According to Arrêt Tessili (1976), the place of performance is determined by which rule?

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Multiple Choice

According to Arrêt Tessili (1976), the place of performance is determined by which rule?

Arrêt Tessili teaches that, for cross‑border contracts, the place where performance must occur is defined by the law chosen to govern the contract. In other words, the contract’s own governing law (the lex contractus) determines where obligations are to be performed, not where the parties live or where the court sits. This keeps the connection between what the contract requires and where it should be carried out, based on the substantive law the parties agreed would apply. The domicile of a party or the forum’s law do not determine the place of performance under this rule; the contract’s chosen law does.

Arrêt Tessili teaches that, for cross‑border contracts, the place where performance must occur is defined by the law chosen to govern the contract. In other words, the contract’s own governing law (the lex contractus) determines where obligations are to be performed, not where the parties live or where the court sits. This keeps the connection between what the contract requires and where it should be carried out, based on the substantive law the parties agreed would apply. The domicile of a party or the forum’s law do not determine the place of performance under this rule; the contract’s chosen law does.

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