choice of law clause

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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.

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Dubois Marine Specialties, the court upheld a choice-of-law clause providing that the parties' agreement was to be "construed and enforced in accordance with the laws of the state of Rhode Island," a clause similar to the present case where "[s]upplies and benefits shall exclusively be governed by German law.
2002) (holding that the choice-of-law clause in the policy was unenforceable because upholding the clause would have reduced coverage for a discrete group of individuals based solely on their familial relationship to the insured which violated fundamental principles of justice for New Mexico residents and was therefore void.
In answering this question, it may be useful to consider the likelihood that a contract that includes a forum selection clause also includes a choice-of-law clause.
That case denied effect to a choice-of-law clause selecting New York law when the Court found that state's laws regarding arbitrators' powers unappealing.
49) The choice-of-law clause was coupled with an arbitration clause, which the court viewed as a device to limit the substantive laws applicable to any consumer claim to those of Delaware and federal law only.
According to that provision, a choice-of-law clause is invalid if without it, the local forum state's law would apply; if applying the other state's law would violate a "fundamental policy" of the forum state; and if the forum state has a greater interest in the outcome of the case.
The possibility of a choice-of-law clause is mostly considered as a side-issue, or as one that is problematic.
The choice-of-law clause should be in writing and appear in the will", it says.