Rome I

Article 3

Freedom of choice

1. A contract shall be governed by the law chosen by the parties. The choice shall be made expressly or clearly demonstrated by the terms of the contract or the circumstances of the case. By their choice the parties can select the law applicable to the whole or to part only of the contract.

2. The parties may at any time agree to subject the contract to a law other than that which previously governed it, whether as a result of an earlier choice made under this Article or of other provisions of this Regulation. Any change in the law to be applied that is made after the conclusion of the contract shall not prejudice its formal validity under Article 11 or adversely affect the rights of third parties.

3. Where all other elements relevant to the situation at the time of the choice are located in a country other than the country whose law has been chosen, the choice of the parties shall not prejudice the application of provisions of the law of that other country which cannot be derogated from by agreement.

4. Where all other elements relevant to the situation at the time of the choice are located in one or more Member States, the parties' choice of applicable law other than that of a Member State shall not prejudice the application of provisions of Community law, where appropriate as implemented in the Member State of the forum, which cannot be derogated from by agreement.

5. The existence and validity of the consent of the parties as to the choice of the applicable law shall be determined in accordance with the provisions of Articles 10, 11 and 13.

Holdings

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C-632/2114 Sept 2023

JF and NS v Diamond Resorts Europe Limited (Branch in Spain) and Others

If a consumer contract falls within Article 6(1) of Regulation No 593/2008, the parties may choose the applicable law under Article 3, but that choice cannot deprive the consumer of the protection of provisions from which the law otherwise applicable under Article 6(1) does not allow derogation by agreement - namely, the law of the country where the consumer has his or her habitual residence. Because Article 6(2) is mandatory and exhaustive, it cannot be set aside even in favour of legislation allegedly more favourable to the consumer.

C-272/183 Oct 2019

Verein für Konsumenteninformation v TVP Treuhand- und Verwaltungsgesellschaft für Publikumsfonds mbH & Co KG

A non-negotiated choice-of-law term in a trust agreement between a professional and a consumer for the management of shares in a limited partnership, selecting the law of the Member State of the partnership's seat, is unfair where it gives the consumer the impression that only that law applies and does not inform the consumer that, under Article 5(2) of the Rome Convention and Article 6(2) of Regulation No 593/2008, the consumer also enjoys the protection of the mandatory provisions of the national law that would apply without that term.

C-191/1528 Jul 2016

Verein für Konsumenteninformation v Amazon EU Sàrl

Under Article 3(1) of Directive 93/13, a non-negotiated term in the general terms and conditions of a seller or supplier which states that an online consumer contract is governed by the law of the Member State where the seller or supplier is established is unfair, in so far as it misleads the consumer into thinking that only that law applies, without informing the consumer that Article 6(2) of Regulation No 593/2008 also gives the consumer the protection of the mandatory provisions of the law that would apply without that term; that is for the national court to ascertain in the light of all the relevant circumstances.