Tímarit lögfræðinga - 01.04.2012, Qupperneq 52

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when parties to an agreement have chosen a law to govern an agreement
between them. The general principle in such instance is to give effect to the
parties‘ choice. The choice has to be either expressly made or clearly dem­
onstrated. The article also deals with the issue which law is applicable in
the absence of choice. In those case the general rule is to apply the closest
connection test, i.e. determine with which country the contract is most
closely connected. The law provides for three conditions for determining
with which country the contract is most closely connected. Further, the law
provides for an escape provision which provides for an assessment of the
circumstances as a whole. The article also outlines the exceptions from
these main principles. The exemptions are mainly implemented into law in
two ways. Firstly, provisions in act 43/2000 allow for the application of
mandatory rules, either of the forum or other country, and secondly the
governing law can be limited by the so called public policy principle.