Question

Mark is creating Nu2U, a Web site through which he will enter into contracts over the Internet. In his standard online contract, he includes a provision which states "Any disputes under this contract will be resolved under the laws of the State of Texas." This is an example of a

Answer 1

Answer: Choice of Law Clause

Step-by-step explanation:

The Choice of Law Clause allows parties in a contract to pick a territory's laws as the laws that the contract between them will be applicable to.

This way uncertainty can be avoided when any of the parties seeks legal redress for any perceived breach of contract.

It is worthy of note that parties do not even need to be from the Territory whose laws have been chosen and this is why some parties look for Territories who have laws that will be favourable to them. This is why most big Corporations pick Delaware law because their laws are perceived to be pro big business.