Choice of Law

Once we know what court will hear a case, we do not necessarily know what law will be applied by that court. While courts in some countries prefer only to apply their own law to any case which is heard in their court, in the United States that is often not true. If a court in Maryland hears a case about a contract entered into between a Maryland corporation and a California corporation which was negotiated in California and performed in California, then the Maryland court will apply California law to the case. The short answer is that, absent a choice by the parties, a US court applies the law of the state that has the most significant relationship to the transaction and the parties.

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