0

I often see governing law clauses that state something like

The contract is to be governed in accordance with the law of the State of California without regard to any conflict of law principles

I red this article but still don't see why it's necessary. The intent is clear. No one would put this in without intending to mean it.

The article says such clauses prevent against courts simply not following the choice of law, and also preventing "renvoi" but isn't that the same thing? I don't see how there are two different things the "without regard..." prevents.

0

The first part about the choice of law is normally referring to what law of the country or state that the party intends.

The renvoi part is saying that if there is a conflict, that laws involving foreign juridictions should not be consulted to end the dispute.

Second, it prevents a renvoi which would allow for a court to refer to laws involving foreign jurisdiction in a conflict of law analysis. The author indicates that this is important for ensuring that the intention of the parties are maintained.

The foreign part is the key difference.

  • 1
    Isn't that still extremely redundant? It's like saying "apply the law from France but don't apply the law of England". What more does "without regard to conflict of law" add? – TwoTwins Apr 18 at 1:44
  • That part refers to domestic laws. It's just a way things are done. You are looking to far into it. I don't mean that offensively. – Putvi Apr 18 at 18:11
0

The chief problem at hand here is that California law (or any other system) cannot reasonable foresee the wide array of legal situations that have originated elsewhere. If a lawsuit results from a series of actions in different jurisdictions, there is a possibility for a conflict of law. Many jurisdictions allow judges to take the other law systems into account, certainly when they're generally seen as compatible (as is common for US and EU states)

The terms of this contract state that the laws of California apply exclusively. Even if further actions in scope of the contract would happen in other states, the laws of those states do not apply.

Note however that the "excluded jurisdiction" may have different ideas. For instance, the EU states that the GDPR applies even to such a contract.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.