| Since the early 1960s, some scholars of international commercial law and arbitration have begun to introduce new sources of law, other than domestic law, for international transactions. This is the result of two factors: (1) the immense growth of transnational contracts; and (2) their distinctive nature.;This line of thought generated a lively battle over delocalization or domestication of transborder contract which still exists today. Scholars of different legal systems have introduced diverse theories including that of lex mercatoria which has received considerable attention. The controversy is not merely over the terminology, but also concerns the complex issue of the delocalization of substantive law in international commercial dispute resolution. A few scholars have maintained that this idea constitutes a third legal system described as a transnational legal system, in addition to the national and international systems. In turn, opponents claim that such a substantive law exists, if at all, only within the ambit of domestic jurisdiction.;The main theme of the present study is to identify the major schools of thought with respect to the theory of new lex mercatoria, and then to trace its influence and impact on scholarly writings, national and international legislation, transnational practices, and case law. |
