Contracts are used for a whole lot of reasons, but two important ones are for protection and prevention.
Legal service agreements provide assurances that your rights will be protected if things go awry with the relationship. What’s more, a surprising number of disputes can be avoided altogether simply by having the terms of the relationship spelled out in a signed agreement (yes, even in the court of law, prevention is the best medicine).
Before choosing to engage in any kind of service or commitment, review the contracting language – and check it twice. Both parties should know exactly what they are agreeing to when signing a client services agreement (CSA), including what is outlined in the governing law clause.
What is a Governing Law Clause in a Client Service Agreement?
The governing law, or choice of law, provision dictates exactly which state’s laws will be used to govern the agreement if a legal issue were to arise.
This becomes especially important if you do business across state lines or conduct business internationally.
Because contract law varies from state to state, you’ll want to ensure you have an attorney assist you in drafting your agreement. It’s important that you understand all applicable governing laws for the location you choose, as those are the laws that will be used to interpret the contract and ensure its terms are enforced.
While you are able to select which state or country’s laws you would like to govern your contract, that location must be connected to at least one of the parties or the transaction. You can’t just pick anywhere. Work with an experienced corporate attorney to ensure your contracts and agreements are thorough.
For help with contract law or any of your corporate law questions, contact us at the Law Offices of Alex D. Sirulnik, P.A.