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Delaware Superior Court Explains Limits Of Choice Of Law In Contracts

Posted In Choice of Law

Change Capital Partners Fund I, LLC v. Volt Electrical Systems LLC, C.A. N17C-05-290 RNC (April 3, 2018)

This decision holds that a contractual provision adopting Delaware law will generally be upheld.  However, when applying Delaware law will violate the public policy of another state whose law would have applied but for the contractual choice of law, Delaware will not enforce that choice of law.  This distinguishes the Ascension case that declined to apply Delaware law to a non-compete contract that violated California law.