As a professional, I understand the importance of using clear and concise language in all forms of content. This includes legal documents such as contracts and agreements. One phrase that often appears in such documents is «this agreement is governed by,» which can have significant implications for both parties involved.
In essence, when a contract or agreement includes the phrase «this agreement is governed by,» it means that the terms of the agreement will be subject to the laws of a particular jurisdiction. This allows both parties to understand which laws will apply in the event of a dispute or disagreement.
However, it`s important to note that simply including this phrase in a contract or agreement is not enough to ensure that the terms will be enforceable under the laws of the chosen jurisdiction. The language and specificity of the clause are also crucial.
For example, a clause that simply states «This agreement is governed by the laws of the state of California» may not be enough to clearly establish which laws will apply. Instead, it`s best to provide specific details about the chosen jurisdiction, such as the name of the state or country and any specific statutes or regulations that will apply.
In addition to providing clarity about the laws that will govern the agreement, including a «governed by» clause can also help to establish the jurisdiction in which legal disputes will be resolved. This can be particularly important if the two parties are based in different states or countries and may have different legal systems.
When drafting a contract or agreement, including a «governed by» clause is an essential step in ensuring that both parties understand the laws that will apply to their relationship. By using clear and specific language, it`s possible to create an enforceable agreement that protects the interests of both parties. As a professional, I would recommend using this phrase in all legal documents that require a clear understanding of the governing laws.