Governing Law
A contract clause specifying which jurisdiction's laws will be applied to interpret the agreement and resolve disputes arising under it.
What it means
A governing-law clause tells courts (and arbitrators) which body of substantive law applies to the contract. It is distinct from a venue or forum-selection clause, which specifies where disputes are litigated. Most US states enforce a choice-of-law clause if it has a reasonable relationship to the parties or the transaction; some narrow exceptions apply for consumer contracts and public-policy conflicts.
Read more
- International Contracts: Jurisdiction & Governing Law — Learn how to handle governing law, jurisdiction, and dispute resolution in international contracts. A plain-English guide for cross-border deals in the US, UK, EU, Canada, and beyond.