(1) The law chosen by the parties pursuant to ORS 15.350 does not apply to the extent that its application would:
(a) Require a party to perform an act prohibited by the law of the state where the act is to be performed under the contract;
(b) Prohibit a party from performing an act required by the law of the state where it is to be performed under the contract; or
(c) Contravene an established fundamental policy embodied in the law that would otherwise govern the issue in dispute under ORS 15.360.
(2) For purposes of subsection (1)(c) of this section, an established policy is fundamental only if the policy reflects objectives or gives effect to essential public or societal institutions beyond the allocation of rights and obligations of parties to a contract at issue.