Question:

What is a choice of law and venue selection provision in an agreement?

Answer:

Choice of law is the part of a provision in an agreement that dictates which state’s laws will govern. This sometimes applies to different countries as well. For example, California is very pro-employee and pro-consumer; while New York is very pro-business and not so much pro-consumer. The laws in these two jurisdictions may differ significantly depending on the transaction that the agreement is related to. Choice of law can really make a difference if there is a dispute later down the line.

Venue selection clause also fits in the part of a provision in an agreement and it dictates which state and which court within that state where disputes will be heard. Note that you can choose to use a state’s law to be applied in a different state’s court, such as using New York law in a California court. There is also a practicability standpoint of venue selection because you’re not going to want to fly from California to New York to figure out a contract dispute.

If you have any other questions feel free to reach out to us at bertie@inbetterwetrust.com and we’ll get back to you!