Contracts (Applicable Law) Act 1990

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Contracts (Applicable Law) Act 1990

1990 CHAPTER 36

An Act to make provision as to the law applicable to contractual obligations in the case of conflict of laws.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Modifications etc. (not altering text)

[ F1 1 Meaning of “the Rome Convention” U.K.

In this Act, a reference to the Rome Convention is a reference to the provisions contained in Schedule 1 (which is derived from the Convention on the law applicable to contractual obligations opened for signature in Rome on 19th June 1980). ]

I1 S. 1 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

2 [ F2 Application of the Rome Convention ] U.K.

[ F3 (1) The Rome Convention applies to contracts made on or after 1st April 1991. ]

(3) [ F6 The Rome Convention ] shall apply in the case of conflicts between the laws of different parts of the United Kingdom.

I2 S. 2 partly in force; s. 2(1) in force for certain purposes at 1.4.1991 and s. 2(2)-(4) fully in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

I3 S. 2(1) in force at 1.3.2005 for specified purposes by S.I. 2004/3448, art. 2(a)

3 Interpretation of [ F8 the Rome Convention ] . U.K.

[ F9 (1) Any question as to the meaning or effect of any provision of the Rome Convention is to be decided in accordance with section 6 of the European Union (Withdrawal) Act 2018 (interpretation of [ F10 assimilated ] law). ]

(3) Without prejudice to any practice of the courts as to the matters which may be considered apart from this subsection—

(a) the report on the [ F12 Convention on the law applicable to contractual obligations ] by Professor Mario Giuliano and Professor Paul Lagarde which is reproduced in the Official Journal of the M1Communities of 31st October 1980 may be considered in ascertaining the meaning or effect of any provision of [ F13 the Rome Convention ] ; F14.

I4 S. 3 partly in force; s. 3(a) in force 1.4.1991 by s. 7 andS.I. 1991/707, art. 2

F154 Revision of Conventions etc. U.K.

[ F16 4A. Disapplication where the rules in the Rome I Regulations apply: England and Wales and Northern Ireland U.K.

(1) Nothing in this Act applies to affect the determination of issues relating to contractual obligations which fall to be determined under the Rome I Regulation.

[ F17 (2) In this section “the Rome I Regulation” means Regulation (EC) No. 593/2008 of the European Parliament and of the Council on the law applicable to contractual obligations as that Regulation has effect as [ F18 assimilated direct ] legislation (including that Regulation as applied by regulation 5 of the Law Applicable to Contractual Obligations (England and Wales and Northern Ireland) Regulations 2009), unless the issues are ones in respect of which Regulation (EC) No. 593/2008 has effect by virtue of Article 66 of the EU withdrawal agreement, in which case it means that Regulation as it has effect by virtue of that Article. ]

(3) This section extends to England and Wales and Northern Ireland only. ]

[ F19 4B. Disapplication where the rules in the Rome I Regulation apply: Scotland S

(1) Nothing in this Act applies to affect the determination of issues relating to contractual obligations which fall to be determined by the Rome I Regulation.

[ F20 (2) In this section—

(3) This section extends to Scotland only. ]

5 Consequential amendments. U.K.

The enactments specified in Schedule 4 to this Act shall have effect subject to the amendments specified in that Schedule.

I6 S. 5 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

6 Application to Crown. U.K.

This Act binds the Crown.

I7 S. 6 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

7 Commencement. U.K.

This Act shall come into force on such day as the Lord Chancellor and the Lord Advocate may by order made by statutory instrument appoint; and different days may be appointed for different provisions or different purposes.

Subordinate Legislation Made

P1 S. 7 power of appointment conferred by s. 7 exercised by S.I.1991/707

I8 S. 7 wholly in force at 1.4.1991 see S.I. 1991/707, art. 2

8 Extent. U.K.

(1) [ F22 Except as provided by virtue of section 4B(3), this ] Act extends to Northern Ireland.

I9 S. 8 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

9 Short title. U.K.

This Act may be cited as the Contracts (Applicable Law) Act 1990.

I10 S. 9 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

SCHEDULES

SCHEDULE 1 U.K. The Rome Convention

I11 Schedule 1 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

Title I U.K. Scope of the Convention

I12 Schedule 1 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

Article 1 U.K.

Scope of the Convention U.K.

1 U.K. The rules of this Convention shall apply to contractual obligations in any situation involving a choice between the laws of different countries.

I13 Schedule 1 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

2 U.K. They shall not apply to:

(a) questions involving the status or legal capacity of natural persons, without prejudice to Article 11;

(b) contractual obligations relating to:

(c) obligations arising under bills of exchange, cheques and promissory notes and other negotiable instruments to the extent that the obligations under such other negotiable instruments arise out of their negotiable character;

(d) arbitration agreements and agreements on the choice of court;

(e) questions governed by the law of companies and other bodies corporate or unincorporate such as the creation, by registration or otherwise, legal capacity, internal organisation or winding up of companies and other bodies corporate or unincorporate and the personal liability of officers and members as such for the obligations of the company or body;

(f) the question whether an agent is able to bind a principal, or an organ to bind a company or body corporate or unincorporate, to a third party;

(g) the constitution of trusts and the relationship between settlors, trustees and beneficiaries;

(h) evidence and procedure, without prejudice to Article 14.

I14 Schedule 1 wholly in force at 1.4.1991 see s. 7 and S.I. 1991/707, art. 2

3 U.K. The rules of this Convention do not apply to contracts of insurance which cover risks situated in the territories of the [ F26 United Kingdom or any Member State ] of the European Economic Community. F27.