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Offshore Outsourcing to India - Legal Issues The national Legal Regime of any single country becomes inadequate to grapple with the situation when contracts transcend national boundaries. At least two systems of law impinge upon the transaction and the rules of Private International Law come into play when the parties to the contract are located in different countries. The Courts have held that "Proper Law is the law which the parties have expressly or impliedly chosen, or which is imputed to them by reason of its closest and most real connection". In order to ensure the application of a particular legal system to international contracts is to choose a particular law to govern the international contract laws. This law is called the "Proper Law of the Contract". And it is the best way.