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17 October 2005
Newly introduced legislation clarifies civil relations - particularly commercial contracts - in circumstances where at least one party is connected to a foreign jurisdiction. The International Private Law Act was passed on June 23 2005 and came into force on September 1 2005. Certain elements relate particularly to business dealings between Ukrainian and foreign entities.
Conflicts of jurisdiction are covered in Section 6, Article 36 of the act, which states that contractual agreements between commercial entities are regulated by the same provisions of international private law as other agreements.
By the terms of Article 31 the form of a contractual agreement must be consistent with:
In addition, the parties must explicitly consent to the form of the agreement in the terms of the agreement itself.
The jurisdiction which is to govern the content of the agreement may be determined in two ways. The parties are free to agree on a choice of jurisdiction unless the law provides otherwise. Alternatively, where no mutual preference is expressed, the applicable law is that of the state in which one or other party is required to perform a "decisive" contractual obligation. These provisions are set out in Articles 32 and 33. The law which is deemed to apply to the content of the agreement will also determine questions of interpretation, validity and the legal effects of invalidity.
For further information on this topic please contact Galina Mykolenko at Konnov & Sozanovsky by telephone (+380 44 490 5400) or by fax (+380 44 490 5490) or by email (email@example.com).
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