Zbornik Radova: Pravni Fakultet u Novom Sadu (Jan 2018)
The role of public policy reservation in international contracts
Abstract
Among the main roles of public policy in the field of international contracts is its role of the object of protection of the public policy reservation, one of the most important tools of private international law, which enables the forum to refuse application of the foreign law whenever the result of that application is manifestly incompatible with the public policy. Public policy which is protected in regards to contracts encompasses principles such as party autonomy, bona fides and equality of the parties. It is beyond doubt that public policy reservation refers to the protection of the public policy of the forum country, since most of the national and international acts regarding applicable law for international contracts contain explicit provisions that enable the forum to use this reservation. Nevertheless, the question arises whether public policy reservation can also be used for the protection of public policy of third countries with which contract has certain connections (e.g. the country of performance). Doctrine provides arguments both in favor and against such possibility and those are presented in the paper.
