The proper law of the contract is a convenient and succinct expression to describe the law that governs many of the matters affecting a contract. It has been defined as that law which the English or other court is to apply in determining the obligations under the contract. However, ascertained, and this as we shall see is the subject of controversy, it consists of a single legal system, but it is essential to appreciate at the outset that not all the matters affecting a contract are necessarily governed by one law .
Particular contracts
The Restatement Second and the case law retain some fairly concrete choice-of-law rules for a number of contracts and contract issues.
Contracts for an interest in land are usually governed by the law of the situs, although issues not directly related to the land.
The applicable law for life insurance contracts is almost always the law of the insured’s domicile. The law of the place of the principal location of the insured risk usually applies to casualty insurance.
Suretyship agreements are governed by the law applicable to the underlying obligation.
Torts: overview
The “revolution” in choice-of-law approaches has its principal origin in torts conflicts cases and, secondarily, in contract cases. Tort cases were an early area for concern because the traditional rules were thought to be mechanical, often leading to unjust results. Remember that negligent torts just happen; thus , there is no “party expectation” that a particular law will apply. At most, parties may be surprised that a particular law is applied.
Modern approaches to choice of law in torts seek to achieve reasonable
Courts that have abandoned the traditional approach have not therefore necessarily embraced in full one of the competing approaches.
The traditional rule-now almost completely discredited-was that the existence and extent of tort liability was to be determined according to the law of the place of “wrong”.