What is a choice of law clause and how can it be used in international litigation?
A choice of law clause is an agreement between parties in a contract that stipulates which law will govern the contract should any disputes arise. This is an important consideration when parties from different countries wish to enter into a contract; the laws of each country could potentially clash if no agreement is reached. In international litigation, a choice of law clause can be used to assign the responsibility of resolving any disputes to the law of a particular country or legal system. This means that, should a dispute arise, the laws of the country or legal system chosen in the choice of law clause will be used to settle the dispute. The choice of law clause is beneficial in international litigation because it prevents potential legal conflicts and ensures that all parties involved are familiar with the laws governing the contract. As such, it minimizes the risk of costly misunderstandings or miscommunications. In New Hampshire, corporations entering into contracts with foreign partners may include a choice of law clause that specifies the use of New Hampshire laws in order to protect their interests. This provides an extra layer of protection that is essential in international litigation.
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