What is the choice of governing law in an international contract?

I'm an entrepreneur in Ghana. I hired programers in Serbia. We're both in different countries, and I'm confused about which country's law should be used. In case of any future litigation, where should it be settled? If we agree for Ghana would rulings be recognized in Serbia? Which country's law should be used? This is a Sample Clause I made: "...this contract is a legal document under exclusive jurisdiction of Ghanaian and Serbian courts and shall be governed and construed in accordance with the Laws of the Republic of Ghana." Stop Wanting Answers1


First off, you likely want to have a strong arbitration clause in the contract -- that provision will benefit both parties by avoiding any court altogether. Second, you may want to give thought to having New York law govern the contract rather than picking one country or the other. The arbitration can be held anywhere, and you can pick whatever governing law you want. And if you're going to pick a neutral governing law, in English (as I'm guessing the contract is in English), then New York law is probably the way to go. Or California would be another option.

(All usual disclaimers: This is not provided as legal advice and does not create an attorney-client relationship, etc.)

Answered 4 years ago

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