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 II: Foreign Choice-of-Law Clauses
In a prior post, I examined when a choice-of-law clause selecting the law of a U.S. state may be used to avoid federal laws. In this post, I consider whether a choice-of-law clause selecting the law of a foreign country may be used to accomplish this same goal. The post first examines situations where the…
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….
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