Choice-of-Law Provisions in California Contracts
A “choice-of-law” provision is a clause in an agreement where parties agree that a certain state’s laws will govern litigation if the parties sue each other later, regardless of what state’s court hears the case.
This is different from a “forum selection” clause, where the parties agree where the case must be filed.
In California, the parties may agree to a choice-of-law provision if:
- The chosen state (whose law is proposed) has a substantial relationship to the parties or the transaction at hand; or
- Whether there is any other reasonable basis for the parties’ choice-of-law.
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