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Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
Satisfied Customers: 30168
Experience:  Attorney
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We are a California startup that needs to have a 1-person software

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We are a California startup that needs to have a 1-person software development firm in England develop special software code for a device we will be marketing in the U.S. We are preparing a work-for-hire agreement and have a question about governing law and venue location in the event that litigation is filed to solve a business dispute. We believe the firm may object if the agreement requires litigation to be held under U.S. law and held in California court – resulting in no deal. We need to understand the legal ramifications for these possible choices:
A. Agreement requires U.S. laws and California for all litigation
B. Agreement states that if our company initiates litigation, it will be U.S. laws in California; and if the development firm initiates litigation, it will be England laws in England
C. Agreement omits any statement of which laws apply and venue
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Lucy, Esq. :

Hi, my name is Lucy. How are you today?

Lucy, Esq. :

A. Basically, if you include a provision that CA law governs the agreement, and any disputes must be litigated in CA, if any problems arise, it will be cheaper and easier for you to handle the litigation. They'll have to come to CA, instead of you going there.

Lucy, Esq. :

B. If something happens, and they sue you, then you'll have to hire a UK attorney and make at least one trip to the UK to litigate. You'll also be subject to UK laws, which are different than US laws.

Lucy, Esq. :

C. Practically speaking, the same as B. In addition, if the agreement doesn't say that they are subject to CA jurisdiction, and you file suit against them, they can try to defend by stating that the CA courts have no right to tell them what to do. You would probably win that motion, but there would be additional costs associated with it.

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Lucy,

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