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Simple English definitions for legal terms
controlling law
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A quick definition of controlling law:
Controlling law is the set of laws that will be used to decide who wins a legal dispute. Different states have different laws, so it's important to know which state's laws will be used. This is especially important in contracts, where parties can choose which state's laws will be used. This is called a choice of law clause. Some states have laws that are more favorable to certain industries, so companies may choose to move there to increase their chances of winning a legal dispute.
A more thorough explanation:
Definition: Controlling law refers to the laws of the state that will be used to settle disputes. The laws of different states can be very different, so determining which laws apply can be very important. This term is often used in contracts.
For example, if a company in California signs a contract with a company in New York, they may include a clause that says which state's laws will be used to settle any disputes that arise. This is called a choice of law clause. If they don't include this clause, the court will usually use the laws of the state where the court is located.
Another example is insurance companies. Some states have laws that are more favorable to insurance companies than others. So, an insurance company might choose to move to a state with more favorable laws so that those laws will be used if there is a dispute.
Overall, controlling law is important because it determines which laws will be used to settle disputes. This can have a big impact on the outcome of a case.