What is the test for determining whether a contract is enforceable in circumstances where the contract states that a particular law will govern the contract?

British Columbia, Canada


The following excerpt is from Moreau v. Moreau, 2014 BCSC 1176 (CanLII):

The applicant first submits that the principle stated in Humble v. MacKay 2012 BCSC 1285, at para. 11, is applicable: “11. Where parties to a contract have expressly indicated that a particular law will govern the contract, the general rule is that the courts will respect the parties’ choice, provided the choice is (1) bona fide, (2) legal, and (3) there are no public policy grounds for which the chosen law should not be applied.”

The applicant submits that in Tezcan v. Tezcan (1992) 87 D.L.R. (4th) Koenigsberg J. noted that the principle applies in the context of Family Law cases.

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