lex loci contractus

lex loci contractus (leks loh-sI k[schwa]n-trak-t[schwa]s). [Latin] The law of the place where a contract is executed or to be performed. • Lex loci contractus is often the proper law by which to decide contractual disputes. — Often shortened to lex loci; lex contractus. [Cases: Contracts 144. C.J.S. Conflict of Laws §§ 91–93; Contracts §§ 13–23, 25.]

“The lex loci contractus controls the nature, construction, and validity of the contract; and on this broad foundation the law of contracts, founded on necessity and commercial convenience, is said to have been originally established. If the rule were otherwise, the citizens of one country could not safely contract, or carry on commerce, in the territories of another.” 2 James Kent, Commentaries on American Law *454 (George Comstock ed., 11th ed. 1866).


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