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  • 11 - The Problem of Applicable Law in the Contractual Relations between International Organizations and Private Parties

  • Edited by Jan Klabbers, University of Helsinki
  • Book:
    International Organizations Engaging the World
    Published online:
    09 October 2025
    Print publication:
    23 October 2025, pp 204-220
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  • Summary

    Orfeas Chasapis TassinisWhat law should apply to contracts concluded between international organizations and private parties? Probing the concept of a ‘right’ to party autonomy, this chapter employs a Holfeldian framework to unpack the perspectival dimension of this age-old problem. It argues that international organizations may be at liberty of choosing the law applicable to their contracts, but domestic legal orders are not necessarily under an obligation to recognize that choice as effective. Arguably, however, deference to party choice is due in the context of arbitration. Yet, the frequent absence of party choice puts pressure on arbitrators to make principled choices on applicable law. Given the lack of clarity on how these choices are supposed to be made, the ‘closest connection’ test is put forward as perhaps the best safeguard for objectivity and predictability.