The desire for certainty
You don’t have to search too hard to see why so many companies from around the world choose English commercial law for their contracts or turn to London, and the UK as a leading international centre for arbitration and dispute resolution. Not only is English the language of international business, but English law is globally recognised as leading the world in fairness, transparency and dependability. UK lawyers also offer an unrivalled legal expertise, from pre-contract stage through negotiation and preparation of contractual documentation to resolving disputes, as London and the wider regions in the UK are supported by a wealth of professional services.
According to Jack Straw MP, Secretary of State for Justice and Lord Chancellor,
“People come here because they want to conduct their business in a country that offers a flexible and dependable legal system. In ever more complex, sophisticated and inter-related markets, English commercial law provide predictability of outcome, legal certainty and fairness”.
Alison Hook, Head of International Team at the Law Society explains, “English law is based on a mixture of statute and case law, where publicly decided cases in turn become part of the body of law, known as common law. This provides a predictability that is the envy of many jurisdictions. Being able to foresee what actions may or may not be lawful based on previously known cases enables lawyers to construct reliable contracts and avoid potential disputes”.
English law also enshrines the principle of ‘freedom of contract’. This basically means that parties involved in a contract have a far greater degree of flexibility to decide terms, and once agreed they are bound by it.
“English law is widely accepted as being very detailed when dealing with commercial issues,” says Roger Best, Partner, Clifford Chance LLP. “Because it deals with obligations, it is very attractive to parties looking for a high degree of certainty and predictability. English courts also have a long-standing demonstration of neutrality. That is certainly not the case in many jurisdictions, where the home parties have distinct advantages in the lower courts.”
Ian Terry, Head of Dispute Resolution at Freshfields Bruckhaus Deringer LLP, agrees. “The reputation of the English judiciary system for quality, reliability and integrity is unsurpassed anywhere in the world,” he says. “In cases of dispute resolution, for example, international companies can be sure the judges will be fair and unbiased. And unlike the US where juries can hear commercial cases, English courts cannot set punitive damages.”
In addition, because its treaty framework includes the EU, the Commonwealth, and the New York Convention, English judgments are enforceable in more countries than probably any other jurisdiction.
“London is also a growing centre of arbitration, with the London Court of Arbitration now rivaling the longer-established International Chamber of Commerce in Paris as a seat of arbitration, a neutral forum whose decisions will be widely recognised around the world,” says Terry.
The outstanding reputation of the English judiciary is certainly well deserved. English High Court judges are very experienced in commercial law, having been practitioners for many years before becoming judges. In some jurisdictions new graduates can become judges, or judges are political appointees.
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