أسئلة وأجوبة
Governing law in contracts with foreign companies
We are a Canadian company, and we want to develop a SW platform in Egypt by a local Egyptian Software Company. Under which jurisdiction of authority should the phrase “Governing Law Clause” in the contract be?
Also, should the contract be in Arabic or English? Are we protected by the Egyptian Law or Canadian Law?
Generally speaking, the governing law for the contract should be the law of the country of execution of the contract, which in this case is Egypt.
However, parties can choose whatsoever law to govern their contractual relationship according to pacta sunt servanda principle.
With regard to the second question, it is better to write the contract in both languages (bilingual contract).
Although the Arabic language shall be the prevailing language of the contract. In case of any discrepancy between both languages the Arabic text shall prevail.
As for the third question, the chosen law to govern the contract is the law where parties are subject to its protection.