On January 20, 2015, the Paraguayan Executive Branch officially published Law 5393/2015 which addresses the rule of law applicable to international contracts (the "Law"), putting an end to a long-held debate on the subject matter within academic and professional circles on whether or not parties had the power to choose the law that governs their contract.
The Law clearly affords parties to a contract the possibility to choose the law they consider most suitable to govern their international contracts, thus granting greater foreseeability and certainty to their international business.
The Law is largely based on the “Draft Hague Principles on Choice of Law in International Contracts” (the "Hague Principles"), incorporating certain amendments introduced by Congress during the discussions of the bill.
Some salient features of this Law are the following:
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