Airlines have long been aware of the need to reduce CO2 emissions, as improving the energy efficiency of their fleets helps reduce their exposure to often volatile fuel prices. It was an extreme case. A test for a legal system is whether it can deal with occasional abuses in favour of the higher ideal of predictability and compliance with the agreement negotiated by the parties. Ideally, the parties should choose the legal system with the most assets for their respective agreements. This point was the subject of extensive debate and research in the early 1970s, when the euro markets were introduced. A number of Latin American countries have argued that their syndicated bank loans from foreign banks should be subject to their own rights and contain a compromise clause. They said they could not constitutionally submit to foreign laws and tribunals, which is known as the Calvo Doctrine. With very few exceptions, foreign banks refused to lend on this basis and, ultimately, English or New York laws and tribunals agreed, with very few exceptions. The same conversation took place in the author`s experience at the time in lending in Quebec, Turkey and elsewhere, with the same result. However, some countries will also overcome this isolation by choosing a foreign law in the event of exchange controls. A provision of the IMF agreement (Article VIII 2 ter) obliges the courts of member states (more or less the whole world) to recognise compliance with a Member State`s exchange controls in the event of “exchange contracts”. In other words, the government of the borrower`s or issuer`s country can unilaterally change the agreement through stock market control, which they often do in the event of insolvency when the state is the debtor itself or when the borrower is locally important.
English law itself opposes these foreign interventions through exchange controls and does not apply Article VIII 2 ter to credit and bond issues – these are not “exchange contracts”. See.B the Terruzzi case (1976). However, in France, Germany and Luxembourg, the isolation is annulled because of the jurisprudence of the article. See, for example. B the German Lessinger case (1955), the Paris De Boer case (1962) and the Luxembourg Erjourdan case (1955). In these countries, the borrower can effectively unilaterally amend the agreement, even if it is subject to a foreign right. This agreement is governed by state law  and is interpreted accordingly. (a) A contract is governed by the law chosen by the parties. The choice must be clearly or clearly demonstrated by the terms of the contract or the circumstances of the case.