Governing law

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Law - international law - contract.

Governing law means the system of law to be applied to determine a dispute under a contract with non-domestic elements, usually specified by a governing law clause in the contract.

In the absence of a governing law clause, the applicable system of law is determined by convention, regulation or general law.

LIBOR transition - USD markets - check the governing law
"Check the Governing Law of your contracts – for example fallbacks may differ depending on the governing law of your contract (e.g. English or New York) as legislative solutions differ by jurisdiction.
Do not assume that all USD contracts work in the same way."
ACT blog - Sarah Boyce - Associate Director, Policy & Technical - June 2022.

Cross-border pooling - importance of differing legal systems
"The governing law for the intra-group cash pooling agreements is often English law for cross-border pooling.
Alternatively the jurisdiction of the parent entity will be stipulated as applicable.
For a Zero Balancing Agreement or a Notional Pooling Agreement, the bank will in many cases provide for a standardised agreement, with the bank’s domicile providing the legal jurisdiction.
Treasurers should make themselves aware of the implications of using differing jurisdictions."
Legal implications of cash pooling structures - the Treasurer's Wiki.

Contracts and other relationships without foreign elements will generally be governed by domestic law.

See also

Other resource