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Anna A Posted 21 years ago
Legal Studies

What does "without reference to its conflicts of laws principles" mean?

In an Shareholders' agreement under the head "Governing law" is written:
This Agreement shall be construed in accordance with and be governed by the laws of Sweden without reference to its conflicts of laws principles". What does the the read part mean?

Thanks!!!
  

Top answer

I realise that you might think that I'm looking for a translation to Swedish..... What I need help with is to translate the meaning with the centence.....

  • I realise that you might think that I'm looking for a translation to Swedish.....
  • What I need help with is to translate the meaning with the centence.....
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19 Answers
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I realise that you might think that I'm looking for a translation to Swedish..... What I need help with is to translate the meaning with the centence.....
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In this context "conflict of laws" means "private international law" that is the rules that determine how to sort out a problem when the law of more than one country is involved. You may for example have a German and a Dane sign a contract in France about supplying goods to a factory in Spain they jointly own. If things go wrong which law do they apply? If they specify the law of one country they
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Many thanks from me, too, Forbes!!
I've also racked my brains on it many times.
If the governing law has been already determined by the parties in the contact, why do some still find it necessary to include that clause in it? :/ By the way, if it's a matter of cautiousness, why only the state's conflict of laws principles are excluded? What about the international treaties, e.g.
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It is not unknown for lawyers to use more words than strictly necessary.Emotion: wink
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0 I have also argued ever since I first saw these words (in an American contract) that they are meaningless as it is not possible to contract out of the mandatory conflict of law rules of a jurisdiction. The recently published Report of the Subcommittee on Legal Opinions for the International Bar Association agrees with this position. 0-
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0 Whilst agreeing that it is not possible to contract out of the conflict of laws rules, parties to a contract can of course agree which country's law should apply to the contract. 0-
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I am very familiar with this clause as I have translated it many times. What it means in practice (which I believe is what you are looking for) is that if a provision in Sweden law might be interpreted such that a conflict which arises under the agreement should be tried in another country, or pursuant to that country's laws, the provision shall be disapplied. This means that no matter what the d
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This means that the rules concerning conflicts of laws (Swe: lagvalsbestämmelser) shall not be applied. I.e., the Swedish rules that decide which country's laws should be applied in an international dispute shall not be applied.
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"conflict of law principles" is used to decide the applicable law and jurisdiction. Now that a specific choice of laws is made those principles are excluded, so that the choice made by the parties is final and not changed applying the conflict of law principles

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