Choice of Law in International Business Contracts

Ronald Fadly Sopamena(1email)


(1) Faculty of Law Pattimura University, Ambon, Indonesia
email Corresponding Author
CrossMark

Abstract


Introduction: Differences in the national legal system and the contract law provisions of each country open up opportunities for conflict and dispute to occur. In addition, differences in national laws that serve as normative references for actors in international trade transactions can also cause doubt and uncertainty for foreign parties. Thus the choice of law can be referred to as the freedom of the parties in a contract to choose which law will be used and applies to the parties in an international agreement considering that the national contract law of each country is very diverse.

Purposes of the Research: This writing aims to analyze the choice of law in international business contracts.

Methods of the Research: This study uses a normative juridical method. Normative legal research is library research, namely research on secondary data. Secondary data has a scope that includes personal letters, books, to official documents issued by the government.

Results of the Research: The legal principles regulated in international business transactions refer to the legal principles of international treaties/contracts agreed upon by the parties, and international trade conventions. The parties involved in international business contracts have the freedom to determine with whom and what the subject matter of the agreement they wish to enter into the contract as long as it does not violate the laws and regulations. Then by entering a choice of law, the parties can easily determine the contents of the business contract because each party can already get clarity about the law that will be used and the interpretation of the contents of the contract so that the implementation of the contract will run more optimally.


Keywords


Choice of Law; Contract Clauses; International Business Contracts


DOI


10.47268/balobe.v2i2.1062

Published


2022-10-25

How To Cite


APA: Sopamena, R.F. (2022). Choice of Law in International Business Contracts. Balobe Law Journal, 2(2), 45–50. DOI: https://doi.org/10.47268/balobe.v2i2.1062.
IEEE: R.F. Sopamena, "Choice of Law in International Business Contracts", Balobe Law J., vol. 2, no. 2, pp. 45–50, Oct. 2022. Accessed on: Apr. 27, 2025. [Online]. Available DOI: https://doi.org/10.47268/balobe.v2i2.1062
Harvard: Sopamena, R.F., (2022). "Choice of Law in International Business Contracts". Balobe Law Journal, Volume 2(2), pp. 45–50. [Online]. Available DOI: https://doi.org/10.47268/balobe.v2i2.1062 (Accessed on: 27 April 2025)
Chicago: Sopamena, Ronald Fadly. "Choice of Law in International Business Contracts." Balobe Law Journal 2, no. 2 (October 25, 2022): 45–50. Accessed April 27, 2025. doi:10.47268/balobe.v2i2.1062
Vancouver: Sopamena RF. Choice of Law in International Business Contracts. Balobe Law J. [Internet]. 2022 Oct 25 [cited 2025 Apr 27];2(2):45–50. Available from: https://doi.org/10.47268/balobe.v2i2.1062
MLA 8th: Sopamena, Ronald Fadly. "Choice of Law in International Business Contracts." Balobe Law Journal, vol. 2, no. 2, 25 Oct. 2022, pp. 45–50, doi:10.47268/balobe.v2i2.1062. Accessed 27 Apr. 2025.
BibTeX:
@article{balobe1062,
		author = {Ronald Sopamena},
		title = {Choice of Law in International Business Contracts},
		journal = {Balobe Law Journal},
		volume = {2},
		number = {2},
		year = {2022},
		keywords = {Choice of Law; Contract Clauses; International Business Contracts},
		abstract = {Introduction: Differences in the national legal system and the contract law provisions of each country open up opportunities for conflict and dispute to occur. In addition, differences in national laws that serve as normative references for actors in international trade transactions can also cause doubt and uncertainty for foreign parties. Thus the choice of law can be referred to as the freedom of the parties in a contract to choose which law will be used and applies to the parties in an international agreement considering that the national contract law of each country is very diverse.Purposes of the Research: This writing aims to analyze the choice of law in international business contracts.Methods of the Research: This study uses a normative juridical method. Normative legal research is library research, namely research on secondary data. Secondary data has a scope that includes personal letters, books, to official documents issued by the government.Results of the Research: The legal principles regulated in international business transactions refer to the legal principles of international treaties/contracts agreed upon by the parties, and international trade conventions. The parties involved in international business contracts have the freedom to determine with whom and what the subject matter of the agreement they wish to enter into the contract as long as it does not violate the laws and regulations. Then by entering a choice of law, the parties can easily determine the contents of the business contract because each party can already get clarity about the law that will be used and the interpretation of the contents of the contract so that the implementation of the contract will run more optimally.},
				issn = {2775-6149},		pages = {45--50}			doi = {10.47268/balobe.v2i2.1062},
				url = {https://fhukum.unpatti.ac.id/jurnal/balobe/article/view/1062}
		}
		
RefWorks:

   


Aminah. “Pilihan Hukum Dalam Kontrak Perdata Internasional.” Diponegoro Private Law Review 4, no. 2 (2019).

Cut Memi. “PENERAPAN KLAUSUL PILIHAN YURISDIKSI (CHOICE OF JURIDICTION) DAN PILIHAN HUKUM (CHOICE OF LAW) DALAM PENYELESAIAN SENGKETA BISNIS INTERNASIONAL.” Era Hukum 15, no. 2 (2017).

Gautama, Sudargo. Hukum Perdata Internasional Indonesia. Jakarta: Binacipta, 1976.

Gijoh, Lileys Glorydei Gratia. “Implementasi Hukum Dalam Kontrak Bisnis Internasional.” Lex Et Societatis 9, no. 1 (2021): 111–119.

Huala Adolf. Dasar-Dasar Hukum Kontrak Internasional. Bandung: Refika Aditama, 2008.

Soerjono Soekanto dan Sri Mamudji. Penelitian Hukum Normatif Suatu Tinjauan Singkat. 8th ed. Jakarta: Sinar Grafika, 2004.

Sopamena, Ronald Fadly. “Alternative Dispute Resolution Dalam Sengketa Bisnis Internasional.” Balobe Law Journal 2, no. 1 (2022): 1.

Sudargo Gautama. Kontrak Dagang Internasional. Bandung: Alumni, 1976.

Yenni Ratna Pratiwi. “Pemulihan Perekonomian Indonesia Setelah Kontraksi Akibat Pandemi Covid-19.” https://www.djkn.kemenkeu.go.id/ (2022).

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Cited-By:

 

1. The Application Basis of International Trade Law Rules Before National Judiciary: A Jordanian Legal Perspective
Ihab Fahmi Rayyan, Mohammad Shaher Abu Hazeem, Mohammad Ali Alamawi
Revista de Gestão Social e Ambiental  vol: 18  issue: 7  first page: e05558  year: 2024  
Type: Journal [View Source]

 
Dublin Core PKP Metadata Items Metadata for this Document
 
1. Title Title of document Choice of Law in International Business Contracts
 
2. Creator Author's name, affiliation, country Ronald Fadly Sopamena; Faculty of Law Pattimura University, Ambon; Indonesia
 
3. Subject Discipline(s)
 
3. Subject Keyword(s) Choice of Law; Contract Clauses; International Business Contracts
 
4. Description Abstract Introduction: Differences in the national legal system and the contract law provisions of each country open up opportunities for conflict and dispute to occur. In addition, differences in national laws that serve as normative references for actors in international trade transactions can also cause doubt and uncertainty for foreign parties. Thus the choice of law can be referred to as the freedom of the parties in a contract to choose which law will be used and applies to the parties in an international agreement considering that the national contract law of each country is very diverse.Purposes of the Research: This writing aims to analyze the choice of law in international business contracts.Methods of the Research: This study uses a normative juridical method. Normative legal research is library research, namely research on secondary data. Secondary data has a scope that includes personal letters, books, to official documents issued by the government.Results of the Research: The legal principles regulated in international business transactions refer to the legal principles of international treaties/contracts agreed upon by the parties, and international trade conventions. The parties involved in international business contracts have the freedom to determine with whom and what the subject matter of the agreement they wish to enter into the contract as long as it does not violate the laws and regulations. Then by entering a choice of law, the parties can easily determine the contents of the business contract because each party can already get clarity about the law that will be used and the interpretation of the contents of the contract so that the implementation of the contract will run more optimally.
 
5. Publisher Organizing agency, location Fakultas Hukum Universitas Pattimura
 
6. Contributor Sponsor(s) Faculty of Law Pattimura University, Ambon
 
7. Date (YYYY-MM-DD) 2022-10-25
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier https://fhukum.unpatti.ac.id/jurnal/balobe/article/view/1062
 
10. Identifier Digital Object Identifier 10.47268/balobe.v2i2.1062
 
11. Source Title; vol., no. (year) Balobe Law Journal; Volume 2 Issue 2, October 2022
 
12. Language English=en en
 
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 

Cited-By:

 

1. The Application Basis of International Trade Law Rules Before National Judiciary: A Jordanian Legal Perspective
Ihab Fahmi Rayyan, Mohammad Shaher Abu Hazeem, Mohammad Ali Alamawi
Revista de Gestão Social e Ambiental  vol: 18  issue: 7  first page: e05558  year: 2024  
Type: Journal [View Source]