PES Contract Clauses > Forum and Choice of Law Example 2
This agreement is subject to the Constitution of [country], [the applicable forest, environmental, and other applicable laws], current Ministerial Accords, and other valid regulations issued for the benefit of the Program in force in [country] as of the signing of this agreement.
This applicable law clause is slightly different from a typical choice of law clause. Because of the context (a participation agreement in a government REDD+ program), it is self-evident that the law of the host country will apply. But this clause clarifies that laws issued for the benefit of the program (such as the programs rules and regulations) that are applicable to the agreement are those that were in force as of the signing of the agreement. This is meant to reassure participants and stakeholders that the ministry cannot unilaterally change the contract terms after the agreement is signed.
Context of this Clause
Participation agreement for a national REDD+ program
Ecosystem service: forest carbon emissions reduction credits or conservation/restoration services expected to yield forest carbon emissions reduction or removal
Single seller signing a government-provided form contract (which is backed up by detailed program guidelines) with a representative of the government ministry that administers the REDD+ program
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