This form brings together several boilerplate contract clauses that work together to outline the laws that will govern all or parts of the contract and to determine the legal forum or jurisdiction for any claims that may arise under the contract agreement.
Idaho Putting It All Together - Governing Law and Jurisdiction Provisions
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FAQ
Jurisdiction refers to the country whose courts are to apply the governing law. The governing law is the law to be applied by those courts.
A governing law clause determines the substantive law that will apply to the interpretation of an agreement (i.e. legal rights and obligations of the parties). It does not govern how disputes are to be resolved.
Just as the basis of a tribunal's jurisdiction does not determine the law it has to apply, the law applicable in a case does not determine the tribunal's jurisdiction. The law governing jurisdictional issues is independent of the law applicable to the merits of a case.
A choice of law provision in a contract, also known as a "governing law" clause, is a term that designates which jurisdiction's laws will be used to interpret the contract and resolve disputes that might arise under it.
Contracts are promises that the law will enforce. Contract law is generally governed by state common law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the contract may vary between the states.
Exclusion of conflict of laws principles clarifies that the parties intend that the governing law expressly indicated in the contract is to apply. The phrase ?without regard to conflict of law principles? may be glossed over by a contracting party.
What if there is no governing law clause? If no governing law clause is included and a dispute arises, the court hearing the dispute is likely first to have to determine what law applies to the contract (and any non-contractual obligations) before it can resolve the dispute.