Grouping-of-Contacts Theory Law and Legal Definition

Grouping of contacts theory is a principle of conflict of laws that in case of choice-of-law questions, the law of the jurisdiction which has the most significant relationship to the transaction or event applies.

The grouping of contacts theory requires the court to examine five factors in order to determine which state law to apply in contract cases involving choices of law. These factors include (1) the place of contracting, (2) the place of negotiation of the contract, (3) the place of performance, (4) the location of the subject matter of the contract, and (5) the domicile, residence, nationality, place of incorporation, and place of business of the parties. [General Tel. Co. of Southeast v. Trimm, 728 F.2d 494, 496 (11th Cir. Ga. 1984)]

Grouping of contacts theory is also known as the most significant-relationships theory or the center-of-gravity doctrine.