Study On The Most Significant Connection Principle Of Contracts Concerning Foreign Affairs

The most significant connection principle is an important principle in international private law in our country. The Act of the People’s Republic of China on Application of Law(Hereinafter referred to as Application Law)in foreign-related contracts,which had been taken effective since April 1, 2011, made clear its legal status.Over four years after its implementation, we need to review the application of this principle and its problems in trial practice.The study of the problems existing in some relevant legislation and judicial practice helps the improve the application of the most significant connection principle application law and conflicts rules in our country. Shanghai is the frontier in the development of the reform and open up strategy, and with the construction of free trade zone, Shanghai has hastened its steps in the foreign exchange, together with the increase of foreign-related contract cases. The study of foreign-related contract cases in Shanghai can be a tool in observing the overall situation of the applicable law concerning foreign affairs in China, thus suggestions are put forward from the perspective of empirical angle.The article focuses strictly on how to standardize the most significant connection principle. First of all, the author analyses the most significant connection principle law from the perspective of the legislative’s present status of our country. Taking The Act of the People’s Republic of China on Application of law in civil relations of foreign contacts as the basis, the author explains respectively the premise and the specific applicable method. Inference from the analysis of applicable premise that when the most significant connection principle is chosen as a selected method, it also should be used a supplemental principle while that of other laws is inapplicable. In the analysis of specific applicable methods, the author, based on the analysis of The Act of the People’s Republic of China on Application of law in civil relations of foreign contacts and Regulations by Supreme People’s Court on Issues of Law Application in Hearing Foreign—related Civil or Commercial Contract Disputes, came to the judgment of the standard in the most significant connection are defective.Secondly, analyzing from the current situation of justice, and collecting 342 pieces of foreign-related contract case in Shanghai since April 1, 2011, the author studied the method of categorization and quantification. On the basis of the macro grasp of foreign-related contract case, the author aims to reflect and summarize the specific problems in trial practice.Last but not least, in light of the most significant connection principle in China, feasible suggestions are put forward according to the theory, understanding and learning from foreign system. Firstly, judging criterion of the specific responsible and legislation model of the specific responsible should be improved. Secondly, contract elements analysis of American law system should be introduced, and by taking business contract and loan contract as an example, the author analyzes the feasibility of the case, on the basis of the foreign theory, putting forward the applicable standards and legislation mode suitable for China’s national conditions. Thirdly, in the light of the conundrums of the trial practice in a contractual dispute focus analysis method, the concrete legal choice method of the most significant connection principle should be improved. Fourthly, we need to perfect the legislation mode on foreign-related contracts by introducing relevant elements in American conflict law. Fifthly, the professional skills of judges shall be increased in order to determine the legal and logical basis in chooing law.Sixthly, limit the expansion of the power of the court and perfect the ascertainment system of foreign law.