Conflict of Laws in Electronic Investment Contracts

Dr. Nour Al Abdulrazaq
Assistant Professor of Private Law
Kuwait International Law School


Electronic contracts are among the new legal actions that have emerged with technological progress as a result of the use of modern means of communication, which undoubtedly have a significant impact on the prosperity of e-commerce and the development of investment business in all areas that reflect Kuwait’s vision for the year (2035), by turning it into an attractive financial and commercial center of investment. Despite the advantages and importance of these contracts, they face many challenges and problems related to conflict of laws due to their electronic nature, whether those related to applicable law, or the competent courts.
Kuwaiti Law No. 20 of 2014 on electronic transactions, or Law No. 5 of 1961 regulating legal relations with a foreign element, did not include an explicit provision regarding the settlement of disputes in electronic investment contracts, so it is time to reconsider the legal rules in force, either by amending or changing them in a manner consistent with the electronic environment of investment contracts, which will reflect positively on encouraging investment. Therefore, this research seeks to clarify the provisions related to conflict of laws in electronic investment contracts in the State of Kuwait, as well as comparing them with the prevailing provisions in this regard on the international arena to show the extent of their compatibility.
This study relies on the descriptive approach to discuss the mechanism of concluding electronic investment contracts, and how to solve the problem of conflict of laws in accordance with the rules stipulated in Kuwaiti law and international conventions, with the aim of analyzing these rules to determine their suitability to the nature of electronic contracts. The study concludes with several recommendations, including the development of attribution rules to keep pace with technological development, and the search for new legal methods for settling electronic investment contract disputes.

Key words: electronic contracts, electronic commerce, conflict of laws, applicable law, attribution rules.

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