College of Law
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LJU4804: Private International Law
Assignment 2 — First Semester 2025
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LJU4804
Module Code:
Private International Law
Module Name:
Assignment 2
Assignment:
251713
Unique Number:
7 April 2026
Due Date:
20
Total Marks:
Submitted in partial fulfilment of the requirements for
LJU4804: Private International Law — UNISA 2025
, UNISA | LJU4804 Private International Law — Assignment 2
Question 2.1: Determining the Applicable Law in the Absence of a Choice of Law Clause
Where parties to an international commercial arbitration have not agreed on a choice of law
clause, the applicable law governing the substance of the dispute is determined by the arbitra-
tion tribunal in accordance with the conflict of laws rules the tribunal considers appropriate.1
The Statutory Framework
The International Arbitration Act 15 of 2017 (the IAA) incorporates the UNCITRAL Model Law
on International Commercial Arbitration (1985, as amended in 2006) into South African law
by way of Schedule 1.2 The IAA applies to any international commercial dispute that the par-
ties have agreed to submit to arbitration under an arbitration agreement.3 Since Print (Pty)
Ltd has its principal place of business in Durban and Lappen GmbH has its principal place of
business in Hamburg, the parties are located in different states, rendering the dispute interna-
tional in nature within the meaning of Article 1(3) of the Model Law.
Article 28 of the Model Law
Article 28 of the Model Law, as incorporated into the IAA, governs the rules applicable to the
substance of the dispute. The provision operates in three tiers.
First, under Article 28(1), the arbitral tribunal is bound to decide the dispute in accordance
with the rules of law chosen by the parties. Any designation of a state’s law is construed as
a reference to the substantive law of that state and not to its conflict of laws rules.4 In the
present scenario, the contract contains no choice of law clause, meaning this primary tier
does not apply.
Second, under Article 28(2), failing any designation by the parties, the tribunal must apply
the law determined by the conflict of laws rules the tribunal considers applicable.5 Since the
arbitration is seated in Durban, the tribunal would likely consider South African private interna-
tional law conflict of laws rules, which generally point to the law of the place of performance
or the law most closely connected to the contract. Given that the goods were shipped CIF
Hamburg, and that payment was processed through Rand Merchant Bank in Durban, there are
1
International Arbitration Act 15 of 2017, Schedule 1, art 28(2).
2
International Arbitration Act 15 of 2017, preamble and s 2.
3
International Arbitration Act 15 of 2017, s 2(1).
4
UNCITRAL Model Law on International Commercial Arbitration 1985 (as amended 2006), art 28(1).
5
UNCITRAL Model Law on International Commercial Arbitration 1985 (as amended 2006), art 28(2).
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