Implied Choice of Law Arbitration Agreement

In the world of legal agreements, one commonly used term is “choice of law.” This refers to the governing law that will apply to the agreement in question. In many cases, this choice of law can be explicitly stated in the agreement itself. However, there are situations in which the choice of law may be implied, typically through the inclusion of an arbitration provision.

An arbitration provision is a clause that outlines how disputes related to the agreement will be resolved. In many cases, such provisions require that the parties engage in arbitration, rather than going to court. An implied choice of law provision can be included within an arbitration provision, indicating that the law of a certain jurisdiction will be applied to the dispute.

There are a few reasons why such provisions may be implied rather than explicitly stated. For one, including a detailed choice of law provision can add complexity to an agreement. In cases where the parties are seeking to keep the agreement as simple as possible, this may not be desirable. Additionally, the parties may prefer to have the choice of law determined by an arbitrator, rather than having to negotiate and agree on it themselves.

Despite these potential advantages, implied choice of law provisions can be tricky to navigate. If the parties do not agree on the choice of law, there is a risk that the arbitration will be delayed or even derailed. Additionally, different jurisdictions may have different rules regarding the enforceability of implied choice of law provisions. It is therefore important to consult with legal counsel to ensure that any such provision is properly crafted to meet the parties` needs.

In conclusion, an implied choice of law provision can be a useful tool in simplifying an agreement and streamlining the arbitration process. However, it is important to be aware of its potential pitfalls and to work closely with legal counsel to ensure that it is properly implemented. With careful planning and execution, an implied choice of law provision can be a valuable addition to any agreement.