Title:
CONTRACTS OF MULTINATIONAL ENTERPRISES (MNES) AND THE APPLICABLE LAW

Authors:
Loiy Yousef Saleh al Daoud, Hungary

Abstract:

MNEs have considered as a significant player in each state economy and turnover that could exceed its public budget. Several laws have been evolved to regulate multinational enterprises activities and operations. This study came to investigate the basic contracts that control multinational enterprises acts and their applicable laws. It also aims to investigate the status and obligations of Multinational enterprises under the recent applicable laws and the used control contracts that govern multinational enterprises operations. A descriptive analytical method was followed in this study to achieve its objectives through analysing the legal contracts and laws that have evolved through the past decades to govern, regulate and recognise the status of Multinational enterprises and their operation. The study revealed that there are several types of multinational enterprises contracts such as, technology transfer contracts, International Public Works Contracts, and Petroleum contracts. States contracts is the basic form of any multinational enterprises contracts which recognised as a contract between one state or any representative state entity and legal foreign entity according to the international law definition. It also clarified that there are several methods of determining the applicable law over multinational enterprises contracts according to the private international law and many other arbitrations approaches. It has recognised widely that the law of will is the basic controller for determining the applicable law in the conducted contracts between the State and the multinational enterprises. On the other hand, when this law is missed, then Judges should search for clues derived from the same contract by assigning the contractual association to rigid and determine controls to the contractors such as the place of contract, the common domicile, nationality, or attribution of flexible controls derived from the subjective nature of the contract, such as the standard of distinguished performance of the contract. The researcher recommended conducting several further studies that are related to this study topic according to its importance as recognising the applicable laws that governing multinational enterprises contracts could help in regulating and configuring out the multinational enterprises status and obligations. The study also recommended constructing and adopting an international convention to add clear criteria to choose the applicable law to the contract in the absence of the law of will, taking into account the requirements of national laws.