Governing Law Clause
A contract provision, closely related to a choice of law clause, specifying the legal framework and jurisdiction that governs how the agreement is interpreted and enforced.
A governing law clause establishes which state’s or jurisdiction’s laws apply to interpreting the contract’s terms, which becomes especially relevant if a legal dispute arises and the parties are located in different states.
Reviewing this clause alongside any venue or arbitration provisions gives a fuller picture of how, and where, a dispute over the agreement would actually be resolved.
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