When the laws of different countries that apply to a certain legal matter are different, this is called a “conflict of law.” In these situations, the parties have to determine a choice of law to figure out which law applies.
This happens when a financial transaction takes place across international borders. Then, the parties must agree on a law that will apply to the related financial agreement. Since there is no one international law that applies to all transnational relationships, the international contract will be governed by the national legal system chosen by the parties. In other words, the chosen law shows what the parties have decided should be the law that applies to their agreement. This choice of law is very important for the parties because it will affect how the clauses of the agreement are interpreted and what their rights and obligations are. In the same way, the parties will have to determine where any disputes will be settled if they come up.
The following things need to be thought about when choosing the law that will apply.
Common law and civil law are very different in how they work. For example, civil law is more friendly to debtors and has stricter rules about how to take and perfect security. All of these things can affect the types of approach that are common in the trade and forfaiting markets. The important thing to remember here is that there is no one approach to look at legal and regulatory issues because more than 50 countries in Africa have different legal styles. In fact, it’s the exact opposite, and even though many of the issues are familiar to people who are familiar with English and other European laws, it is very important to talk to a lawyer in the jurisdictions that are important to a financing to make sure that all the important issues are noted in time and that the right interpretation is given.