Section 12

This Act does not have effect in relation to a contract governed by the law of a part of the United Kingdom by choice of the parties if— there is no significant connection between the contract and that part of the United Kingdom; and but for that choice, the applicable law would be a foreign law. This Act has effect in relation to a contract governed by a foreign law by choice of the parties if— but for that choice, the applicable law would be the law of a part of the United Kingdom; and there is no significant connection between the contract and any country other than that part of the United Kingdom. In this section— “contract” means a contract falling within section 2(1); and “foreign law” means the law of a country outside the United Kingdom.

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Source: legislation.gov.uk · retrieved 2026-08-15