Maine Governing Law Provisions
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How to fill out Governing Law Provisions?
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FAQ
New California Law Prohibits Choice of Law and Venue in Employment Contracts. On September 25, 2016, Governor Brown signed into law a new California Labor Code provision (Section 925) that is likely to have major repercussions for contracts with employees who live and work primarily in California.
[PL 1999, c. 23, §2 (AMD).] 4-A. As used in this section, "strict liability crime" means a crime that, as legally defined, does not include a culpable mental state element with respect to any of the elements of the crime and thus proof by the State of a culpable state of mind as to that crime is not required.
Governing law can be important because a dispute may hinge on differences in local laws. However, the parties in a contract are not necessarily bound to where they live or where the contract is signed. A governing law provision allows the parties to agree to use a particular state's laws to interpret the agreement.
Jurisdiction refers to where a dispute will be resolved; governing law indicates which state's law will be used to decide the dispute. It's possible, for example, for a contract to require lawsuits to be filed in California but decided under New York law.
Delaware and New York are the two most popular states designated in commercial choice-of-law clauses, in part because both have highly developed bodies of case law with respect to commercial disputes. ?When drafting a contract, parties generally want certainty.
"Choice of law" is a set of rules used to select which jurisdiction's laws to apply in a lawsuit. Choice of law questions most frequently arise in lawsuits in the federal courts that are based on diversity jurisdiction, where the plaintiff and defendant are from different states.
