I entered into a contract over the Internet. I’m in Texas and the other party is not, whose law applies?


As a general rule, if a contract made solely over the Internet between a person located in this state and a person located outside this state who does not maintain an office or agent in this state for transacting business in this state, then Texas law applies unless each Texas party:

(1) is given notice that the law of the state in which another party to the contract is located applies to the contract; and

(2) agrees to the application of that state’s law.

(Texas Bus & Commerce Code Sec. 271 & 274)

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