Regulation of procurement in private international law
https://doi.org/10.17803/1994-1471.2016.64.3.192-197
Abstract
Procurements with or without state participation are of single essence, but the first are regulated by civil law in most countries, while the latter lack such regulation. The regulation of procurement in Private International Law creates a particular scientific interest since the nature of business practices of transnational corporations has become increasingly complex; and international tenders organized by transnational corporations to meet the needs of its subsidiaries in different countries do not have relevant regulation. Thus, one of the challenges is to determine the law applicable to the parties in the international tender. For example, the order of seeking remedies is questionable when neither the actual executor under the contract, nor his other side acting through one of the divisions of TNC take a direct part in the international tender, which was organized by the "headquarters" of the TNC and following which the aforementioned contract was signed. This resulted in a dispute on violations of the conditions agreed in the tender. Meanwhile, in the course of an international tender abusive practices, including restricting free competition not only nationally, but also regionally, are possible to occur. In the article, which is a part of the dissertation research, the author analyzes the key concepts of the topic and proposes recommendations to eliminate gaps in the Private International Law regarding the regulation of procurement with a foreign element. The author's suggestions can be used to improve the existing Civil Law of the Russian Federation, further scientific studies within the framework of private international law, including a comprehensive analysis of the development and regulatory activities of TNCs in the world.
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