- Home
- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Credit Practices
- Collection Practices
- Financial Analysis
- Financing Methods
- International Credit
- Laws and Regulations
- Antitrust
- Construction Law
- California Civil Code 1526a
- Contract Law
- Choice of Law Provision
- Equal Credit Opportunity Act
- The Escheatment Process; Unclaimed Property
- Fair Credit Reporting Act
- Miller Act
- Reclamation
- Reclamation Claim; Bankruptcy Reclamation; UCC Reclamation Claim
- Sarbanes Oxley
- Truth In Lending Act
- Usury; Interest Rates; Usurious
- Statute of Frauds
- The Federal Prompt Pay Act
- The U.S. Legal System
- Embargo
- Payment Methods
- Performance Measures
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
- Upcoming Educational Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Choice of Law Provision
In a contract, a choice of law provision establishes which state law will apply if a dispute develops between the parties to the contract that are located in different states that results in litigation. For example, if your company is located in California and your customer the debtor is located in Oregon, the question of which state law applies would or certainly could be a source of dispute. However, when a choice of law provision is included in a contract with the debtor (such as your credit agreement) or included on your invoice terms and conditions, then the question which law controls is answered. This can shorten the amount of a time it takes to resolve a dispute with a customer.
Copyright 2009 by Michael C. Dennis. All Rights Reserved