In 2018, Bank Ltd, an English bank, and BVG GmbH, a German publicly-owned company, entered into a credit default swap contract. The contract was negotiated by the German branch of Bank Ltd and BVG. Under the contract, Bank Ltd paid BVG 6 million through its German branch. In exchange, BVG promised to pay sums of up to 150 million should certain third-party companies default on their payment obligations towards Bank Ltd. The contract states that the provisions of the German Civil Code on the manner of performance and the steps to be taken in the event of defective performance shall apply. The contract contains a non-exclusive jurisdiction agreement in favour of the German courts. The last draft of the contract contained a German choice-of-law clause, which mysteriously disappeared from the version of the contract that the parties signed. Neither party can explain why or how the choice-of-law clause was omitted from the signed version of the contract. A number of third-party companies have defaulted on their payment obligations towards Bank Ltd and, under the contract, BVG should pay a large sum of money to Bank Ltd. BVG argues that it did not have capacity to enter into the contract and that, therefore, it owes no contractual obligations to Bank Ltd. Under English law, there is nothing to prevent companies like BVG from entering into credit default swap contracts. Under German law, companies like BVG do not have capacity to enter into such contracts. Bank Ltd wishes to sue BVG in England for breach of contract. Assume that the English courts have jurisdiction. Discuss the choice-of-law issues that arise.