The concept and importance of mandatory rules in international contractual relations

Abstract

This article examines the concept and significance of mandatory legal rules in international contractual relationships. It analyses how overriding mandatory provisions limit party autonomy and the application of foreign law, functioning as a mechanism for protecting fundamental national and supranational interests while balancing legal openness with the protection of individual rights. The article aims to identify the mechanisms through which mandatory rules operate in contractual contexts and to assess whether a common minimum content of such rules is emerging within European contract law, directly influencing international contractual relations. Furthermore, the article proposes a concept of overriding mandatory rules based on judicial practice. This concept reconciles the flexibility and international orientation of contemporary legal systems with traditional legislative approaches that allow certain national rules to apply directly and without delay, while also explaining how compulsory legal norms interact with considerations of public policy. The findings suggest that mandatory legal rules in international contract law operate not merely as exceptions to the applicable law but as autonomous instruments enabling courts and arbitral tribunals to safeguard the foundational principles of the national legal and social system in international relations.