English law faces Brexit uncertainties

A GOVERNING law clause in a contract determines which state or country's laws will be used to interpret and enforce the agreement the clause is found in.

English law (or the law of England and Wales) has long been the popular choice of governing law for commercial parties doing business internationally. Colonial history aside, English law is considered to be stable and is supported by a large body of case law that can be drawn on to predict a greater certainty of outcome.

But more recently, two emerging developments threaten the traditional dominance of English law: The uncertainty created by Brexit - UK's decision to leave the EU - and the growing influence and acceptance of Singapore law in Asia.