Recent Trends in Determining Applicable Law to Loan Contract

The international community has witnessed versus the huge developments in recent years, a change in the concept that this ruling brought, and modern legal thought has provided us with many examples of contracts subject to a legal system that is not the national law of a country which prompted many modernists to say that the contract can be attributed to new types of legal systems. These modern legal trends that appeared in the recent era indicate that the law of the state party or some other national laws determined by the rules of conflict of laws are applicable only to the ordinary type of agreements between the state and foreigners.However, these national laws are not the same as for the agreements concluded between persons (natural or moral) possessing a surplus of capital and various skills, and the governments of other countries need to develop their economy and do not have sufficient capital or available skills to achieve this purpose such agreements described as (Economic Development Agreements) that require both parties to strictly implement all of the obligations arising from the contract, including the states duty to moderate or terminate the agreement at its own will.