Often times, contracts, including operating agreements for your LLC startup, will have a choice of law provision. Put simply, a choice of law provision is a contract clause whereby the contracting parties agree that a certain state's law will apply to interpret and enforce the agreement.
The following is an example of a choice of law provison: "This Agreement shall be governed by the laws of the state of Colorado."
While courts tend to enforce such clauses when interpreting the agreement, there are time when such clauses will not be enforced and followed by a court. The Boulder business lawyers of LaszloLaw discuss when a court may not enforce a choice of law provision in Colorado.
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