The Choice of the PICC as the proper law of the contract in Latin American Jurisdictions: Chilean contract law as a sample study

This paper analyses a distinctive trend in Latin American conflict laws to enable the parties to choose the UNIDROIT Principles of International Commercial Contracts (PICC) as the proper law of the contract, as this choice must be upheld by national courts. This solution is unique since it is not allowed in most jurisdictions, such as those of the EU, that only accept ‘ordinary legal techniques’ for applying the PICC. Using Chilean contract law as a sample study, we will show that the PICC’s rules on the precontractual stage and on hardship are better suited than existing national laws to negotiate, conclude and perform international commercial contracts.