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 ReadingDim Sum Bonds, Panda Bonds, and Dispute Resolution
China’s push to internationalize the renminbi (RMB, or yuan) since 2008 has led to the growing share of RMB-denominated bonds in the international bond market. So-called “panda bonds” and “dim sum bonds” are variants of RMB-denominated bonds. Panda bonds are onshore RMB debt issued in China by entities domiciled outside mainland China. Overseas issuers use…
Continue ReadingThe Marginal Utility of Choice-of-Law Clauses
I spend a lot of time researching and writing and thinking about choice-of-law clauses. So much so that I sometimes worry that I’ve fallen victim to a cognitive bias known as the law of the instrument or (more colorfully) Maslow’s Hammer. This bias arises when a person acquires a specific skill and thereafter looks for…
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…
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