choice of law clause

choice of law clause

Frequently employed by a national company with real estate relationships in many states, the clause will state that the law of the company's headquarters will control any disputes between the parties.This is because the lawyers back at headquarters know their own law and know how to write contracts to protect themselves.If all their nationwide contracts were interpreted under the laws of the different states, it could be chaotic. Choice of law clauses are usually accompanied by forum shopping clauses,which specify which state's courts will hear disputes between the parties.