A \”choice-of-law\” provision is a clause in an agreement where parties agree that a certain state\’s laws will govern litigation if the parties sue each other later, regardless of what state\’s court hears the case.
This is different from a \”forum selection\” clause, where the parties agree where the case must be filed.
In California, the parties may agree to a choice-of-law provision if:
- The chosen state (whose law is proposed) has a substantial relationship to the parties or the transaction at hand; or
- Whether there is any other reasonable basis for the parties\’ choice-of-law.
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