Since the template only mentions English law, do you foresee any problems when changing the legal system reference to German or European law?
Alasdair Taylor's Answer
There are a few different issues here.
- There is no reason in principle why a business based in Germany cannot enter into contracts governed by English law.
- In some situations, however, it will be more practical to use German law – for example where both parties are in Germany.
- Notwithstanding a choice of law clause, any court having jurisdiction to adjudicate a claim may apply certain rules of local law – e.g. competition law or consumer law – to contracts.
- If you change the governing law clause to refer to German law, then German rules of contract law and contract interpretation will also apply. Whilst some of the relevant law here (notably copyright) is partially harmonised at the European level, other relevant law (notably contract) is not harmonised.
- A separate but related question concerns jurisdiction: which courts will be used in the event of a dispute? If you ask a court in one jurisdiction to apply the law in another, they may need expert evidence of what the law is, adding to the costs and complexity of proceedings.
As you can see from this list, the answer to your question is not going to be straightforward, and would best be given by a German lawyer who had reviewed the document and knew the circumstances in which it was going to be used.