Newspaper article The Chronicle (Toowoomba, Australia)

Choosing Your Law; Opinion

Newspaper article The Chronicle (Toowoomba, Australia)

Choosing Your Law; Opinion

Article excerpt

SAY A Granite Belt grower supplies fruit to Sydney and the wholesaler doesn't pay. Or a Toowoomba dealer buys antiques from a collector in Geelong, and she refuses to deliver. You need to enforce a contract, but which state's law is used to enforce it? It matters Co and it can matter a great deal.

The law gives businesses the right to choose the law that governs their contracts, and it is always best that, when negotiating contracts, you remember to make that choice.

The Toowoomba dealer and Geelong collector can agree that Victorian law would govern the contract.

Even if the dealer sues in Queensland to recover the antiques, the court would decide the case under Victorian law.

The businesses could even agree to have the contract governed by NSW law as neutral ground which is seen to give neither the Victorian nor the Queenslander any home-state advantage.

That C[pounds sterling]governing lawC[yen] is best written into the contract itself. If it isn't, the courts will themselves find its governing law by looking for the contract's centre of gravity: where are the parties? …

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