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The principle of autonomy of parties governs international contracts from "summary" of Modern Law of International Trade by Ajendra Srivastava
In the realm of international trade, the principle of autonomy of parties plays a pivotal role in governing contracts. This principle essentially empowers parties engaged in an international contract to exercise a significant degree of freedom in negotiating and determining the terms and conditions of their agreement. It signifies that parties have the autonomy to decide upon the specifics of their contractual relationship, including the rights and obligations of each party, the scope of the agreement, and the mechanisms for dispute resolution. This principle is reflected in the doctrine of freedom of contract, which underscores the importance of allowing parties to freely negotiate and enter into agreements based on their respective interests and preferences. It recognizes the unique needs and circumstances of each party and affirms their right to tailor their contractual arrangements accordingly. By upholding the principle of autonomy, international trade law promotes a flexible and adaptive approach to contract formation that is responsive to the diverse and evolving nature of global business transactions. The principle of autonomy also extends to the choice of governing law and jurisdiction in international contracts. Parties are typically granted the freedom to select the applicable law that will govern their agreement and the forum in which any disputes arising from the contract will be resolved. This allows parties to choose a legal framework that best aligns with their commercial objectives and provides them with a level of predictability and certainty in the event of a dispute. Moreover, the principle of autonomy underscores the importance of upholding the sanctity of contracts and respecting the intentions of the parties involved. It emphasizes the need for parties to adhere to the terms of their agreement in good faith and to fulfill their contractual obligations in a manner consistent with the agreed-upon terms. By honoring the autonomy of parties, international trade law seeks to foster trust and confidence in the global marketplace and facilitate the smooth and efficient conduct of cross-border transactions.
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