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ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws

Two companies in different countries disagree about which country's law governs their sales contract, which contains no governing law clause. A court must decide which system of law applies. This task falls within which area of law?

This is conflict of laws, also called private international law. It decides which country's courts have jurisdiction and which legal system's rules govern a private dispute with a foreign element, such as a cross-border contract with no governing law clause. Public international law concerns relations between states.

  1. AConflict of laws (private international law)Correct
  2. BPublic international law
  3. CCriminal law
  4. DCompany insolvency law

Explanation

Conflict of laws, or private international law, determines which court has jurisdiction and which country's law applies to disputes with a foreign element between private parties. Public international law governs relations between states. The dispute is a private contractual one, not criminal or insolvency.

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