Contract law federal or state

Contracts are promises that the law will enforce. Contract law is generally governed by the state Common Law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the Contract may vary between the states.

Contracts are usually governed and enforced by the laws in the state where the agreement was made. Depending upon the subject matter of the agreement (i.e. sale of goods, property lease), a contract may be governed by one of two types of state law: The Common Law.Answer: The short answer is that it is generally up to the parties to select the state whose laws will govern interpretation of the contract, and there is no one “correct” state that you have to select. Only in rare instances will a court override the state of governing law specified in a contract.