Newark, NJ asked in Contracts for New Hampshire

Q: For business contracts with clients in a different state, do you list both states for the "governing law" section?

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1 Lawyer Answer

Joseph Kelly Levasseur

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Answered
  • Manchester, NH
  • Licensed in New Hampshire

A: If you are the one drafting the contract in might be in your best interest to pick your own state-however, in some instances the other state may have contract laws that benefit your interests better. Also keep in mind that when entering into a contract with a person from another state, that may allow either party to choose federal district court instead of their local district or state court, as the place for a contract dispute. There are important parameters that have to be met for a case to get into federal court and they are tough to meet but there are advantages to go there for either party and must be kept in mind when drafting the contract. You may want to put in a clause that if a dispute arises the parties will go to arbitration instead of to court. Good luck!

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