As for Art. 4(1)1 of the German Private International Law Act on Renvoi reads, when a referral is made for a case to another country law, then the private international law of that country will be applied here. However, this application of the private international law of the country is limited to that nature of application where it does not become incompatible with the original nature or the meaning of the referral. Where the law of the other country refers back to German law then the German substantive provisions will be applied here. In the context of admission of Renvoi Article (4)2 states that when parties can choose laws of a country for renvoi then the choice must be related to the substantive provisions. Where the referral is made to country with several legal systems as Article (4)3 states then country law will determine the partial legal system to be applied and failing this the one closest in context to the issue at hand will be applied.
Germany as a civil law country hence gives a significant importance to substantive law. Civil law system is more commonly applied here than the common law systems as observed in other countries of Anglo Saxon traditions. This form of substantive law differs from procedural law. In procedural law, the court will hear either end of the arguments and then will determine the due process of justice in the cases. On the other hand in the case of substantive laws, the claims and defense will be tested for validity using procedures in the procedural law in order to come to a decision. Now in the case of a renvoi being back referenced, where the private international law of the country to which it was referred to might not be able to meet the meaning of the referral then the substantive provisions of Germany will come to be applied. This back referencing is possible when the renvoi not only consider for the foreign country’s laws on the subject but also considers the laws of conflict of the foreign country.