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Choice Of Law Clauses

A choice of law clause is a provision in a contract in which the parties stipulate that any dispute between them arising from the contract will be determined in accordance with the law of a particular jurisdiction.  If the dispute is litigated, the choice is not binding, but is normally honored, by the court hearing the lawsuit.

It is to be noted that the law of the forum (lex fori) usually controls all procedural matters even if a choice of law clause assigns the law of another jurisdiction as controlling in the matter.  In such a case the law of the chosen jurisdiction would only control the substantive legal issues involved.  Generally, a court will assume that a case is to be governed by the laws of its own forum unless it is expressly shown that a different law applies.


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