Governing law

Which state's law the contract says will control disputes.

Why it matters

Governing law can affect contract interpretation, remedies, fees, and dispute process. It should be reviewed with forum and venue language.

Related terms

Related article: Default clauses in factoring agreements

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.