When there is more than one state, or more than one jurisdiction (state court, federal court) with a significant relationship to the parties and circumstances involved in a lawsuit or dispute, the question may arise as to which state or jurisdiction’s laws will govern the lawsuit or dispute. The body of law that determines what law governs a dispute is called conflict of laws and consists of legal principles courts use to determine which state or jurisdiction’s law applies—unless the parties to a dispute have agreed (usually in a contract) on what law will apply.

In New Jersey, as in other states, the body of law known as 'conflict of laws' or 'choice of law' is used to determine which jurisdiction's laws are applicable in a lawsuit when multiple states or jurisdictions have a significant relationship to the parties or the circumstances of the dispute. New Jersey courts will analyze the specific facts of the case and apply choice of law principles to decide which state's laws should govern. These principles often involve evaluating the connections or 'contacts' that the parties and the transaction or occurrence have with New Jersey versus other states. Factors such as the place of injury, the place where a contract was executed or to be performed, and the domicile or residence of the parties may influence the court's decision. Additionally, New Jersey courts may consider the governmental interest analysis, which weighs the interests of the involved jurisdictions in applying their laws to the case. If the parties have a valid contract that includes a choice of law provision, New Jersey courts will generally honor that agreement, unless it violates a fundamental public policy of the state.