Should the principle of party autonomy be restricted Coursework

Should the principle of party autonomy be restricted - Coursework Example Party autonomy in contracts 1. Historical Development of party autonomy – Theoretical framework 6 III. Party Autonomy: Characteristics and challenges A. How is the principle of party autonomy established in the context of the European and the US law? 1. The European law on party autonomy 8 a. Rome (I) Regulation 9 b. The Hague Choice – of – Court Convention 10 2. The US law on party autonomy 12 a. Forum selection clauses 13 b. The doctrine of forum non-convenient 13 c. Uniform Commercial Code (UCC) 13 B. Under which terms the principle of party autonomy could be restricted? 1. Approaches on the potential restriction of party autonomy 14 2. Restriction of party autonomy as promoted through the existing legislation. 16 a. Rome (I) regulation and restrictions on party autonomy a1. Public Policy 17 a2. Mandatory Rules 17 b. Restrictions on party autonomy in the US law 18 C. Would the competency of the court to apply the law chosen influence the principle of party aut onomy? 19 IV. Conclusion 20 I. ... or this reason, the specific concept has been promoted in jurisdictions worldwide, even if in come cases conflicts are developed in regard to the restrictions of party autonomy because of local statutory rules or public policy. In other words, the provision of party autonomy in the context of civil and commercial agreements serves the need for ensuring the interests and the rights of individuals, as related to these agreements, without the general rules of law to be violated. The scope of party autonomy is to promote the right of the parties to decide on the law applicable on their dispute. Rome 1 Regulation recognizes the party autonomy as being the key criterion for the choice of law in regard to contracts related to two or more jurisdictions. In any case, problems seem to exist regarding the power of party autonomy, as promoted through various legislative texts worldwide. In fact, under certain terms, restrictions to party autonomy seem to be unavoidable. In this context a critica l problem has appeared: should the restrictions on party autonomy be allowed? This issue is examined in this paper. Emphasis is given on the following issue: should the principle of party autonomy be restricted so that the law chosen by the parties to be applied only if the court considers itself as competent? The identification of the most appropriate solution to the above problem requires the careful examination of the legislative environment in which party autonomy is developed, meaning both in Europe and USA. Reference is made particularly to the 1980 Rome Convention on the Law Applicable to Contractual Obligations, as it has been incorporated in Rome 1 Regulation. At the same it is necessary to refer to certain important concepts related to contractual agreements, such as jurisdiction

Capital Investment Proposal of Mineral Plc Essay - 8

Capital Investment Proposal of Mineral Plc - Essay Example The objective of this report, therefore, is to consider the soundness of the proposed capital investment from the angles of financial feasibility, country risk of Medco Republic and the foreign exchange risk in undertaking transactions in the currency of Medco Republic as against the British Pounds as the investments the commitment of substantially larger sums by the Company to be recouped over a longer period. The analysis is based on a review of the net cash flows from the project using the recognized capital budgeting evaluation methods of Net Present Value (NPV) and Internal Rate of Return (IRR), taking the weighted average cost of capital of the Company of 15% as the hurdle rate and the rate for discounting the present value of future cash flows from the project.Financial Feasibility The financial feasibility of any capital investment proposal can be judged based on the ability of the project to enhance the shareholders’ wealth by contributing positive net cash inflows from the proposed investments. Just any other domestic capital project is being evaluated, for the international investments can also be evaluated by calculating the ‘Net Present Value’ (NPV) future cash flows expected out of the project. The NPV of the project depends on the initial investment or initial cash flow, expected future cash flows and the cost of capital. Based on the comparison of the NPV of the future cash flows with the proposed capital investment the feasibility of the project can be established. While working out the NPV the effect of the factors like Sales creation (additional sales), cannibalization (loss of sales), opportunity cost, transfer pricing and fees and royalties on the future cash flows should be taken into account. The Internal Rate of Return (IRR ) is the other criterion that needs to be carefully looked into while deciding on the capital investment.In the case of the proposed capital investment proposals, the NPV and IRR from the projects have been worked out and exhibited in the Appendix. From the NPV calculations, it is observed that the project has a negative net present value which implies that the project is not acceptable.