Governing law: the clause that decides where disputes happen
Governing law and venue decide which country/state’s law applies and where disputes are handled. For small freelance engagements, you want your home jurisdiction or a neutral one.
When to use
- Any cross-border contract
Red flags
- Exclusive jurisdiction in a far-away venue
- Mandatory arbitration you can’t afford
Copy/paste clause lines
Plain text — edit for your jurisdiction
This agreement is governed by the laws of [your jurisdiction]. The parties submit to the non-exclusive jurisdiction of the courts of [your jurisdiction].
Negotiation moves
- Ask for non-exclusive jurisdiction
- If they insist on their venue, raise fees to reflect risk
FAQ
Governing law · FAQ
Does governing law matter if we’ll never sue each other?
It still matters because it sets default rights and leverage. If a dispute happens, you don’t want the venue itself to bankrupt you.
Related
Other clauses
Further reading
Keep reading
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Editorial guidance only. This is not legal advice. Laws vary by jurisdiction and contract type. Use this as a starting point and consult a qualified lawyer for high-stakes agreements.