google_groups@excite.com (SimonC) wrote:
In a non-disclosure agreement I am drawing up, one of the
clauses is:
"Applicable Law: This Agreement is made under, and shall be
construed according to, the laws of the State of California,
USA."
What happens if I move to another state (say Oregon) or even to
another country? (say the UK.)
If it's a business contract (as opposed to a consumer transaction)
courts will generally apply the law you specify, even if that state
has no contacts with the transaction.
Should I draw up another agreement, or will the original
agreement still be valid, no matter where I or the business
goes? That is, the agreement remains being construed according
to the laws of the State of California?
Well, which states laws do you like best? Which do you prefer?
Which would be less expensive for you to use if you do get into a
fight?
One of the reasons for choosing local law is because your lawyers
know it and feel it will work well for you. If you choose the law
of some other state, you may have to hire two lawyers, one local and
one in the other state.
Stu
