conflict of laws Flashcards
domicile for individuals requires
physical presence + intent
person has present intent with the intent to remain for an unlimited time and when he abandons any prior domicile
domicile for individuals can be acquired by
choice or operation of law
domicile for corps
state where it is incorporated
state choice of law rules generally have 3 sources
1) specific choice of law statutes
2) contractual choice of law agreements
3) general choice of law rules governed by forum state common law
constitutional limitations on choice of law
forum state may apply its own law to a particular case only if it has a significant contact or significant aggregation of contacts with the state such that application is neither arbitrary nor fundamentally unfair
party-controlled choice of law – most courts will enforce a contractual choice of law provision if it is
- A valid agreement with an effective choice-of-law clause
- Applicable to the lawsuit under the terms of the contract;
- Reasonably related to the lawsuit (i.e., the law to be applied is from a state with connections to
the parties or the contract); and - Not in violation of the public policy of the forum state or another interested state.
approaches to choice of law
1) vested rights (1st restatement)
2) most significant relationship approach (2)
3) governmental interest approach
vested rights approach
where last liable event took place
governmental interest approach
presumed that forum state will apply its own law
Torts – vested rights approach
law where wrong was committed
Torts – most significant relationship approach
1) place of injury
2) place where conduct causing injury occurred
3) domicile of parties
4) place where the relationship is centered
contracts – express choice of law will govern unless
- contrary to public policy
- no reasonable basis in parties’ choice OR
- fraud/mistake, true consent not given
contracts – vested rights approach
Law where contract is executed will apply to validity of contract, formation defenses, interpretation of the contract
Law where contract was to be performed will apply to details of performance like manner and time, person who is obligated to person and to whom performance is made, sufficiency of performance, excuses for nonperformance
contracts – most significant relationship approach considers
- The location of the contracting, negotiation, and performance;
- The place where the contract’s subject matter is located; and
- The location of the parties’ domiciles, residences, nationalities, places of incorporation,
and places of business.
contracts – default rules
land contracts –> controlled by law of the state of the situs (location of the land)
personal property contracts –> law of the state where the place of delivery is located