Choice-of-Law Clause Law and Legal Definition

Choice-of-law is a provision in contract. By the choice-of-law provision, the parties can designate the jurisdiction whose law will govern any disputes that may arise between the parties. In other words, the parties specify or stipulate that any dispute or lawsuit which arises out of the contract between them shall be determined according to the law of a particular jurisdiction. This choice usually becomes binding when the dispute is arbitrated.