Choice of Law Provisions Play Important Role in Contracts
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A choice of law provision in a contract allows the parties to agree that a particular state's law will be used to interpret that agreement. Allen Matkins attorney Keith Paul Bishop explains that this provision can be very important. The choice of law doesn't involve one question, but three:
· The substantive law that will be applied (choice of law);
· The court or other forum that will decide disputes (choice of forum); and
· Where the dispute will be decided (choice of venue).
It is important to distinguish between these three choices because the courts will apply different principles to whether these choices will be honored.
A choice of law provision in a contract allows the parties to agree that a particular state's law will be used to interpret that agreement. Allen Matkins attorney Keith Paul Bishop explains that this provision can be very important. The choice of law doesn't involve one question, but three:
· The substantive law that will be applied (choice of law);
· The court or other forum that will decide disputes (choice of forum); and
· Where the dispute will be decided (choice of venue).
It is important to distinguish between these three choices because the courts will apply different principles to whether these choices will be honored.
