This clause provides the applicable law that will govern the dispute resolution process. In many cases, the laws governing the contract will be those of the jurisdiction in which the contract has been executed. However, if the parties are in different geographical locations, they must come to an agreement as to which laws will apply and which courts will have jurisdiction to resolve disputes and enforce the terms of the contract. When conducting business with parties from out of province or out of the country, it is generally preferable to choose your home jurisdiction if possible. This can reduce costs and ensure that your local lawyer is qualified to give you advice on your agreement. Ultimately, this will help parties determine the outcome for procedural matters and legal issues that may arise between them.An example of this clause includes: All rights and obligations hereunder will be governed by the laws of the Province of [Jurisdiction] and the federal laws of Canada applicable therein, without regard to conflicts of law provisions of such jurisdictions.