Law governing the contract:

[guifson]

The two parties face three possibilities:

* retaining the law of the exporting country: It will often be the seller's wish to see his law applied given that it is the law he knows best. However, it is not always the best solution. Some laws, like French or Belgian law, give better protection to the buyer.
* retaining the law of the importing country: This law may be more attractive for the exporter when it is less restricting, but he must then know it well and master it, for it would be dangerous to be subject to regulations that one is totally or partially ignorant of.
* retaining the law of a third country: This choice makes it possible to neutralize legal nationalism. It is often a choice made out of commercial concern, for reasons of compromise or convenience (in the case where the court of competent jurisdiction belongs to this third country).

NB : Swiss law is often recommended in this respect, as it is rather favorable to the exporter and especially, it has the advantage of belonging to a neutral State, which is a plus for the parties when conducting commercial negotiations.