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Questions and Answers
What is the primary purpose of Article 12 in the context of the lex contractus?
What is the primary purpose of Article 12 in the context of the lex contractus?
The law governing a contract does not affect the interpretation of its terms.
The law governing a contract does not affect the interpretation of its terms.
False
What does 'performance' refer to in the context of contract law?
What does 'performance' refer to in the context of contract law?
Material fulfillment of obligations under the contract.
The law applicable to a contract shall govern the interpretation, performance, and ________ of the contract.
The law applicable to a contract shall govern the interpretation, performance, and ________ of the contract.
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Match the fields governed by the law applicable to contracts with their descriptions:
Match the fields governed by the law applicable to contracts with their descriptions:
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What is the primary principle inspiring the Rome 1 regulation?
What is the primary principle inspiring the Rome 1 regulation?
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The existence and validity of the consent of the parties regarding the choice of applicable law is determined solely by the law of the state selected.
The existence and validity of the consent of the parties regarding the choice of applicable law is determined solely by the law of the state selected.
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Which articles are referenced to determine the existence and validity of consent regarding the choice of applicable law?
Which articles are referenced to determine the existence and validity of consent regarding the choice of applicable law?
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Article 12 primarily focuses on the scope of __________.
Article 12 primarily focuses on the scope of __________.
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Match the articles from the regulation with their main focuses:
Match the articles from the regulation with their main focuses:
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Under Spanish law, what must a contractor do if there are means to correct a breach?
Under Spanish law, what must a contractor do if there are means to correct a breach?
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Under Spanish law, all rights and obligations disappear if a contract is declared null.
Under Spanish law, all rights and obligations disappear if a contract is declared null.
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What is the general time frame for personal actions in Spain?
What is the general time frame for personal actions in Spain?
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The law applicable to a contract is often referred to as the _____ contractus.
The law applicable to a contract is often referred to as the _____ contractus.
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Match the following components of contractual law with their definitions:
Match the following components of contractual law with their definitions:
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If a party to a contract does not consent, which law can they rely upon?
If a party to a contract does not consent, which law can they rely upon?
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Under Rome 1, the law applicable to an international sale of goods is that of the buyer's habitual residence.
Under Rome 1, the law applicable to an international sale of goods is that of the buyer's habitual residence.
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What does Article 11 pertain to in contract law?
What does Article 11 pertain to in contract law?
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If a debtor dies, the obligation is _____ under most circumstances.
If a debtor dies, the obligation is _____ under most circumstances.
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Match the type of contractual law to its characteristic:
Match the type of contractual law to its characteristic:
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What is considered an excessive obligation in some legal systems?
What is considered an excessive obligation in some legal systems?
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Circumstances of silence can determine the acceptance of a contract regardless of the specified law.
Circumstances of silence can determine the acceptance of a contract regardless of the specified law.
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What does the term 'total breach of obligations' imply?
What does the term 'total breach of obligations' imply?
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Under the law of the ______, a unique contracting method may be valid even if it's uncommon.
Under the law of the ______, a unique contracting method may be valid even if it's uncommon.
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What is the primary intention of the Regulation regarding contract validity?
What is the primary intention of the Regulation regarding contract validity?
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A contract is formally valid if it meets the requirements of only the law of the country where it is concluded.
A contract is formally valid if it meets the requirements of only the law of the country where it is concluded.
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Name one of the three links determining formal validity for contracts concluded between parties in different countries.
Name one of the three links determining formal validity for contracts concluded between parties in different countries.
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A unilateral act is formally valid if it satisfies the formal requirements of the law which governs or would govern the contract in substance under this Regulation, or of the law of the country where the act was done, or of the law of the country where the person had his _____ residence at that time.
A unilateral act is formally valid if it satisfies the formal requirements of the law which governs or would govern the contract in substance under this Regulation, or of the law of the country where the act was done, or of the law of the country where the person had his _____ residence at that time.
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Match the following parties to their conditions for determining contract validity:
Match the following parties to their conditions for determining contract validity:
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Which of the following statements regarding the choice of law in contracts is true?
Which of the following statements regarding the choice of law in contracts is true?
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Parties can identify specific parts of a contract to be governed by different legal systems.
Parties can identify specific parts of a contract to be governed by different legal systems.
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What must changes to the governing law not affect according to the Regulation?
What must changes to the governing law not affect according to the Regulation?
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The subject matter of a contract for immovable property shall comply with the requirements of form of the law of the country where the property is _____ if certain conditions are met.
The subject matter of a contract for immovable property shall comply with the requirements of form of the law of the country where the property is _____ if certain conditions are met.
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In what scenario does a choice of applicable law not prejudice the application of certain mandatory rules?
In what scenario does a choice of applicable law not prejudice the application of certain mandatory rules?
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Arbitration agreements fall under the scope of the Regulation.
Arbitration agreements fall under the scope of the Regulation.
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What must a party's choice of law in a contract be demonstrated by?
What must a party's choice of law in a contract be demonstrated by?
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The Regulation supports a liberal approach allowing parties the freedom to choose the governing law, even if its _____ is outside the EU.
The Regulation supports a liberal approach allowing parties the freedom to choose the governing law, even if its _____ is outside the EU.
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Under the Regulation, which condition applies to contracts involving more than one Member State?
Under the Regulation, which condition applies to contracts involving more than one Member State?
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Study Notes
EU Law on Contractual Law Governing Civil and Commercial Matters
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Lex Contractus Scope (Article 12): Identifies the specific areas covered by the law governing a contract (lex contractus).
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Covered Areas:
- Interpretation: The governing law dictates how contract wording is interpreted, exceeding basic grammar rules. Different laws lead to different interpretations.
- Performance: The applicable law defines the material fulfillment of contractual obligations. Strictness varies across legal systems. Strictness depends on whether a breach affects the essence of the agreement.
- Breach Consequences: The governing law influences consequences of breaches. Procedural law of the court handling the case may overrule aspects of the lex contractus in cases of breach and damages.
- Extinguish Obligations: The law governs ways to discharge obligations (e.g., by payment). It also rules deadlines for legal action (prescription, limitation).
- Contract Nullity: The governing law dictates outcomes of contract nullity. Rights and obligations may disappear, and parties might have to return exchanged goods/money. Legal outcomes vary depending on the governing law.
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Performance Location: The law of the country where performance takes place aids determining performance standards and steps, not excluding applicability of the lex contractus. However procedural law of the courts might preclude an excessive, in certain cases specific performance.
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Validity and Consent (Article 10):
- Existence and Validity Determinant: "Hypothetical law" is applied to determine contract validity first. If the contract is valid, then a law can be applied.
- Exception to Hypothetical Law: Factors that suggest the effect of a party's actions (like silence to an offer) are unreasonable might lead to using parties' habitual residence law for clarity in situations of contract existence and validity.
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Formal Validity (Article 11): Addresses the formal requirements for contracts:
- Contracts in the same country require formal validity aligning with the governing law for substance or the law of where the contract is written.
- If countries are different, formal validity fits the governing law for substance or the relevant party's habitual residence at the time of signing.
- Unilateral actions relating to (existing/potential) contracts: formal validity aligns with the governing law, the location of the action or the habitual residence of the actor.
- Exclusions: Article 6 (consumer contracts); immovable property contracts subjected to the requirements of form of the country where the property is located, if these cannot be modified by contract terms.
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Freedom of Choice (Article 3):
- Parties can choose the governing law.
- This choice can be expressed directly or inferred from circumstances or the contract's terms.
- Parties might choose parts of a contract to be governed by different systems.
- Changes to the governing law after the contract are permissible, but they don't affect formal validity or third-party rights.
- If the relevant activities (other than the law selected) occur in a non-EU state, any mandatory provisions of the non-EU state are still relevant in case of a dispute.
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Key Concepts:
- Lex Contractus: The law governing a contract.
- Rome 1: The regulation establishing the criteria for identifying the lex contractus.
- Article 12: The specific scope of the laws applicable in the area of the contract.
- Hypothetical Law: A hypothetical rule to support the validity of an assumption on an element in a contract
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Description
This quiz explores the scope of EU law on contractual obligations under Article 12. It covers essential concepts such as interpretation, performance, breach consequences, and ways to extinguish obligations. Test your understanding of how different legal systems impact contract law.
