The Suitability of The Electronic Objective Approach in Resolving the Problem of Conflict of Laws in Crowdfunding

Abstract

Crowdfunding, is considered one of the most important processes that contribute to providing innovative financial services. From large numbers of individuals to support innovation through project financing, and this type of financing is based on the use of (electronic platforms) to directly link the project owner (the founder) and the financier (the audience of supporters).

Crowdfunding is divided into two fundamentally different models, the first: the financing model in return (the investment model), and the other, the most common: the model of financing without consideration (the non-investment model).

 The electronic substantive rules approach is based on the idea of creating some basic (objective) rules that include direct solutions to electronic international relations disputes, so they are applied directly without looking for the applicable law to which the rules of attribution lead.

The electronic substantive rules were defined in terms of the mechanism of their conclusion, as: “a set of legal rules that provide an objective or material solution to the issue in question directly.

The electronic substantive law consists of a set of non-national legal rules, which require resolving the conflict by providing direct solutions, regardless of the relevant law in accordance with the traditional approach, because it was laid as a basis to respond to the nature of international private relations, related to electronic transactions.

The research is an attempt to determine the extent to which the electronic objective approach can provide the best solution to disputes in international private relations.