Select Mandatory Construction Choice of Governing Law Statutes
Select Mandatory Construction Choice of Law Statutes
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Tex. Bus. & Com. Code §35.52 (Repealed in 2007) |
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Choice of Governing Law in Construction Contracts and Architects Agreements
Choosing The Governing Law - Choice of Law Clauses
Like most other contracts, construction contracts and architects agreements usually have a section on governing law - the choice of law clause. Choice of law clauses are usually good things. Contracting parties choose what law will govern the contractual relationship between them before they enter into the contract - while they're still on good terms, before they're polarized by confrontation and the posturing of their lawyers.
You can spend years and many thousands of dollars fighting not over the actual merits of who did what, whether they did it right, or paid enough when they were supposed to, but instead fighting over the law of which state should govern the dispute. If you don't choose governing law in advance, odds are good that you'll get to experience that fight. If you choose governing law in your contract, and choose it well, odds are you can save your powder for something more important.
A choice of law clause first needs to choose which jurisdiction's law will govern. In the U.S., this is going to be state law because the law governing contracts and most other private relationships in the construction context is state law (e.g., contract law, tort law, agency law).
Construction Law Today is a legal blog about construction contracts, disputes, finance, and the people whose job it is to deal with them.
