When it comes to legal contracts and agreements, there is often a lot of technical language that can be confusing for those who are not familiar with legal jargon. One phrase that you may come across is „this agreement shall be governed by and construed in accordance with.“
So, what exactly does this phrase mean?
In simple terms, this phrase is referring to the laws that will apply to the agreement in question. When parties enter into a contract or agreement, they often want to ensure that the agreement is legally binding and enforceable. To do this, they will typically include a clause in the agreement that specifies which laws will govern it.
The phrase „this agreement shall be governed by“ means that the laws of a particular jurisdiction will apply to the agreement. This could be a specific state, country, or even a regional authority, depending on the nature of the agreement.
The phrase „and construed in accordance with“ means that the courts will interpret the agreement according to the laws of the governing jurisdiction. This means that if there is a dispute or disagreement over the terms of the agreement, the courts will look to the laws of the governing jurisdiction to determine how the agreement should be interpreted.
In practical terms, this clause is important because it provides clarity and consistency in terms of how the agreement will be enforced. This can be especially important if the parties to the agreement are located in different jurisdictions or if the agreement covers a variety of legal issues.
However, it`s important to note that choosing the governing law for an agreement is not always straightforward. There may be conflicts between different laws, or a particular jurisdiction may not be the most appropriate choice for the agreement in question. Therefore, it`s important to seek legal advice when drafting or reviewing an agreement to ensure that the governing law clause is appropriate and accurate.
In conclusion, the phrase „this agreement shall be governed by and construed in accordance with“ is an important clause in legal agreements that specifies which laws will apply to the agreement and how it will be interpreted. Understanding this clause is important for anyone involved in drafting or reviewing legal contracts or agreements.