Most Significant-Relationships Theory Law and Legal Definition

Most significant relationships theory is a principle of conflict of laws which says the court of the forum should apply the policy of the state with the most interest in the litigants and the outcome of the litigation. This theory allows the court to consider the spectrum of significant contacts, rather than a single possibly fortuitous event, with heavy weight given to the place of contracting, negotiation and performance; the location of the subject matter of the contract; and the domicile of the contracting parties.

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