Q&As

Is the Sale of Goods Act 1979 applicable to international contracts?

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Published by a ÑÇÖÞÉ«ÇéÍø Commercial expert
Published on: 14 February 2019
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International contracts

A contract may be considered international if the parties are based, or hold significant assets, in different jurisdictions, or if any of the parties' obligations are to be performed in different jurisdictions. International contracts will require consideration of further issues in addition to general commercial contract considerations.

One major issue is that of the Governing Law of a contract (also known as the Applicable law). For all commercial contracts concluded on or after 17 December 2009, courts in UK will apply Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) to determine the law applicable to contractual obligations. For information on the impact of Brexit on Rome I, see Practice Note: Brexit—applicable law [Archived].

Applicable (or governing) law of the contract

As freedom is a fundamental cornerstone of the system of conflict of laws for contractual obligation, parties in international contracts have the freedom to choose the applicable law to govern their contract.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Sale of goods definition
What does Sale of goods mean?

A sale is the transfer of ownership by mutual asset of a thing from one person (the seller) to another (the buyer) for a money price.

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