PENERAPAN LEMBAGA PILIHAN HUKUM TERHADAP SENGKETA HUKUM DALAM PELAKSANAAN KONTRAK BISNIS INTERNASIONAL

The rapid growth of international cooperation in economic sector has recently resulted in the increase of international business activities and transactions which include export-import, investment, corporate loans, etc. It is quite common that the parties involved in a certain transaction are faced with disputes resulting from the legal contract they previously made. To anticipate such happenings, they always include choices in the contract clause although they sometimes skip to do so. The lack of such a clause will bring about a number of problems: first, which law should they refer to to solve the dispute? Second, how does the preferred legal institution respond to such cases? Third, in case of a legal dispute in an international business contract, what solutions are offered by the preferred legal institution? Providing alternative legal institutions to settle legal disputes allows these business practitioners to have the rights to determine which law is most relevant to the nature of their business. Judges in the court of law around the globe give respect to the chosen law through the implementation of public order principles. In case of a chosen law which does not carry substantial correlation to the actual transactions and lacks legal basis to accommodate the parties involved, the authorized judge will then determine which law to use. Finally, it is the state law that rules when a judge is settling a particular legal dispute if the referred law fails to draw any conclusions