3. Under what situations would it be wiser to choose Mexican Law as governing law in my contracts for the sale of goods into Mexico?

If you are not including an arbitration clause in your contract, and you are also not considering to subject claims or controversies arising out of the commercial relationship to a foreign court (your country's courts for example), you should seriously consider including Mexican Law as governing law for your contract.

Because foreign law is not mandatory in Mexico and not recognized within our system and institutions, a plaintiff whose cause of action is based on foreign law is going to have to prove to the court in detailed manner what does the particular and applicable foreign law provides and which are the particular provisions deemed relevant to the controversy. That creates the unnecessary task to perfectly cite in the plaintiff's complaint all the provisions pertinent to your case, and later on prove them in court through the use of expert witnesses or public reports from the foreign country officials (with the help of letters rogatory). The lack of these formalities will not only hurt you against a well-advised debtor, but also in an uncontested lawsuit.

Another thing to consider when choosing Mexican Law as governing law for your sales transaction is the different scenario that such regulation will create for both buyer and seller with respect to their contractual and non-contractual liability, as well as the legal remedies provided for under our system. For instance, punitive damages are not recognized in Mexico's legislation and therefore never awarded.

With respect to torts law, most Civil Codes in Mexico provide a maximum amount cap an injured person can receive for actual damages sustained, generally far less than what they would be in the United States.

Lastly, while Mexican courts will provide for a specific performance remedy under all situations in civil matters, it is doubtful whether such rule is to apply in commercial cases. This posses some treat to buyers in situations where seller fails to deliver goods, since there will be much uncertainty as to the remedies available. As to the parties' rights and duties, the situation will likely remain the same since Mexico is part to the Vienna Convention on Contracts for the International Sale of Goods (CISG), making such international law binding under most circumstances unless specifically excluded.

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