The law of contract

The Lex loci contractus is a Latin locution meaning "contract law", used to refer to the fact that the applicable law for the regulation of a contract is the law of the country in which it has been concluded. >

It has a great importance in private international law, in those judgments in which the judge must decide which law to apply (whether to apply the law itself, or that of another country). In this case, the lex loci contractus is a possibility by which the judge would apply the law of the venue of the contract as binding legislation for the litigation.

It is also possible to agree in a contract that the applicable law is the law of another place, but the law of the place of celebration is, at least, applicable to the conditions of validity of such contract at the time of signing .

In addition, when nothing is stipulated against, the lex loci contractus is usually applicable to settle the litigation. This however varies according to each legislation and the circumstances of the contracting (subjects, object, form, place, etc.).

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