of binding precedent helps in promoting certainty and consistencies in judicial decisions and enables an organic development of the law besides providing assurance to the individual as to the consequences of the transaction forming part of the daily affairs.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">So. the concept of Prospective Overruling, as the title of the project reflects, is a deviation from the principle of retroactive operation of a decision and thus, a deviation from the traditional Blackstonian principle too. To illustrate, in very simple words, the implication of the invocation of the doctrine is that the decision of such a case would not have retrospective operation but would operate only in the future, i.e., have only prospective operation. This project now seeks to embark on a detailed analysis of the application and implications, both positive and negative, of the doctrine in the light of its invocation in the above mentioned cases.</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Doctrine of <i>stare decisis</i> in India </span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The doctrine of <i>stare decisis</i> as is understood today appears to not have existed in India during the ancient or medieval times<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn32" name="_ftnref32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[32]</span></span></span></a>. It is only with the establishment of British rule in the country that the concept of binding precedent came to be applicable in India. The British Rule led to the hierarchy of courts as well as reporting of decisions, i.e., the two pre conditions for the <i>stare decisis</i>. In 1813, Dorin suggested the adoption of the doctrine of <i>stare decisis</i> in India. The establishment of British Rule led to the setting up of the Sardar Diwani Adalats and the Supreme Courts at Calcutta, Bombay and Madras. In 1861, the high courts Act was enacted providing for the establishment of high Courts by issue of letters patent. Such courts had original as well as appellate jurisdiction. A hierarchy of courts was thus established. </span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">The Government of India Act, 1935 expressly made the decisions of the Federal court and the Privy Council binding on all Courts in British India<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn33" name="_ftnref33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[33]</span></span></span></a> and thus gave statutory recognition to the doctrine of <i>stare decisis</i>. The Federal courts was not bound by its own decisions. After independence, the doctrine of precedent continues to be followed in the country. Article 141 of the Constitution of India makes the ‘law declared’ by the Supreme Court binding on all courts within the territory in India. The Expression ‘law declared’ implies the law creating role of the Supreme Court. The Supreme Court is not bound by its own decisions. In <i>Bengal Immunity Co.</i> v. <i>State of Bihar<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftn34" name="_ftnref34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 115%;">[34]</span></b></span></span></a> </i>the court observed that there is nothing in the Indian constitution that prevent the Supreme Court from departing from its own previous decision if it is convinced of its error and baneful effect on public interest. In so far as high court are concerned, the decisions of a High Court are binding on all subordinate courts within the jurisdiction of High Court. </span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Conclusion</span></b></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">While statutes and enactments of the legislature lay down the general rules to be applied in the adjudication of disputes between parties, the final authority for the interpretation of those rules are the courts. The doctrine of <i>stare decisis</i> makes the decisions of courts, usually the higher forums, binding on subordinate courts in cases in which similar or identical questions of law are raised before the court. The application of this doctrine ensures that there is uniformity and certainty in the law. It saves time and efforts of judges and helps in preventing arbitrary action on the part of judges. The doctrine thus ensures that at least over a certain period of time law remain certain and people are able to conduct their business in accordance with the prevalent interpretation of law. The doctrine is thus in the interest of public policy. In India, the doctrine is constitutionally recognized in respect of the decisions of the Supreme Court which have been declared under Article 141 to be binding on all courts and tribunals in the country. This of course implies that even a single pronouncement of the Supreme Court would be binding on subordinate courts. However, as held in the Bengal Immunity case, the decisions of the Supreme Court are not binding on itself. It is only the reasons for deciding a case i.e., the <i>ratio decidendi</i> of the case which are binding on future courts. There is no definite view as to how the ratio decidendi is to be determined but there are a number of tests for its determination of which some are the material facts test proposed by Prof. Goodhart and the Reversal Test Proposed by Wambaugh.</span></div>
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<span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">In order for the doctrine of <i>stare decisis</i> to be applicable, there are two basic prerequisites, first that there must be authentic reporting of decisions of courts. The second requirement is an established hierarchy of courts. The principle that the decisions of higher forums would be binding on lower forums is referred to as vertical <i>stare decisis</i> while that the decisions of forums would be binding on coordinate or coequal benches is known as horizontal <i>stare decisis</i>. The great value of the doctrine of <i>stare decisis </i>is that it provides certainty. While the doctrine of <i>stare decisis</i> is in the interest of public policy, there are number of disadvantages of the doctrine. In view of the large numbers of pronouncements of the Supreme Court and high courts it is difficult to locate all the precedents. Also, even in case of an erroneous decision, lower forums are bound to follow the decision as precedent. Contrary decisions, of coordinate benches can create confusion for lower forums. Another major disadvantage is that if a strict interpretation is given to this doctrine, and precedents are considered to be binding even on the highest forums, it may hinder the development of law which is necessary with changes in society. <i>Stare decisis</i> is not meant to be an inflexible rule that hinders the development of law. The Supreme Court appears to have taken this view in the <i>Mirzapur Moti Kureshi Kasab</i> case that while <i>stare decisis</i> is ordinarily to be adhered to, precedents can be reconsidered in view of changed circumstances where there are compelling reasons to do so. Thus, while the doctrine of <i>stare decisis</i> should generally be adhered to, the same should not be interpreted in a manner as to hinder the development of law and the correction of erroneous decisions. At the same time, the power to reconsider decisions cannot be given forum and thus, it is appropriate that the power remains with higher forums to the court that rendered the decision. </span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 14pt; line-height: 150%;">BIBLIOGRAPHY</span></b></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 14pt; line-height: 150%;">BOOKS AND ARTICLES:</span></b></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Edgar Bodenheimer <i>Jurisprudence: The Philosophy and Method of Law</i>, Harvard University Press (1974).</span></div>
<ul style="background-color: white; color: black; margin-top: 0in; text-align: justify;" type="disc">
<li class="MsoNormal" style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Farrar, <i>Introduction to Legal Method, </i>Sweet and Maxwell, London, (1977).</span></li>
</ul>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Smith, <i>Glanville Williams</i><i><span style="font-style: normal;">:</span> Learning the Law,</i> Thompson: Sweet and Maxwell, (1973).</span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Gerald L. Gall, <i>The Canadian Legal System</i>, Toronto: Carswell Legal Publications, (1983).</span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></div>
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<span lang="EN" style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Kmiec, Keenan. The Origin and Current Meanings of "Judicial Activism", <i>California Law Review,</i> (2004).</span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Laksminath, <i>Precedent in Indian Legal System</i>, Eastern Book Co., Lucknow , (1990).</span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Nomita aggarwal, <i>Jurisprudence: Legal Theory, </i>Jain Book Agency, (2006).</span></div>
<ul style="background-color: white; color: black; margin-top: 0in; text-align: justify;" type="disc">
<li class="MsoNormal" style="line-height: 150%; margin-bottom: 0in;"><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"><a href="http://en.wikipedia.org/w/index.php?title=Caleb_Nelson&action=edit&redlink=1" title="Caleb Nelson (page does not exist)"><span style="text-decoration: none;">Nelson, Caleb</span></a> <a href="http://www.secretjustice.org/pdf_files/law_review/nelson.pdf" title="http://www.secretjustice.org/pdf_files/law_review/nelson.pdf"><span style="text-decoration: none;">Stare Decisis and Demonstrably Erroneous Precedents</span></a>, <i>Virginia Law Review</i>, (2001).</span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></li>
</ul>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">P.J Fitzgerald, <i>Samond on Jurisprudence,</i> (2004).</span></div>
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<li class="MsoNormal" style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Paranjape, <i>Study in Jurisprudence and Legal Theory</i>, Central Law Agency, (2001).</span></li>
<li class="MsoNormal" style="line-height: 150%; margin-bottom: 0in;"><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Pandey, <i>Constitutional and Law of India, </i>Central Law Agency, (2005).</span></li>
</ul>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">Tripathi, <i>Jurisprudence(Legal Theory),</i> Eastern Law Agency, (1999).</span></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">V.T. Raghavachari, <i>Precedent: Two of the Exceptions of Stare Decisis, Per incurium and Sub silentio</i>, (1993).</span></div>
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<b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;">WEBSITE VISITED:</span></b></div>
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<cite><span style="font-family: "symbol"; font-size: 12pt; font-style: normal; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span></cite><cite><span style="font-size: 12pt; line-height: 150%;">legalresearch.org/docs/perell.html.</span></cite><cite><b><span style="font-size: 12pt; font-style: normal; line-height: 150%;"></span></b></cite></div>
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<cite><span style="font-family: "symbol"; font-size: 12pt; font-style: normal; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span></cite><cite><span style="font-size: 12pt; line-height: 150%;"><a href="http://www.in.gov/judiciary/about/03-precedent.html"><span style="font-style: normal; text-decoration: none;">www.in.gov/judiciary/about/03-precedent.html</span></a>.</span></cite><cite><b><span style="font-size: 12pt; font-style: normal; line-height: 150%;"></span></b></cite></div>
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<span style="font-family: "symbol"; font-size: 12pt; line-height: 150%;">·<span style="font: 7pt "Times New Roman";"> </span></span><cite><span style="font-size: 12pt; line-height: 150%;">www.lectlaw.com/def2/s065.htm.</span></cite><b><span style="font-family: "times new roman" , "serif"; font-size: 12pt; line-height: 150%;"></span></b></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref1" name="_ftn1" style="mso-footnote-id: ftn1;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[1]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> See Edgar Bodenheimer Jurisprudence: The Philosophy and Method of Law; Black law Dictionary.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref2" name="_ftn2" style="mso-footnote-id: ftn2;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[2]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> In a recent judgement, <i style="mso-bidi-font-style: normal;">Sanjay Singh and Another</i> v. <i style="mso-bidi-font-style: normal;">Union Public Service Commision,</i> (2007) 3 SCC 720 the Apex Court noted reiterated that it is the ratio decidendi of a judgement that would be binding.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref3" name="_ftn3" style="mso-footnote-id: ftn3;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[3]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> </span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 10pt;">Glanville Williams<i> , Learning the Law</i> (9th ed. 1973),</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref4" name="_ftn4" style="mso-footnote-id: ftn4;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[4]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1989) 1 SCC 101.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref5" name="_ftn5" style="mso-footnote-id: ftn5;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[5]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> </span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 10pt;">Kmiec, Keenan. The Origin and Current Meanings of "Judicial Activism", <i>California Law Review</i> (2004).</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref6" name="_ftn6" style="mso-footnote-id: ftn6;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[6]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> </span><span lang="EN" style="font-family: "times new roman" , "serif"; font-size: 10pt;">Gerald L. Gall, <i>The Canadian Legal System</i>, 2nd ed. (Toronto: Carswell Legal Publications, 1983) at 220.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref7" name="_ftn7" style="mso-footnote-id: ftn7;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[7]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> P.J Fitzgerald, Samond on Jurisprudence 142 (2004).</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref8" name="_ftn8" style="mso-footnote-id: ftn8;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[8]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1898) AC 375.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref9" name="_ftn9" style="mso-footnote-id: ftn9;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[9]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1860) 8 HIC 369.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref10" name="_ftn10" style="mso-footnote-id: ftn10;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[10]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> Nomita aggarwal, ‘Jurisprudence’ 108 (2006).</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref11" name="_ftn11" style="mso-footnote-id: ftn11;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[11]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1944) KB 718.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref12" name="_ftn12" style="mso-footnote-id: ftn12;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[12]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> <i>Ibid </i>note 10.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref13" name="_ftn13" style="mso-footnote-id: ftn13;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[13]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1993) 66 ELT 23 (SC).</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref14" name="_ftn14" style="mso-footnote-id: ftn14;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[14]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> <i>State of Gujarat</i> v. <i>Mirzapur Moti Kureshi Kasab Jamat and Ors</i>. AIR 2006 SC 212.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref15" name="_ftn15" style="mso-footnote-id: ftn15;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[15]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> AIR 2006 SC 212.</span></div>
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<div id="ftn16" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref16" name="_ftn16" style="mso-footnote-id: ftn16;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[16]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> AIR 1958 SC 918.</span></div>
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<div id="ftn17" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref17" name="_ftn17" style="mso-footnote-id: ftn17;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[17]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> [1955] 2 QB 379; [1955] 1 All ER 708.</span></div>
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<div id="ftn18" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref18" name="_ftn18" style="mso-footnote-id: ftn18;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[18]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1988) QB 108.</span></div>
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<div id="ftn19" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref19" name="_ftn19" style="mso-footnote-id: ftn19;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[19]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1989) 1 SCC 101</span></div>
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<div id="ftn20" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref20" name="_ftn20" style="mso-footnote-id: ftn20;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[20]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> See also Government of A.P. v. B. Satyanarayana Rao (2000) 4 SCC 262.</span></div>
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref21" name="_ftn21" style="mso-footnote-id: ftn21;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[21]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> AIR 1964 P&H 439 quoted in Raghavachari , <i>op. cit.</i></span></div>
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<div id="ftn22" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref22" name="_ftn22" style="mso-footnote-id: ftn22;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[22]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> Decided on 25.04.2003.</span></div>
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<div id="ftn23" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref23" name="_ftn23" style="mso-footnote-id: ftn23;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[23]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> Decided on 18.05.2007.</span></div>
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<div id="ftn24" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref24" name="_ftn24" style="mso-footnote-id: ftn24;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[24]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (1993) 4 SCC 288.</span></div>
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<div id="ftn25" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref25" name="_ftn25" style="mso-footnote-id: ftn25;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[25]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> <i>Baker </i>v. <i>Queen (</i>1975) AC 974, <i>Bars</i> v. <i>Bethel </i>(1982) 1 ALL ER 106 quoted in V.T. Raghavachari, Precedent: Two of the Exceptios of Stare Decisis, Per incurium and Sub silentio, 91993 )66 ELT 143-160.</span></div>
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<div id="ftn26" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref26" name="_ftn26" style="mso-footnote-id: ftn26;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[26]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> A. Laksminath, Precedent in India, (2005).</span></div>
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<div id="ftn27" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref27" name="_ftn27" style="mso-footnote-id: ftn27;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[27]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> </span><span style="font-family: "times new roman" , "serif"; font-size: 10pt;">AIR 1967 (SC) 1643 </span></div>
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<div id="ftn28" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref28" name="_ftn28" style="mso-footnote-id: ftn28;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[28]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> <i>Harish Dhigra </i>v. <i>Union of India </i>AIR 2001 SC 3795</span></div>
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<div id="ftn29" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref29" name="_ftn29" style="mso-footnote-id: ftn29;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[29]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> AIR 2003 SC 3821.</span></div>
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<div id="ftn30" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref30" name="_ftn30" style="mso-footnote-id: ftn30;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[30]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> (2001) 5 SCC 519.</span></div>
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<div id="ftn31" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref31" name="_ftn31" style="mso-footnote-id: ftn31;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[31]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> </span><span style="font-family: "times new roman" , "serif"; font-size: 10pt;">(1993) 4 SCC 427</span></div>
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<div id="ftn32" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref32" name="_ftn32" style="mso-footnote-id: ftn32;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[32]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> Tripathi, Jurisprudence 170 (1999).</span></div>
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<div id="ftn33" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref33" name="_ftn33" style="mso-footnote-id: ftn33;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[33]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> Section 212.</span></div>
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<div id="ftn34" style="background-color: white; color: black; text-align: justify;">
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<a href="http://www.blogger.com/post-create.g?blogID=2806707238296065240#_ftnref34" name="_ftn34" style="mso-footnote-id: ftn34;" title=""><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"><span class="MsoFootnoteReference"><span style="font-family: "times new roman" , "serif"; font-size: 10pt; line-height: 115%;">[34]</span></span></span></span></a><span style="font-family: "times new roman" , "serif"; font-size: 10pt;"> AIR 1955 SC 661.</span></div>
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Mrs. Nishi http://www.blogger.com/profile/15309433794435170713noreply@blogger.com2