Rome I Regulation

The Rome I Regulation (Regulation EC 593/2008) is the European text that determines the law applicable to contractual obligations in situations involving a conflict of laws. It applies in all EU Member States (except Denmark).

Fundamental principles:

• Freedom of choice (Article 3): parties may freely choose the law applicable to their contract
• Applicable law in the absence of choice (Article 4): the law of the country of habitual residence of the party performing the characteristic obligation (seller, service provider, etc.)

Special rules for specific contracts:

• Sale of goods: law of the seller's country
• Provision of services: law of the service provider's country
• Franchise: law of the franchisee's country
• Distribution: law of the distributor's country
• Consumer contracts: consumer protection by the law of their residence
• Employment contracts: worker protection by the law of the habitual place of work

The Rome I Regulation has universal application (erga omnes): it applies even if the designated law is that of a non-EU state. It does not apply to arbitration or choice-of-court agreements.