Abstract
A fundamental question raised by the cases is the relation of Article VIII, Section 2(b), to private international law. That branch of the law of each country includes a set of rules that determine the law by which contracts, including their performance, are governed. Article VIII, Section 2(b), also establishes a rule for the recognition of certain provisions of a particular system of law. It declares that, if suit is brought in a member’s court to enforce an exchange contract, the court must refuse enforcement if the contract is contrary to the exchange control regulations of another member whose currency is involved. In short, the law of the member whose currency is involved must be recognized in the circumstances and for the purpose prescribed by Article VIII, Section 2(b).
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