Legal Question in Business Law in New York
When 2 parties enter into an agreement involving provision of a service in different state than they are located, which state law prevails, the state they are located or the state that the work actually occurs?
2 Answers from Attorneys
Choice of law is actually made up of two components: choice of governing law and choice of venue (where it will be heard). The two do not have to be the same.
So the answer is: it depends...
It depends on the prior dealings between the parties, if any, the type/nature of the controversy, any written agreements (even if the agreements seem to be silent about the choice of law / venue), where the agreement was signed, which party first contacted the other party, which party goes to court first, whether it is state or federal court.
Apologies that I could not be more definitive but this really needs to be reviewed on an individual basis. I offer a discounted and affordable consultation to lawguru users. Simply email me with the heading lawguru.
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Can't answer "which state law prevails" without knowing what the disagreement is about. The answer is complicated and very much depends on the specific facts which need to be addressed by "state law."
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