lex loci solutionis

(law) A legal rule to apply the law of the place where payment is to be made or a contract is to be performed. A country may apply this law in a legal action if the parties have not expressly agreed to the law that will govern their contract and if the laws of more than one jurisdiction could apply. If a buyer and seller, for example, are located in different countries and the buyer breaches the contract, under the law of lex loci solutionis the court will apply the law of the seller’s country, which is where payment is to be made. This rule is usually applied when performance of the contract has a greater effect in the jurisdiction where it is to occur than in any other jurisdiction. See conflict of laws; nexus; lex loci actus.

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