Why would a contract have both a choice of forum clause and a governing law clause?

What does each clause control?

The governing law clause controls how the contract is interpreted. It decides what legal standards apply, such as what counts as a breach or what damages are allowed.

The choice of forum clause controls where a dispute is heard. This could be a specific state court, federal court, or arbitration location.

Why include both instead of just one?

Using both removes uncertainty. Without them, parties might argue over both which law applies and where the case should be heard.

It is also common to mix them. For example, a contract may apply one state's law but require disputes to be handled in another state for convenience or balance.

What to do next...

1. Review both clauses to see how they interact.
2. Check if the forum location is practical for you.
3. Confirm the chosen law is reasonable for your business.
4. Clarify any conflicts before signing.

What to consider in your specific situation

While these clauses are standard, how they affect you depends on your contract details.

• The states chosen for law and forum.
• Travel and cost of resolving disputes in that location.
• Differences between the selected state laws.
• Whether arbitration or court is required.
• The balance of negotiating power between parties.
• The complexity and risk of potential disputes.

Having both clauses can make disputes more predictable—but only if they are clear and aligned. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.