Stokes O'Brien

Choice-of-Law Provisions in California Contracts

Posted in Business and Real Estate Litigation on November 2, 2015

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:

  1. The chosen state (whose law is proposed) has a substantial relationship to the parties or the transaction at hand; or
  2. Whether there is any other reasonable basis for the parties’ choice-of-law.

To speak with a San Diego contract lawyer, contact us.