971000 Original The factual preconditions and the effects of contracts are governed by the law which the parties expressly or impliedly determined. If the applicable law is according to the silence of the parties neither determinable from the nature of the contract nor from the respective circumstances nor from the location of the goods, the judge considers the law of the common domicile, in by default of such, the common domestic law, or if they neither have a domicile in the same country nor a common citizenship, the law of the country where the contract is concluded.

[Translated into English from the German translation of Makarov contained in Kropholler, Außereuropäische IPR- Gesetze, Hamburg 1999]