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90_SB0952
New Act
Creates the Choice of Law and Forum Act. Provides that
the parties to a contract relating to an obligation arising
out of a transaction covering not less than $250,000 may
agree that the law of this State shall govern their rights or
duties regardless of whether the contract bears a reasonable
relation to this State, and provides that a person may
maintain an action in this State if those conditions have
been met; sets forth exceptions. Effective January 1, 1998.
LRB9002543DJgcB
LRB9002543DJgcB
1 AN ACT providing for choice of law and forum.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Article may be cited as
5 the Choice of Law and Forum Act.
6 Section 5. Choice of law. The parties to any contract,
7 agreement, or undertaking, contingent or otherwise, in
8 consideration of or relating to any obligation arising out of
9 a transaction covering in the aggregate not less than
10 $250,000, including a transaction otherwise covered by
11 subsection (1) of Section 1-105 of the Uniform Commercial
12 Code, may agree that the law of this State shall govern
13 their rights and duties in whole or in part, whether or not
14 the contract, agreement, or undertaking bears a reasonable
15 relation to this State. This Section shall not apply to any
16 contract, agreement, or undertaking (i) for labor or personal
17 services, (ii) relating to any transaction for personal,
18 family, or household services, or (iii) to the extent
19 provided to the contrary in subsection (2) of Section 1-105
20 of the Uniform Commercial Code. Nothing contained in this
21 Section shall be construed to limit or deny the enforcement
22 of any provision respecting choice of law in any other
23 contract, agreement, or undertaking.
24 Section 10. Choice of forum. Any person may maintain an
25 action or proceeding against a foreign corporation,
26 non-resident, or foreign state if the action or proceeding
27 arises out of or relates to any contract, agreement, or
28 undertaking for which a choice of Illinois law has been made
29 in whole or in part pursuant to Section 5 and that (i) is a
30 contract, agreement, or undertaking, contingent or otherwise,
-2- LRB9002543DJgcB
1 in consideration of or relating to any obligation arising out
2 of a transaction covering in the aggregate not less than
3 $250,000 and (ii) contains a provision or provisions under
4 which the foreign corporation or non-resident agrees to
5 submit to the jurisdiction of the courts of this State.
6 Nothing contained in this Section shall be construed to
7 affect the enforcement of any provision respecting choice of
8 forum in any contract, agreement, or undertaking.
9 Section 99. Effective date. This Act takes effect
10 January 1, 1998.