Contract Glossary
Choice of Law
Definition
A contract clause that specifies which jurisdiction's laws govern the agreement. If you're in New York and your client is in Texas, the choice of law clause determines whether New York law or Texas law applies if there's a dispute.
In Practice
This matters more than most people think. Employment laws, contract enforcement rules, and available remedies vary wildly between states, and even more between countries. If you're a freelancer in the Netherlands working for a US client, a choice of law clause picking New York law could mean very different rights than Dutch law would give you.
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
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