AMERICAN CLAUSE Meaning and
Definition
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The term "American clause" refers to a specific provision that is commonly found in international contracts or agreements. It is a contractual clause that grants one party the right to choose American law as the governing law for any legal disputes or litigation that may arise from the agreement.
The American clause typically allows parties from different countries to opt for the application of American law instead of the local laws of their respective jurisdictions. This stipulation is often sought after due to the perceived advantages and predictability of the American legal system, especially in international business transactions.
By including an American clause, parties can ensure a degree of familiarity and comfort, as American law is often seen as more comprehensive and well-developed in certain areas of commercial law. It provides a level of assurance and clarity for contractual parties who may be wary of unfamiliar legal systems in other nations.
The American clause also offers predictability and consistency in legal outcomes, as it allows the parties involved to anticipate how disputes or breaches of the agreement will be resolved. Additionally, the familiarity of American law can be beneficial in contracts involving multinational entities with operations or assets in the United States.
It is important to note that the inclusion of an American clause does not automatically grant jurisdiction to American courts, but rather establishes American law as the governing law, which will be applied and interpreted by the relevant legal system or arbitral tribunal.
