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2 Choice of the law governing the substance of the dispute
What drives decisions about
the law governing the
substance of the dispute?
The influence of corporate policy and robust
negotiation stances of counterparties on
governing law discussed in Section 1 are also
reflected in the results (35% and 37%,
respectively). Consistent with the finding in
Section 1 that governing law is the first issue
decided (according to 51% of respondents),
the choice of seat and institution do not weigh
heavily on the choice of law (26% and 27%
respectively). Place of performance of the
contract (32%) is mainly a ‘quite important’ or
‘somewhat important’ factor and does not
seem to have a particularly strong influence on
the ultimate decision. Least important are the
location of the legal team, recommendations
of external counsel and the location of the
other party.
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