52.233-4
Applicable Law for Breach of Contract Claim
All breach of contract claims under covered federal contracts must be resolved under United States law, ensuring consistency and predictability for both parties.
Overview
- FAR 52.233-4 establishes that United States law governs the resolution of any breach of contract claims arising under the contract. This clause is required in contracts as specified by FAR 33.215(b), ensuring a consistent legal framework for dispute resolution between contractors and the government.
Key Rules
- Applicable Law
- Any breach of contract claim under the contract will be resolved according to U.S. law.
- Mandatory Clause
- This clause must be included in contracts as directed by FAR 33.215(b).
Responsibilities
- Contracting Officers: Must ensure this clause is included in applicable contracts.
- Contractors: Must recognize that U.S. law will govern breach of contract claims and prepare accordingly.
- Agencies: Must oversee compliance with clause inclusion and application.
Practical Implications
- This clause provides clarity and predictability for both parties by specifying the legal framework for resolving disputes. Contractors should be aware that foreign or state laws will not apply to breach of contract claims, which can impact legal strategy and risk assessment. Failure to include this clause or misunderstanding its implications can lead to disputes over jurisdiction or applicable law.