NC General Statutes

N.C. Gen. Stat. § 1G-3 (2026)

Choice of North Carolina law in business contracts

✓ current as of July 2026
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(a) Choice of Law. - The parties to a business contract may agree in the business contract that North Carolina law shall govern their rights and duties in whole or in part, whether or not any of the following statements are true:

(1) The parties, the business contract, or the transaction that is the subject of the business contract bear a reasonable relation to this State.

(2) A provision of the business contract is contrary to the fundamental policy of the jurisdiction whose law would apply in the absence of the parties' choice of North Carolina law.

(b) Controlling Law. - To the extent this section conflicts with G.S. 25-1-301(c), G.S. 25-1-301(c) controls. (2017-123, s. 1.)

 

Notes of Decisions
Cited in 5 cases (3 in the last 5 years), 2019–2023 · leading case: Volvo Grp. North Am., LLC v. Forja De Monterrey S.A. De C.V. (M.D.N.C. 2019).
Volvo Grp. North Am., LLC v. Forja De Monterrey S.A. De C.V. (M.D.N.C. 2019). · cites it 4× “Pursuant to North Carolina General Statutes § 1G-3, parties to a business contract may now agree “that North Carolina shall govern their rights and duties in whole or in part,” regardless of whether the contract bears a reasonable relation to North Carolina or is contrary to the…”
Volvo Grp. N. Am., LLC v. Roberts Truck Ctr., Ltd., 2020 NCBC 28 (N.C. Bus. Ct. 2020). · cites it 3× “While Volvo and Mack are headquartered in North Carolina and the parties agreed that the Settlement Agreement would be governed by North Carolina law (though they were not limited to that choice, see N.C.G.S. § 1G-3), it does not follow that the Agreement was based on or…”
Carolina Med. Partners, Pllc v. Shah, 2023 NCBC 6 (N.C. Bus. Ct. 2023). · cites it 3× “” N.C.G.S. § 1G-3. 19. Perhaps South Carolina law would apply to extracontractual conduct, as the Patels contend.”
Izzy Air, LLC v. Triad Aviation (N.C. Ct. App. 2022). “§ 1G-3 (2020). In this case, the operative portion of the Warranty states, “in the event of a dispute on this Warranty the laws of the State of North Carolina shall apply.”
Izzy Air, LLC v. Triad Aviation (N.C. Ct. App. 2022). “§ 1G-3 (2020). In this case, the operative portion of the Warranty states, “in the event of a dispute on this Warranty the laws of the State of North Carolina shall apply.”
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