A choice-of-law clause is a contractual provision that selects a law to govern the contract. These clauses facilitate settlement by identifying the law that will be applied to resolve future disputes, thereby allowing the parties to more accurately assess the strength of potential claims. They also reduce the costs of litigation by making it unnecessary for a court to conduct a choice-of-law analysis.
A Primer on Choice-of-Law Clauses
A choice-of-law clause is a contract provision that selects the law to govern the contract and claims relating to the contract.
Continue ReadingOpting Out of Federal Law I: State Choice-of-Law Clauses
Most provisions of federal law are mandatory. One cannot opt out of the tax code, the wire fraud statute, or civil rights laws. There are, however, a handful of federal laws that are not mandatory. These laws expressly state that they shall not apply if private actors write language into their contracts opting out. A…
Continue ReadingA Costly Drafting Mistake
When I teach Conflict of Laws, I spend a lot of time showing my class how to draft a good choice-of-law clause. It’s not hard. Everything you need to know is laid out in the Primer on Choice-of-Law Clauses. Unfortunately, these instructions are not always followed. In one recent case, Pool Scouts Franchising LLC v….
Continue ReadingMicrosoft Contract Day 2025!
Two years ago today, I authored a post titled “Microsoft’s Dispute Resolution Provisions Are a Mess.” I argued that the “Jurisdiction and Governing Law” language in the form purchase order used by Microsoft and its subsidiaries in 109 countries around the world was “incoherent.” My goal in writing the post was to inspire/shame Microsoft –…
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