IACCM Contract Management Forum

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2020-07-14 14:30:44

Rwandan law for an IT contract

Hello everyone, my European client is being asked by their Rwandan customer to agree a sales contract governed by Rwandan law. We are used to working with English and French law, so are uncertain as to how hard we should push for a third country law. Arbitration will be according to LCIA. What are your thoughts? Thank you!
 •  IACCM  •   2020-07-14 18:21:01
Thank you for your post. Choosing a neutral and well understood place of jurisdiction and applicable law is often the obvious answer when parties are located in countries that are unfamiliar. The Laws of England and Wales and the Laws of Switzerland are often used as neutral third party jurisdictions not least because they have well-developed and reputable jurisprudence. I note that you are proposing to include Arbitration according to LCIA - Article 16.4 of the new LCIA rules provides that, unless the parties have agreed otherwise in writing, the law of the seat of the arbitration will also apply as the law governing the arbitration agreement. Equally you could propose the adoption of the UNIDROIT principles which you can read more on here: www.unidroit.org/contracts.
 •  IACCM  •   2020-07-14 20:26:01
Clearly a concern with unfamiliar jurisdictions is enforceability and the quality of the overall legal system. As this article indicates, Rwanda has made major efforts to develop its legal system and understands its importance in the context of international trade www.lexology.com/library/detail.aspx
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