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.
New York Putting It All Together - Governing Law and Jurisdiction Provisions
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Governing law is a contractual provision (also known as a choice of law provision) that determines which law shall apply in the event of a dispute. Such a clause is generally honored by the courts which do not interfere with the agreement of the parties regarding the applicable law.
Governing Law Versus Jurisdiction 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.
Choice of law clauses are found in almost every contract. However, parties can sometimes use them strategically. For example, a business can set the choice of law in Delaware if they are headquartered in that state, even though they may be conducting business elsewhere in the country.
Governing law refers to the actual legal statutes that will apply to your agreement, while jurisdiction refers to what court or court system your case will physically be tried in.
Jurisdiction clauses in contracts In most cases, contracts will include jurisdiction clauses. In these clauses, the parties decide which country's courts will hear any disputes that arise under the contract. This means parties can avoid jurisdictions that they consider less desirable or predictable.
Under New York Law, governing law clauses are not dispositive in and of themselves. Where both contracting parties are sophisticated, negotiated at arm's length, and the parties themselves, or the contemplated performance, have some relationship to the chosen jurisdiction, governing law clauses are often enforceable.
Jurisdiction clause samples. The exchange offer is not being made to (nor will tenders be accepted from or on behalf of) holders of original notes in any jurisdiction in which the making of the exchange offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction.
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.