Contracts & Sales

Question 1

When will the law chosen by the parties in a contract not apply?

Answer 1

1) the chosen state has no substantial relationship to the parties/transaction and there is no other reasonable basis for the parties’ choice
2) Application of the law of the chosen state would be contrary to a fundamental policy of a state that has a materially greater interest than the chosen state in the determination of a particular issue and which under the most significant relationship test, would be the state of the applicable law in absence of an effective choice of law by the parties