Applicable Law to International Franchise Contracts: A comparative study between the Jordanian, Bahraini laws and the Rome Convention
Keywords:
Law, contract, franchise, Jordan, Bahrain, , the Rome ConventionAbstract
This research aims to determine the law applicable to international commercial licensing contracts "franchise" by addressing the specific private rules regulating contracts, and the general rules regulating the applicable law on contractual obligations. One of the most important results we have reached is that the reference rule for “the state of distinguished performance of the contract” - stipulated in the Rome Convention - cannot be applied in order to determine the law applicable to the international franchise contract. This is by virtue of the special nature of the contractual obligations arising from this contract. As for the Jordanian legislation, the Jordanian legislator has not dealt with the law applicable to the international franchise contract, which leads to applying the general rules governing the law applicable to contractual obligations in order to determine the law applicable to this contract. In contrast, the position of the Bahraini legislator came in advance regarding defining the law applicable to the international franchise contract. Considering -under Article 20 of “The Law of Conflict of Laws”- that the “law of will” is the law applicable to this contract, where if it does not exist, then the applicable law is “the law of the country in which the main management center of the licensee is located at the time of the conclusion of the contract”.
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