S621 - Business Contracts/Choice of Law and Forum. (SL 2017-123)

Overview: S.L. 2017-123 permits a business contract to provide that:

• North Carolina law will govern the parties' rights and duties under the contract in whole or in part, regardless of whether the parties, the contract, or a related transaction bear a reasonable relation to the State, and regardless of whether a provision in the contract may conflict with a fundamental policy under the law of another jurisdiction that would apply if the parties had not chosen North Carolina law.
• Any action to resolve a dispute arising out of the contract may be brought in the courts of this State.

The act also permits a business contract containing both of the foregoing provisions to specify one or more North Carolina counties in which any dispute arising under the contract must be litigated.

The act became effective on July 18, 2017, and applies to business contracts entered into before, on, or after that date.