IL Bar Practice Questions - Illinois Bar Examination Exam

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A contract contains a valid choice-of-law clause selecting State C's law. A dispute arises and is litigated in State D. Generally, how will State D treat the clause under modern conflict-of-laws principles?

State D will ignore the clause and apply its own law State D will generally enforce the clause if State C has a substantial relationship to the parties or transaction and the choice is not contrary to a fundamental policy of a more interested state Choice-of-law clauses are never enforceable State D must apply the law of the place of contracting regardless of the clause

Correct Answer:

State D will generally enforce the clause if State C has a substantial relationship to the parties or transaction and the choice is not contrary to a fundamental policy of a more interested state

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