An Act Concerning Choice Of Law.
If enacted, this bill would empower parties entering into large-scale contracts to agree upon Connecticut law as the governing law, which could impact various sectors including business, legal agreements, and commerce. By enhancing the predictability of the legal environment for contracts with foreign entities or non-residents, it could attract more business to the state, allowing Connecticut to become a more favorable location for significant business transactions. However, it excludes contracts related to labor, personal services, and household services, maintaining some level of protection for more personal types of contracts.
Senate Bill 841, titled 'An Act Concerning Choice Of Law', aims to provide clarity and enforceability regarding the choice of law provisions in contracts, particularly those involving significant financial transactions. The bill stipulates that parties to a contract, with a value of at least $250,000, may designate that the laws of Connecticut shall govern their agreements, irrespective of whether the contract has a reasonable relation to the state. This aims to facilitate transactions and provide legal certainty for parties engaging in high-value agreements.
Potential concerns surrounding SB 841 may emerge from its implications for local governance and oversight of contracts involving foreign entities. Critics may argue that it could lead to jurisdictional complications and reduce the ability of state courts to manage cases involving foreign parties effectively. Additionally, there may be concerns regarding the appropriate balance between attracting business and ensuring fair competition and protection for local parties. The exclusion of certain personal service contracts may also raise questions about the bill's comprehensive approach to choice of law issues.