(1) Agency is governed by the law chosen by the principal before the exercise of the authority, if the choice is known to the third party and the agent. The principal, the agent and the third party may at any time choose the applicable law. A choice made under sentence 2 prevails over a choice made under sentence 1.
(2) Where the law applicable to the agency has not been chosen in accordance with paragraph 1 and the agent is acting in exercise of his professional activity, the substantive provisions of the state in which the principal has his habitual residence at the time of the exercise of the authority shall be applied, unless this place is not evident to the third party.
(3) Where the law applicable to the agency has not been chosen in accordance with paragraph 1 and the agent is acting as an employee of the principal, the substantive provisions of the state in which the principal has his habitual residence at the time of the exercise of the authority shall be applied, unless this place is not evident to the third party.
(4) Where the law applicable to the agency has not been chosen in accordance with paragraph 1 and the agent is acting neither in the exercise of his professional activity nor as an employee of the principal, and if the authority is long-term, the substantive provisions of the state in which the agent ordinarily exercises the authority shall be applied, unless this place is not evident to the third party.
(5) If the applicable law does not follow from paragraphs 1 to 4, the substantive provisions of the state, in which the agent uses his authority in the particular case (place of usage) shall be applied. If the third party and the agent had constructive notice that the authority was to be used only in one particular state, the substantive provisions of that state are applicable. Where the place of usage is not evident to the third party, the substantive provisions of the state, in which the principal has his habitual residence at the time of the exercise of the authority, are applicable.
(6) Agency in cases of conveyances of land or titles in land is governed by the law determined by Article 43 paragraph 1 and Article 46.
(7) This Article does not apply to agency in cases of stock market transactions and auctions.
(8) The determination of the place of habitual residence within the meaning of this Article is governed by Article 19 paragraph 1 and 2 first alternative of Regulation (EC) No. 593/2008, insofar as the conclusion of the contract is substituted by the exercise of the authority. Article 19 paragraph 2 first alternative of Regulation (EC) No. 593/2008 shall not be applied where the relevant place is not evident to the third party.