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The UNIDROIT Principles of International Commercial Contracts and ...

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THE <strong>UNIDROIT</strong> PRINCIPLES AND MERCOSUR COUNTRIES 387<br />

c h a r a c t e r, assuring stability <strong>and</strong> safety for international trade<br />

transactions.<br />

1. Argentina, Paraguay <strong>and</strong> Uruguay<br />

a. <strong>International</strong> Law<br />

i. Montevideo Treaties, 1889/1940<br />

<strong>The</strong>se three countries are parties to the Montevideo Tre a t i e s ,<br />

first signed in 1889/1890 <strong>and</strong> later revised in 1939/1940, which<br />

establish common conflict rules re g a rding international contracts<br />

(Art. 36 to 43).<br />

I n fluenced by Savigny’s theory, the I n t e rnational Civil Law<br />

Tre a t y (Montevideo, 1940) established that the intern a t i o n a l<br />

contracts’ centre <strong>of</strong> gravity is the place <strong>of</strong> its perf o rmance ( l e x<br />

executionis) 18 . As a result, Article 37 <strong>of</strong> the 1940 Montevideo Treaty<br />

states that the lex executionis g o v e rns all fundamental aspects <strong>of</strong><br />

the contract, such as its: a) existence; b) nature; c) validity; d)<br />

e ffects; e) consequences; <strong>and</strong> f) perf o rmance. When it becomes<br />

impossible to determine the place where the contract is to be<br />

performed, the subsidiary connection factor set forth by Article 40<br />

<strong>of</strong> the Treaty, which is the place <strong>of</strong> conclusion <strong>of</strong> the contract – lex<br />

celebrationis, is then applicable.<br />

At the international level, therefore, party autonomy is not accepted<br />

with respect to the choice <strong>of</strong> the applicable law to international<br />

contracts. As a result, the legislator <strong>and</strong> the national judge<br />

are the only entities capable <strong>of</strong> determining the lex contractus, not<br />

the parties themselves. Rigid connecting factors are adopted with<br />

respect to contracts, which very <strong>of</strong>ten appear to be merely accidental<br />

<strong>and</strong> unimportant for an adequate determination <strong>of</strong> the applicable<br />

law.<br />

18 <strong>The</strong> private international law theory formulated by Savigny, which privileged the<br />

d o m i c i l e as the fundamental connecting factor, to the detriment <strong>of</strong> n a t i o n a l i t y<br />

defended by Mancini, enjoyed wide acceptation in Latin-American countries,<br />

which reached political independence in early XIXth century <strong>and</strong> whose<br />

populations included important contingents <strong>of</strong> European immigrants. Accord i n g<br />

to Savigny the domicile <strong>of</strong> the contract was the place <strong>of</strong> its performance.

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